Theory of the Business

The Theory of the Business is a concept that describes the fundamental assumptions and beliefs a company holds about its market, customers, and how it delivers value. It serves as a framework for decision-making, guiding strategies and operations. Essentially, it outlines how a business thinks it can succeed, covering aspects like target audience, competition, and value propositions. When a company’s theory aligns with reality, it thrives; if not, it may struggle. Regularly assessing and adapting this theory helps businesses stay relevant and responsive to changes in their environment.