4

Analysis of the Strategy of the Enterprise and the Enterprise Strategic Plan

4.1. The industrial enterprise: basic main features

The purpose of an industrial company is to make a profit by selling products and services to customers acting in different markets [DAL 12]

Process industries (PI) encompass chemistry, pharmacy, metallurgy and cosmetics to name only a few. Process industries are also major players in the manufacturing industries which produce discrete products like the automotive industry, aircraft industry and others. An automobile uses a lot of chemicals in the dashboard, windshield, seats, pipings, etc., and also lot of gas and lubricating oils. Company sales turnover has to compensate for all fixed company costs linked to corporate expenses (management, legal, communication, etc.), R&D, engineering, commercial activities, plant operating expenses (OPEX), capital expenses (CAPEX), financial expenses (debt reimbursement).

Profit is needed to satisfy stockholders who have taken the risk to invest in the company expecting a return on their investment. Profit is also needed for the company to adapt to changes; the most common ones are investment in new facilities, in capital maintenance, in acquiring other companies, patents and brand names, in branching out into foreign countries and so on.

In most of the countries of today’s world, enterprises are capitalistic by nature [APP 10] and whatever the mode of governance of the country they function in, all of them operate ...

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