7 junio, 2024

Description of the company: what it is, what it is for, how to do it, examples

What is the company description?

The Company description it is a summary of the most important points of the company: its history, the management team, where it is located, what it does and what it hopes to achieve, the mission statement and the legal structure. It usually appears after the executive summary in the business plan.

What is this document for? The company description outlines the vision and direction of the company so that potential lenders and partners can get an accurate impression of the company.

This is usually the shortest chapter of the business plan, but that doesn’t reduce its importance. If this plan is exposed to people outside the company, it is the opportunity to introduce the company.

When writing this section of the business plan, focus on the most relevant aspects: who is the founder and owner, outstanding members of the team, product or service, why it is unique. Think of this chapter as the “who, what, when, where, and why” of the business.

How do you write a company description?

The description of the company within the business plan includes the sections described below:

Company overview (summary)

This is the section that exposes the business plan. Keep it brief, as what is said here will be expanded upon in the following sections.

Company history

The company history section will begin with when the business was founded and who was involved, including a bit of backstory.

This section will vary depending on who this business plan is being presented to and what stage the business is in. If it is an internal plan, the historical data may not be essential.

To seek financing

If the plan is to seek financing, investors will want to know the backstory, and this section will help provide context for the business plan. Include how the company started, how it grew, and changes made along the way.

Management team

The management team section is the opportunity to paint a picture of the work team and show its best attributes.

Again, for internal use, this may not be applicable, although it could be used to highlight the onboarding of new employees or existing employees taking on some new leadership responsibilities.

Legal structure and ownership

In relation to the management team, you may want to include a separate section describing the legal structure and ownership of the organization.

The legal structure of the business is an important piece of information that any source of financing must have. Is it an anonymous company? A limited liability company? A sole proprietor? This will also affect how taxes are filed.

Locations and facilities

This section is used to describe where business is to be done. Are you going to buy a manufacturing building? A store? Already have a great space?

This section should explain the circumstances of the use of any mentioned space. Include whether it is owned or leased, and what the relevant terms of that contract are, if you have one.

mission statement

When developing your mission statement, be as concise as possible. What idea can be distilled into one or two sentences that express the main mission of the company?

This could be something you want to create together with your management team, if you have one, so that a long-term shared vision is conveyed.

Goals and objectives

The objectives are the long-term plan, where you want the company to be. Goals are the steps that are used to achieve those goals.

For example, a goal might be to have a healthy and successful company that is a leader in customer service and has a loyal following of followers. Goals can be annual sales targets and some specific measures of customer satisfaction and loyalty.

Products and services

Products or services are described in detail, including technical specifications, photos, drawings, sales brochures.

What are the competitive advantages or disadvantages of the business? Examples of competitive advantages include unique features or differences in the quality of products.

It could explain how the prices, fees, or lease structures for the products or services were arrived at.

Company Description Examples

1. Company Description ZTE Corporation

Introduction

ZTE Corporation is a world leader in telecommunications and information technology. Founded in 1985, it is listed on the Hong Kong and Shenzhen Stock Exchanges.

The company is committed to delivering integrated innovations to deliver excellence and value to consumers, carriers, enterprises and public sector customers in more than 160 countries around the world to enable greater connectivity and productivity.

ZTE believes that technological innovation is part of the company’s core interest. Of the company’s annual revenue, more than 10% is invested in research and development.

The company has established state-of-the-art research and development centers in the US, Canada, Sweden, China, etc., and employs more than 30,000 research professionals in developing next-generation technologies such as 5G, Internet of Things Things, NFV, SDN, Cloud Computing and Big Data.

Goals

Going forward, the company will be committed to becoming a pioneer in the telecommunications industry, leading standardization, technical insight and commercialization, and driving innovations in telecommunications and information technology globally.

corporate vision

To become a distinguished world leader in the Master era in Information and Communication Technology.

corporate mission

Sparing no effort to provide the world with great, green and open Information and Communication Technology products and experiences. For partners who share this vision, a secure, open and collaborative platform will be established to help them achieve their goals.

Product portfolio

ZTE has the most comprehensive telecommunications product lineup in the world, covering all verticals of wireless networks, core networks, access and carrier networks, services and terminal markets.

With its independent and creative R&D capability and market-oriented and customer-oriented strategy, ZTE is capable of developing and producing first-class, market-leading technologies in wireless software, switching, optical transmission, data, telephone and telecommunications.

2. Nestlé Group (summary)

Nestlé is one of the world’s largest food and beverage companies. It was born in Switzerland, in 1866, by the hand of the German chemist Henri Nestlé, who developed a successful flour formula based on toasted cereals and milk.

In 1905 it merged with Anglo-Swiss and has since formed what is known today as the Nestlé Group. Its purpose is to develop and provide top quality food for its customers, promoting research in the field and following strict health and nutrition standards.

Today it has more than 2,000 associated brands and is present in 187 countries around the world.

On the other hand, its vision wants to be attached to the UN Sustainable Development Goals, and for this it helps the communities where it is inserted to improve the lives of not only customers but also inhabitants, and achieve Zero impact in environmental matters. .

3. The Coca Cola Company (summary)

It is the largest and best-known beverage company in the world, since its creator, pharmacist John Pemberton, devised a medicinal drink to relieve diarrhea in 1886 in Atlanta, Georgia.

The drink was made with extracts of coca leaves and kola nuts, although in 1903 cocaine was changed to caffeine. His accountant, Frank Robinson, created the Coca Cola logo and brand – also known as Coke – which are used today.

Pemberton sold part of the company and the formula to fellow pharmacist Asa Griggs Candler in 1889 for $2,300, and in 1892 The Coca Cola Company was founded, Griggs and his brother John and Frank Robinson being partners.

This company produces the concentrated syrup that it then sells to its authorized bottlers around the world, which mix it following the exclusive Coca Cola formula with filtered water and various sweeteners.

The Coca Cola Company is today one of the most powerful multinationals in the world, and as a result of global concern for the environment, since 2015 it has committed to taking care of the water with which it makes beverages and replenishing it clean, back to nature. .

Its mission is to continue being a leading company that collaborates with the communities where it has its headquarters.

In 1972 it became a sponsor of the Olympic Games, in 1966 of the FIFA Soccer World Cup and from 1976 to 2020, of the Eurocup.

4. Apple Inc. (abstract)

Apple is a fundamental company that designs and manufactures electronic equipment and software, known for its personal computers, its smartphones and a whole series of exclusive devices of the brand.

It was founded by Steve Jobs, Steve Wozniak and Ronald Wayne in 1978, in Cupertino, California, which is its North American headquarters; the European headquarters are in Cork, Ireland.

In 1984 it introduced the MacIntosh, the first personal computer to incorporate a graphical user interface (GUI).

Jobs retired from his company, to which he returned in 1997 with revolutionary and innovative ideas that made the company profitable.

In 2001 the first generation of iPods was released, including a jukebox multimedia software called iTunes, which would later incorporate not only music but also videos, movies and television shows.

Since 2007 it became Apple Inc. Its mission is to provide cutting-edge technological communication equipment to provide the best experience to its customers and users. Today, it has stores all over the world.

References

Angelique O’Rourke (2018). How to Write a Company Overview. Bplans. Taken from: articles.bplans.com.
ZTE (2018). Company Overview. Taken from: zte.com.cn.

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