Fundamentals of Business Structures and Economic Needs
Economy
Classification of Needs
- Primary or Basic Needs: Those required to survive.
- Secondary Needs: Needs that enhance well-being as individuals evolve, but are not essential for survival.
Other Classifications (e.g., Maslow's Hierarchy)
- Physiological Needs: Essential for survival (food, water, etc.).
- Safety Needs: The need to feel secure (shelter, protection).
- Social Needs: The need for belonging and integration into groups.
- Esteem Needs: The need to be appreciated and respected.
- Self-Actualization Needs: The need for fulfillment and achieving potential.
Company
Basically, a company is a unit dedicated to the production of goods and services to satisfy human needs.
Classification of Goods and Services
- By Abundance: Economic goods.
- By Function: Consumer goods.
- By Degree of Processing: Final and intermediate goods.
- By Relationship: Complementary and substitute goods.
- By Use: Public and private goods.
Company Goals
- Maximize profit and profitability.
- Achieve growth and market power.
- Ensure stability and adaptation to the environment.
- Fulfill social responsibility.
Company Functions
- Direct and coordinate production factors.
- Create or increase the value of goods/services.
- Assume risks.
- Create wealth and generate employment.
Company Elements
- Human group (people).
- Material factors (resources).
- Organization (structure).
- Environment (context).
Business Areas (Departments)
- Supply Area
- Production Area
- Commercial or Marketing Area
- Human Resources Area
- Investment and Financing Area
- Management/Direction Area
Company Environment
General Environment
- Economic factors
- Sociocultural factors
- Political-legal factors
- Technological factors
Specific Environment
- Suppliers (including raw materials)
- Customers or consumers
- Competitors
- Financial intermediaries
Types of Companies
According to Activity Sector
- Primary Sector: Agriculture, extraction, etc.
- Secondary Sector: Industrial, manufacturing, transforming activities.
- Tertiary Sector: Services, commercial activities.
According to Capital Ownership
- Private companies
- Public companies
- Mixed companies
According to Scope
- Local companies
- Regional companies
- National companies
- Multinational companies
According to Legal Form
- Individual proprietorship
- Corporate (Partnerships, Corporations, etc.)
Legal Organization Considerations
- Number of partners/owners.
- Access to company ownership.
- Liability (accountability).
- Governance and representation structure.