Tag: meaning and objectives of public sector enterprises

The enterprise will grow successively if it changes according to the required atmosphere. It should be flexible. The key to the success of the firms lies in the ability of the founders to recognize the need for change, understand how to effect the change, and quickly make the change at important inflection points. Creation of autonomy is the characteristic that ultimately drives entrepreneurs to accept the risks of entrepreneurship: a heavy workload and an uncertain financial future. The strength of informal enterprises lies within their flexibility, lack of defined structures, and ability to quickly respond to individuals’ needs and market conditions.

The success of the growth of an enterprise depends on its capability to adopt the changes going on and to do new innovations. Knowledge sharing and knowledge management should be given priority to encourage innovation and creativity. 

Public enterprises are autonomous organisations. They frame their own policies and procedures within the powers assigned to them by the act. The Act may however provide few issues which require prior approval of a particular ministry which makes it semiautonomous organisations also.

Public enterprises is an industrial, commercial or business activity of a government where a return on investment is expected. These  are institution operating service of an economic or social character or behalf of government. Government lays down certain public policies in the public interest and not guided by profit motive in order to govern such companies. 

Public enterprises are autonomous or semi-autonomous corporations and companies established, owned and controlled by the state and engaged in industrial and commercial activities. The key elements of public enterprises are state control and Public accountability. These are managed by the government. In some cases government has started enterprises under its own departments. In other cases, government nominates persons to manage the undertakings. Even autonomous bodies are directly and indirectly controlled by the government departments. The primary aim of state enterprises is to provide service to the society. These enterprises are started with a service motive. A private entrepreneur will start a concern only if possibilities of earning profits exist but this is not the purpose of public enterprises.

A company whose securities are traded on a stock exchange and can be bought and sold by anyone. Public companies are strictly regulated, and are required by law to publish their complete and true financial position so that investors can determine the true worth of its stock (shares). Also called publicly held company.

A board of directors is a recognized group of people who jointly oversee the activities of an organization, which can be either a for-profit business, nonprofit organization, or a government agency.

The Articles of Association (AoA) or the Articles, contain rules for the internal management of a company. It is a legal document prepared by a company to explicitly state the purpose of a company, the procedure to conduct its internal affairs and most importantly the responsibility and authority of the directors, members and other stakeholder. The Articles have to be submitted to the Registrar of Companies during formation of a company in Form INC-34 along with the Memorandum of Association in Form INC-33.

As per the section 3(1) of the companies act:

STEEP is basically an acronym which stands for Social, Technological, Economical, Environmental, and Political. A STEEP analysis is a tool commonly used in marketing to evaluate different external factors which impact an organization. It is essential for every business to consider some external forces before they can take decisions.