Business Activity Fundamentals

The Purpose and Nature of Business Activity

• The primary purpose of business activity is to create value for its stakeholders, including customers, shareholders, employees, and society as a whole.
• The nature of business activity involves the production and distribution of goods and services to meet the needs and wants of customers.
• Businesses operate in a dynamic environment, responding to changes in the market, technology, and society.
• The core activities of a business include:
  • Production: creating goods and services
  • Marketing: promoting and selling goods and services
  • Finance: managing financial resources
  • Human Resource Management: managing employees

Consumer Services

• Consumer services are intangible products that provide value to customers, such as:
  • Hospitality: hotels, restaurants, and tourism
  • Health and Wellness: healthcare, fitness, and beauty services
  • Education: schools, universities, and online courses
  • Financial Services: banking, insurance, and investment
• Characteristics of consumer services:
  • Intangibility: cannot be seen or touched
  • Inseparability: production and consumption occur simultaneously
  • Variability: quality can vary depending on the provider
  • Perishability: cannot be stored or inventoried
• Marketing strategies for consumer services:
  • Emphasize benefits: highlight the benefits of the service rather than its features
  • Build relationships: focus on building long-term relationships with customers
  • Use tangible cues: use physical evidence, such as decor and ambiance, to create an impression

The Purpose and Nature of Business Activity

• The primary purpose of business activity is to create value for stakeholders, including customers, shareholders, employees, and society.
• Business activity involves producing and distributing goods and services to meet customer needs and wants.
• Businesses operate in a dynamic environment, responding to market, technological, and societal changes.

Core Business Activities

• Production: involves creating goods and services.
• Marketing: promotes and sells goods and services.
• Finance: manages financial resources.
• Human Resource Management: manages employees.

Consumer Services

• Consumer services are intangible products providing value to customers.

Types of Consumer Services

• Hospitality: includes hotels, restaurants, and tourism.
• Health and Wellness: includes healthcare, fitness, and beauty services.
• Education: includes schools, universities, and online courses.
• Financial Services: includes banking, insurance, and investment.

Characteristics of Consumer Services

• Intangibility: cannot be seen or touched.
• Inseparability: production and consumption occur simultaneously.
• Variability: quality can vary depending on the provider.
• Perishability: cannot be stored or inventoried.

Marketing Strategies for Consumer Services

• Emphasize benefits: highlight the benefits of the service rather than its features.
• Build relationships: focus on building long-term relationships with customers.
• Use tangible cues: use physical evidence, such as decor and ambiance, to create an impression.