The term company is used to identify those organizations that are made up of different elements (human, technical and material) and whose objective is the achievement of some economic or commercial benefit, satisfying the needs of customers through the offer of goods or services. These organizations are created with multiple purposes, among them it stands out to correctly identify and satisfy the needs demanded in the environment. There is also contributing to the development of today's society, promoting economic, social and personal values.
What is a company
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A company is an organization or entity made up of capital and workers who are in charge of offering products and services to consumers and in turn obtain a profit. In general, the creation of an organization responds to the needs of covering a service or a lack in a certain environment or sector of the population.
Another of the pillars on which companies are based is to promote internal growth and development, that is, that of its members, promoting human values within the organization.
To achieve the creation of an organization, the entrepreneur or group of entrepreneurs are responsible for gathering both the economic and logistical resources, necessary to face the so-called business challenge.
The definition of a company, from the technical point of view, is a socio-economic unit, since it uses all the resources that are within its reach to carry out the transformation of the raw material into a good or service, to form part of a market of offers and demands and make a profit.
Objectives of a company
The objectives of a company refers to the goals that an organization wishes to achieve through the economic activity it develops. They must be well defined in order to be successful, since the future and survival of the organization depend on these.
In addition, they must be established in accordance with the Mission and Vision of a company, since it constitutes a priority element when creating, designing and conceptualizing a human organization.
For the success in the mission of a company it is essential to establish the objectives, since these establish the route to follow and serve as a source of motivation to its members. The advantages of setting such goals are:
- Serve as guides in formulating strategies.
- They help focus efforts in the same direction.
- They serve as a guide in the allocation of resources.
- They originate organization, coordination and control.
- They originate commitment, participation to achieve them and to achieve them a great satisfaction.
In the case of Mexico, according to publications, only 6% of Mexican companies are clear about what the goal-setting process that an organization wants to achieve means.
For example, in relation to the objectives set by the companies TIP Mexico - Leasing, whose branch is leasing and fleet management, as a service company offers a guide on the approach of the objectives and their application, in order to obtain the success and offer its clients the best service as a commercial ally.
For this organization there are three keys when setting the objectives:
1. The first key is the innovation or strategic objectives: This means that at least one objective of this type must be set once a year, in order to sustain the growth of the company in the long term and prevent for the future.
2. Within the second key are the operational objectives: According to TIP, every duly organized company must set at least 8 objectives of this type annually, these must project and execute the work of the day and in the functional areas of the company, for example ¿ as? the internal processes of resource administration, hiring of personnel and sales processes among others.
3. Third key, approach to project objectives: Regardless of the area, in each project of the organization there must be continuous improvement objectives.
Without neglecting the challenges to overcome, at TIP they always see the opportunities that motivate and stimulate their ability and creativity. With great satisfaction they apply each of the keys mentioned above, which has led them to be, in record time, one of the 4 best car rental companies and leader in heavy equipment in Mexico.
Among the most important company names in Mexico are:
- Mexican oil.
- América Móvil.
- FEMSA.
- General Motors of Mexico.
- FCA Mexico.
- Mexico Group.
- Kaluz.
There is also an important group of private security companies, dedicated to the safeguarding and security of the country's properties.
Elements of a company
The elements of an organization refer to the set of means that are used to carry out business activities in order to achieve the objectives set. To achieve the production and distribution activities of an organization, technical, financial, productive and human factors must be available.
An example of an organization with its elements clearly applied is the case of the Mexican company Qualisys, an organization dedicated to promoting the success of its clients through the application of information and telecommunications technologies. Specialized and certified, with the support and experience of transnational and international companies.
The main elements of a company are:
Strategy
Strategy is the way they define how the values of an organization will be created, it is about what will be done? and how to do it? . In addition, the objectives of the company and the resources and actions that will be used to achieve them are defined.
To carry out a good business strategy, two very important aspects must be taken into account, which are:
- Internal communication: When a strategy is created, it must be communicated clearly to all levels of the company in order to reach those involved in the process that will be developed.
- Adaptation to changes in the environment: There are factors external to the company, which may be undergoing changes that may affect the proper functioning of the organization. For this reason, the strategy must be based on having contingency plans to face these external changes and adapt to new situations that may arise.
Products or services
A company or organization must develop a product that is consistent with the strategy, one of them is that it is different from another, either because of its price or special qualities. Success in competition lies in the advantage offered to the customer. Organizations that offer advantages are those that remain in the market, otherwise they disappear.
This element is implemented particularly by small businesses, but they do not always do it in the best way.
Organization
The organization of a company allows a more efficient use of resources and a better assignment of the activities and tasks necessary to develop and apply strategies, in order to obtain the objectives established in planning. In addition to this, it allows better coordination between the organic units of the company, as well as better staff performance and better results.
In this sense, the organization chart of a company is of utmost importance, assigning clear functions to each of the people, as well as a clear atmosphere of responsibility and authority.
Accounting
Accounting of a company is where the financial situation of the same is portrayed and organized. For this to be possible, special care must be taken with the correct record of collections, loans, balances and daily debts of the organizations.
Advantages of good accounting in a company:
- It helps to determine what is the cost of production of a specific service or product, allowing to establish the price at which it should be sold.
- It is possible to know the account statements, as well as the gains or losses.
- Its application and study alerts you to overhead or superfluous expenses. It also presents the benefits of the investments made.
- Information on the current financial situation of a company is presented in the balance sheet and the statement of accounting results.
Management control
This element allows answering a series of questions such as, where is the company headed? How is the company doing? and whether or not it is on the right path to achieve the objectives set.
Management Control consists of designing and applying a set of procedures, techniques, especially quantitative verification of activities, which help to create the necessary corrections in the process to have a planned and orderly management, thus improving its efficiency in achieving the strategic objectives.
"> Loading…Planning
Planning is about designing the future, a forecast and a projection based on what has already been experienced, leaving a written record of that design that guides the behavior of the members of the company or organization, and thus guarantee that that vision is developed, not arbitrarily, but in the planned way, that is, planning tries to project the evolution of events so that what is desired happens.
Evaluation
All organizations need to have systems for evaluating the activities carried out by their workers, in order to make the necessary adjustments and achieve the objectives set. These evaluations must be made periodically and according to the organization chart and budget of this, recognizing the most outstanding through incentives.
Classification of companies
In economics, the concept of a company refers to an economic unit that is responsible for satisfying market needs through the use of material and human resources. Therefore, it is in charge of organizing the factors of capital, production and work.
The companies are classified according to their economic activity, their legal constitution and their ownership of capital.
According to your economic activity
Primary sector company
This type are those in charge of the manufacture of resources of natural origin (wood, fruits, plants), resulting in an economic benefit. These are in charge of treating and converting resources into products that can be the basis for obtaining new products, that is, these types of companies are the main engine of the economy, since they are the ones that start the production cycle of a determined product.
The industrial companies are in charge of the transformation, washing, purification and packaging of all the resources obtained from nature, the main industries linked to this sector are livestock, mining, fishing, forest exploitation, among others.
Through the companies in this sector, the economic cycle for the production of products and their exportation begins, therein lies its importance in the economic growth of a country.
Secondary Sector Companies
These are in charge of transforming the raw material obtained by companies in the primary sector, turning it into finished products, which will then be distributed in the different establishments (tertiary sector) and then sold to customers, thus satisfying their needs. of the same.
To this group of companies also belong those that are in charge of creating semi-finished products, these will be used for the final manufacture of a product, an example of this are the auto parts factories, these are in charge of manufacturing the parts that will later be sent to assemblers to obtain the finished product.
The industrial grocery companies are the most important in this sector are responsible for processing, maintain and pack foods from both plant and animal origin, also in this sector are the metallurgical industry and textile.
Companies in the tertiary sector
Dedicated to providing services (commerce, transport, tourism, health, etc.) satisfying the different requirements of the consumer, that is, they are in charge of organizing, distributing and selling the products that are made by companies in the primary and secondary sector, it is called companies in the tertiary sector not because they are less important than those in other sectors, but because they are the last link in the chain of production and distribution of a product.
This type of company is of great importance for the economy of a nation, they commercialize the finished products of the other sectors and satisfy the needs of the consumer and of course the market, with the opportunity to offer quality products.
According to its legal form
Individual company
Unipersonal or individual, as they are also called, are those institutions, where the owner is a single person, that individual must be the one who receives all the profits generated by the economic or commercial activity that the organization has carried out; On the other hand, just as you will benefit from the profits, you will also be responsible for the losses and debts that arise, even at the cost of your assets.
This is one of the easiest to establish, they are generally small and family-friendly. The laws establish that once the company charter is made and registered, it acquires legal personality
Company companies or legal
It refers to companies or corporate companies that are constituted by more than one person. There are different types of corporate company such as:
Collective partnership company
Dedicated to carrying out civil or commercial activities, under an egalitarian company name. One of the distinctive characteristics that it possesses is that for its creation the presence of two or more partners is required, who will have the responsibility of complying with all the debts that could not be covered by the capital stock.
This type of organization is made up of two types of partners, the capitalist partner in charge of contributing capital and work and the industrial partner, these do not intervene in the administration of the company, but if they obtain profits that it produces with the same profitability of the capitalist partner.
The organizations in this category differ from others such as the public limited company, in the sense that the obligations or responsibilities with the debts are unlimited, that is, the partners have to cover, with their assets, the debts in case the contributed capital is not enough.
Cooperative company
This type of organization that represents the alliance between a series of individuals who associate voluntarily, in order to attend and satisfy the needs (economic, cultural, educational, etc.) of all each of the members that comprise it; through a company that is collectively owned and democratically managed.
These, like the capitalists, have the main function of producing. But its objective is not to obtain profits or profit, but to ensure and protect the interests of its members. The philosophy of a cooperative company is open doors and exercise democracy at the time of electing its leaders and complying with the foundation of each individual one vote.
Its most relevant feature is being able to join and retire whenever they want.
"> Loading…Limited company
They are a kind of commercial company, made up of two types of partners, general partners, whose liability is unlimited, and limited partners who have limited liability. These types of companies tend to have a personal nature, which is convenient for those organizations that have a low number of partners and that seek to develop a common activity, for example: a law firm.
A characteristic of this type of company is to be individualistic with the presence of general partners who must respond in an unlimited way on the debts contracted. In the case of limited partners, they do not participate in the administration of the company, they only have responsibility for the capital contributed to the limited partner.
Company limited liability company
The LLC (limited liability company), is that company composed of two or more partners, and where the responsibility is limited to the contributed capital, that is, if the company were to acquire any type of debts, the partners should not respond with your personal assets. In addition, the capital stock is divided into indivisible and accumulative social shares.
The LLCs have a share capital, that is, it is made up of shareholdings resulting from the part that corresponds to each shareholder, they will not have any personal commitment on the social debts. The LLC may be administered by a single manager, it may also have the participation of two administrators, who are called joint or several administrators.
The partners of these have rights such as: intervene in the distribution of profits and assets in the event that it is liquidated. They can also participate in social decisions and be appointed administrators and the right to receive the company's accounting data if they so wish.
Limited company company
It is one of the most formed at present, it is made up of a minimum of 2 partners and an unlimited maximum. This is a limited liability company, where the capital stock is made up of shares.
The capital of this type of company is divided into shares of equal value and is made up of a subscribed, authorized and paid capital.
The shares of these companies must be in the name of the owner of said share. They cannot be divisible, that is to say that in the event that a share belongs to more than one person, it cannot be divided, therefore, the different owners or shareholders must choose a representative, so that they can exercise the rights that are they grant them.
According to its size
Micro-enterprise
It is a small institution where the maximum number of employees does not exceed 10 jobs, in some countries to enter this classification, assets must not exceed more than 500 minimum monthly salaries, these types of companies are normally under administration of their own owners, sometimes the employees are part of the family nucleus and they are the ones who with effort help it to grow.
Small company
Private or public organizations are classified in this way because the annual assets they generate do not exceed 2 million dollars and the payroll does not exceed 50 workers, although this figure may be different depending on the country where it is established. Due to their size, they do not predominate in the markets in which they operate, but this does not mean that they are not profitable when making profits.
Medium company
Institutions that are dedicated to commerce, industry, finance and even to provide different services to the public and whose resources are effectively organized to achieve their objective. For a company to be classified as medium, it may not exceed the limit of workers, resources and annual sales, said parameters are established by the laws of the State where said company is established.
Big company
Depending on the place where the organization is located, it can be called a large company, this is because the standards for it to be classified as such may vary in some countries, for example in Asia, an organization that exceeds the eighty workers, while elsewhere, you must have between three and six hundred employees on your payroll.
According to your capital composition
Joint ventures
They are those whose investment capital comes from both private investors and the State (public), generally most of the investment is of public origin, coming from public funds, which should not diminish the importance of private investment capital, In general, when public investment is greater, the objectives of a joint venture are focused on the interest of society, the economic activities carried out by these companies are of a different nature and can range from commercial to industrial.
In most cases, the creation of this type of company is due to the search to improve the performance of the State in a certain task, this is achieved through the excellent management of a private and trained staff, in addition to this the exchange of resources and knowledge, without forgetting the debts and risks that this society can generate.
Public company
Entities that belong totally or partially to the Government of a specific country and where said government can participate when making the decisions of the organization. The goal of these as any other company is to obtain monetary gains but above all, the primary objective is to satisfy the needs of the population through the services it offers (electricity, water, telephony, among others).
Public companies are created through presidential decrees, in order to carry out various activities, financed by the State. These are constantly subjected to financial and fiscal controls carried out by the comptrollers, in order to verify that the profits obtained from public funds are destined to the most urgent needs of the population.
The employees of these are under the laws of public function, therefore they must be governed by the law for the public company that establishes them.
Private company
Organizations that belong to private investors, normally these institutions are made up of a series of partners or investors, although there are cases where the total ownership of the organization is owned by a single investor. They are generally the mainstay of a country's economy and work in parallel with state (public) companies.
These are socially responsible, they are of great importance for the development of a country. This is because organizations of this nature, through the cancellation of their taxes, generate income for the State, which is calculated based on the income obtained by the company when selling its products in the market. Throughout history, they have expanded to different markets in the economy, such as the service area (gas, transportation, electricity).
Self-management company
It refers to a system of social and economic organization whose main characteristic is that the activity is developed by the same people in charge of said work. Which cooperate for its achievement, have absolute powers in decision-making and control of the organization.
The characteristics of a self-management company are:
Business self-management has a number of peculiarities that differentiate it from other business organization systems. Among the most outstanding features are:
- The ability to cooperate between workers to achieve objectives.
- Competition is essential to decide the steps to follow in business.
- The potential to control and organize the company.
But to carry out business self-management it is necessary to apply a series of methods and strategies that prepare people so that they can make decisions about their tasks, which allow them to achieve the established objectives. In short, it is about providing employees with sufficient autonomy to carry out their work in view of business purposes.
"> Loading…Study business administration
Organizations and companies are the engine of growth and development in any country. For its part, administration is the discipline of efficient management of human, material and financial resources to achieve the sustainability of this growth.
Those who carry out Administration studies will be prepared to plan, organize, direct and control the resources, processes and activities necessary to achieve the desired objectives. In addition, they will have the power and ability to establish company policies when necessary.
In every organization, including your company, an administrator is always required. Due to its comprehensive training, the administrator will be able to carry out activities in the different organizational areas. Therefore, their field of work performance will be very broad. Likewise, an administrator can undertake. Creating your own business is one of the options for which the University prepares.
