**Introduction**
In any organization, key activities refer to the core processes and tasks that are critical for its success and achievement of organizational goals. These activities can vary depending on the nature of the organization, but they are essentially the driving force behind its operations. The statement emphasizes the importance of focusing on key activities because any failure or inefficiency in performing these tasks can have a detrimental impact on the entire organization.

**Explanation**
When an organization prioritizes and focuses on its key activities, it ensures that the essential tasks are executed efficiently, leading to improved overall performance and success. Here is an example to illustrate the significance of this approach:

**Example: Manufacturing Company**

Let's consider a manufacturing company that produces electronic devices. The key activities for this organization would include designing, manufacturing, quality control, and distribution of their products. Each of these activities is crucial for the success of the company.

1. **Designing:** The organization invests heavily in research and development to create innovative and marketable products. If the design team fails to create appealing and functional devices, the organization may struggle to attract customers, resulting in decreased sales and profitability.

2. **Manufacturing:** Once the design phase is complete, the manufacturing team takes over. They are responsible for transforming the designs into physical products. Any issues in the manufacturing process, such as poor quality control or production delays, can result in defective products or shortages in supply. This can lead to customer dissatisfaction, negative reviews, and a decline in market share.

3. **Quality Control:** Ensuring the quality of the manufactured products is vital to maintain customer satisfaction and loyalty. If the quality control team neglects their responsibilities or fails to identify defects, the organization may face product recalls, returns, and damage to its reputation. This can result in financial losses and loss of trust from customers.

4. **Distribution:** Efficient distribution channels are necessary to deliver products to customers in a timely manner. If the organization fails to establish effective distribution networks or faces logistical issues, it may face delays in product delivery, increased costs, and missed sales opportunities. This can impact customer satisfaction, brand loyalty, and overall profitability.

**Conclusion**
In conclusion, the statement emphasizes the critical role of key activities in the success of an organization. Focusing on these activities ensures that the core processes are executed efficiently, leading to improved overall performance and organizational success. By recognizing the importance of these activities and allocating appropriate resources and attention to them, an organization can mitigate risks, enhance productivity, and achieve its strategic objectives.