21A – Reading Reflection No. 2

Innovation and Entrepreneurship, Peter Drucker                          

1)    What was the general theme or argument of the book?

Despite the belief that the mid-17s were coined the ‘no-growth period,” that era create countless jobs which filled up the loss that was being felt in lost jobs in traditional sector. Society was transforming from a managerial to an entrepreneurial economy. Entrepreneurship needs to be a constant in our society just like our focus on management. We need to continue to focus on how our products and services create value to customers. Making customers profit from each transaction and being able to communicate how they are profiting will be the key to keeping your business profiting. Customers should come first.

2)    How did the book, in your opinion, connect with and enhance what you are learning in ENT 3003?

Sometimes the consensus about what is trending (ie. high tech) or where is trending (ie. California) doesn’t necessarily align with what data has to say. Additionally, the focus on solely “high-tech” venture seen in France is unsustainable when data shows that a naturally, healthy entrepreneurial culture is built on mainly low to no-tech venture; therefore, it’s okay if your product isn’t high-tech. It doesn’t need to be to succeed. The focus should be to make the next Google, but to create something that will being more value to customers. Whether that be high tech or not isn’t what we should focus on.

3)    If you had to design an exercise for this class, based on the book you read, what would that exercise involve?

Chose a company that you would like to work for and analyze their pricing strategies. Determine if their strategy is cost based, value based, differential, etc. Determine if there is a more efficient way to price their product or service. Are they focusing on covering their costs and generating an acceptable amount of revenue at the cost of alienating their customers who don’t value their product/service at the price they are currently priced at? Determine the different and major market segments your company is targeting and whether they are pricing their products differently for each. Are they pricing it correctly? Explain how they can more efficiently price their product to communicate to their customers the value of the product they are buying.

4)    What was your biggest surprise or 'aha' moment when reading the book? In other words, what did you learn that differed most from your expectation? 

Something that was prevalent in the entire book was how Drucker treated entrepreneurship. He didn’t focus on the characteristics necessary to make a successful entrepreneur or make entrepreneurs seem like gods among men, which is what most media seems to do to famous entrepreneurs. They put them on pedestals and focus on characteristics rather than action. The lens that Drucker wrote this book through was honestly refreshing.