business activity

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Business Activity

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Page 1: Business Activity

Business Activity

Page 2: Business Activity

Business Activity

• Primary Sector – – extraction of raw materials from the earth – mining,

quarrying, fishing, agriculture, forestry

• Secondary Sector – – Processing of raw materials into finished or semi-

finished products – manufacturing

• Tertiary Sector – – Service industries – leisure, transport, finance,

distribution, retailing, wholesaling, communications

• Quarternary Sector – – Hi tech industries, training, health, education

Page 3: Business Activity

New Thinking:

• Tertiary Sector – – transport, energy, water (utilities)

• Quarternary Sector – – finance, trading

• Quinary Sector – – health, education, research, leisure

and recreation(After Daniel Bell: 1976 ‘The Coming of Post Industrial Society’)

Page 4: Business Activity

Business Activity

• Multiple Business Activity– e.g. BP involved in:

• Oil exploration and drilling (Primary)• Refining oil – production of gas,

petroleum, bitumen, lubricants, etc. (Manufacturing)

• Distribution of petrol from refineries to petrol stations and sales of petrol to consumer (Tertiary)

• Research and Development (Quarternary)

Page 5: Business Activity

Business Activity

• Private Sector: Business activity owned financed and controlled by private individuals– Sole Traders– Partnerships– Private Limited Companies– Public Limited Companies (PLCs)– Co-operatives– Franchises– Charities

Page 6: Business Activity

Objectives of Private Sector Business

Objectives

Profit

Survival

Share Price

Market PowerSales and Sales

Revenue

Efficiency

Quality and Innovation

Image and Reputation

Environment

Satisficing

Social Issues

Page 7: Business Activity

Business Activity

• Public Sector: Business Activity owned, financed and controlled by the state through government or local authorities– Government – key departments set policy

and monitor implementation– Local Authorities – County Councils, District

Councils, Parish Councils– Health Trusts– Public Corporations – BBC

Page 8: Business Activity

Objectives of Public Sector Activity

• Access – – available to all regardless of location or income

• Quality – – high quality services that do not cut corners

• Affordability – – services offered at prices that are cheaper than

private sector or free at the point of use

• Equity – – available to anyone whatever their background,

status, income, class, race, religion, etc.

Page 9: Business Activity

Range of Business Offered by the Public Sector

Roads

Roads

AllotmentsAllotments Paths and ParksPaths and Parks

Schools Schools

Street Lighting

Street Lighting

Waste Disposal

Waste Disposal

Trading Standards

Trading Standards

CemeteriesEnvironmental Health

Environmental Health

Museums and Arts

Museums and Arts

Economic Development and Tourism

Economic Development and Tourism

PlanningPlanning

Licensing Licensing

Care of the Elderly

Care of the Elderly

Social Services

Social Services