MANAGING A SERVICE ENTERPRISE

GROUP 1 WRITTEN REPORT

INTRODUCTION TO SERVICE ENTERPRISE

Submitted to:
PROF. MARY GRACE DAGUISO

Submitted by:
BEN 31
ABAÑO, JORGIE MAY
DE GUIA, JEREME JAMES
DE JESUS, EMMANUEL
FRANCIA, VICTORIA
JOSE. GENRAE ALLYN
PABUNAN, HARLY SHAINNE
SAMSON, JASPER
Reporter: JORGIE MAY ABANO
Topic: NATURE OF BUSINESS / GOALS OF BUSINESS

BUSINESS
● Business is derived from ‘busy-ness,’ i.e. keeping oneself occupied with one or
the other work, but it is much more than just being busy.
● The practice of making one's living by engaging in commerce.
● Business is a self-employment opportunity for a person to become self-
independent and master of his ideas. It is not only beneficial to the owner but
also makes an impact on society.

IMPORTANCE OF BUSINESS

IMPORTANCE OF BUSINESS

Revenue Generation
Economic Growth
Improves Standard of Living
Bulk Production
Innovation
Generates Employment
Market Expansion
 1. Revenue Generation: It is the key to revenue generation for the business owner
since it brings in profit and proves to be a source of income for the owner.
2. Economic Growth: It is essential for the economic growth of a country since
high revenue means higher tax collection.
3. Improves Standard of Living: A country with more industrial units and
companies experience a higher rate of employment and better living standards.

4. Bulk Production: Manufacturing units involve large-scale production, which

ultimately reduces the cost of production, and people get a continuous supply of
goods at a reasonable price.
5. Innovation: It involves brainstorming and generation of new ideas which opens
up the way for innovation and creativity.
6. Generates Employment: It is a long-term process which requires the human
resource to function correctly. Therefore, it creates job opportunities.
7. Market Expansion: A good strategy and high customer satisfaction lead to a
strong customer base aiming at market expansion.

To have a better understanding of what a business is, we must go through the following
points:

NATURE OF BUSINESS
● Regular Process ● Risk
● Economic Activity ● Profit Earning Motive
● Creates Utility ● Satisfaction of Consumer’s Need
 ● Capital Requirement ● Involves Buyer and Seller
● Deals in Goods and Services ● Social Obligations

1. Regular Process: It is an activity which is performed repeatedly to generate

profit.
2. Economic Activity: The whole sole purpose is maximizing wealth.
3. Creates Utility: The goods or service must be such that it creates form utility –
conversion of products in a consumable form, time utility – making the goods and
services available when needed; and place utility – availability of goods or
services wherever required, for the consumers.

4. Capital Requirement: Any venture requires fund depending on the size and its
type. This is important in starting a business.
5. Deals in Goods and Services: It is related to manufacturing and offering goods
for sale or catering services.
6. Risk: All businesses have a risk factor or uncertainties of failure and loss.
7. Profit Earning Motive: The initial motive of a businessman is making a profit out
of his venture.
8. Satisfaction of Consumer’s Need: It is concerned with the fulfilment of the
customer’s demands and needs.
9. Involves Buyer and Seller: There are majorly two parties involved, the customer
and the merchandise.
10. Social Obligations: It has some social responsibilities, like creating job
opportunities, dealing with licensed products, etc.

The nature of a business describes the type of business it is and what its overall goals
are. It describes its legal structure, industry, products or services, and everything a
business does to reach its goals. It depicts the business's problem and the main focus
of the company's offerings.
Humans have endless needs, and to satisfy these we need business activities. It is the
purpose of business to provide the economy and the society with the goods and
services it requires. All economic, commercial and trading activities are parts of a
business.
Business is all about deriving profit out of selling goods and services ethically.The risk is
an integral part of any business, but taking the right decision at the right time is all that
you need to achieve your business goals
Reporter: Jereme James S. De Guia
Topic: Facts about service Industry/Parts of service Sector
A service industry provides people with intangible products or services and
completes tasks that are useful to customers, clients, businesses or the general public.
Service industries, unlike, for example, manufacturing and production industries, do not
rely on the sale of material goods and products to earn a profit. - the individuals who
work in the service sector focus on completing tasks and providing services.
Service industries are important part of society for a variety of reasons, including:
Delivering essential services to the public:
Often, service industries provide essential services to the public, such as healthcare,
transportation and education.
Creating positive experiences:
Several service industries, including hospitality, beauty and wellness, entertainment and
fitness, create positive experiences – they provide emotional value and promote the
well-being of those they serve.
Providing employment opportunities:
As manufacturing and production industries become more mechanized, the demand for
service industry workers is increasing in areas such as distribution and sales, creating a
surplus of opportunity. - The service sector offers several rewarding careers to
individuals passionate about delivering important services to their community.
Acting as an indication of economic growth:
Often, a strong or growing service sector is an indicator of a healthy economy. As new
services and nonmaterial goods become available to the public, service industries grow
to continually serve the needs of customers and businesses, increasing this industry’s
impact on the global economy.

And also, these are the service sector in the Philippines which based on the regional
analysis of the Philippines Service Sector by Serafica, Ramonette B.; Vergara, Jean
Colleen M.; Oren, Queen Cel
The services sector is composed of a diverse range of services, including retail and
business services, education, and health, among others. - Some services are used
as inputs in production, while others have direct impacts on human capital development.
Reporter: Emmanuel G DeJesus Jr.
Topic: The Three Sector Economy Written Report

The three-sector model in economics divides economies into three sectors of

activity: extraction of raw materials (primary), manufacturing (secondary), and service
industries which exist to facilitate the transport, distribution and sale of goods produced
in the secondary sector (tertiary). The model was developed by Allan Fisher, Colin
Clark, and Jean Fourastié in the first half of the 20th century, and is a representation of
an industrial economy. It has been criticised as inappropriate as a representation of the
economy in the 21st century. According to the three-sector model, the main focus of an
economy's activity shifts from the primary, through the secondary and finally to the
tertiary sector. Countries with a low per capita income are in an early stage of
development; the main part of their national income is achieved through production in
the primary sector. Countries in a more advanced state of development, with a medium
national income, generate their income mostly in the secondary sector. In highly
developed countries with a high income, the tertiary sector dominates the total output of
the economy. The rise of the post-industrial economy in which an increasing proportion
of economic activity is not directly related to physical goods has led some economists to
expand the model by adding a fourth quaternary or fifth quinary sectors, while others
have ceased to use the model.
Reporter: Francia, Maria Victoria U.

Topic: Service Business Ideas (Opportunities For Small Business Owners)

Personal health and wellness services

Many of us set goals to become a bit healthier in some way, whether through our
mental health, agility, or simple physical wellness but without some form of assistance,
guidance, or accountability, many people struggle to reach those goals. If you’re an avid
runner, love cooking, or have training in alternative healing, one of these health and
wellness service business ideas may be a perfect fit for you.

1. Personal fitness trainer

2. Meditation instructor

3. Private yoga instructor

4. In-home masseuse

5. Nutrition consultant

6. Meal delivery service

7. Personal chef

Personal concierge services

From buying groceries to doing laundry and keeping our spaces tidy, who among
us has time to get all of our chores done without becoming overwhelmed in the
process? If you’re not bothered by running errands and cleaning up, friends and
neighbors may your ideal clientele for these personal concierge business ideas.
 1. Grocery shopping and delivery

2. Errand-runner

3. Dry-cleaning delivery and pick-up

4. Seamstress or tailor services

5. Home cleaning service

6. Private car service

Beauty and lifestyle service business ideas

If you love all things beauty and personal style, your career options are no longer
limited to traditional cosmetology school and hourly work in a salon. Consider whether
these emerging lifestyle service business options almost all of which you could provide
in-home, or even virtually might make a great gig for your interests.

1. Makeup artist

2. In-home hair stylist

3. Personal wardrobe stylist

4. Life coach

5. Online dating consultant / profile editor

Technology maintenance and repair services

As businesses across every industry rely more and more heavily on technology
for their daily operations, the need for knowledgeable service providers has grown
steadily. Within larger corporations, these roles are often filled by in-house employees.
Small businesses, however, very often cannot afford to maintain full-time IT managers,
meaning they must rely on third-party services to address technology needs.
 1. IT systems consultant

2. Computer repair service

3. Printer and copy machine maintenance

4. Software installation service

5. Mobile IT support service

6. App developer

Business services

As more and more Filipinos become independent business owners, it should

come as no surprise that demand for business-to-business services is also growing.
Generally, modern businesses have taken a leaner approach to growth, relying on
outside consultants or contractors to provide services and expertise to avoid the high
overhead of having many employees.

Instead of working directly for another business as an employee, your future

career could fall within one of these B2B service business ideas.

1. Virtual assistant

2. Language translation

3. Certified professional accountant

4. Payroll processing service

5. Financial auditor

6. Business plan consultant

7. Office support services

8. Data analysis
 9. Online course consultant

10. Freelance researcher

11. Customer service phone operator

12. Live chat customer support service

What is a service business?

A service business is a company that performs tasks for the benefit of their
customers. These tasks can include transportation, cleaning, traveling, hospitality,
maintenance or consulting.

Examples of service businesses include companies engaged in transport, food

service, distribution, retail, and other industries that sell services rather than products.
These intangibles provide the primary revenue source for service businesses.
Reporter: Genrae Allyn D. Jose
Topic: What is Service?
A service is any activity or benefit that one party can offer to another that is
essentially intangible and does not result in the ownership of anything.
Important Characteristics of Services
1. Intangibility – Services Cannot Be Felt Before Buying.
Services are intangible in nature. It means that services cannot be seen, tasted, felt,
heard, or smelled before they are bought.
For example, an airline passenger has only a ticket and the promise of a safe and
comfortable journey.
As the buyers are interested in service quality, the service provider must add tangible
dimensions. The place, price, equipment, and communication material must indicate the
service quality as claimed by the service provider.
Consider a bank that wants to convey the idea that its service is quick and efficient. It
must make this positioning strategy tangible in every aspect of customer contact.
The bank’s physical setting must suggest quick and efficient service: Its exterior and
interior should have clear lines; internal traffic flow should be planned carefully; waiting
for lines should seem short at teller windows and ATMs, and background music should
be light and upbeat. The bank’s staff should be busy and properly dressed.
The equipment – computers, copy machines, desks – should look modern. The bank’s
ads and other communications should suggest efficiency, with clean and simple designs
and carefully chosen words and photos that communicate the bank’s positioning.
The bank should choose a name and symbol for its service that suggest speed and
efficiency. It is pricing for various services should be kept simple and clear.
2. Inseparability – Services Are Generated and Consumed Together.
Inseparability is a major characteristic of services. It means that services are generated
and consumed simultaneously and cannot be separated from their providers, whether
they are people or machines.
As the customer remains present as the service is produced, provider customer
interaction is important in services marketing. The result of services is affected by both
the provider and the customer.
3. Variability – Service Quality Never Stay the Same.
Variability is another important characteristic of services, which means that their quality
may vary greatly, depending on who provides them and when, where, and how they are
provided.
For example, the Sheraton hotel has a reputation for providing better service than
others.
One employee may be cheerful and efficient within a particular Sheraton hotel, while
another may be unpleasant and slower. Even the quality of a single Sheraton
employee’s service varies according to his or her energy and the state of mind at the
time of each customer dealing.
Service variability can be managed in several ways. Employees can be selected and
trained carefully to provide good service. Employee incentives can be introduced that
emphasize service quality. Customer satisfaction can be checked regularly through
suggestion and complaint systems, customer surveys, and comparison shopping.
4. Perishability – Services Cannot Be Stored.
Services are perishable, which means that services cannot be stored for later sale or
use. A ticket for the evening show of a movie cannot be used for watching the night
show.
The perishability of services has important implications for service providers. In the case
of steady demand, perishability is not a problem.
But where demand fluctuates, service providers face adjustment problems.
For example, public transportation companies have to own much more equipment than
they would as demand is not ever throughout the day.
Service providers can several steps to make better demand-supply adjustments.
Different prices can be charged at different times on the demand side, which will shift
some demand from peak periods to off-peak periods. On the supply side, part-time
employees can be hired to cater to peak demand.
Classifications of Services
Classification of services can be done on the basis of two points. These two points or
factors are further sub divided into 2 further variables. All in all, service classification
considers four types of people or objects.
1. Classification of service based on tangible action.
Wherever people or products are involved directly, the service classification can be
done based on tangibility.
a) Services for people – Like Health care, restaurants and saloons, where the service
is delivered by people to people.
b) Services for goods – Like transportation, repair and maintenance and others.
Where are services given by people for objects or goods.
2. Classification of services based on intangibility.
There are objects in this world which cannot be tangibly quantified. For example – the
number of algorithms it takes to execute your banking order correctly, or the value of
your life which is forecasted by insurance agents. These services are classified on the
basis of intangibility.
a) Services directed at people’s mind – Services sold through influencing the
creativity of humans are classified on the basis of intangibility.
b) Services directed at intangible assets – Banking, legal services, and insurance
services are some of the services most difficult to price and quantify.
The most intangible form of service output is represented by information processing.
The customer’s involvement in this type is service is not required. Generally, customers
have a personal desire to meet face to face but there is no actual need in terms of the
operational process. Consultancy services can be an example of this type of services
where the relationship can be built or sustained on trust or telephone contact. However,
it is more indicated to have a face-to-face relationship in order to fully understand
the needs of the customer.
Reporter: Harly Shainne Pabunan
Topic: What is an enterprise? Types of enterprise.

WHAT IS ENTERPRISE?
● Enterprise is another word for a for-profit business or company, but it is most
often associated with entrepreneurial ventures. People who have entrepreneurial
success are often referred to as “Enterprising.” The roots of the word lie in the
French word entreprendre (from prendre), meaning ‘to undertake’, which in turn
comes from the Latin “inter prehendere” (seize with the hand).
- An enterprise is understood to be a business organization. Essentially, the
word "enterprise" can be used to describe any company that has multiple
locations, levels, departments or divisions that collaborate together to achieve
company goals and objectives.
There have several meanings of ‘Enterprise”
1. A human skill: eagerness to do something new and clever, despite any risks.
● It means that the person who have these skills is an entrepreneur who are
willing to take risks, make things happen and try new things despite of all
struggles and the possibility of bad outcome.
2. A business, as in “This is a business enterprise; our aim is to make a profit.”
● As what I said the enterprise is another word for-profit business or making
money by producing or buying and selling of products.
3. Difficult or important challenge, as in “Her latest enterprise is to swim the English
Channel.
● Business should also grow and expand around the world to achieve the
success.
Four examples of “Enterprising People”
 ✔ Bill Gates – Invented Microsoft (his business and programming innovation paved
the way for a variety of computer products created)
✔ Steve Jobs – iPhone (a personal computer with no monitor, no keyboard and no
mouse.)
✔ Mark Zuckerburg - (cofounder and chief executive officer of Facebook, the
world's largest social network Web site)
✔ Richard Branson – (Founder of the Virgin Group one of the world's most
irresistible brands and has expanded into many diverse sectors from travel to
telecommunications, health to banking and music to leisure.)
Enterprise has creative thinking that they come up with new ideas or approaches to the
business. The new ideas include new product. Creative thinking and fresh ideas give
companies a competitive advantage and help make their products or services stand out.

TYPES OF ENTERPRISE

1. Sole Proprietorship
● a business that can be owned and controlled by an individual, a company or a
limited liability partnership. There are no partners in the business. The legal status
of a sole proprietorship can be defined as follows: It is not a separate legal entity
from the business owner.
Example: local grocery store, a local clothes store, an artist, freelance writer, IT
consultant, freelance graphic designer, etc.

2. Partnership
● A partnership business, by definition, consists of two or more people who
combine their resources to form a business and agree to share risks, profits and
losses.
- an arrangement between two or more people to oversee business operations
and share its profits and liabilities.

Example: law firms, physician groups, real estate investment firms and accounting
groups.
3. Private Limited Companies (Ltd.)

● This sort of free enterprise has been legally incorporated and will have its own
legal identity. It will have a set of shareholders who shoulder a limited amount of
liability for any debts the enterprise incurs. Those shareholders will appoint
directors to oversee overall operations and decisions of the business, though the
relevant managers will oversee the day-to-day operations.
- In short, it is owned by its shareholders, run by directors and where the
liability of shareholders for the debts of the company is limited.

Example: Softlink Global (phili.) Pvt. Ltd. - logistics software solution, Bry-Air
(Asia) Pvt. Ltd. - Environmental consultant in Muntinlupa and Michelin Asia
(Singapore) Company Private Limited - Industrial equipment supplier.

4. Public Limited Companies (PLC)

● Often confused with private limited companies, PLCs differ in that shares in the
enterprise can be sold to the general public. To do this, they have to meet
certain regulatory and legal criteria regarding the business’s financial health,
transparency of their accounts, how long they have been trading, and more.
Being able to sell public shares can be useful in raising funds for things like
expansion.
Example: AstraZeneca Plc, San Miguel Corporation, Globe Telecom, Jollibee
and more.
Reporter: SAMSON, JAMES JASPER A.
Topic: Difference Between a Capitalist and an Entrepreneur

An entrepreneur is someone who founds a business and takes risks, whereas a

capitalist is someone who finances a business. If a capitalist takes risks in addition to
providing capital, he is referred to as an entrepreneur.

8 KEY DIFFERENCE BETWEEN CAPITALIST AND ENTREPRENEUR

1. MEANING
- A person or group of people who engage in business-related activities
related to the development of new industries and innovations is called an
entrepreneur.
- Anyone who provides capital for any industry is referred to as a capitalist.
2. STATUS
- The owner of the industry is the entrepreneur.
- Capitalists in the sector have the role of debt providers.
3. NATURE OF FUNCTIONS
- The function of the entrepreneur (owner) is to undertake risks.
- The function of the capitalist is to make capital available.
4. REWARD
- As payment for his efforts and risks, the entrepreneur receives profits.
- As a return on his capital investment, the capitalist becomes interested.
5. POLICY FORMULATION
 - Entrepreneurs typically formulate industry-specific policies.
- In most cases, capitalists don’t create the policies.
6. UNDERTAKING OF RISKS

- When establishing industries and engaging in innovative activities, the

entrepreneur must deal with a number of risks and uncertainties.
- The role of a capitalist is to make investments. He is not required to take
risks like business owners do.
7. CERTAINTY OF INCOME
- The entrepreneur's income is unpredictable. He might or might not make
money.
- The capitalist will receive guaranteed interest on their investment. His
income is therefore guaranteed.
8. STATUS OF INDUSTRIES
- In small businesses and industries, capitalists and entrepreneurs often
share the same status.
- In large businesses and industries, this is typically not the case.
- In corporations, creditors have the status of a capitalist while shareholders
have the status of an entrepreneur.
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