What Defines a Company?
What defines a company? The short answer: It’s what defines a company! Long answer: It is an idea or concept that can be loosely described as the culture and philosophy of an entity, from a start up to a multi-national corporation. It describes the unique philosophies, values, expectations and objectives that the company lives By day it governs the functioning of the business. At work it governs the interactions between people at all levels, both management and staff. And at the end of the day it governs what the company does, the products it produces, the services it provides and the customer or client relationships it serves.
To sum up: It is what defines a company! But what exactly defines a company? An enterprise is anything you make or own that is capable of generating profit. A corporation is any firm or company that conducts business. There are many types of businesses and organizations, but their basic elements are: an objective or goal, a method to reach that goal, and individuals or teams who perform a specific task to bring the goal into fruition. In order for your enterprise to operate efficiently, it must have these three basic elements.
A company is defined by its culture. This is often referred to colloquially as the “company culture.” A company culture refers to the shared values and practices that members of a team share, establishing a positive example for others to follow. Companies with a strong culture are able to: Have a sense of identity, To attain goals, build loyalty among team members and get the most out of each employee, and To maintain high performance levels. Cultures are best fostered through open communication and regular feedback.
A company is also defined by its core values. Core values are what guide employees and management toward a common purpose, and a future that both can be confident in. These values may be: Everybody will get a fair pay raise, there will be no tolerance for bad behavior, the workplace will be a safe place to work, and quality work will be rewarded. Core values may also include: treating people equal, protecting the environment, sharing ideas and resources, maintaining honesty and integrity, and being a fair and just manager. Core values are usually what employees take to heart and become part of their everyday work life.
The next thing that defines a company is its management team. A management team is comprised of five key people who make the vision and direction of the company a reality. The CEO is the head of the company, but not necessarily the only one. The CFO is responsible for the organization’s financial strategies and operations, while the COO is responsible for the day-to-day operations of the business and has the final responsibility for policy and procedure. Key employees such as these have a crucial role in the success or failure of the business.
The third aspect of what defines a company is its corporate culture. The culture of any company can be defined as the values, attitudes, beliefs, and actions of all employees that work within it. The best companies out there have exemplary corporate cultures where all people are treated with dignity and respect. It’s not uncommon for corporate cultures to undergo profound change in an era of continuous growth and change. The culture you begin with determines how you operate as a company for years to come.
Lastly, what defines a company can be determined by the products it manufactures. The products that you manufacture and market directly impact the culture and values of your company. You need to choose only the best products that consistently outperform and meet consumer expectations. If you do this, then you have an established company culture and a competitive advantage over your competitors. People love products that they can use every day, which is why you need to focus on creating quality products that meet consumer needs and provide exceptional value.
Every company has a core values and a set of core principles. When these two are combined, then you have a company culture. Core values are what guide your company’s decisions and practices, while core principles are what you stand for in your employees and customers every day. Both define what defines a company, as well as its future. In addition, both are what help your business to grow, and thrive. Both must be nurtured and maintained, if you want your business to be successful.