A manufacturing enterprise is a business entity established to produce goods for sale to wholesalers, retailers or end consumers. Some manufacturing enterprises are independent businesses. Others are established as a joint venture between two or more firms.
The Enterprise View
An enterprise is a business set up to achieve specific goals. A manufacturing enterprise is typically established for the goal of generating a profit by making and selling goods. The manufacturer operates out of a facility and employs people and equipment to convert raw materials into finished products. Some manufacturers rely heavily on equipment for mass production. Others rely more on laborers for customized or higher-quality products.
Manufacturers in the Distribution Channel
A manufacturing enterprise plays a key role in a traditional distribution channel. A distribution channel is a collection of companies that take products from manufacture to end consumer. The manufacturing enterprise traditionally sells its finished goods to a wholesaler or distributor. The wholesaler sells to a retailer. The retailer sells to consumers. For the channel to succeed, consumers must see value in the goods they buy. This value comes from a quality product marketed at a fair price.
- Kevin Frayer/Getty Images News/Getty Images