Foma File: From Customer to Shareholder
There are two sentences that describe two different worlds. “The purpose of business is to create and keep a customer.” - Peter Drucker “The purpose of a corporation is to increase shareholder value.” They sound compatible. They are not. 1. Two Definitions of Reality Drucker begins with the customer. If you cannot create or keep one, nothing else matters. Revenue is earned. Profit follows. Value exists outside the firm - in the relationship with the customer. ...