My First Blog

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 – transport, finance, distribution, retailing, wholesaling, communications, hi-tech industries
-Quarternary Sector –
–Health, education, research, leisure

Multiple Business ActivityE.g.
– BP or REPSOL, involved in:
Oil exploration and drilling (Primary)
Refining oil – production of gas, petroleum, bitumen, lubricants etc
(Secondary: manufacturing)
Distribution of petrol from refineries to petrol stations and sales of petrol to consumer(Tertiary) Research and Development (Quarternary)

Objectives:
Profit, Environment, Image and Reputation, Quality and Innovation, Efficiency, Sales, Market power, Social issues, share price, survival.

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

-Access & Equity: available to all regardless of their background, location, status, income, class, race, religion etc
-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

Range of Business Offered by the Public Sector:
Museum and arts, cemeteries, university, licencing...

Business Ownership:
The Private SectorBusiness activity owned financed and controlled by private individuals

Sole Trader:
–Owned financed and controlled by one individual but can employ other staff
-Common in local building firms, small shops, restaurants, butchers etc

Partnerships:
-Owned, financed and controlled by upwards of 2 partners
-Terms of Partnership agreed through contract-Common in professions
– lawyers, accountants, architects, surveyors, estate agents, vets etc

Limited Companies:
–Private Limited Company (Ltd) Owned by between 2 and 50 shareholders
–Public Limited Company (PLC) Owned by minimum of 2 but no maximum number of shareholders
–Has a separate legal identity – the company can sue and be sued
–More complex to set up
–Minimum share capital of £50,000

Franchises:
-Method of business ownership backed by established ‘brand’ name

Co-operatives:
•Ownership, finance and control in hands of ‘members’•Exists for the benefit of ‘members’

Charities.

This is my summary of de last class.