There are three key areas which possibly lay out the basis of the fundamentals of business. According to Mervin King there are three aspects which affect any company and these are commerce, finance and society. Whether it is a small enterprise of a large corporation they will all have something that they trade. This will be dependant on financial factors and will have to do so in the context of society as a whole.
What a company does defines its purpose but what it does often goes beyond just its basic function. Companies can play a larger role within society and what they give back can become as much of a determinant of success as anything else. The overall vision of a company is what will inspire staff and might help it find its way in difficult times.
Understanding the greater context in which firms operate help to keep it in touch with the society on which it is dependant. It is important that companies make a profit because that is the number one determining factor in deciding its viability. It could be equally important to keep people happy on every level too because they are in the end what your company relies on in many ways.
People are becoming more conscious of the fundamental of business and how they are personally affected by them. Companies which are only out for themselves with the intent to make profit are starting to see the backlash from society. Especially as resources become more scarce and people become more connected they are starting to see the value in what is known as social business.
Even from the planning stage it should be considered how an enterprise will have value. Would there be any reasons why people should support you rather than any of the competition? If there is a creation of value for staff the effect will be seen in the way they deal with customers. Loyal staff will save you money and in turn lead to loyal customers.
That does not mean that cash is not important though. Along with planning and communication, cash flow is one of the fundamentals of business that is most important. Predicting demands and preparing for the worst are also what could help you survive.
Communication is also one of the fundamentals of business that can make all the difference. If you don't understand what is happening in a company then it is impossible to change anything for the better. Apart from spreadsheets the only way to know where the problems lie in an organization are by people telling each other what is going on.
What a company does defines its purpose but what it does often goes beyond just its basic function. Companies can play a larger role within society and what they give back can become as much of a determinant of success as anything else. The overall vision of a company is what will inspire staff and might help it find its way in difficult times.
Understanding the greater context in which firms operate help to keep it in touch with the society on which it is dependant. It is important that companies make a profit because that is the number one determining factor in deciding its viability. It could be equally important to keep people happy on every level too because they are in the end what your company relies on in many ways.
People are becoming more conscious of the fundamental of business and how they are personally affected by them. Companies which are only out for themselves with the intent to make profit are starting to see the backlash from society. Especially as resources become more scarce and people become more connected they are starting to see the value in what is known as social business.
Even from the planning stage it should be considered how an enterprise will have value. Would there be any reasons why people should support you rather than any of the competition? If there is a creation of value for staff the effect will be seen in the way they deal with customers. Loyal staff will save you money and in turn lead to loyal customers.
That does not mean that cash is not important though. Along with planning and communication, cash flow is one of the fundamentals of business that is most important. Predicting demands and preparing for the worst are also what could help you survive.
Communication is also one of the fundamentals of business that can make all the difference. If you don't understand what is happening in a company then it is impossible to change anything for the better. Apart from spreadsheets the only way to know where the problems lie in an organization are by people telling each other what is going on.
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