BTEC FIRST BUSINESS UNIT 1 EXPLORING BUSINESS PURPOSES

BTEC FIRST BUSINESS - UNIT 1 EXPLORING BUSINESS PURPOSES INDUSTRIAL SECTORS

Lesson Objectives At the end of this lesson you will be able to: Ø Describe the primary, secondary and tertiary industrial sectors. Ø Identify changes in the sectors and the reasons why they have changed. Ø Complete the assignment tasks for the P 3 & M 2 criteria of Unit 1

ASSIGNMENT CRITERIA P 3 • ‘Describe the primary, secondary and tertiary classifications of business activities using local and national examples’ M 2 • ‘Explain areas of growth or decline in the primary, secondary and tertiary classifications of business activities’

PRODUCTION TYPES Whatever kind of economy a country has, all business activity can be divided into three main sectors; • Primary production • Secondary production • Tertiary production A business can be seen a belonging to one, or perhaps more than one of these.

PRIMARY PRODUCTION JOBS Ø This is the first stage of the production process. Farming Mining Fishing Ø Raw materials are farmed or extracted from the land or sea Ø People who work in the primary sector are: – Farmers growing crops or rearing livestock – Miners extracting such things as coal, gold or diamonds – Foresters planting and growing trees. Quarrying Forestry

SECONDARY PRODUCTION The secondary stage turns these raw materials and natural resources into finished products. Examples of secondary production are: – Bicycle manufacturers – House builders – Road construction companies – CD manufacturers JOBS Construction Manufacturing Water Supply Energy Supply

TERTIARY PRODUCTION JOBS Businesses involved in the 3 rd stage provide services. Examples are: Retail Wholesale Ø Ø Ø Ø Banking &Insurance Retail – Shops selling goods Banking or insurance Hairdressing Travel agencies Football clubs Education – schools, classes Law and order – police National Health Service (NHS) – hospitals, doctors Solicitors Tourism & Leisure Driving Instructors Hairdressers NHS

Exercise 1 Below is a list of job roles. Draw a chart using the headings Primary Secondary and Tertiary and sort the following jobs into the correct types of production. Shop assistant Disc Jockey Midwife Coal miner Bus driver Farm worker Furniture maker Veterinary surgeon Car Production Factory worker Teacher Paramedic Baker Lumberjack

Chain of production Products move through the three sectors of industry before being sold to the consumer – this is called the chain of production. For example: A forester cuts down a tree (primary) The wood is made into a table (secondary) The table is sold in a department store (tertiary)

Adding value At each stage in the chain of production, value is added to the product. Value-added is the difference between the price the consumer is willing to pay and the cost of making a product.

Ways to add value • • • Production Convenience and speed Branding Quality Design USP

Changes in Industry Sectors Primary – Employment in this sector has continually declined over a long period, and we would expect it to continue to do so. Why do you think that employment in this sector has declined? – More sophisticated and efficient technology and machinery. – When people have more money they do not usually spend more on the output of this sector.

Exercise 2 • Imagine that you were offered a job earning £ 500, 000 a year. • Name 3 things you would spend your money on. Discuss this in this your groups. Wish list: 1. Expensive Car 2. Mansion in Ireland 3. Luxury holiday 5* ives ld a M e th in e iv s lu c In All

Changes in Industry Sectors Secondary – In a developing economy this sector will be growing (industrialised) – this is because it is usually more expensive to set-up and run a business in this sector. – This industry sector has become reliant on new technology, and less reliant on workers. – Where possible manufacturers have moved their factories from richer countries such as the UK, to countries where wages are lower.

Discussion Point What effect has the recent economic situation had on the Secondary sector in the UK?

Changes in Industry Sectors Tertiary – This is the largest industry sector in the UK employing approximately 76% of the workforce. (compared to 2% in the primary sector & 22% in the secondary sector) – This sector is more important in richer countries because they have more disposable income and can afford the luxuries or additional services found in this sector. – The decline of manifacturing towards jobs in the tertiary sector is called de-industrialisation.

How well have I understood this topic? ü/ x Can I…? Explain what the Primary, Secondary and Tertiary Sectors are? Explain whether the sector has increased or declined in the UK? Give examples of local businesses in each sector? What I’m going to do next… (circle your answer) Ask for help Read the pages 12 -17 Begin P 2/M 2 tasks