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Why do businesses exist? What is the significance of the existence of enterprises?

Enterprises are economic organizations that aim to make profits, thereby carrying out production operations and providing products and services to society.

In the category of commodity economy, as one of the various modes of organizational units, according to certain organizational laws, the organic composition of the economic entity, generally for the purpose of profit, to achieve the investors, customers, employees, the community at large to maximize the interests of the mission, through the provision of products or services in exchange for income. It is a product of social development, due to the development of social division of labor and growth and expansion.

When the definition of enterprise is clarified, issues such as strategic management and corporate culture will be clear. Now the study of enterprise is getting more and more vague, and it is not clear what is enterprise.

The development situation has changed, the traditional sense of the enterprise has died out, both in terms of form and nature, there is an urgent need to break through the traditional concept of enterprise definition of the mindset.

1, the enterprise is a contractual organization.

2, the enterprise is a market-based organization.

With the enterprise is more and more market-oriented, in the past, the enterprise as a contractual organization by the higher level of responsibility; now, the enterprise is a market-based organization, people are responsible for the market, the degree of marketability determines the level of profitability of the enterprise.

3, the enterprise is a learning organization.

In the past, we thought that enterprises were manufacturing products, but now it seems that enterprises are manufacturing ideas. There are two value chains within the enterprise, one is the ideological value chain, from information and knowledge to ability, and then to ideas. The second is the material form value chain.

4. The enterprise is a tutelary organization.

The enterprise culture is called a kind of capital, the enterprise is also known as a way of doing business. Enterprises emphasize culture, increasingly become a religious organization, must be unified in the core concept of values.

5, the enterprise is a virtual organization.

Now everyone is talking about virtual production, virtual marketing, virtual transportation, virtual distribution, everything is virtualized, the more empty the more powerful enterprises.

6, the enterprise is a borderless organization.

The past that the enterprise is a border, and then developed, the enterprise becomes borderless, and then later, the enterprise both border and no border, the border is fuzzy, everything is fuzzy. Now it seems that a business boundary, viewed in terms of marginal cost multiplied by marginal revenue, has many businesses with marginal cost less than marginal revenue, or with zero marginal cost.

Marginal revenue is unchanged, then the law of increasing marginal cost and marginal revenue plays a dominant role, that is, the boundary can be infinitely large, which is of great significance for the functioning of the enterprise.

7, business is a systematic organization.

Nowadays, enterprises are divided into two lines: one line is the products and services, and the second line is the guarantee system which makes the enterprises have sustainable competitiveness. Generally speaking, successful foreign large enterprises are systematic operation and systematic.

8, the enterprise is a networked organization.

Value chain organization is not enough for an enterprise, he does not necessarily form a circle ring. Become a network organization, so that the enterprise becomes the chain master, the enterprise and the network master enterprise should be on the operation of the value chain integration, so that the enterprise can become a consortium. For Chinese enterprises, it is time to integrate into this network, into a larger value network, more value network.

9, the enterprise is a global organization.

In the past, according to the wooden barrel theory, the enterprise decided on the shortest one how to improve the profit, the shortest one to make up for the shortest one, the enterprise is always operating at a disadvantage.

Now the new barrel theory has appeared, that is to say, the shortest piece is not done, do the best piece, each enterprise operates the advantage, just like each person to do their own most interested in things.

The cost is very low and the efficiency is very high. From the barrel theory to the new barrel theory, each enterprise according to the global positioning, you do a section, I do a section, global integration, into the globalization process. The final enterprise is the globalization organization.

10, the enterprise is a systematic organization. Ultimately, the enterprise into a system, that is, let ordinary people do extraordinary things. Specifically, a person is ordinary, but become a system is great.

By creating this system, management reaches the highest level, that is, there is no management; strategy reaches the highest level, that is, there is no strategy. It's like a highway.

Expanded:

Development of the "enterprise":

With the development of productive forces and social progress, the form of the enterprise has also been continuously developed and improved. The evolution of the enterprise has gone through three main stages

1, the period of workshop handicrafts

This refers to the period from the cottage industry in the feudal society to the workshop handicrafts in the early stage of capitalism.

The 16th to 17th centuries, the feudal social system of some western countries to the capitalist system, capitalism, the acceleration of primitive accumulation, large-scale deprivation of peasant land, so that the cottage industry dramatically disintegrated, began to capitalist workshop system. The workshop handicraft was the embryo of the enterprise.

2, the factory system period

18 century, the western countries carried out the industrial revolution one after another, the widespread adoption of large machines, for the establishment of the factory system laid the foundation. 1771, the Englishman Richard Arkwright (Richard Arkwright1732-1792) in Clonford founded the first cotton yarn factory.

The 19th century three or four decades generation factory system in Britain, Germany and other countries generally established. The main characteristics of the factory system are: the implementation of large-scale centralized labor; the use of large machines to improve the efficiency of production; the implementation of the system of hired workers; the deepening of the division of labor, production towards socialization.

3, the modern enterprise period

The end of the 19th century and the beginning of the 20th century, with the transition from liberal capitalism to monopoly capitalism, the factories themselves underwent complex and profound changes; the continuous adoption of new technologies, which led to the rapid development of production;

The increasing scale of production and intensified competition gave rise to large-scale monopolies; the separation of the right to operate from the right to own, and the formation of a professional management;

the universal establishment of a scientific management system and the formation of a series of scientific management theories, which led to the maturation of the enterprise into a modern enterprise.

References:

Enterprise - Baidu Encyclopedia