Business Philosophy: definition, examples, importance, mission statement, Business philosophy of Amazon, Amazon’s philosophy.If you wish to unify your team, enhance your relationships with your customers, and build an ethical foundation within your company, you may want to create a business philosophy.
You can make your company’s operations more successful by developing an impactful business philosophy that leaves a long-lasting, positive impression on your clients and your team. Reviewing business philosophy examples can help you put together one that’s right for you.
You can use all of the examples we’ve provided in this article to develop a business philosophy for your own organization, or you can use them to create your own you can evaluate.
Definition: Business Philosophy
The business philosophy is the set of beliefs and principles a company works to achieve its objectives.
The following examples will help you come up with your own business philosophy:
Creating a culture of inclusion and belonging where everyone is welcome.
We strive to exceed our customers’ expectations at every turn and hold ourselves accountable.
Looking for new ways to grow our organization and ourselves by embracing change and innovation
Our decisions are always based on what our customers need. In every aspect of our business, we aim to exceed the expectations of our customers and create a giving culture.
Innovation is one of the things we value most, we foster an inclusive culture, and we make fast, informed decisions to benefit our customers.
We are committed to delighting our customers by continually exceeding their expectations, creating visually appealing and effective products, and creating a corporate culture that rewards innovation and creativity.
As a company, we strive to provide exceptional results in the shortest amount of time, embrace trends and practice sustainable practices, and make a positive impact on the world.
Our fast-paced environment encourages us to build long-term relationships that benefit not only the company but also our customers. As a company, we are committed to being a partner to our clients and combining traditional values with innovative ideas to deliver unparalleled service.
Philosophy is defined by Webster’s Dictionary as a system of motivating or fundamental principles that serve as the basis for beliefs or actions. Business management may wonder how this definition relates to success in the world of business.
A solid philosophy is a cornerstone of business success, as company managers and owners may be surprised to discover. It is easier to build a productive and cohesive organization that can handle any challenges that may arise once you understand and develop the philosophy for your business.
It is similar to a roadmap for a company to have a business philosophy. If you were visiting a new city, you would find it frustrating to navigate without a map or GPS. There is no way for you to know how long it might take to get to different places or how to get there. In the same way, a company with no solid business philosophy can be likened to a ship without a rudder.
The employees often feel lost when handling their daily work tasks when they don’t understand the company’s values or goals. Therefore, employees don’t always provide the best possible customer service or work effectively. The key to avoiding such issues is to establish a clear mission statement and articulate the company’s vision.
As important as a business plan, a mission statement is one of the most important elements of any organization. With just a few succinct sentences, it captures the essence of your business’s goals and the philosophies behind them. Additionally, the mission statement explains what your business is all about to your customers, employees, suppliers, and community members.
Your mission statement should reflect everything about your business: your range and nature of products, pricing, quality, service, market position, growth potential, technology, and your relationships with your customers, employees, suppliers, competitors, and the community.
According to Rhonda Abrams, author of The Successful Business Plan: Secrets and Strategies, a mission statement clarifies what business you are in, your goals, and your objectives.
If your business has a niche, your mission statement should reflect that. However, studying the statements of other businesses may inspire your own.
The following is an example of a mission statement developed by Abrams:
As a spunky, creative company offering a wide range of food products and services, AAA Inc. is committed to offering our customers high-quality, reasonably priced food with natural ingredients. The company aims to become a regionally recognized brand name by capitalizing on the sustained interest in Southwestern and Mexican cuisine. It’s our goal to maintain a sense of humor while maintaining moderate growth and profitability.”
Consider the statement an entrepreneur developed for her consulting business: “ABC Enterprises is committed to developing human potential”. We strive to help people create innovative solutions and make informed choices to improve their lives.
Through our motivation and encouragement, we strive to help others reach their personal and professional goals. We believe that together, the best of each of us enriches the best of all of us.
Business philosophy of Amazon
Four principles guide Amazon: customer obsession rather than competitor focus, passion for innovation, commitment to operational excellence, and long-term thinking. Amazon aims to be Earth’s best employer, Earth’s best customer-centric company, and Earth’s safest workplace.
Four strategic elements make up Amazon’s mission statement;
Amazon is obsessed with meeting the needs of its customers, whether it’s convenience, comfort, or easy execution of tasks.
Through its e-commerce website, which is user-friendly, highly responsive, and optimized for mobile, Amazon also offers the best user experience (UX) and customer experience (CX). The company considers its customers to be the lifeblood of its online retail business and the most important stakeholder group.
Widest variety of products
The third component illustrates Amazon’s commitment to providing customers with a wide selection of products. Amazon offers a variety of products, including apparel, consumer electronics, jewelry, gardening tools, and toys.
Although it already offers more than other stores, Amazon is focused on making its platform a one-stop shop for all other products and services.
“To offer its customers the lowest possible prices” is the fourth and final commitment in Amazon’s Mission Statement. In general, Amazon’s prices are lower than the prices of most other retailers.
For other retailers to follow, e-commerce giant Amazon has set the standard for value for money for customers.
In the e-commerce market, Amazon is focused on international leadership. The company currently operates in different countries worldwide.
Thus, the retailer plans to expand its e-commerce platform to cater to consumers in those untapped markets. Amazon seeks to expand globally so that consumers can shop for anything online from anywhere in the world.
Amazon has developed and nurtured a highly effective “Day 1” philosophy which has driven the company’s growth over the years and is based on ten components:
Avoid not invented here mentality
By eliminating limitations imposed by ‘not invented here,’ stakeholders can learn from internal and external sources to bring in new and innovative ideas. Amazon is synonymous with e-commerce even though Jeff Bezos did not invent it.
Amazon’s philosophy is to empower people with profitable options to make a living, whether they are content creators or enterprises. Furthermore, Amazon provides flexible options for customers to access cheaper products.
The empty chair
An empty chair was typically brought into boardroom meetings in the early years to represent the customer and ensure that their needs and desires are taken into account. With time, the philosophy of obsessing over the customer becomes apparent from top to bottom.
Amazon does not subscribe to the concept of following a chain of command. Businesses can choose between Type 1 and Type 2. Type 1 decisions are irreversible, but Type 2 decisions are reversible. Type 2 permits all stakeholders to make decisions without supervision at Amazon.
Calculated risk taking
Taking calculated risks is important to Amazon. A strong experimentation culture is nurtured as a process of attaining inventive and innovative ideas by the founder of the company, who believes “failure and invention are inseparable twins.”
Build the right culture
Over time, all stakeholders became instinctively aware of the importance of timely and cost-effective operations as Amazon built a fast-paced and cost-conscious culture.
You can use Amazon’s platform as a service (PaaS) instead of developing your own e-commerce website. Millions of people across the globe have set up virtual stores thanks to Amazon’s shared economy philosophy.
Respect to all
In addition to hiring for diversity, Amazon emphasizes the value of treating everyone with respect by allowing everyone the opportunity to pursue their dreams.
Although it is impressive to deliver millions of packages worldwide, it doesn’t matter if even 1% of the packages were late or not delivered. 99% will never be satisfactory to Amazon, and it will not be satisfied until it is 100%.
Every stakeholder is an owner.
Read also: What is business ethics?
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