What are core business activities?

Core business activities are the primary functions and processes that a company needs to perform to achieve its overall goals and objectives. They are the tasks and operations essential to the business’s success; without them, the company would not be able to operate effectively.

The 70-20-10 model is a framework often used to describe how organizations should allocate their resources to support different learning and development activities. It suggests that 70% of learning and development should come from on-the-job experiences, 20% from interactions with others, and 10% from formal training programs.

When we apply the 70-20-10 model to core business activities, we can see that most of the company’s efforts should focus on the core functions that directly contribute to its success. This may include activities such as:

  1. Product or service development: The process of creating and refining the company’s offerings to meet the needs of its customers. This may involve research and development, prototyping, testing, and product launch activities.
  2. Sales and marketing: The activities involved in promoting the company’s products or services to customers and generating revenue. This may include advertising, public relations, sales calls, and other sales-related activities.
  3. Operations and logistics: The processes and systems that enable the company to produce and deliver its products or services efficiently and effectively. This may include manufacturing, distribution, transportation, and other logistical functions.
  4. Customer service: The activities involved in providing support to customers after the sale has been made. This may include answering questions, handling complaints, and providing technical support.
  5. Financial management: The processes and systems used to manage the company’s finances, including budgeting, accounting, and financial reporting.
See also  How does the 70-20-10 innovation rule work?

Overall, these core business activities are the foundation of any successful company, and they require ongoing attention and investment to ensure that they continue to perform at a high level. By focusing on these core functions and allocating resources accordingly, companies can maximize their chances of success and build a strong, sustainable business over time.

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