Analyze the role of knowledge as source of power in business.

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

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In business, knowledge is a major source of power because knowledge is needed to be able to identify business opportunities and to be able to exploit those opportunities once they are identified.

Knowledge is needed in order to know what opportunities exist for making money.  In order to know whether to start a business, it is important to have a knowledge of the market in a given area (whether, for example, there is unfulfilled demand for a given product in that area).  Because of this, a businessperson with knowledge is more likely to succeed in starting a business than one without.

Knowledge is, of course, needed to exploit opportunities.  A businessperson needs technical knowledge about the process of making a product.  It is also useful to have knowledge about things like management and advertising.  All of these kinds of knowledge are important if a person is to be able to make use of opportunities to make money.

Without knowledge, a person is unlikely to do well in business.  In this way, knowledge is an important source of power.

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