goods and services
If you ask the 'person in the street', what a business is, you are likely to be given an example; HMV, McDonalds, the sports centre, the local taxi firm etc. the person is most likely to view these businesses from the point of view of a customer - they are where you can get music, food, fitness and transport, he or she may also see them as plaves offering employment.
Businesses involve a wide range of activities which result in a product. the product of a business might be manufactured goods or it might be a service provided to customers.
products are tangible (touchable) items such as cars and crisps, whereas a service is something that is done for you, e.g. being sold goods in a shop, being transported from London to Birmingham on a train, having your hair styled.
Providing what customers want
Successful business provide products which customers want - whether they are products for basic needs such as bread and toilet paper, or whether they are products which customers can be pursuaded to buy as the 'must-have' essential fashion accessory.
A business can therefore be definied as;
AN ORGANISATION WHICH PROVIDES GOODS OR SERVICES FOR ITS CUSTOMERS.
Variety of business
The main impression you will get from investigating business is the wide variety that you will find.
range of activitiy - industrial sectors
the activities carried out by business vary greatly. As we have seen, some businesses manufacture goods and others provide servicesm the general trend in the UK being for a decline in the manufacturing industry and growth in the number of service businesses. traditionallym business activity is classified into three interlinking inductrial sectors;
- Primary industrial sector - exctracting natural resources
this involves the extracting of natural resources - raw materials for use in the manufacturing process, examples are; mining and fishing.
- Secondary industrial sector - manfucturing products
this is the next stage in the production process; it involves the processing of raw materials into the manufactured product; fruit into pies and jam and wood into paper.
- Tertiary industrial sector - providing services
this third classification involves a business providing a service rather than a manufactured item; examples include resturants and shops.
these three sectors link together to form a chain of production.