The live Zoom sessions for the 21st edition of the Tekedia Mini-MBA will begin on Saturday at 7:00 p.m. WAT. I will open our academic excursion with a lecture on the mission of firms and the fundamental reason companies exist.
That understanding is foundational as we begin a 12-week journey to master the mechanics of building great companies and advancing professional careers.
Every company has three primary elements with which to operate: tools, people and processes. How those elements are assembled, organized and combined will determine the capacity of the firm to transform inputs, including the foundational factors of production, into outputs, to fix market frictions. That transformation of inputs into outputs is what companies do. But business is not a game in which companies award themselves points. The output must resolve a friction experienced by the customer.
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When a company creates a great product or service, customers respond by supporting its mission. They pay because the company has solved a problem for them. Hahaha…when they pay, the company earns revenue, and that revenue becomes the compensation for removing the friction. We will examine case studies.
In secondary school physics, friction is a resistive force that must be overcome by another force before an object can move from one state to another. Business operates on the same construct.
A hungry person faces the friction of hunger. Food becomes the force that moves that person from hunger to satisfaction. Making that “force of food” exceptional is the foundation of a great restaurant business.
In all forms and dimensions, companies create forces called products and services. The finest companies become known by the quality and relevance of the forces they produce to overcome frictions: Apple for the iPhone, Dufil Prima for Indomie noodles, Dangote for cement and McKinsey for advisory services.
Build a great force, deploy it against an important market friction, and the market will reward your mission. Your customers will become your finest investors, funding your progress through their purchases. That is why companies exist: they are the most effective vehicles ever invented for organizing the factors of production to create products and services that resolve frictions in markets.
I welcome everyone to Africa’s finest school for understanding the physics of entrepreneurial capitalism. We continue to welcome co-learners; join us here as we begin https://school.tekedia.com/course/mmba21/
Ndubuisi Ekekwe
Lead Faculty, Tekedia Institute
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