In order to make the diverse and complex range of British business more easily understood the range of business activity may be subdivided into three main categories. These categories include primary production, secondary production and tertiary production.
What is Primary Production?
Primary production is simply a description given to forms of economic activity which develop natural resources. Examples of primary production areas include agriculture, mining, oil production and the production of raw materials. An example of the latter is when raw material is produced such as iron ore which eventually may be converted into steel. This category may also be more aptly referred to as 'extractive' as it basically relates to forms of industry which take out materials provided by nature.
Another example of the primary production category of business activity is water which is collected from reservoir stores and goes through a purification processing plant to make it safe to drink. Building materials may also be extracted from nature such as the use of pine wood to make lodges and flooring.
What is Secondary Production?
Secondary production mainly consists of the manufacturing sector which involves the usage of various raw materials. These raw materials are then used to make goods such as vehicles and machinery as well as in constructing roads, houses, bridges and suchlike. Within the manufacturing sector operations are often broken down into repeated tasks to make components which are then put together to make the completed product.
High capital investment in terms of fixed assets is necessary to set up the process required for mass production of durable goods. Examples of durable goods include common household kitchen appliances such as refrigerators, dishwashers and washing machines.
What is Tertiary Production?
Tertiary production refers to the service industries which include commercial industries as well as public service industries. Examples of commercial industries include those associated with travel such as hotels and catering in addition to the retail sector. Service industries are basically those which provide for others without being actual physical goods. One key aspect of this industry is that it is recognised as being labour intensive, although with advancements in e-commerce and computing the system is being greatly changed.
As highlighted above, in order to understand the range of business activity within the UK this activity may be divided into categories of primary, secondary and tertiary production. Primary production refers to those extracted from nature while secondary production relates to the manufacturing industry ans tertiary production includes the service industries.
Source:
Fearns, P. (2000) Teach Yourself Business Studies London: Hodder Headline
Kate Le Page - Kate Henning-Le Page writes about eating disorders, body image and recovery issues. She specializes in anorexia recovery.
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