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The Profit Orientation

The Service Concept

The Profit

Definitions of profit
the excess of total revenues over total costs
during a specific period of time
the excess over the return to
capital(interest), to land(rent) and to

Concepts of Profit

Profit as a cause
it serves as the motivating ultimate end or
objective of the businessman
it serves as a standard against which the
operational efforts or performance of the
businessman is measured
it is the further measure of how well the
businessman undertake the other can
objectives of his business

Concepts of Profit...contd
Profit as an effect
Profit is what the businessman derives from
the business and serves as his reward for
good performance


The Service Concept

As a commodity (next ch.)
As an objective
Service is what business immediately
provides in its operations or what
constitutes its reason for existence

Service on The Industry

As the venue for the production and
distribution of goods and services, business
on the industrial level provides the
functional arena in which the social process
of business is given expression

Service on The Corporate

(a) Core (or essential) service which is
inherent in the source of the service and
(b) marginal service which is an add-on or
extended service and is promotional in

Service on The Corporate

Level... Contd

Core service. Service as an essential

business function consists in those services
which are essential to the business concept
itself, without which business on the
corporate level is impossible.

Service on The Corporate

Level... Contd
Company core service
Product core service
Personal core service