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Introduction To Business Activity

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31 views8 pages

Introduction To Business Activity

Uploaded by

hungrymail6226
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Introduction to Business Activity

This document provides a foundational understanding of business activity, exploring its purpose, key elements,
sectors, and the process of value creation.

by Pri Pri
The Purpose and Importance of
Business Activity
Businesses play a crucial role in satisfying human needs and desires by
providing goods and services.

By organizing resources, people, and technology, businesses create value


for consumers and generate revenue.
Types of Business Interactions
Individuals engage with businesses in various ways, both as consumers and as employees.

Consumers purchase goods or services, while employees contribute their skills and labor to the production
process.

Consumer Employee
A person who buys goods or services for personal use. An individual who works for a business and
contributes to its operations.
Key Elements of Business Structure
Businesses are characterized by organized activities, specific objectives, and defined roles.

These elements ensure efficient operations, goal achievement, and a clear division of responsibilities.

1 Organized Activity 2 Specific Purpose 3 Defined Roles


Structured processes, Clearly stated goals or Distinct responsibilities and
workflows, and defined roles objectives, such as generating tasks assigned to individuals
within a business. profit, providing societal or teams within the
benefits, or promoting organization.
sustainability.
Sectors of Business Activity
Businesses are classified into different sectors based on their primary
activities, reflecting the broader economic landscape.

Each sector plays a vital role in the production and distribution of goods
and services.

Primary Extraction of raw materials from


natural resources

Secondary Manufacturing and processing


of raw materials into finished
goods

Tertiary Provision of services to


consumers and businesses
Inputs in Business Activity
Businesses require various inputs, or resources, to produce goods or services.

These inputs are transformed through the business process, creating value for consumers.

Land Labor Capital Intellectual Capital


Natural resources and The workforce, including Machinery, tools, and Knowledge, creativity, and
physical space utilized in skills, knowledge, and equipment used in problem-solving abilities
production. dedication. production. of employees.
Outputs of Business Activity
Businesses produce tangible goods and intangible services to meet consumer demand.

These outputs represent the results of the transformation process, delivering value to customers.

Goods Services
Tangible products that can be produced and stored Intangible actions or activities that are produced and
before consumption. consumed simultaneously.
Creating Value in Business Activity
Businesses aim to create value by ensuring that the output is worth more than the input.

Value creation can be achieved by reducing costs or increasing perceived benefits for consumers.

1 2

Reducing Costs Increasing Perceived Benefits


Optimizing processes, minimizing waste, and Differentiation through branding, unique selling
achieving efficiency. propositions, or enhanced customer experiences.

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