Company Essentials: Objectives, Elements, and Growth Strategies
A company is a set of items organized and coordinated under direction, oriented towards a series of goals, while operating under conditions of risk.
Objectives
Overall Objective: Expresses the long-term goals the company wants to achieve. These goals drive business performance and must be realized.
Specific Goals: These are the targets the business aims to achieve over a given period. They change frequently but remain aligned with the company’s overall objective (basic social objectives and purposes).
Sub-Objectives: Also known as departmental objectives, these are more concrete and short-term.
Elements of a Company
Human Factors: Natural or legal persons directly linked to the company.
Material Factors: The economic assets of the company, including goods lasting more than a year and working capital.
Organization: A set of authority relationships, coordination, and communication.
Environment: Factors influencing the company’s performance.
Service Company
Business Area: Includes all activities required to deliver goods and services to consumers.
Production Area: Controls the supply of raw materials and manages the production of goods and services.
Investment and Finance Area: Secures the necessary funds for the company’s operation.
Human Resources Area: Selects, hires, trains, and organizes all personnel.
Surroundings
General Environment: Affects all businesses in general, including cultural, technological, political, and legal influences (infrastructure, human capital, financial services).
Specific Environment: Affects specific firms and varies by type of enterprise (suppliers, customers, competitors, government, unions).
Location
- Market demand
- Market supply
- Raw materials
- Transport
- Workforce
- Communications
- Cost of construction supplies and solar
- Legislation
- Investment and financing
Location and Dimension
These are two decisions to be taken simultaneously when creating a company, as they are interdependent and rely on the same factors, especially cost.
Internal and External Growth
Internal Growth: Increasing production capacity through new investment.
External Growth: Acquisition, control, merger of existing companies, or cooperation with other companies to enter new markets.
Globalization and Internationalization
Globalization: The extension of economic relations between different countries, creating a global economy.
Internationalization: Opening markets to international trade.
Delocalization: Relocation of production activities from industrialized countries to developing countries with significantly lower income per capita and average wages.
SMEs (Small and Medium Enterprises)
- Limited vocational training
- Limited technical knowledge
- Limited financial capacity
- Qualified and trained technical staff (technology advances faster than personnel recycling)
- Flexible organization (ease of communication among workers)
- Interstitial developing markets (use empty spaces in large companies)
- Create jobs
Business Entrepreneur
Manages and operates the business, even if no assets have been contributed.
Entrepreneur Property
Has provided capital to the firm and also directs it, based on formation gained over the years.