Explain Operating Segments of an Enterprise

by Ronnie Daniels; Updated September 26, 2017
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A business enterprise is an entity whose primary objective is the realization of profit from its endeavors. The enterprise combines manufacturing, marketing and distribution to create and sell products. The different segments work cooperatively to continually improve quality and increase profits.

Management

Management in the modern business environment is a vital component for constantly assessing and improving the quality of products and processes necessary to realizing profits. No longer simply overseers, managers at every level of the company are intimately engaged with employees and other managers in the effort to create the best quality goods and services at the lowest possible cost.

Production

The production segment of a business enterprise creates the product the business sells. It receives raw materials and manufactures goods that are sold to other business entities or to the general public. The process is constantly being evaluated by employees, managers and engineers to eliminate waste and increase productivity. Maintenance specialists maintain and build the equipment that is used to create the product.

Sales and Distribution

Distribution is a vital segment of modern business. The sales and distribution staff receive orders for product and communicate the information to the production facilities. Goods are then shipped directly to the customer or to a distribution center which stores and ships the product to customers or to individual retail outlets.

About the Author

Ronnie Daniels writes content for blog, website and print publication. Writing professionally since 2007, Daniels has been published on various websites and offline in "Mirror Mirror Magazine." Constantly improving his craft and writing better articles and stories has become Daniels' goal in life.

Photo Credits

  • business image by peter Hires Images from Fotolia.com