Traditional Culture Encyclopedia - Traditional stories - What is a business, what does business refer to, and how do you get into the business industry?

What is a business, what does business refer to, and how do you get into the business industry?

Enterprise is an economic organization that aims to make a profit, and thus carries out production and operation to provide products and services to society.

In the category of commodity economy, as one of the many modes of organizational units, in accordance with certain laws of organization, 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, by providing 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.

Only when the definition of enterprise is clear, the issues of strategic management and corporate culture will be clear. Now the study of the enterprise is becoming more and more vague, it is not clear what is the 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.

First, the enterprise is a contractual organization.

Second, the enterprise is a market-oriented organization. As enterprises become more and more market-oriented, in the past, enterprises as contractual organizations are responsible by their superiors; now, enterprises are market-oriented organizations, people are responsible to the market, and the degree of marketization determines the profitability of enterprises.

Third, the enterprise is a learning organization. In the past, the enterprise is considered to be the manufacture of products, now it seems that the enterprise is the manufacture of 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.

Fourth, the enterprise is a tutelary organization. By referring to corporate culture as a kind of capital, the enterprise is also referred to as a way of doing business. Enterprises emphasize culture and increasingly become a religious organization that must be unified in its core conceptual values.

Fifth, 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 enterprise the more powerful.

Sixth, the enterprise is a borderless organization, in the past that the enterprise is a border, and then developed, the enterprise becomes borderless, and then later, the enterprise both border and borderless, the border is fuzzy, everything is blurred. Now it seems that a business boundary, viewed as marginal cost times marginal revenue, many businesses have a marginal cost less than marginal revenue, or a marginal cost of zero. 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 to the operation of the enterprise.

Seventh, the enterprise 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 that makes the enterprises have sustainable competitiveness. Generally speaking, successful foreign large enterprises are systematic operation and systematic.

Eighth, 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, enterprise and network master enterprise should be 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.

Ninth, the enterprise is a global organization. In the past, according to the 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 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 wooden barrel theory to the new wooden 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.

Tenth, the enterprise is a systematic organization. Ultimately, the enterprise will be built into a system, that is, let ordinary people do extraordinary things. Specifically, a person is ordinary, but become a system is very powerful. By creating this system, it enables management to reach the highest level, i.e., there is no management; and it enables strategy to reach the highest level, i.e., there is no strategy. Just like the highway. (Edit: Zihua)

The meaning of enterprise:

Enterprise is to make profit for the purpose of engaging in production and business activities, to provide goods or services to the community's economic organization. Enterprises are the most important market players.

The role of enterprises:

1. Enterprises, as cells of the national economy, are the main participants in market economic activities.

2. Enterprises are the direct bearers of social production and circulation.

3. Enterprises are the main force to promote socio-economic and technological progress.