The Enterprise as a Need Satisfying Institution in the Free-Market System

As we learnt in Business an enterprise is an independent institution established by individuals to make a profit by producing goods or providing services that satisfy the needs of consumers. (BST02 Notes 2012) The essence of business is making a profit and being sustainable.

An entrepreneur, who has the initiative to start the business, identifies the needs of consumers and satisfies their needs through the enterprise they have created with their main motive to be making a profit through a sustainable business.

Within the enterprise a system is made up of various components which are all interdependent, but rely on each other to communicate and co-operate in order for the business’ objectives to be achieved. These components (departments) include the General Management Function, Purchase Function, Operations Function, Marketing Function, Financial Functions, Human Resources Function, Public Relations Function

There are also different sectors in which enterprises operate. These 3 broad categories include the Primary Sector which is concerned with raw materials, the natural resources in the unprocessed form like cotton which will be used in my venture of starting my own underwear and lingerie line. The secondary sector includes the processing and manufacturing of the natural resources such as cotton buds which are picked and made into cotton yarns which is sent in for production. The tertiary sector is when the final products get distributed from the manufacturing to the consumers, such as retails stores who receive their clothes from the manufacturers and place them in the stores so that consumers can buy these products from them.

The industrial column also has to be taken into consideration, which is the route that a product follows in which it is supplied to consumers. It includes all the processes and transactions that take place along the route. This would be the extraction of cotton form the cotton plantations (primary sector) which follows into the processing of cotton to yarns which gets wove into material which is then dyed and printed as desired. Cutting and producing the desired underwear items follows the process of making the material (Secondary sector). When the underwear items are made they are sent to warehouses and storage depending on what the buyers ordered. These items are then sent into the retail outlets where consumers are free to buy the desired underwear garments.

Victoria's Secret

Victoria's Secret dates back to 1977 when Roy Raymond, a Stanford Graduate student form Graduate School Of Business, felt embarrassed when he had to purchase beautiful lingerie from a department store. He decided to open his first lingerie store at Stanford Shopping Center , thus Victoria's Secret was born with 3 more stores soon following which makes this enterprise part of the