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PHILOSOPHY
How we understand the key principles and goals of an enterprise (firm) activity?

According to Adam Smith - “Consumption is the sole end and purpose of production; and the interest of the producer ought to be attended to only so far as it may be necessary for promoting that of the consumer”. The present quote fully describes the function of production, and there is only one thing to add, that the term “consumption” is here used not merely as exploitation of material recourses, but also as a possibility and a necessity to expand your scope, gain more knowledge, develop your intellectual and spiritual world. These are materialized through a production process. Production methods for hundreds of thousand of years saw a considerable improvement, but only the last two centuries witnessed an enormous push forward and continue to speed up until today. Changes in production methods, work organisation and social order brought the same revolutionary shake-up to our lives.

A modern economic development is exceptional for the growing importance of capital. A minor production factor in ancient times, when the significance was attached to nature and work, today capital plays a leading role.

Indeed we live in the machine age and everything depends on us.
 
 

The significance of science in the development process of the company.

Scientific know-how is a spiritual value. When applied in practical human activity, scientific know-how expands human abilities and creates conditions to develop new material values, i.e. technologies, products and services. In the process of the transformation of values usually the importance is given to engineering and technological or other types of development, which in turn might trigger a new scientific research.

Science as a result of studies and higher education is transformed into a public asset, and therefore improves the quality of an enterprise, i.e. a human capital. There is never too much of science-based knowledge and abilities.

In leading economies science and development of innovations contribute significantly (up to tens of percents) to an economic increase.

Engineers usually witness the benefits of science through its impact on technologies and production. Science, just like anything else, is beneficial only if applied practically and skillfully.