Book Summary Preview : The Wealth of Enterprises

The Big Idea

Global enterprises, both political and economic, are driven by the need for scarce resources to feed their economic growth and for political power to protect their borders, markets and sources of raw materials. Socialism and communism are 19 th Century concepts that are dysfunctional and no longer apply in a 21 st Century world.

A new foundation for economics and management is needed for the 21 st century that is more broadly based than the Division of Labor. The explosion of the internet has made the world a smaller and more connected place. Division no longer rules; unity does.

The Enterprise is the way the real world works.

Why You Need This Book

This book is ideal for managers, directors, students of economics and management and especially the individual Entrepreneur. This will assist everyone in better understanding the many Enterprises in which people live and work so that we can all be more productive both for ourselves and the good of our fellow men and women.

What the Enterprise Is and How It Is Structured

The Enterprise is the basic form of organization which people use to accomplish certain tasks. This is the entity that business leaders truly manage. It exists to produce goods and services in order to satisfy customer needs and to reward its owners, employees and stakeholders for risk and labor incurred. It is the mechanism of efficiency to produce outputs greater than inputs. It is also the mitigating agent between self-interest and the common good.

The genius of the Enterprise is the creation of value for all parties represented in the Enterprise Value Ring below which shows that it is reciprocal, reinforcing and eternal.

THE STRUCTURE OF THE ENTERPRISE

The Enterprise is composed of Form, Function and Forces.

FORM	FUNCTION	FORCES
1. Shareholders	1. Governance & Strategy	1. Market Regulators
2. Corporation	2. Accounting, Control & Funding	2. Financial Markets
3. Company	3. Human Relations	3. Technology Markets
4. Business	4. Business Processes	4. Vendor Markets
5. Product	5. Information Technology	5. Product Markets & Competition
6. Customers	6. Culture of the Firm	6. Public Perception

Form is the shape and structure of an entity which gives it both its outward appearance as well as its essential being.

• The Shareholders are the owners of the company.
• The Corporation is the form or legal entity of the Enterprise.
• The Company are the people who manage the Enterprise.
• The Business is the activity of the Enterprise.
• The Product is the output of the Enterprise.
• The Customer is the consumer of the goods and services produced.

Function is the activity of an entity for which it is specifically designed and intended.

• Governance and strategy are the principles and plans that guide the Enterprise.
• Accounting, control and funding are the recording and measurement of all transactions.
• Human resources is the management of the people who work for the Enterprise.
• Business processes are the steps that convert inputs to outputs.
• Information technology is the management of data and information.
• Culture is the character and spirit of the firm.

Force represents the markets in which an Enterprise lives and breathes and against which it exerts its power or effort.

• Market regulators come up with rules and regulations for the markets.
• Financial markets are the places where the sources of capital are accessed.
• Technology markets are the market for ideas and know-how.
• Vendor markets are sources for all products, services and personnel.
• Product markets and competition are where buyers, sellers and competitors meet.
• Public perception is the image of the Enterprise in the minds of the public.

 

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