Business services are the activities that support the operations of a business. They exist on a continuum between a service and a commodity and can be offered remotely. Businesses must organise their services as part of their business operations, and consider their different types. In order to understand the various types of business services, consider the business units they support.
Business services are activities that support a company’s operations
Business services include a wide range of activities that help a business succeed. These include marketing, advertising, logistics, travel, staffing and administration. Often, these services don’t produce tangible products, but can still be essential to a company’s success.
They are a continuum between service and commodity
A business service falls somewhere on a continuum between a commodity and a service. A commodity provides material elements to create a finished product, while a service provides a physical component. Both services and commodities have their own distinct characteristics, and businesses provide a wide range of products and services in this hybrid form. The restaurant industry, airlines, and utilities provide both commodities and services. For example, the electricity supply in the United States is considered a service.
They should be organized by business unit
Businesses often benefit from establishing business units. These units have unique objectives and processes but report to the core business. The structure allows the business units to focus on a particular demographic and develop products that align with their needs. For example, an oil company might form an environmental care division and focus on helping consumers concerned about climate change.