2.3. Company & Management

Definition and Introduction

The objective of strategic corporate planning is the effectiveness of a company. In order to make the right decisions, the management of a company must obtain the relevant information, process it and decide. The company must develop, design, produce, procure, store, market and finally sell the services to be sold. The enterprise must be designed as an efficient and effective organisation. The value creation process is to be described.

Corporate governance is of crucial importance for the provision of services. Not only the legal form and ownership are important, the employees with their qualifications and competences are just as decisive. The organisation of the business helps to determine whether the work processes run smoothly and efficiently. The entrepreneur himself must set the goals for his enterprise. A roadmap (milestones) for the implementation of the business idea must be provided in the management process. Managing means leading people in a business system the sense of an organised value chain in a goal-oriented way.

The production of services must be planned in such a way that costs are as low as possible (cost minimisation) and profit is as high as possible (profit maximisation). For the entrepreneur, the optimal utilisation of all resources presents itself as the central challenge for management. The coordination of work processes and time schedules is a critical success factor in many companies.

Note: When describing the production of services, it is important to optimally design the business processes. The business plan should describe how the enterprise is to be organised and how the employees are to be managed. This means managing a company.