Part I - Understanding the Business - consists of eight chapters and stresses analysis and understanding. It deals with what Drucker terms "business realities", or the situation most likely to be found in any business at any given time. It discusses the relationship between results, resources, efforts, opportunities and expectations. It further discusses cost centers and cost structure, but also methods for understanding the business from the "outside". Chapter 8 - This Is Our Business - can be seen as a summary for this first and longest part of the book.
Part II - Focus on Opportunity - focuses on opportunities and leads to decisions. It discusses the opportunities and needs in each of the major economic dimensions of a business: making the present business effective, finding and realizing business potential, and making the future of the business today. In particular, this last issue has become a Peter F. Drucker-trademark.
The final part of the book, Part III - A Program for Performance, discusses how to translate insights and decisions into purposeful performance. This sounds simple but it is not. Through fairly short chapter, Drucker explains that key decisions have to be made regarding the idea and objectives of the business, choice of excellences, and points of focus. It also requires a number of strategic choices. Last, but not least, Drucker also discusses the managerial structure required for reaching the right performance. The Conclusion rephrases the thesis on the individual executive and his commitment, in particular on the commitment of top management.
This book was originally published in 1964, but it is still very readable. Yes, perhaps some of the examples are outdated but nevertheless. It draws on Drucker's experience as a consultant with all types of businesses and industries, and this shows itself into the hundreds-and-hundreds of examples throughout the book. And although Drucker makes management sound very simple, he knows that it is not. However, the tools and techniques that he offers in this book are very usable and will save you enormous amounts of time. Highly recommended to all readers interested in management. The book is written in simple business US-English.
One of the notable accomplishments of this book is its combining specific economic analysis with a grasp of the entrepreneurial force in business prosperity. For though it discusses "what to do" more than Drucker's previous works, the book stresses the qualitative aspect of enterprise: every successful business requires a goal and spirit all its own. Peter Drucker again employs his particular genius for breaking through conventional outlooks and opening up new perspectives--for profits and growth.