sectors of industry Flashcards
primary sector
this consists of businesses that are involved in exploiting natural resources. Examples are farming , mining and oil drilling.
secondary sector
this consists of businesses that are involved in manufacturing and construction, by taking natural resources and turning them into goods that can be sold later. examples are electronics, car production and house building.
tertiary sector
this consists of business and organisations that are involved in providing services rather than goods. examples are retail outlets, banks, hotels and hospitals.
quaternary sector
this consists of business providing information and knowledge based services, such as ICT( information and communication technology), consultancy(offering advice to businesses), R&D(research and development)
Franchising
Franchise- a business that allows businesses to pay a sim of money to own a branch of a well-known, existing business.
The main og owner is known as the franchiser and the owner of each individual branch is a franchisee.
Main aim is to grow and increase market share and franchise model helps this. They also aim to maximise profits and if a plc increase market value, each franchisee has little decision making power.
franchising advantages
franchisee
A low risk form of growth as the franchisee invests the majority of the capital.
received a percentage of all franchisees profits each year know as royalties.
franchising disadvantages
franchiser
the reputation of the whole franchise can be tarnished by one poor franchise.
only a share of profits is received rather than all profits as it would be if they owned each branch.
franchising advantages
franchisee
the franchise is a well known business with an existing customer base.
industry knowledge and training is provided by the franchiser.
The franchisee benefits from national advertisements carried out by the franchiser.
