As more and more companies begin to acquire smaller organizations, giant companies that are involved in multiple industries are becoming increasingly common. These multifaceted entities are called enterprises because they are cross-functional.

Size

Because an enterprise is defined as the whole organization, most enterprises are much larger than the standard company. Their immense size allows these entities to obtain and use lots of resources.

Benefits

An enterprise is involved in many different "mini-businesses." As a result, these huge organizations can earn profits from completely different revenue streams. This allows them to insulate themselves against cyclical downturns and other recessionary effects.

Function

The trend is for modern-day enterprises to divide their departments into several subsidiaries. Often, these organizations will have separate headquarters for each of these subsidiaries as well.

Potential

While some may be confused by the notion of an organization wanting to be involved in everything, many other business leaders believe that brand recognition is best accomplished by having a presence in multiple markets. Furthermore, enterprises can pull resources from each of their departments whenever necessary.

The Future

In the next few years, many more companies will continue to acquire smaller entities in different and emerging markets in hopes of sustaining or creating growth in earnings.

Source:

PC Mag Enterprise Definition

Business Enterprise