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Peter F . Drucker holds a question and answer session about small and large businesses, specifically, what to do when a small business grows, as well as what to do with an organization’s excess cash. He discusses if it is wise to hire the son to run the family business; which age groups in business will be the most dominant; the growing and extended life of the older population; what to do with a founder of a company who does not realize he has to change; the role of management and employees within an organization; and the future of business-which three aspects will change the most. With respect to the growth of a small business, he says it depends on the size of the market. For smaller markets with few entrepreneurs, it is best to diversify to gain greater wealth. For larger markets, the business must concentrate its product or service. If there is excess cash, it is best to return money to the shareholders. Regarding what to do with a son running the family business, he says he must prove himself outside of the organization. The largest age groups that will be the most dominant include working men and women in their mid-30s and up. However, this is complicated because these career professionals have families, and their children need their parents. The next largest age group is the older population (senior citizens). Senior citizens are financially stable because their children are grown up and the mortgages are paid off, but their largest expense is their medical bills. Because older people are living longer, one of the fears of the older population is that they will outlive their financial resources, and they must depend on their children. With respect to the founder of the company who does not want to change, an employee ultimately cannot do anything, and rather he or she should leave the company, and definitely not wait. Regarding the role of human capital in a business, one of the most important things a business controls is the allocation of people—an organization must place its people where they can make the biggest contribution. Lastly, the industries that will change the most include: manufacturing, finance-foreign exchange, and personnel. The video begins with the lecture in progress.
Drucker, Peter F. (Peter Ferdinand), 1909-2005 George Washington University Management Business enterprises Business Business administration Family-owned business enterprises Families Lectures and lecturing
Color videocassette: A Day with Peter Drucker, part III; George Washington University lecture series; Tape 3 of 3; ¾ inch VHS cassette