Slides in this set
· Primary Sector-Businesses who produce raw materials for
other businesses to use e.g. mining, fishing, farming.
· Secondary Sector- Businesses who use raw materials to
manufacture products e.g. furniture manufacturers.
· Tertiary sector- Businesses who provide a service for its
customers e.g. banking, insurance, hotels, entertainment.
· Interdependence- The way in which businesses in different
sectors depend on each other e.g. car manufacturer relying
on the component producers.
· Specialisation- Where a business concentrates on one
particular activity.…read more
Changes in importance
Primary sector has fallen in importance because:
· Raw materials being used up e.g. closed coal mines
· Machinery has replaced workers e.g. drills instead of miners
· Foreign competition producing goods cheaper
Secondary sector has declined in importance because:
· Foreign competition is manufacturing goods cheaper overseas
· Machinery has replaced workers
Tertiary sector has seen a rise in importance because:
· Rise in population (more jobs in health and education)
· Increased wealth (spending more so more workers needed)
· Increased leisure time…read more
Business Objectives and Stakeholders
All objectives should be:
· Specific (or clear as to what is meant)
· Measurable (something numerical)
· Achievable (based on existing resources and skills)
· Realistic (be possible in terms of the overall economy)
· Time related (when will they be achieved by?)…read more
Survival and Growth
· Important for new businesses in the starting months.
· More established businesses may aim for survival when faced
with problems such as falling sales or financial crisis etc.
· A way to raise profit, it can take different forms including:
· Sales growth- Increase in revenue
· Increased market share- Business has greater share of the
· Elimination of competition- Taking over competitors, or
competitors closing themselves.…read more