This book provides a comprehensive presentation of the fundamental principles of business management in service production. It explains the specific characteristics of services as well as the peculiarities of service production. A significant addition in this new edition is the incorporation and evaluation of the external production factors that are essential for service production. This forms a crucial foundation for management in service enterprises. Understanding these fundamental issues is indispensable for assessing corresponding cost impacts as well as for planning and designing service marketing. The main objective of this book is to create transparency and understanding of the extraordinarily heterogeneous service sector. It is based on the theory of business production management.