The primary, secondary and tertiary sectors of the economy are important and play major roles in developing goods and services.
Raw materials and resources which are further enhanced and made into other products and developed by the primary sector.
The secondary sector is the manufacturing sector and continues the development of the raw materials provided by the primary sector.
The tertiary sector delivers the final output of the primary and manufacturing sectors.
Transformation process takes a range of inputs and transforms them into outputs.
The transformation process differs from sector to sector.
In the primary and secondary sectors, processes tend to require the physical goods and raw materials to undergo mostly mechanical transformation in order for the output to be obtained.
Inputs and Outputs
Inputs are all the resources which a business would require in order to make its product or service.
Inputs - capital, labour, entrepreneurship, lad, resources.
The tangible inputs refer to those that can be physically held.
The intangible assets include inputs which are abstract and not physically measurable, skills, expertise of the work force.
With the inputs and raw materials available to make ideas into products, a process must take place and this is called the transformation process.
Outputs can only be made after this process of transformation occurs.
Resources- when a business uses resources both tangible and intangible to produce outputs, the end products must be more valuable than the combined value of the inputs.
The output must be of high value and cover the costs of the inputs in any of the sectors.
Primary Sector is the first stage of production it's a very broad sector and includes fishing, and agriculture. Raw materials are specially recovered or created by this sector. Extraction- oil and gas, fish. Agriculture- animal husbandry, farming, forestry.
Across the globe it's common to see various countries with specific parts which are unique for certain primary sector activities.
Mechanisation is used today by developed countries to till and harvest the soil. It's very efficient and enables farmers to successfully collect the harvest and produce larger amounts in a shorter period of time. Pesticides and sprays are also in large use and have the benefit of reducing crop and livestock disease. Huge development, was extremely labour intensive and time consuming.
Without the natural resources, raw materials and extracts which are produced by this sector, other sectors cannot survive in return, the economy will fall- rely on more expensive imports.
Utilises many natural resources water, fishing, forestry and minerals.
Secondary Sector deals with businesses which process the products from the primary sector, it's sometimes also called the manufacturing sector.
Secondary Sector manufacturing and construction industries.
Natural resources and raw materials are transformed into all kinds of goods and services by this sector.
It's very fast in outlook, not only does it deal with the raw products of the primary sector, it's also involved in utilising already processed goods.
Several processed goods can be combined together to produce a completely new product or service.
A wide range of businesses in the manufacturing sector include drinks, printing, clothing, ceramics and steel.
Government support for the industries in this sector through investment initiatives to boost the sector as a whole.
Major manufacturers in the UK include Nissan cars, airbus aircraft and aerospace, ICI chemical product, proctor and gamble home product.
The Tertiary Sector
The Tertiary Sector is for service, supplies business and customers with the manufacturers products and services, any business doesn't extract or manufacture product falls into the category. Takes a range of inputs and transforms them into outputs.
Various businesses are involved in this sector retail shops and outlets, accommodation service providers, communication services, mobile, land, internet connection, financial services, transportation, education and public administration.
This sector is very large and employs 76% of British workforce.
Technology development due to it and efficient production, plus a decline in the manufacturing sector due to business closures, there has been a rapid rise in the tertiary sector in recent decades. It serves as an intermediary between the primary and secondary sectors and the end users, clients and customers.
Service sector is responsible for providing intangible products and services including knowledge, skills and expertise. It doesn't provide physical products to any other sector or end user. Information services, experiences and advice are all provided by service.
As a country develops, it increases its tertiary sector workforce, hence growth opportunities.
Quaternary Sector is associated with the information technology, hi tech industry and science industry.
Research information services, consultancy and developments are part of this sector.
The major purpose of this sector is paving the way for ground breaking and cutting edge advancement and development in business due to the high levels of competition.
As enterprise becomes more innovative and competitive, this sector has to continually create opportunities for enhancement opportunities in order to help businesses sustain their competitive advantage and meet the evolving demands of customers and business.
Adding Value is a process of combining resources to produce a finished product and using expertise skills and high level of technique to create the most efficient products to meet the demands and need of the end user.
A business that intends to be in the market for a long time must have the resources to provide end products to increase its competitiveness and increase its stance as a market leader and forced to be reckoned with.
The brand becomes more prominent and recognised when customers are prepared to pay for it.
The creation of value is the nucleus of a business.
It must be at the centre of how the business conducts its activities.
Consumers will pay for products which have been compared to other similar brands and yet from all aspects, will provide the greatest satisfaction to them.
Products can only achieve this is the customers eyes when they are seen to be of great value to the consumer.
Part of the process of adding value is to ensure that the end result goods and services are efficiently produces, it must also be effective.
Relationships and Networks
Relationships and Networks need to be established with business partners that identify with and share common value adding principles.
There needs to be greater automation and time management plus enhanced efficiency and cost reductive.
In condition with each other the business will be able to adapt to the changes in value demands of the market and sustain and profitable competitive position in the market.
Creating external sources because internal ones can't meet the demands of creating a high level of value.
This process is referred to as outsourcing.
Services of a contractor or supplier who can provide the resources or demands of present value adding needs it must of high quality and cost effective.