BUSINESS TYPES

AND
BUSINESS
ACTIVITIES

P RE PA RE D BY: S A RA H J O Y B .
D EL RO SA RI O
TYPES OF BUSINESS
1. SERVICE BUSINESS
-A service type of business provide intangible products (products
with no physical form). Service type firms offers skills, labor, expertise,
and other similar work in return to professional or talent fees.
-Perform tasks for the benefit of their customers. These tasks can
include transportation, cleaning, traveling, hospitality, maintenance, or
consulting.
 EXAMPES OF SERVICE BUSINESS

Athletic Training Business Auto Mechanic Shop

Housekeeping Car Washes
Business Consulting Landscaping Company
Maintenance Service Child Care
Graphic Design House Painting
Financial Advising Massage therapy
Academic Tutoring Transportation Service
2.MERCHANDISING BUSINESS

- a business that purchases finished products and resells them to

customers.
- known as “buy and sell” or “reseller” business. They make profit by selling
goods at prices higher than their purchase costs.
 EXAMPES OF MERCHANDISING BUSINESS
Grocery Store
Retail Clothing Store
Drug Stores
Home Furniture
Department Store
3 . M A N U FA C T U R I N G B U S I N E S S

- refers to large-scale production of goods that converts raw

materials, parts, and components into finished merchandise using
manual labor and/or machines.
 EXAMPES OF MANUFACTURING BUSINESS
Automotive companies
Shoe manufacturing
Cosmetic Manufacturing
Bakeries
Grape Wine Production
FIRST ASSESSMENT
Identify what kind of business is shown in the picture and classify if it is
service, merchandising or manufacturing business.
BUSINESS ACTIVITIES
- According to Alicia Tuovila (2022), business activity includes any
activity a business engaged in from the primary purpose of making a
profit. This general term that encompasses all the economic activities
carried out by a company during the course of business. Business
activity, including operating, investing, and financing activities are
ongoing and focused on creating value for shareholders.
THREE (3) MAIN TYPES OF BUSINESS ACTIVITIES
• OPERATING BUSINESS ACTIVITIES
• INVESTING BUSINESS ACTIVITIES
• FINANCING BUSINESS ACTIVITIES
OPERATING ACTIVITY

-Operating activities are the functions of a business directly related

to providing its goods and/or services to the market. These are the
company's core business activities, such as manufacturing, distributing,
marketing, and selling a product or service.
OPERATING ACTIVITY INCLUDES:
• Setting a strategy
• Organizing work
• Manufacturing (or sourcing) product and services
• Marketing and selling its products and services
INVESTING ACTIVITY

- Investing business activities are those that are capitalized over

more than one year and usually appear as the second section of the
cash flow statement.
- Purchase of long-term assets is recorded as a use of cash in this
section.
INVESTING ACTIVITY INCLUDES:

• Purchase of long-term assets (such as property, plants, plant, and

equipment.
• Acquisition of other businesses.
• Investment in markable securities (stocks and bonds)
FINANCING ACTIVITY

-Transactions between a business and its lenders and owners to

acquire or return resources.
-In other words, financing activities fund the company, to repay
lenders, and provide owners with a return on investment (Sylvester, S.,
2022).
FINANCING ACTIVITY INCLUDES:
• Issuing and repurchasing equity.
• Borrowing and repaying short-term and long-term debt. This activity
includes principal payments to lenders and vendors for most capital
purchases, as well as the cost to issue debt.
• Paying dividends
• Other contributions from a distribution to owners.
OTHER TYPES OF BUSINESS ACTIVITIES:
• Sales
• Marketing
• Accounting
• Customer service
• Human resources
BUSINESS
ENVIRONMENT,
LIFE CYCLE, PHASES
AND CHALLENGES

PR EPAR ED B Y: SAR A H J OY B . D EL R O SA R IO
BUSINESS ENVIRONMENT
-All the component that affect a business.
-Indeed Editorial Team (2022) stated that, there are several
internal and external factors that can influence a company’s business
decision, for example, the price, social changes, and regulatory
changes, this can influence the overall environment where a business
operates.
SECOND ASSESSMENT
• ARRANGE THE FOLLOWING JUMBLED LETTERS
(Clue: Types of Business environment)
1.CMINOOEC 6. TIILOPACL
2. ASOICUTLUCARL 7. ATAURNL
3. OLONECTHIAGLC 8. ETINANLR
4. LERISSUPP
5. IITVETOMEPC
COMMON TYPES OF BUSINESS ENVIRONMENT
1. ECONOMIC

-are how global and local economies might impact a business. This can
include factors like economic conditions, including per capital, income in your
target market, or bigger economic systems, such as if a business operates in a
capitalist or socialist society.
2. SOCIOCULTURAL

-involves the characteristics of people in a specific market, like

demographics and societal roles. You might consider aspects like your
customers beliefs, language literacy and life expectancy when learning about
this environment.
3. TECHNOLOGICAL

-includes the development of new technology, how people interact

with technology and its environmental effect. Technology can impact a
company’s internal and external environment.
4. SUPPLIERS
-involve the factors that might influence your suppliers’
performance, which can then impact your business. This environment
can involve several factors, like the costs of producing goods, the
availability of resources and the dependability of employees.
5.COMPETITIVE
-how companies within your market change and function and
how this might impact your business. This can include when other
types of competitors both larger and smaller than your company
might enter or exit the market, as this could affect different behaviors
like brand positioning.
6. POLITICAL
- can involve activities in governments or other legal bodies that
influence how business might operate. Factors that might influence
this business environment can include government stability, policies
involving businesses and new regulations.
7. NATURAL
-how physical locations, like geography and climate can impact
businesses. Several factors that can affect this include weather
disasters, availability of natural resources and conservation. Often
natural environment intersect with others, like political environment.
8. INTERNAL
-includes factors like policies, company culture and business
performance. Different from many other external business
environment, companies can often control their internal
environment. This includes recognizing roles and business structures
or promoting activities that match the company culture.
 IMPORTANCE OF UNDERSTANDING BUSINESS
ENVIRONMENTAL

1. Understand changes
2. Identifying opportunities
3. Building reputation
BUSINESS LIFE CYCLE
 BUSINESS LIFE CYCLE SPECTRUM BY BRANDON
DEMPSEY (2018)

STAGES OF BUSINESS LIFE CYCLE

• Start-up
• Growth
• Maturity
• Renewal/decline
 THE 7 STAGES OF STARTING A BUSINESS BY
DARRELL ZAHORSKY

1. THE SEED STAGE

-the stage of your business lifecycle is when your business is just a
thought or idea.
2. THE START-UP STAGE
-during start-up phase, you spend your time meeting people,
coming up with new ways to sell your products or services and
consistently implementing new ideas.
3. THE GROWTH STAGE
- if your business is growing, that means that your revenue and
customers base are also likely growing. You might need to hire and train
new employees to handle with the additional workload that comes with
a growing business.
4. THE ESTABLISHED STAGE
-it is still lot of works to maintain your business once it become self-
sustaining or even profitable. Make sure you are maintaining or
growing your revenue stream by keeping up with any new
developments in the industry or changing customer preferences.
5. THE EXPANSION STAGE

-if your business is doing reasonably well or if it cant grow

anymore without a new customer base, it may be time for business to
expand into a new market.
6. DECLINE STAGE
-sales, profit, and cash flows all decline. A business owner might
be forced to sell or close their business if they cannot sufficiently cut
cost or increase their profit.
7. THE EXIT STAGE
-there are few ways you might leave a business that you started.
You might be able to sell your business and start a new venture, the
business might now have worked out, or you might be ready to
completely retire from work.
PHASES AND CHALLENGES
 EARLY PHASE OF BUSINESS
(BY JOHN BOITNOTT)
1. SEED STAGE
-some of the hardest challenges for new business owners who are
just fleshing out their ideas are creating profitability and sustainability. 
2. START-UP STAGE
- During this stage of the business life cycle, challenges include
funding, money management, and market presence. You need cash to
launch your business, attract new customer, and generate revenue.
Money often determines which strategies you can execute in the early
stages of your business.
3. GROWTH STAGE

- now that the business has market acceptance, it’s time to

capitalize on that momentum and gain a larger market share. During
this growth phase, you’ll face several challenges, including how to
handle revenue, develop customer relationships, and scale operations
efficiently, especially if you experience rapid growth. 
 LATER STAGE CHALLENGE
4. EXPANSION STAGE
- at any time through the various stages of the business, you may feel
successful. But you may never feel quite as successful as when you’re ready
to expand. At this point, you’ll still face challenges, such as more
competitive pressure. You may also have to address questions about the
product life cycle, how to move into new markets or services.
5. MATURITY STAGE
- Some call this the decline stage of the business life cycle, but it doesn’t
always involve a decrease in business activity or success. Challenges during
the maturity phase include continued competition, uncertainty about
adding new products or services, and questions about how to develop an
appropriate exit strategy for your business.
REFERENCES:
• https://www.jotform.com/blog/key-challenges-through-the-business
-life-cycle
/
• https://www.jotform.com/blog/key-challenges-through-the-business
-life-cycle
/
• The 7 Stages of Starting and Running a Business (thebalancemoney.c
om
)
• https://www.forbes.com/sites/theyec/2018/01/11/business-life-cycle-s
pectrum-where-are-you/?
sh=16d07546ef5e
• What Is a Business Environment? (With Types, Benefits and Examples
)|