We explain what a company is and the different types of companies. Sectors of activity, structure, social and economic purposes.

A company will require clear and well-established objectives.

What is company?

The concept of company refers to a organization or institution, which is engaged in the production or provision of goods or services that are demanded by the consumers; obtaining from this activity a economic profit, that is, a gain. For the correct performance of production, these are based on previously defined plans, strategies determined by the work team.

The success of a company will require objectives clear and well established, plus a mission preset. On the other hand, they must define the policies and regulations according to which they will be managed. However, beyond the regulations that decide internally and informally, should be governed first of all according to the laws that determine the regulation of their activity and operation in the jurisdiction in which they operate.

Perhaps from a more technical perspective it can be defined as a socioeconomic unit. According to this form, it will use all the resources within its reach to transform raw material in a good or service that can be introduced in the market of offer Y demand To get one utility.

It is important to clarify that the term socioeconomic is used since the social part of this unit is identified as set of individuals that are part of it, and as economic the component of capital that is sought to be achieved.

Activities of a company

The secondary sector converts the raw material into the final product.

In this way, there are three different areas in which they carry out their activity, and for what they are usually classified.

  • Primary sector. Its area of ​​action is the primary sector if it uses as raw material any element obtained directly from the nature. An example in this case would be the companies that produce cereals, or any other crop product.
  • Secondary sector. If instead it covers the secondary sector, its task will be based on the conversion of raw material obtained through third parties, into a final and total product capable of being sold in the market.
  • Third sector. But there is still a third sector in charge of both the commercialization of products manufactured entirely by other companies (suppliers), and the offer of services for the satisfaction of desires and needs.

Structure of a company

The structure A company can be constituted in different ways, existing both hierarchical (president, vice president, directors, managers, etc.) and linear relationships. In the latter, there will be no positions of greater importance than others, so that all employees will enjoy the same benefits and will be urged to cover the same obligations.

Currently the calls are very commonSMEs. The acronym corresponds to Small and Medium Enterprises, which indicates that these are those that, although they share most of the characteristics with the rest of the companies, have fundamentally a production capacity and budget limited.

But also, one of the most important limitations is occupational, that is, their ability to hire staff; And it is of utmost importance given that human capital will always be a fundamental factor for the growth of a company.

Companies according to origin of capital

The shares of a private company can be sold on the stock market.
  • Public enterprises. Public companies are those that belong to the public sector of each Condition, central or local administration. They may sell their shares on the stock market to private individuals, but they will continue to be considered public as long as 51% of their shares remain in the possession of the public sector. This type of company has as its main objective generate the general interest of the specific community of which it is a part. The statetake the decision start with the company and must establish its objectives and then control its activity.
  • Private businesses. Private companies, on the other hand, are those that are run by private individuals. In addition, the shares of these companies can be sold on the stock market. Its main objective is to maximize its profits and sales, as well as its market shares.
  • Joint ventures. Because the division between private and public companies is not so simple, in most cases there is a third qualification in which a company is described, where both the public and private sectors have participation in it. In addition, the private sector can make the decision to nationalize a private company; as well as the opposite occurs, when the private sector decides to privatize a public company.

Companies according to size

There are several ways to classify companies according to their different characteristics. For example, depending on its size:

  • Large companies. It will be determined that a company is large when it has great technological capabilities, human potential and when its capital be of great quantity. Being a large company, your obligations, your needs for planning and organization will be greater than in the others.
  • Medium companies. They will require technological capabilities, but to a lesser extent than large companies. Human potential and a significant amount of capital will also be required.
  • Small companies. They will be those that, to carry out their economic activities do not need a large amount of capital, or human potential, as well as a great capacity in terms of their technology.

Social and economic purposes

The internal social purpose contributes to the development of the company's people.

Companies have external and internal purposes that concern the social as well as the economic.

Regarding economic purposes, they must serve the men who work within and those who work outside the company, and we can find the following:

  • External economic purpose. It is the production of goods and services in order to satisfy all the needs that arise from the society.
  • Internal economic purpose. It will seek to obtain an added value to then be able to remunerate the persons that are part of the company. The forms of remuneration can be in the form of profits, dividends, wages, salaries, as well as benefits. This is to provide the opportunity to perform investments and jobs to workers.

The social aspects in a company are just as important as the economic ones because it is made up of people and is aimed at other people. It is usually referred to as responsibility social, which even includes ecological issues.

The internal and external social purposes of a company are:

  • The external social purpose. It consists of the contribution of the development of each society, it should be tried that in the economic performance the social values and the personal ones that are considered fundamental. To be able to do this satisfactorily, it must be promoted among employees and partners that this is fulfilled and carried out.
  • The internal social purpose. It is one in which it contributes to the full development of the people who are part of the company. It must be achieved that human values fundamental are not vulnerable and that in turn, they can be promoted through employees and partners.
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