Two key characteristics of a competitive enterprise
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. This will give you an indication on how to be a successful entrepreneur.
Central characteristics of an enterprise are two: purpose and openness.
Purpose means to know, what you actually need for your target:
- Number of people for production
- Number and sort of machines
- Number of sales persons
- Pricing of products
- 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:
- Enterprises receive information
- They adapt to all the time changing environments
- Kirchler, E. (2011). Wirtschaftspsychologie. Individuen, Gruppen, Märkte, Staat. 4. vollständig überarbeitete Auflage. Hogrefe: Göttingen.
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