Knoepel

Discuss the contributions of Drucker, Taylor and Knoeppel to Business Analysis

There is no definite technique in analysing a business. Different individuals have developed their own theories which they deem compelling. In what follows an account of the contribution of three key authors in business analysis is given. These include Drucker, Taylor and Knoeppel. Charles Knoeppel theory of graphical production control will be firstly discussed. Knoeppel emphasises on the importance of using graphical charts to visually represent the activities of an organization. This will be followed by an analysis of Peter Drucker’s theory of Perfect Competition in which he firmly believes that there are no constraints on businesses in choosing their product prices and in choosing how to sell their product. Finally Federic Taylor’s contribution of business analysis is discussed. Through observation and experience he derives that there is only one best way of doing a job and this can be determine by using scientific method.

Charles Knoeppel in 1919 presented a series of article on ‘Graphical Production Control’. His aim was to explain how graphical charts could be used to visually represent the manufacturing activity as a relationship between revenues and cost incurred in production. The purpose of this calculation was to be able to analyse and control an organization. He believed that analysis was the determination of what is to be done, the manner of doing and what it should cost in time and money, and control was to either measure up to the standard of production or attempt to attain it. With this the manufacturing world can be assured that they will secure maximum profit. Knoeppel work was considered important because it combines the measurement of standard times to do the work with the cost of performing the operations. According to Knoeppel, business analysis using graphical production control not only ‘control production’ but leads to better strategic organization....