Posted: November 19th, 2022

The purpose of business

The purpose of business
Write a paper on “What is the Purpose of Business?” Support your ideas and opinions with literature both from the course and outside sources you research (e.g. library databases). Conclude the paper with how your view might impact how you will lead a business or lead within your current position/organization.
Page Limit: 3 pages (does not include title page, references, appendices or other auxiliary pages)
Follow APA guidelines for formatting and citations.

The purpose of business
Several businesses exist. Banking, processing, manufacturing, and service companies all exist for one common goal, business purpose. This purpose must be laid down and acted upon to achieve the business success. A business purpose is basically to create customers/clients (CX Journey, 2014). The objectives include; to provide services and goods to customers, and to offer employment opportunities to those already in the business. This initial goal is what will ultimately result in profit maximization for the shareholders and the business itself. Moreover, a business must be able to meet both the community and the customer needs.
Any business must uniquely appeal to people who are ever faced with challenges and problems they need to overcome and solve. The main agenda should not necessarily focus on making money, but should concern the customers, employees, and the society. The mentioned entities enhance marketing, business brands, advertisements, et cetera. In an economist point of view, markets enable businesses to thrive. Nature and economic forces do not create markets, but businessmen do. Clients and customers have various wants that they want to satisfy, and the business offers the means of satisfying them (CX Journey, 2014). For businesses to satisfy peoples’ wants there is need for active marketing and advertisements that the businessmen must ensure are effective. Studies show that there could have been no wants at all until the action of business such as; salesmanship, advertising invented something new for the people. A business seeks to provide basic goods and services as well as improve standards of living. The products that a business produces should contribute in meeting basic and less critical needs of the clients and customers. In all the above cases, it is these business actions that create customers.
After the creation of customers/clients, they later define what a business is to the people it serves. Business thrives through the willingness of clients or customers to pay for services and goods, uniquely created to meet their present needs. This action/process is what converts things into goods, and economic resources into wealth. What a business produces is never of more importance for the future success of the business than what the customers think are of value and they ought to buy. The products of value enable quick decision and are what identify what a business is, in terms of whether it will prosper.
Because the main purpose of a business is to create a customer, it has two main functions; innovation and marketing. Marketing is a unique and a distinguishing function of any business. The action point is to identify the current needs of customers and determine the best products that meet the customers’ need, which define the main purpose of business.
In order to deliver, the business must understand customers. To understand the customers, the business must develop the personas that shift a business focus on customers (outside-in) rather than inside-out. Second, a business should put its experiences in a perspective of customers, thinking of them a real human. Third, everyone within an organization should understand their customers and be obsessed by their needs. Also, the business should deter people from forming opinions on the customers but instead put everybody on the same page. Fifth, the business must develop empathy for all customers, bring them to life and finally engage and have an ongoing understanding of its clients or customers.
Innovation, on the other hand, enables business sustainability through creating a long-term relationship with customers. This transaction is not a quick one since to be sustainable, a business must operate profitably, offer incentives for capital. The necessary skill to achieve this purpose is through technopreneuship/innovation. Focusing on businesses such as Facebook, Boeing, Amazon, et cetera, it is not the profitability that gives the pride to customers but the meeting the customer’s needs.
A business should communicate and foster a higher purpose that attracts customers, employees and opportunities. When a business focuses on these elements, when business focus they achieve the key purpose of the business. The business purpose should attract people, a culture, or uplift trust (Clark & Babson, 2011). People often commit to products, services, and stories that a company innovates in a simple and attractive manner.
In conclusion, to lead a business, it is not about how much money it is going to make. This aim would be unsatisfactory because it is not a sufficient reason or justification for a commercial body to exist. In the same case, we make and use money in our daily lives; however, this reasoning would not satisfy why we work. In an economic aspect, making money would barely be translated as wanting staff. This cannot be the major motivation of a business. However, in order to achieve the success of a business, we must deal with and understand clients or customers, the major objects in the thriving of a business. In this contemporary world, where the society is constantly becoming larger, it is useful that the business focuses on its needs and supplies them appropriately. This direction would not a mere altruistic behavior, but it is rather satisfying because of the recognition a business gains due to its unique production. In this view, a business would be so satisfying in its activities. In a summary, we should take note of the following when starting a business. First, satisfied customers and clients are the major drivers for a business success. Second, the innovativeness of a business helps it to attain the needs of the people and solve their problems. Lastly, marketing enhances the profitability and the success of a business.

References
Clark Jr, W. H., & Babson, E. K. (2011). How benefit corporations are redefining the purpose of business corporations. Wm. Mitchell L. Rev., 38, 817.
CX Journey. (June 17, 2014). What Is the Purpose of a Business? Retrieved from http://www.cx-journey.com/2014/06/what-is-purpose-of-business.html

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