What Is a Consumer Unit?

Enterprise consumption refers to the simple consumption of use value and value that does not have a direct relationship with the company's production activities. Also known as "enterprise pure consumption" and "public corporate consumption".

Business consumption

Right!

Enterprise consumption refers to the simple consumption of use value and value that does not have a direct relationship with the company's production activities. Also known as "enterprise pure consumption" and "public corporate consumption".

It includes (1) business affairs consumption, such as meeting expenses, hospitality expenses, non-productive car expenses, and (2) employee public consumption, such as kindergartens, infirmaries, stadiums, clubs, libraries, and corresponding cultural and educational supplies And other expenses. Enterprise consumption is a group consumption, a component of social public consumption, and an important aspect of measuring the consumption level of enterprise employees. The consumption level of an enterprise depends first on the efficiency of the enterprise. The economic benefits of an enterprise are good. The more profitable it is, the higher the consumption level of the enterprise; otherwise, the consumption level of the enterprise is low. Secondly, it depends on the supply capacity of socialized services. With a large social service capability, enterprises do not need to "run a society", and the content and quantity of corporate consumption are small: on the contrary, the content and quantity of corporate consumption are large; again, it depends on whether the enterprise's self-regulation mechanism and self-development mechanism are sound. When the self-restraint mechanism and self-development mechanism of the enterprise are sound, the enterprise can reasonably allocate and use retained profits, not blindly compare consumption levels, and use retained profits more for the development of enterprise production, and vice versa. Enterprise consumption is the result of distribution and at the same time a hidden distribution means. When personal income is constant, expanding enterprise consumption is equivalent to actually increasing the income distribution level of employees. Reasonable and moderate corporate consumption is an important means to meet the welfare needs of employees and motivate employees.

Chinese name

Business consumption

Alias

"Enterprise Pure Consumption" "Enterprise Public Consumption"

Include part

Corporate transactional consumption, employee public consumption, etc.

Types of

consumption

Urban economic activity is a complex and huge operating whole, which is composed of thousands of economic cells and micro units. In terms of production processes, this cell is the enterprise. An enterprise is a basic unit of production or management that has the status of an independent legal person, creates value and utility, and pursues maximum profit. The economic activity of modern society is supported by the production behavior of enterprises, and the production process of enterprises is also the process of waste of enterprises. Corporate activities also have direct consumption attributes. ^[1]

(1) Production and consumption ^[2]

The modern city is a huge and complex economic and social system, and corporate activities constitute the operating basis of the urban economic system. The production and consumption system with enterprises as the main body plays an important role in urban activities and is an important aspect of modern urban activities. ^[1]

In urban economic activities, enterprises are both the main body of production and the main body of consumption. The economic growth and the expansion of consumption require the role of enterprises. Achieving this goal requires continuous innovation. ^[1]

1. Challenges Facing Chinese Enterprises

After entering the buyer's market, the overall structure of China's economic operation has undergone a fundamental change. New contradictions and new problems in economic life have continued to emerge, posing challenges to enterprises at this stage, especially urban enterprises.

(1) Enterprises face more intense market competition. Under the operating pattern of the buyer's market, market competition has become increasingly fierce, and especially the production scale and economic strength of non-state-owned enterprises have been increasing. Today, more than 300 of the world's top 500 companies have entered the Chinese market, making the market competition between state-owned and non-state-owned enterprises and between Chinese and foreign enterprises intensified. This is extremely unsuitable for companies accustomed to seller market conditions. This is especially true for state-owned enterprises. In reality, many state-owned enterprises lack market-competitive flagship products, resulting in poor product sales, overstocked inventory, heavy debt, and troubled production and operations. Under these conditions, the strength of market competitiveness has become a decisive factor for the survival of an enterprise. As a result of competition, production and efficiency are gradually concentrated to a few advantageous enterprises. More and more enterprises are at a disadvantage in the competition, and a large number of enterprises are forced to withdraw from the market. This recombination of the market structure not only poses a threat to the enterprise, but also provides new development opportunities for the enterprise.

(2) The average profit level of enterprises has dropped and the growth rate has slowed down. In the increasingly fierce market competition, companies often adopt price reduction strategies. In recent years, the wind of price cuts raised by manufacturers from commercial enterprises in China has led to various price wars that have caused the average profit level of enterprises to continue to decrease, and even a reverse movement of production and sales growth and falling profit levels. As a result, the lack of stamina in the development of the company will inevitably lead to the continued expansion of losses.

(3) Significant changes have taken place in the competitive fields and methods of competition. Not only has the market competition in general competitive industries intensified, but the barriers to entry for industries that have traditionally been monopolized, such as the power and communications industries, have also been broken. Even some monopolistic industries (such as railway transportation) are beginning to feel the competitive pressure of alternative industries (road and air transportation). The field of competition has transitioned from production-intensive to capital- and technology-intensive. Many companies have attacked the state monopoly industries, and a new pattern of comprehensive competition has emerged. Fundamental changes have also taken place in the means of competition, beginning with a lower-level approach such as price wars, 'rebates, and imitations', and shifting to relying on capital strengths, brands, and patented technologies to occupy the market. Some of these competitions are legal competitions and some are vicious competitions, but in the end, companies with real strength will win.

(4) Consumer demand becomes the center of the market. To survive and develop in the fierce market competition, enterprises must not only study the actual needs of consumers, but also the potential needs of consumers. Consumers have gradually matured in the market economy and have become the dominant force controlling the market. The unfavorable actions taken by enterprises for profit, such as manipulating consumers, exaggerating and deceptive advertising, poor after-sales service, and environmental pollution, will cause consumer dissatisfaction and resistance. In the end, it is the enterprises that will be affected and lost. . This requires that enterprises must focus on consumers to organize production and business activities.

(5) Due to the structural contradiction between supply and demand, companies producing traditional industrial products with increasingly saturated markets are faced with many difficulties and are increasingly challenged by domestic and foreign producers of "creating demand" and high-tech products. Forcing companies to change their traditional behaviors and business ideas, starting to focus on strategic research, brand effects, marketing and consumer requirements, while adjusting corporate organizational systems, optimizing corporate organizational structures and industrial structures, and fostering new economic growth points, Make the company's growth mode from focusing on quantity to quality improvement, from extensive growth to intensive growth, and to meet the diverse needs of the market as the core and most important issue. This has also led to the adjustment of the overall national economic structure and promoted the improvement of the quality and efficiency of economic growth.

(6) Reorganization between enterprises and organizational structure adjustment have become a major feature. In the market competition, some companies have grown and expanded to become powerful winners and may develop further abnormally; while the companies with low competitiveness are getting more and more sad and in trouble. Therefore, mergers, acquisitions, reorganizations, and bankruptcies among enterprises have become a phenomenon attracting attention in recent years.

2. Enterprise reform and innovation

As a cell of the national economy, urban enterprises are the leading force for the development of social productive forces and the realization of modernization, as well as the basis for building a socialist market economic system. How the state of an enterprise affects not only the actual production and consumption, but also the prospects of the development of the entire national economy. In order to promote effective production and consumption of enterprises, it is necessary to reform and innovate existing enterprises. (1) Innovation of business management system

The choice of ownership is the prerequisite for the establishment of a business, but the more important factor in determining the business form is the business model. Under the ownership of individuals and families, the ownership of the means of production and the right to operate are unified, and the owner is also the operator. State ownership and collective ownership can both implement the unification of the two powers and make the management right independent from the ownership. Before the reform and opening up, state-owned enterprises and collective enterprises did not have independent management rights, and state-owned and state-owned enterprises were integrated. In the 1980s, the reforms of "allocation of loans to loans" and "profits to taxes" were implemented. The government's purpose was to make state-owned enterprises take the path of separating the two powers and turn the enterprises into self-financing and independent entities. The basic condition for the separation of the two powers is that the ownership of the property rights is clear, and the property of the state-owned enterprise must be publicly exercised by the unit authorized by the state. But so far, China has not done this. The State-owned Assets Management Bureau, which was established a few years ago, is not only a state-owned property management agency, but also has administrative approval powers, such as the power of the State Planning Commission, the State Economic and Trade Commission, the People's Bank of China and the China Securities Regulatory Commission to approve listed companies. This multiple identities (as state-owned asset manager, as administrative coordinator, and as macro-controller) determines that they cannot truly exercise ownership of state-owned assets.

The prerequisite for the separation of the two powers of state-owned enterprises is the clear property rights and the establishment of a representative who simply exercises the power of the owner of state-owned assets. The basic function of this representative is to monitor the state-owned assets to maintain and increase their value while collecting asset rents on behalf of the state, just like the landlord The same is charged for rent. Under these conditions, state-owned asset managers not only have to bear the tax liability of all enterprises, but also have to bear the obligation to pay asset rent to the state-owned asset representative agency.

The shareholding system belongs to the capital or asset property rights system where the two rights are separated. Regardless of whether the shares are held by a relatively large number of shareholders or by large shareholders, whether the shares are listed or not listed, the ownership and operating rights of joint-stock enterprises are independent of each other. Stocks or book stocks represent the right to control assets. Dividends are a discount on the time it takes to transfer the right to use an asset, which is all an act of ownership. As a ownership system, the shareholding system not only has a certain degree of "asset sharing" characteristics, but also the property rights are socialized, which is even more true for companies that issue shares to the society, especially those listed on the stock market. In this sense, the shareholding system can be seen as a social ownership, a higher form of personal ownership, and a citizen ownership. It cleverly combines public and private. From the perspective of public ownership, it is not nothingness, avoiding the disadvantages of the traditional form of public ownership that is not owned by anyone; from the perspective of private ownership, it is not completely exclusive. The organization of property rights and market operations have a joint nature. In particular, the shareholding system can better reflect the socialization of property rights. These characteristics of the shareholding system are adapted to the development of the modern market economy. Therefore, the socialist market economy requires more and faster development of the shareholding system. This requires reforming the existing enterprise system, especially the current state-owned enterprise system, strategically restructuring the state-owned economy through enterprise system reform, and improving the operating efficiency of the enterprise system.

(2) Enterprise management innovation

The sustainable and effective development of enterprises also depends on the innovation of management systems. There are various forms of management innovation, and different enterprises can choose the way to innovate management methods according to the specific conditions in terms of people, finance, material, market position, and technological advantages.

For enterprise development, strategic management is very important. Strategic management mainly refers to: in terms of time, there must be a medium-to-long-term consideration for the development of the enterprise, and the capital and profit growth plan must have a long time span. In terms of space, choose a reasonable positioning of the company among its peers. It is necessary to pay attention to clarifying the company's competitive position from the perspective of market share, and also to grasp the potential development trend of the company and win in the market from the perspective of changes in overall strength. Methods. The market is like a battlefield. Enterprises must continue to be in a favorable competitive position. The choice of development strategy is very important. Improving the level of strategic management can create an intangible wealth for the enterprise.

Behavior management innovation is another important aspect of business management innovation. Behavior management mainly refers to the management of behaviors including production, purchase and sales, and various other business activities. The core is the comparison of the costs and benefits of behaviors. The focus of efforts is to minimize the cost of each behavior and maximize the benefits. Thus improving behavioral efficiency. The management of Backward Cost Method of Handan Iron and Steel is a relatively successful innovation example of behavior management. It differs from the traditional labor management methods such as Taylor system and fine production method in that: The focus is not on the behavioral efficiency itself, but on the economic benefits brought by the behavioral efficiency. The goal of "pursuing the minimum cost" is used to restrict the behavior of workers. In addition to improving employee behavior management, in Chinese state-owned enterprises, the management of manager's behavior is more important. Despite the implementation of the contract system and the responsibility system, etc., the behavior management system that restricts managers to "pursue maximum benefits" is far from being set up.

In addition to strategic and behavioral management, the approaches to corporate management innovation include: management of funds, goods, finance, projects, investments, technology, knowledge, information, public relations and personnel. Management can create efficiency and increase wealth. Under the condition that the system, policy, technology and other conditions are established, some state-owned enterprises make profits and some losses. One of the main reasons is the different management levels. In this sense, it can be said that a considerable part of the current loss-making state-owned enterprises can be turned back to profit through reform of management methods.

(3) Enterprise technology innovation

In order to effectively regulate the life cycle of enterprises, technological innovation is particularly important. In addition to micro-level technological applications such as production processes, technological innovation must be continuously adapted to new economic and technological forms, and strategic technological development is mainly carried out. The vitality of modern enterprises is increasingly dependent on technological progress and new inventions and creations. To this end, enterprises need to create an environment that encourages employees to invent technology, on the other hand, they must have a dedicated team of technical research and development to form a long-term stable "research-development-production" process within the enterprise. Technology research institutions are combined with enterprises to achieve the cooperation of technology researchers and technology developers, and have launched different new technologies and products at different times.

Technological innovation not only includes the increase in technological innovation of enterprises such as new process applications, new product research and development, but also the continuous upgrading of existing machinery and equipment to accelerate their depreciation and shorten their value compensation and material replacement cycles. Realize the modernization of enterprise technology stock. Only by combining the technological expansion and technological modernization can we generate comprehensive technological advantages on the basis of reducing technological development costs, promote technological upgrading of enterprises, and achieve sustainable development.

Innovation is the soul of development and the life of an enterprise, and an enterprise is a human enterprise. Without people, an enterprise does not exist. Therefore, to promote continuous innovation and development of the company, the key is to use good people to fully mobilize the enthusiasm of employees, so that employees can work freely and comfortably, and fully express their ingenuity. Therefore, innovation is not only needed to cultivate the main body of production and consumption of enterprises, but also an important content of the development of urban economy.