Two key characteristics of a competitive enterprise

Photo by: Maria Reyes-McDavis

An enterprise (self-owed or corporation) produces and distributes scare goods on the market.  In order to remain competitive on the sales market it needs a well-thought strategy to be able to find appropriate problem solutions. For this reason you first have to understand how enterprises conceptually work to be able to act adequately. 

Central characteristics of an enterprise are two: purpose and openness.

Purpose means to know, what you actually need for your target: 

  1. Number of people for production
  2. Number and sort of machines
  3. Number of sales persons
  4. Pricing of products
  5. Ways of distribution

In this way you can make your calculation how much you have to invest for being present on the market. 

Enterprises are open systems that means they are interacting all the time with consumers on the market:

  1. Enterprises receive information
  2. They adapt to all the time changing environments 

Consumers (customers) are therefore the key information source you should learn to understand in order to react to their needs. Only so you get input how to grow your business over time.

 

Literature

  • Kirchler, E. (2011). Wirtschaftspsychologie. Individuen, Gruppen, Märkte, Staat. 4. vollständig  überarbeitete Auflage. Hogrefe: Göttingen.

 

 

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