The company's vision is a figurative representation of the meaning of its activities, as well as prospects. It is it that demonstrates and explains to the public and employees what a commercial structure is, what it should be and what it should strive for. In our article, we will consider the principles of the company and other aspects of this category.
Before studying the principles of the company, it is advisable to analyze its vision and mission, because you need to know what these or those rules and behavioral strategies are for. Forming a vision is one of the tasks of leaders. The horizon of vision, in other words, the period of remoteness in terms of time of the created image of the company can be different. We are talking about terms from a few months to a certain number of years. Under the vision of the future large structure, it is necessary to consider the idea of the economic, political, as well as social situation both in a particular industry and in the country as a whole. This also includes thoughts about the desired state of the company in the current situation.
The vision is connected exclusively with the future: it loses its own relevance if the desired state of the structure is achieved and must be created again. It is worth noting that the formulation of vision is a dynamic, concise design, convenient in terms of perception. Often it is presented as a slogan. The content in this case must meet a number of requirements: be simple, like an image or memory; inspire; contain guidelines that can become the basis for the formation of the strategy; earn public trust.
The principles of the company are necessary to fulfill the mission. It should be understood as a business category that reflects the purpose and key goal of the business. What are the differences between mission and vision? The fact is that the first concept characterizes only the "real" company: the type, differences from competitors, the scope of activities. At the same time, development prospects are ignored. The mission is designed to detail the status of the company and provide it with guidelines for developing strategies and goals at different organizational levels.
Among the main components of the mission, it is important to note the following:
- The services or products that the company produces, in other words, the range of public needs to be met.
- Categories of target consumer groups.
- Used management functions and technologies, in other words, a method of satisfying consumer needs.
- Advantages over competitors.
- Business philosophy.
The main goal of any structure is to achieve the desired result, a certain final state. For this, the management applies not only specific strategies, management tactics, but is also guided by the principles of the company. It is worth noting that through long-term goals, the strategic intention of the structure to take a particular position in the business is determined. Their identification is necessary for each final result, which managers consider important for the formation of competitive advantages of the structure and success.
To date, it is customary to allocate seven main spaces within which the company sets long-term goals:
- Innovation It is important to note that the target setting in this area is associated with the identification of new business methods, the use of new methods of production organization or technology, the development of new sites for the sale of products or services.
- Market position. Among the market goals, one can note an increase in the market share belonging to a particular structure to certain sizes; gaining leadership in a particular market segment.
- Production. The key objectives in this case are: reducing production costs compared to competitors, improving product quality, achieving maximum labor productivity.
- Employee management. It is worth noting that the goals for employees, as well as the principles of company management, can relate to maintaining jobs, improving motivation and working conditions, ensuring an acceptable level of wages and so on.
- Marketing component. The following points may serve as key results of activities in this area: reaching the first position in sales of certain marketable products, creating your own image for a product or service, improving the quality of customer service.
- The financial aspect. The overall goal is to maintain and maintain financial resources at the required level, their rational use.
- Management. The main goal in this area is to identify critical areas of managerial impact.
It is important to keep in mind that each commercial structure has its own list of principles by which it is guided. These rules allow you to efficiently and within a clear time frame to achieve your goals. It is necessary to consider the basic principles of companies operating in the Russian market:
- Mutually beneficial interaction with customers. This principle of the company’s activity assumes that it provides services or sells a marketable product to a wide range of customers. Any commercial structure respects its partners and consumers, appreciates their reputation and time. Thus, firms operating in the Russian Federation tend to cooperate on a mutually beneficial and long-term basis. At the same time, they comply with all the rules of conducting a civilized partnership business.
- Continuous improvement. This principle of the company’s work involves its constant development, optimization of business processes and structure, improvement of technologies and increasing expertise. Due to the proper development, the leaders of Russian firms increase the level of their own decisions. It is also about improving the quality of products and services. That is why this rule should be attributed to the principles of company marketing.
- Focus on results, the ability to find solutions. This principle of the company’s employees suggests that they see the only criterion for the success of the project is nothing more than an effective solution appropriate for reasonable and optimal resource costs in the agreed period. In most Russian commercial organizations, employees are creative in every task. Thus, rich experience and a high degree of responsibility allow them to find solutions that take into account the needs and specifics of each client as much as possible.
The role of principles in achieving goals
The goals and principles of the company are interdependent categories. The former cannot be reached on time and in good quality without the latter. Consider a few more examples of company principles:
- Openness and honesty. Russian companies are open to their partners and customers. Respecting their interests, expecting mutually beneficial and long-term cooperation, they reliably and promptly provide information regarding all factors affecting the course of the project, as well as its results. In another way, the rule can be called the principle of social responsibility of the company. In accordance with this provision, in relations with market participants, firms comply with the requirements of applicable law, as well as generally accepted standards of civilized business.
- "Healthy competition. Commercial structures adhere to the principles of open and free competition based on the possibility of combining the requirements of fair competition and the economic success of the company. Such contact with competitors is formed on the basis of correct business interaction.
- Responsibility and efficiency. This example of a company’s principle implies a continuous increase in the level of effectiveness in achieving goals, as well as the quality of the result. In accordance with the said rule, each employee is personally responsible for the results of their own activities. In turn, the company is responsible for the results of the work of absolutely every member of the team.
- Public relations are among the basic principles of the company. Russian companies, as a rule, do not allow the dissemination of false or unverified information, distortion or concealment of facts regarding the activities of a commercial structure.
So, we examined the corporate principles of the company. It is worth noting that there are also specific provisions or those that relate to certain areas of the functioning of the company. Consider them in a management manner.
Company Management Principles
Today it is customary to highlight the following principles of managing a commercial structure:
- Financial stability.
It is advisable to disassemble them separately.
Principle of profitability
Firstly, this category assumes the achievement of a certain result, provided that costs are minimized. By the way, that is why it is called in other words the principle of minimization. Secondly, for a given amount of material and energy resources, the greatest result should be obtained. It is a principle of maximization or profitability. In this case, the requirement is relevant: it is not necessary to waste productive resources, in other words, it is necessary to work “economically”.
Among the basic principles of the company, it is important to highlight financial stability. It should be understood as such activity of a commercial structure, according to which it can, if necessary, at any time pay off its debts. It is about using your own funds, a deferral mechanism or obtaining a bank loan.
It is important to note that the key goal of economic activity is the excess of income over expenses, other owls, results over costs. This is the achievement of the greatest possible profit or the highest possible profitability. It must be borne in mind that the ideal situation is that in which maximizing profit in a full way ensures a high level of profitability.
In the conditions of modern market relations (at least in the transition period to them) there are three main sources of profit:
- due to commercial and industrial activities;
- due to the monopoly position of the company for the production of marketable products;
- due to activities of an innovative nature.
What principles are relevant when creating a company
Particular attention should be paid to the principles of company formation. They represent a certain sequence of actions. This algorithm includes the following items:
- Entrepreneurial idea.
- Market assessment at this stage of operation.
- Attracting resources that are needed.
- Definition of the legal form of the structure.
- The selection of the founders.
- Company registration.
Consider each of the stages of the original principles in more detail. The principle of self-esteem implies that when deciding on the creation of their own business, a novice entrepreneur must carry out an objective assessment of their capabilities and abilities, as well as the advantages and disadvantages of independent economic activity. Here you need to conduct a detailed analysis of all your own qualities. Entrepreneurs, as a rule, are characterized by the following features:
- Competence in a specific field of activity in which he plans to open his own business.
- Ability and ability to take risks.
- Knowledge of the laws and rules of the market, a specific niche.
- Sociability and leadership skills.
- Satisfactory business reputation.
- Emotional stability.
- The ability to adapt to market changes, in other words, flexibility.
- Confidence in yourself and your business.
- Knowledge and relevant education (the last attribute is optional).
- Good health.
- Perseverance and energy.
The second principle involves the development of an entrepreneurial idea. Economic activity begins with a plan, which is subsequently converted into a specific business project. It is worth noting that a novice entrepreneur should be confident: his idea is viable from a commercial point of view and there will certainly be a sufficient number of people who will be willing to pay for marketable products manufactured by his company or services sold. The key to success is the belief that the businessman will produce a product of the proper quality that the consumer needs. Moreover, the price will be acceptable. In the end, it will bring a certain amount of profit, which is enough to improve and grow the business.
It should be remembered that any idea is carried out for purposes. It is impossible to promote a business without setting goals that are achievable. However, they must be commensurate with business opportunities. They can be qualitatively and quantitatively determined. Goals have clear timelines. You need to learn the basic rule: the more accurate the goal, the greater the chance of achieving it. The art of determining a goal is primarily associated with managing your own business. This makes it possible to control the process and results of work, as well as properly motivate employees. That is why, at the initial stages of their own business, it is necessary to establish and coordinate relevant goals and objectives with all founders, if any. Only then can we proceed to the formation of a business plan.
The third step is market assessment. Before making a final decision regarding the start of business, it is advisable to once again analyze the situation in the relevant field. Moreover, it is necessary to clearly identify the market niche and type of activity. It is important to know the location of the company and the geographical boundaries of the business. A novice entrepreneur should thoroughly study the market of potential competitors and customers to determine their own strengths and weaknesses. It is worth noting that such a study, as a rule, is included in the business plan as a separate section.
Attracting the right resources is considered the fourth principle of forming a commercial structure. The most important stage in creating your own business is resolving issues regarding the financial capabilities of the entrepreneur. He must find out where to get the money to start a business, in other words, to purchase equipment, raw materials, as well as hiring labor resources. It is worth noting that the sources in this case may be the accumulation of a novice businessman, cash from the sale of securities, bank loans, as well as subsidies by certain government agencies.
The attraction of resources is followed by the definition of the legal form of the company. The choice of the legal form within which the business will be conducted is considered one of the most important and difficult decisions that a novice entrepreneur makes. According to the civil legislation of the Russian Federation, any individual has the right to develop entrepreneurial activity without forming a legal entity. In this case, we are talking about registration of IP. You can also open your own business in accordance with another legal form. It is worth noting that the businessman should thoroughly study this issue, if possible, get the advice of a tax audit specialist or lawyer. In addition, in the process of choosing the legal form, a businessman must carry out a thorough analysis of three main aspects: responsibility, taxes and control.
So, we examined the key principles of the company and other aspects of this category, examined the issues of forming a commercial structure, management and marketing. At the same time, it was found out that the mission and goals of the company are categories closely related to its principles.
In conclusion, it should be noted that today companies operating on the territory of the Russian Federation pay great attention to corporate principles. The reason for such an interesting approach is the high level of competition. So, firms build long-term partnerships with customers. They take into account the high requirements for the quality characteristics of their products, supply services, and also set the optimal price.In addition, employees of commercial firms quickly and conscientiously solve the tasks. Each structure tries to be better than competitors, use more efficient methods of production and sales of the product, as well as launch more vibrant and effective advertising. All this belongs to the category of corporate principles, which allows us to strengthen the relationship of companies with contractors and raise their status in the eyes of consumers.