An enterprise is an entity doing business to deliver value that satisfies a customer’s needs so as to survive and grow. Doing business is executing a collection of processes with resources to create value which is usually quantitatively evaluated by monetary vehicle. A customer pays for the value to meet his or her needs. Simply put, an enterprise exists for customer’s needs and makes profit to survive and grow.
An enterprise is governed by the leadership team, the board of directors and senior management or executives. Customer’s needs are the origin of an enterprise’s mission and vision. A strategy is the means for the leadership team to fulfill the mission and vision and is usually broken down to goals and objectives that are met by implementation of plans.
An enterprise explores opportunities to make profit and takes risks associated with them. Governance is the collective processes and behaviors for the leadership team to direct the enterprise. That is, the leadership team governs for the performance to make profit, makes informed decisions to take risks, and obeys the laws and regulations to be compliant.