Business sectors Flashcards
Primary organisations
- Primary Sector: The primary sector involves businesses that extract, harvest, or process raw materials from the earth. It focuses on natural resources and involves industries such as agriculture, mining, fishing, and forestry. Businesses in the primary sector are essential for providing the raw materials used in the next stages of production.
- Examples: Farming, mining, fishing, and forestry companies.
Secondary organisations
- Secondary Sector: The secondary sector involves businesses that take raw materials from the primary sector and transform them into finished or semi-finished goods. This sector includes manufacturing, construction, and production industries that create products from raw materials.
- Examples: Factories that produce clothing, cars, furniture, and construction companies.
Tertiary organisations
- Tertiary Sector: The tertiary sector involves businesses that provide services rather than goods. This sector is often referred to as the service industry and includes sectors such as retail, entertainment, health care, education, and financial services.
- Examples: Retail shops, banks, hospitals, hotels, and education institutions.
Summary of primary, secondary and tertiary organisations
Summary
* Primary, Secondary, and Tertiary Sectors: These sectors describe the stages of production. The primary sector extracts raw materials, the secondary sector manufactures goods from these materials, and the tertiary sector provides services to consumers.
Private sector organisations
- Private Sector: The private sector consists of businesses and organizations owned and operated by private individuals or groups. The primary goal of private sector businesses is to make a profit. These businesses can be sole proprietorships, partnerships, limited companies, or corporations.
- Examples: Amazon, Tesco, Apple.
Public sector organisations
- Public Sector: The public sector is composed of organizations and businesses that are owned and operated by the government, at either a national or local level. The primary aim of public sector organizations is to provide services to the public, and they are funded by taxpayers’ money.
- Examples: National Health Service (NHS), local councils, public schools, police forces.
Third sector organisations
- Third Sector: The third sector is made up of non-profit organizations, including charities, social enterprises, and voluntary groups. These organizations aim to serve a social or environmental purpose rather than make a profit. They often rely on donations, grants, and volunteers to operate.
- Examples: Oxfam, the Red Cross, and local charity shops.
Summary of private, public and third sector organisations
Summary
Private, Public, and Third Sectors: These refer to the ownership and purpose of organizations. The private sector is profit-driven, the public sector is government-run for public service, and the third sector is non-profit and social purpose-driven.
Local markets
- Local Market: A local market is a market where businesses operate and sell goods and services within a specific geographical area, often limited to a town, city, or region. Local markets typically serve a smaller, more specific customer base and are influenced by local tastes and preferences.
- Examples: A local bakery, a small independent shop, or a farmer’s market.
National market
- National Market: A national market refers to a market where businesses operate and sell goods and services across an entire country. Businesses in the national market may have multiple locations or sell their products via national distribution networks, and they cater to a broader customer base compared to local markets.
- Examples: Large retail chains like Sainsbury’s, Tesco, or nationwide telecommunications providers.
International/global markets
- International/Global Market: An international or global market refers to markets where businesses sell their products and services across multiple countries, reaching a global audience. These markets are affected by international trade, cultural differences, and global economic conditions.
- Examples: Multinational companies like McDonald’s, Coca-Cola, or Amazon, which sell their products worldwide.
Summary of local, national, international/global markets
Summary
Local, National, and Global Markets: These markets define the geographic scope of business operations, from small-scale, local markets to large, global markets.
National businesses
- National Business: A national business operates within one country. These businesses target the domestic market, and their operations, marketing, and supply chains are generally confined to the country in which they are based. National businesses may have regional branches or outlets, but their market scope is limited to the national level.
- Examples: A UK-based restaurant chain or a national supermarket such as Asda or Marks & Spencer (if they only operate in the UK).
Multinational businesses
- Multinational Business: A multinational business operates in multiple countries across the globe. These businesses usually have subsidiaries or branches in different nations and their operations extend across borders. Multinational businesses adapt their products and marketing strategies to different countries and cultures to appeal to local tastes and preferences.
- Examples: Companies like Coca-Cola, McDonald’s, or Nike, which operate in numerous countries and adapt their business strategies to cater to international markets.
Summary of national and multinational businesses
Summary
National vs Multinational Businesses: National businesses operate within a single country, while multinational businesses operate in multiple countries across the globe.
