10 Reasons why Business Graduates preferred to be CEO.

                                                               (Compare with Engineering Graduate.)

As the time passing, competition among organization is increasing. Every organization is adopting every sort of tactic, like by providing the best services to their customers by utilizing up-to-date technology. As the ultimate objective or goal of any business concern is to earn profit. The profit is mathematically defined;

                                      Profit = Revenue-Cost.

Every firm wants to get maximum revenue against low cost of product. This objective is achieved by applying four basic function of management that are; Planning, Organizing,     Leading and Controlling. So we may altogether say that to control all these function we need a business professional that can handle such like complex situation to help the organization to achieve it goal.

But on the other hand there are 10 ways why the business professional to be preferred by organization to be CEO over an Engineering Graduate?

1.     There are three levels in organization; First level (technical work), Middle level (to supervise first level), Top level (Board of Directors, CEO). The CEO belongs to Top level management. At Top level the major work of the management is to handle all the departments of organization. There is no need to know in-depth engineering knowledge, means it is administrative work so business graduate will be preferred.

2.     The most important challenge for a CEO as a head of the organization is to make polices in such a way that the organization can capture market share and earn profit in future. A person having background in business and know-how of business must be preferred to be CEO.

3.     Frequently contracts are signed with other organization or government on certain issues or to present organization plan to outsider, there is great need for a person to have excellent verbal and communication skills. A business graduate is the best option for this purpose because he having all such that abilities to deal with such situations.

4.     There is great need of coordination among employees such that there must be teams groups and other formal arrangements are made to make a good organizational environment. All such topics are the topics of business and not of Engineering so the former shall be the choice.

5.     Organizations are run on the principles provided by Government, like Taxation polices, salary rules (Pension, Provident funds, Social Security), Industrial laws, Corporate Laws and other rules. To understand and to deal with all such laws is a tough job. If someone is illiterate in all these things is illiterate in business. A business professional having excellent and up-to-date command on this topic will be preferred.

6.     The multinational organization invest in foreign countries, framework of polices are designed relating to investment, whether there should be made investment or to select some place else. Here there is great need of decision making. I think there is no bigger decision maker than a person having business background.

7.     If a organization want to expand it business it is too much necessary to have sufficient fund, if it don’t have fund that to expand it business is out of question. Here is one solution to get loan from bank or to sell share in stock exchange. To play with banks or with stock market is a complex game. Any one highly qualified person can handle such problem. A CEO having business background is 100% fit to face this problem.

8.     Organization must make good communication with customers. Because Japanese says, King to Customers. Some one need to have knowledge of Consumer Behavior, which is the topic of Economics and Marketing. A business professional also fulfill this demand because he has this knowledge and he can deal with customer effectively.

9.     There is great need of leader in organization who can provide good direction to business, having good communication, having knowledge of his culture, knowledge of employees problems ( Trade Union), should participate in employee function, can make environment in which employees shall be able to work as a team. All such qualities can be easily found in a person having business background. Then obviously he will be the final choice of organization to be CEO.

10. The last not least is the a person that is being selected to be CEO must be hardworking, must have knowledge of Information Technology and grip on mathematical and statistical model, that are Regression, Probability, Networking ( mathematics) etc. who should be able to forecast organization performance for next 1 to 10 years or more. The business graduate also have grip on all such tools and techniques so again he will be the final alternative.

All such point here discussed is not to underestimate Engineering but to explore the importance of Business. The peoples who  are students of ICMAP, ICAP, MBA  or BBA having all the aforesaid skills and thrifts are sufficient for them in becoming CEO of any sort of organization including Manufacturing, Trading or Services.

Thanks, for any suggestion please help me in this regard.