Business activity is the collection of activities, transactions, processes and movements undertaken by an organization in its bid to deliver goods and services to clients for a return on investment.
Key Characteristics of Business Activity
- Activities vary significantly across industries but often involve purchasing, manufacturing, marketing, sales, distribution, as well as back-office functions like accounting, human resources, and facilities management
- Technology utilization, outsourcing, supply chain dynamics, and industry regulations shape specific business models and modes of operation over time
- Activity levels directly impact top-line growth, productivity, costs, profits, and have implications for resource allocation and strategic planning
Example of Business Activity
A boutique consultancy observed spikes in client onboarding and project work coinciding with seasonal spikes in activity within its core customer segments on a quarterly basis.
Key Takeaways
Understanding the nature of business activity provides important insights into an organization’s capabilities, core competencies, areas for improvement, and how best to optimize efforts and maximize efficiencies across the value creation process.