Understanding Company Classifications and Resources
Company Definitions and Classifications
Company: An organization or group performing commercial and industrial activities that provide goods and services to maintain and improve the quality of life of commercial law personas. According to commercial law, companies are defined as industrial, commercial, services, and related entities, engaging in what are called commercial acts.
Classification of Companies
According to Their Activity:
- Agriculture: Exploits agricultural and livestock products (livestock, farm).
- Industrial: Transforms or modifies raw materials into finished products (e.g., Textiles).
- Business: Buys and sells finished products (e.g., stores, supermarkets, traders, importers).
- Services: Dedicated to providing a service to the community through professional skills (e.g., health, education, transportation).
According to Their Size:
- Financial Size: Large, medium, and small, based on the company’s capital and the country’s economic situation.
- By the Number of Employees: Large (more than 1000 employees), medium (250 to 1000 employees), and small (fewer than 250 employees).
- According to Production:
- Large: Technified or systematic.
- Medium: Machinery and labor.
- Small: Less labor and machinery.
- According to Sales:
- Large: International Sales.
- Medium: National Sales.
- Small: Local Sales.
By Origin of Capital:
- Officers or Public: Businesses that require state contributions for their operation.
- Private: Companies that operate with contributions from individuals.
- Mixed: Companies funded by contributions from States and the private sector.
Depending on the Number of Owners:
- Individual: Sole proprietorship or single owner business.
- Societies: Composed of two or more owners named partners.
Company Characteristics:
- Pay for goods and services they provide.
- Legal Unit.
- Operates pursuant to existing laws (fiscal, labor, environmental, and health).
- Set targets.
- Economic Unity.
- Foundation negotiation, purchase, and sale.
- Integrates debt and equity.
- Management uses its own system to operate.
- Investigates the improvement of its products, processes, and services.
Business Resources
- Human Resources: The group of people connected with the company, including:
- General Services
- Operators
- Clerks
- Executives
- Resource Material: All tangible property, including:
- Machinery
- Tools
- Real estate
- Vehicles
- Raw material
- Financial Resources: Represents the monetary value of the company, own and other development activities, including:
- Cash
- Money in Banks
- Actions
- Credit and Investment
- Technical Resources: This is the complement to the performance of other resources, including:
- Expertise
- Patents
- Production Systems, Information, and Marketing
Importance of Enterprise Resources
Identifying which resources are used by the company for its operation is important because productivity depends largely on the role of these resources and their optimal use.
Company’s Functional Areas
To achieve business goals, there are various activities that structure and define the organization. All areas are equally important, and failure in one area impacts the functioning of the others.
- Production: Programs and develops strategies for product development. Features include inventory management, procurement of materials and supplies, product design, quality control, production scheduling, organization of work areas, safety, and maintenance, among others.
- Finance: Makes trades permanently. Manages all movement of money and capital used to operate. Features include preparing budgets, fundraising, control and money management, credit and collections, cost analysis, investment, treasury, general accounting, and financial relations.
- Human Talent: Determines appropriate means of addressing individual and collective members of a team to contribute to achieving business goals. Functions include linking personnel, staff development, administrative management, remuneration, industrial relations, and social welfare.
- Marketing: Development of activities related to promotion, sales, and market distribution of goods or services produced by the company to satisfy customer needs. Features include competitive analysis, marketing planning, sales policies, advertising, market segmentation, selling products and services, trade shows, and after-sales evaluation.