Core Business Concepts: Organization, Ethics, and Value

Core Business Definitions and Concepts

Company Definition

A company is a set of items organized and coordinated in the X direction, oriented towards obtaining a series of objectives, operating under conditions of risk.

Conflict or Objectives

• Owner: Performance, profit.
• Professional Employer: Employees achieving good management, resulting in better wages.
• Customers: Timely delivery.
• Providers: Meeting agreed-upon, long-term receivable terms.
• Bank: Return of business money.
• State: Payment of taxes.

Value Chain

A set of functions that add value to company products and services, aiming for maximum profitability by reducing anything superfluous in any of the phases a product develops (production, marketing, etc.).

Company Culture

The first series of constant and lasting influences that determine the behavior of the people who form the company, establishing the personality of the enterprise.

Business as a System

Understood as a set of interrelated elements among themselves and with the global economic system. This economic system is related to the environment.

Characteristics of the Business System

• It is an open system (it is related to and affected by everything happening outside of it).
• It is composed of a combination of subsystems or components (synergies).
• It is a global system (influences on any subsystem affect the whole).
• It self-controls: adjusting to cyclical changes.

Synergy

An activity that increases efficiency when various components join; separately, these components would not yield as much.

Function of Organization

A feature designed to determine the tasks to be undertaken by the people who make up the company, along with the responsibilities and authorities they possess.

Maslow's Needs (Applied to Business)

These relate to the needs for love, affection, and feeling accepted by the community. In the case of a company, this equates to feeling respected and integrated.

Stages of Control

1. Marking Standards: Setting measures considered normal.
2. Measuring Activities: Analyzing what has been achieved in reality.
3. Correcting Deviations: Figuring out the reasons that caused deviations from the standards.

Components of Business Composition

• Assets and Human Factors: Physical or legal persons directly linked with the company.
• Material Factors: Economic assets of the company.
• Organization: Relations of authority, coordination, and environment contact.

These factors influence the actions of the employer.

Ethics

Ethics considers the consequences of business activity, including the social benefits provided and the environmental costs incurred. This consideration not only affects economic profitability but can also become a competitive advantage.

Planning

Setting goals, establishing strategies to achieve them, and defining company policy to establish decision criteria, all with the intention of achieving the company's aims.