Business Sectors

Question 1

What is the primary sector?

Answer 1

• involves in the extraction of raw materials from nature
• raw or unprocessed materials are then supplied to other businesses for further processing
• eg: forestry, fishing, mining, agriculture

Question 2

What is the secondary (industrial) sector?

Answer 2

• responsible for the conversion of raw materials into final products
• the link between the primary sector, where raw materials are extracted from nature, and the tertiary sector, where products are marketed and sold.

Question 3

What is the tertiary sector?

Answer 3

• Focuses on 2 things:
- distributing products
- rendering services eg. Insurance, banking
• Brings goods and services within the reach of consumers
• 2 production branches: trade and services

Question 4

Give the description of vision, mission, strategy and objectives

Answer 4

Written statement of what the business enterprise hopes to achieve

Question 5

Give the description of organizational resources

Answer 5

The means of resources available to a business enterprise, including capital resources, Human Resources, natural resources and entrepreneurial resources

Question 6

Give the description of management

Answer 6

The people responsible for running the business

Question 7

Give the description of business functions

Answer 7

8 business functions can be identified. These functions refer to the different departments of a business enterprise

Question 8

Give the description of organizational structure

Answer 8

Refers to the way employees are organized in a business enterprise

Question 9

Give the description of working environment

Answer 9

Refers to the atmosphere in which employees work

Question 10

Give the description of organizational culture

Answer 10

Refers to “the way things are done” in a business

Question 11

Give the description of customers

Answer 11

Buyers of goods and services a business enterprise offers

Question 12

Give the description of competitors

Answer 12

Other businesses who offer consumers the same/similar goods and services

Question 13

Give the description of suppliers

Answer 13

Businesses and people who provide resources to other enterprises to produce goods and services

Question 14

Give the description of intermediaries

Answer 14

Also known as agents who help promote, sell and distribute products to customers

Question 15

Give the description of civil society

Answer 15

Consists of organizations at local, provincial and national level. Most civil society organizations focus on welfare. Civil society includes:
• CBO’s and NGO’s
• Regulators 
• Strategic allies
• Unions

Question 16

Give the description of political environment

Answer 16

Refers to the political situation in a country eg. Government

Question 17

Give the description of economic environment

Answer 17

Refers to global and economic forces that influence businesses, including exchange rate, interest rate and labor action

Question 18

Give the description of social environment

Answer 18

People and factors that influence consumer behavior. Includes personal values, perception, behavior and preferences that influence consumer’s buying decisions

Question 19

Give the description of technological environment

Answer 19

New technology creates new business opportunities and influences the way business is conducted. The internet has, for example, enabled businesses to market their products globally.

Question 20

Give the description of the legal environment

Answer 20

The laws and legislation that businesses have to comply with

Question 21

Give the description of the physical environment

Answer 21

Refers to forces that are present in the natural environment, including natural resources, infrastructure, pollution and finding alternative means of generating energy

Question 22

Give the description of international environment

Answer 22

Global and international forces that influence business operations, for example international competition

Question 23

Give a description of institutional environment

Answer 23

Refers to institutions that provide a series of services to business enterprise, for example the SABS and the JSE