SlideShare a Scribd company logo
© Business Studies Online: Slide 1 
What Are Businesses?What Are Businesses? 
Businesses can be classified in 3 main ways: 
(1) By Activity  (2) By Size  (3) By Legal 
Structure
© Business Studies Online: Slide 2 
1) Classification by Activity1) Classification by Activity 
Traditionally business have been classified into 3 
sectors: 
The Primary Sector: 
Firms in this sector extract raw materials from naturally occurring 
resources. 
The Secondary Sector: 
Firms in this sector assemble and manufacture products 
The Tertiary Sector: 
Firms in this sector provide services 
Some argue that a 4th sector now exists: 
The Quarternary: 
Firms in this sector provide support for IT based products
© Business Studies Online: Slide 3 
The Link Between These SectorsThe Link Between These Sectors 
Each sector is dependent on the others: 
This is called The Chain of Production
© Business Studies Online: Slide 4 
Trends in the UK Industrial SectorsTrends in the UK Industrial Sectors 
2.4 
1.9  1.9 
1 
0.5  0.6 
­3.6 
­2.8 
1997  1998  1999  2000 
­4 
­3 
­2 
­1 
0 
1 
2 
3 
% change year on year 
Manufacturing 
All Services 
EMPLOYMENT CHANGE IN THE UK
© Business Studies Online: Slide 5 
Reasons for the TrendsReasons for the Trends 
Tertiary sector has grown for 2 main reasons 
Wages and leisure time are increasing, and people spend 
much of their extra time and money on services. 
The UK is a net exporter of services, so world­wide economic 
growth increases demand for services. 
The Secondary sector 
now employs fewer people, but produces more! 
This is due to “capital deepening”. 
The Primary sector 
has seen little change: 
although output has increased this has been at a lower rate that 
the rest of the economy. 
In 1950 Agriculture accounted for 6% of GDP, but by 2000 this 
has dropped to below 2%.
© Business Studies Online: Slide 6 
2) Classification by Size2) Classification by Size 
Business size can be measured in 5 ways: 
Turnover: 
Measures the total value of sales over a given time. 
Small  = Turnover < £1.4 M 
Medium  = Turnover between £1.4 M and £5.75 M 
Large  = Turnover over £5.75 M 
Employees: 
Classifies businesses according to the number of workers: 
Small  = Less than 50 workers 
Medium  = Between 50 and 250 workers 
Large  = Over 250 Workers 
Capital Employed: 
Compares the amount of money invested within the business 
Profit: 
Compares the profit levels of firms 
Stock Market Value: 
Compares the value of companies whose shares are traded
© Business Studies Online: Slide 7 
Is Size Everything?Is Size Everything? 
In practice measuring the size of a business is very 
difficult.  Consider the following: 
In 2001, Vodafone had market capital of £154,683.6 Million, 
with turnover of £7,873 Million. 
Tesco meanwhile, had market capital of £17,771.2 Million, 
whilst their turnover was £20,988 Million. 
Which is the biggest company? 
Using profits can be used ­ but fluctuations make it 
unreliable, e.g. Marks & Spencer etc 
Using employee numbers is unreliable ­ since a small 
business can create huge sales turnover
© Business Studies Online: Slide 8 
3) Classification by Legal Structure3) Classification by Legal Structure 
The UK 
Economy 
The Private 
Sector 
The Public 
Sector 
Unincorporated 
Businesses 
Incorporated 
Businesses 
Franchises 
Sole Trader  Partnership  Private Limited 
Company (LTD) 
Public Limited 
Company (PLC) 
Local 
Government 
Central 
Government 
Nationalised 
Industries
© Business Studies Online: Slide 9 
Public Vs Private CorporationsPublic Vs Private Corporations 
Public Sector  Private Sector 
Shareholders 
Who Gets 
The Profits? 
Government 
Managing Director 
Who Makes 
day­to­day 
Decisions? 
Managers 
Board of Directors 
Who Makes 
Long­term 
Decisions? 
Relevant 
Government Minister 
Shareholders Who Owns It? 
Government on 
behalf of the people

More Related Content

What's hot

Printing Industry Dynamics
Printing Industry Dynamics Printing Industry Dynamics
Printing Industry Dynamics
Printer Magazines Group
 
CONSUMER DURABLES
CONSUMER DURABLESCONSUMER DURABLES
CONSUMER DURABLES
Rinshi Singh
 
World Lighting Fixtures to 2016
World Lighting Fixtures to 2016World Lighting Fixtures to 2016
World Lighting Fixtures to 2016ReportsnReports
 
Analysis of consumer durable industry
Analysis of consumer durable industryAnalysis of consumer durable industry
Analysis of consumer durable industry
sheetalparashari
 
Casic 2011
Casic 2011Casic 2011
Casic 2011
Jeffrey Hart
 
CORPORATE ENVIRONMENTAL SUSTAINABILITY – A KEY FIGURE-BASED APPROACH
CORPORATE ENVIRONMENTAL SUSTAINABILITY – A KEY FIGURE-BASED APPROACHCORPORATE ENVIRONMENTAL SUSTAINABILITY – A KEY FIGURE-BASED APPROACH
CORPORATE ENVIRONMENTAL SUSTAINABILITY – A KEY FIGURE-BASED APPROACH
ijmvsc
 
Liquid Crystal On Silicon (LCoS) Displays Market Scope and Growth Prediction ...
Liquid Crystal On Silicon (LCoS) Displays Market Scope and Growth Prediction ...Liquid Crystal On Silicon (LCoS) Displays Market Scope and Growth Prediction ...
Liquid Crystal On Silicon (LCoS) Displays Market Scope and Growth Prediction ...
hazelbrubaker
 
International business nmims latest solved assignments
International business   nmims latest solved assignmentsInternational business   nmims latest solved assignments
International business nmims latest solved assignments
smumbahelp
 

What's hot (8)

Printing Industry Dynamics
Printing Industry Dynamics Printing Industry Dynamics
Printing Industry Dynamics
 
CONSUMER DURABLES
CONSUMER DURABLESCONSUMER DURABLES
CONSUMER DURABLES
 
World Lighting Fixtures to 2016
World Lighting Fixtures to 2016World Lighting Fixtures to 2016
World Lighting Fixtures to 2016
 
Analysis of consumer durable industry
Analysis of consumer durable industryAnalysis of consumer durable industry
Analysis of consumer durable industry
 
Casic 2011
Casic 2011Casic 2011
Casic 2011
 
CORPORATE ENVIRONMENTAL SUSTAINABILITY – A KEY FIGURE-BASED APPROACH
CORPORATE ENVIRONMENTAL SUSTAINABILITY – A KEY FIGURE-BASED APPROACHCORPORATE ENVIRONMENTAL SUSTAINABILITY – A KEY FIGURE-BASED APPROACH
CORPORATE ENVIRONMENTAL SUSTAINABILITY – A KEY FIGURE-BASED APPROACH
 
Liquid Crystal On Silicon (LCoS) Displays Market Scope and Growth Prediction ...
Liquid Crystal On Silicon (LCoS) Displays Market Scope and Growth Prediction ...Liquid Crystal On Silicon (LCoS) Displays Market Scope and Growth Prediction ...
Liquid Crystal On Silicon (LCoS) Displays Market Scope and Growth Prediction ...
 
International business nmims latest solved assignments
International business   nmims latest solved assignmentsInternational business   nmims latest solved assignments
International business nmims latest solved assignments
 

Viewers also liked

2 types of businesses business studies
2 types of businesses business studies2 types of businesses business studies
2 types of businesses business studies
Phoebe Riorden
 
Business and its future in bangladesh
Business and its future in bangladeshBusiness and its future in bangladesh
Business and its future in bangladesh
Shawkat Emran Emon
 
Classification of the business
Classification of the businessClassification of the business
Classification of the business
Regent college Leicester
 
Chapter 2 classification of business
Chapter 2   classification of businessChapter 2   classification of business
Chapter 2 classification of businessSamantha Yau
 
Information classification
Information classificationInformation classification
1.02 types-of-businesses
1.02 types-of-businesses1.02 types-of-businesses
1.02 types-of-businessesPatel Kumar
 
Classification of companies
Classification of companiesClassification of companies
Classification of companies
RADHIKA GUPTA
 
Characterstics of business
Characterstics of businessCharacterstics of business
Characterstics of business
wesley sunny
 
Business activity unit_2
Business activity unit_2Business activity unit_2
Business activity unit_2Patrick Rubix
 
Simple Business Model Classification System: Business Model Pipes, Valleys, a...
Simple Business Model Classification System: Business Model Pipes, Valleys, a...Simple Business Model Classification System: Business Model Pipes, Valleys, a...
Simple Business Model Classification System: Business Model Pipes, Valleys, a...
Rod King, Ph.D.
 
Nature and-purpose-of-business
Nature and-purpose-of-businessNature and-purpose-of-business
Nature and-purpose-of-businessPatel Kumar
 
IGCSE Business Studeies Unit 1 understanding business activity ppt
IGCSE Business Studeies Unit 1 understanding business activity pptIGCSE Business Studeies Unit 1 understanding business activity ppt
IGCSE Business Studeies Unit 1 understanding business activity ppt
Irshad Tunio
 
Business studies for 11th class CBSE
Business studies for 11th class CBSEBusiness studies for 11th class CBSE
Business studies for 11th class CBSE
Max Monu
 
IGCSE Business Studies Notes
IGCSE Business Studies NotesIGCSE Business Studies Notes
IGCSE Business Studies Notes
Aprajita Verma
 
Forms Of Business Organisation Pp
Forms Of Business Organisation PpForms Of Business Organisation Pp
Forms Of Business Organisation Ppguestf6d4e7
 
Example of Company background
Example of Company backgroundExample of Company background
Example of Company background
fazzuan
 
Forms of Business Organizations
Forms of Business OrganizationsForms of Business Organizations
Forms of Business Organizations
Casey Robertson
 

Viewers also liked (18)

2 types of businesses business studies
2 types of businesses business studies2 types of businesses business studies
2 types of businesses business studies
 
Business and its future in bangladesh
Business and its future in bangladeshBusiness and its future in bangladesh
Business and its future in bangladesh
 
Classification of the business
Classification of the businessClassification of the business
Classification of the business
 
Chapter 2 classification of business
Chapter 2   classification of businessChapter 2   classification of business
Chapter 2 classification of business
 
Memo
MemoMemo
Memo
 
Information classification
Information classificationInformation classification
Information classification
 
1.02 types-of-businesses
1.02 types-of-businesses1.02 types-of-businesses
1.02 types-of-businesses
 
Classification of companies
Classification of companiesClassification of companies
Classification of companies
 
Characterstics of business
Characterstics of businessCharacterstics of business
Characterstics of business
 
Business activity unit_2
Business activity unit_2Business activity unit_2
Business activity unit_2
 
Simple Business Model Classification System: Business Model Pipes, Valleys, a...
Simple Business Model Classification System: Business Model Pipes, Valleys, a...Simple Business Model Classification System: Business Model Pipes, Valleys, a...
Simple Business Model Classification System: Business Model Pipes, Valleys, a...
 
Nature and-purpose-of-business
Nature and-purpose-of-businessNature and-purpose-of-business
Nature and-purpose-of-business
 
IGCSE Business Studeies Unit 1 understanding business activity ppt
IGCSE Business Studeies Unit 1 understanding business activity pptIGCSE Business Studeies Unit 1 understanding business activity ppt
IGCSE Business Studeies Unit 1 understanding business activity ppt
 
Business studies for 11th class CBSE
Business studies for 11th class CBSEBusiness studies for 11th class CBSE
Business studies for 11th class CBSE
 
IGCSE Business Studies Notes
IGCSE Business Studies NotesIGCSE Business Studies Notes
IGCSE Business Studies Notes
 
Forms Of Business Organisation Pp
Forms Of Business Organisation PpForms Of Business Organisation Pp
Forms Of Business Organisation Pp
 
Example of Company background
Example of Company backgroundExample of Company background
Example of Company background
 
Forms of Business Organizations
Forms of Business OrganizationsForms of Business Organizations
Forms of Business Organizations
 

Similar to 01 business classification

Data Challenges | Angela Druckman
Data Challenges | Angela DruckmanData Challenges | Angela Druckman
Data Challenges | Angela Druckmanicarb
 
Productivity Dynamics over the Medium Term
Productivity Dynamics over the Medium TermProductivity Dynamics over the Medium Term
Productivity Dynamics over the Medium Term
Structuralpolicyanalysis
 
Lesson 4 How And Why Is Manufacturing In Different Countries Changing
Lesson 4 How And Why Is Manufacturing In Different Countries ChangingLesson 4 How And Why Is Manufacturing In Different Countries Changing
Lesson 4 How And Why Is Manufacturing In Different Countries Changingtudorgeog
 
Business Tracker Release_wave_03082020 FINAL.pptx
Business Tracker Release_wave_03082020 FINAL.pptxBusiness Tracker Release_wave_03082020 FINAL.pptx
Business Tracker Release_wave_03082020 FINAL.pptx
YNWAYNWA1
 
Economic and legal structures present. pptx
Economic and legal structures present. pptxEconomic and legal structures present. pptx
Economic and legal structures present. pptx
JzaraAdams
 
Strategic & Financial analysis siemens(2002-2012)
Strategic & Financial analysis   siemens(2002-2012)Strategic & Financial analysis   siemens(2002-2012)
Strategic & Financial analysis siemens(2002-2012)
Hari Prashad K.V.
 
Strategic & Financial Analysis Siemens(2002-2012)
Strategic & Financial Analysis Siemens(2002-2012)Strategic & Financial Analysis Siemens(2002-2012)
Strategic & Financial Analysis Siemens(2002-2012)
Hari Prashad K.V.
 
10_Trade & Poverty Link_Garment
10_Trade & Poverty Link_Garment10_Trade & Poverty Link_Garment
10_Trade & Poverty Link_GarmentSamsen Neak
 
Chapter 01
Chapter 01Chapter 01
Chapter 01
james Thomas
 
Brief Overview of Report 17
Brief Overview of Report 17Brief Overview of Report 17
Brief Overview of Report 17
McGuinness Institute
 
The Impact of COVID19 on Businesses.pptx
The Impact of COVID19 on Businesses.pptxThe Impact of COVID19 on Businesses.pptx
The Impact of COVID19 on Businesses.pptx
BC Chew
 
Mechanical report dicembre_2006
Mechanical report dicembre_2006Mechanical report dicembre_2006
Mechanical report dicembre_2006Mverick Martin
 
Review goprintchapter2
Review goprintchapter2Review goprintchapter2
Review goprintchapter2khodi sadeghi
 
London TEC Construction Sector Study
London TEC Construction Sector StudyLondon TEC Construction Sector Study
London TEC Construction Sector StudyMike Townsend
 
Private Equity Times Report - United Kingdom 2019
Private Equity Times Report - United Kingdom 2019Private Equity Times Report - United Kingdom 2019
Private Equity Times Report - United Kingdom 2019
Vidur Sachdeva
 
Electricity in the United Kingdom
Electricity in the United KingdomElectricity in the United Kingdom
Electricity in the United Kingdom
ReportLinker.com
 

Similar to 01 business classification (20)

Trade union recognition
Trade union recognitionTrade union recognition
Trade union recognition
 
Economic Activity
Economic ActivityEconomic Activity
Economic Activity
 
Data Challenges | Angela Druckman
Data Challenges | Angela DruckmanData Challenges | Angela Druckman
Data Challenges | Angela Druckman
 
Productivity Dynamics over the Medium Term
Productivity Dynamics over the Medium TermProductivity Dynamics over the Medium Term
Productivity Dynamics over the Medium Term
 
Lesson 4 How And Why Is Manufacturing In Different Countries Changing
Lesson 4 How And Why Is Manufacturing In Different Countries ChangingLesson 4 How And Why Is Manufacturing In Different Countries Changing
Lesson 4 How And Why Is Manufacturing In Different Countries Changing
 
Business Tracker Release_wave_03082020 FINAL.pptx
Business Tracker Release_wave_03082020 FINAL.pptxBusiness Tracker Release_wave_03082020 FINAL.pptx
Business Tracker Release_wave_03082020 FINAL.pptx
 
Economic and legal structures present. pptx
Economic and legal structures present. pptxEconomic and legal structures present. pptx
Economic and legal structures present. pptx
 
Strategic & Financial analysis siemens(2002-2012)
Strategic & Financial analysis   siemens(2002-2012)Strategic & Financial analysis   siemens(2002-2012)
Strategic & Financial analysis siemens(2002-2012)
 
Strategic & Financial Analysis Siemens(2002-2012)
Strategic & Financial Analysis Siemens(2002-2012)Strategic & Financial Analysis Siemens(2002-2012)
Strategic & Financial Analysis Siemens(2002-2012)
 
10_Trade & Poverty Link_Garment
10_Trade & Poverty Link_Garment10_Trade & Poverty Link_Garment
10_Trade & Poverty Link_Garment
 
Chapter 01
Chapter 01Chapter 01
Chapter 01
 
Chapter 01
Chapter 01Chapter 01
Chapter 01
 
Brief Overview of Report 17
Brief Overview of Report 17Brief Overview of Report 17
Brief Overview of Report 17
 
The Impact of COVID19 on Businesses.pptx
The Impact of COVID19 on Businesses.pptxThe Impact of COVID19 on Businesses.pptx
The Impact of COVID19 on Businesses.pptx
 
Mechanical report dicembre_2006
Mechanical report dicembre_2006Mechanical report dicembre_2006
Mechanical report dicembre_2006
 
Review goprintchapter2
Review goprintchapter2Review goprintchapter2
Review goprintchapter2
 
03.dr. lee the ideal economic cooperation
03.dr. lee the ideal economic cooperation03.dr. lee the ideal economic cooperation
03.dr. lee the ideal economic cooperation
 
London TEC Construction Sector Study
London TEC Construction Sector StudyLondon TEC Construction Sector Study
London TEC Construction Sector Study
 
Private Equity Times Report - United Kingdom 2019
Private Equity Times Report - United Kingdom 2019Private Equity Times Report - United Kingdom 2019
Private Equity Times Report - United Kingdom 2019
 
Electricity in the United Kingdom
Electricity in the United KingdomElectricity in the United Kingdom
Electricity in the United Kingdom
 

Recently uploaded

Premium MEAN Stack Development Solutions for Modern Businesses
Premium MEAN Stack Development Solutions for Modern BusinessesPremium MEAN Stack Development Solutions for Modern Businesses
Premium MEAN Stack Development Solutions for Modern Businesses
SynapseIndia
 
Exploring Patterns of Connection with Social Dreaming
Exploring Patterns of Connection with Social DreamingExploring Patterns of Connection with Social Dreaming
Exploring Patterns of Connection with Social Dreaming
Nicola Wreford-Howard
 
Putting the SPARK into Virtual Training.pptx
Putting the SPARK into Virtual Training.pptxPutting the SPARK into Virtual Training.pptx
Putting the SPARK into Virtual Training.pptx
Cynthia Clay
 
Business Valuation Principles for Entrepreneurs
Business Valuation Principles for EntrepreneursBusiness Valuation Principles for Entrepreneurs
Business Valuation Principles for Entrepreneurs
Ben Wann
 
Bài tập - Tiếng anh 11 Global Success UNIT 1 - Bản HS.doc
Bài tập - Tiếng anh 11 Global Success UNIT 1 - Bản HS.docBài tập - Tiếng anh 11 Global Success UNIT 1 - Bản HS.doc
Bài tập - Tiếng anh 11 Global Success UNIT 1 - Bản HS.doc
daothibichhang1
 
The effects of customers service quality and online reviews on customer loyal...
The effects of customers service quality and online reviews on customer loyal...The effects of customers service quality and online reviews on customer loyal...
The effects of customers service quality and online reviews on customer loyal...
balatucanapplelovely
 
Cree_Rey_BrandIdentityKit.PDF_PersonalBd
Cree_Rey_BrandIdentityKit.PDF_PersonalBdCree_Rey_BrandIdentityKit.PDF_PersonalBd
Cree_Rey_BrandIdentityKit.PDF_PersonalBd
creerey
 
Project File Report BBA 6th semester.pdf
Project File Report BBA 6th semester.pdfProject File Report BBA 6th semester.pdf
Project File Report BBA 6th semester.pdf
RajPriye
 
Kseniya Leshchenko: Shared development support service model as the way to ma...
Kseniya Leshchenko: Shared development support service model as the way to ma...Kseniya Leshchenko: Shared development support service model as the way to ma...
Kseniya Leshchenko: Shared development support service model as the way to ma...
Lviv Startup Club
 
Authentically Social Presented by Corey Perlman
Authentically Social Presented by Corey PerlmanAuthentically Social Presented by Corey Perlman
Authentically Social Presented by Corey Perlman
Corey Perlman, Social Media Speaker and Consultant
 
Recruiting in the Digital Age: A Social Media Masterclass
Recruiting in the Digital Age: A Social Media MasterclassRecruiting in the Digital Age: A Social Media Masterclass
Recruiting in the Digital Age: A Social Media Masterclass
LuanWise
 
Organizational Change Leadership Agile Tour Geneve 2024
Organizational Change Leadership Agile Tour Geneve 2024Organizational Change Leadership Agile Tour Geneve 2024
Organizational Change Leadership Agile Tour Geneve 2024
Kirill Klimov
 
LA HUG - Video Testimonials with Chynna Morgan - June 2024
LA HUG - Video Testimonials with Chynna Morgan - June 2024LA HUG - Video Testimonials with Chynna Morgan - June 2024
LA HUG - Video Testimonials with Chynna Morgan - June 2024
Lital Barkan
 
ikea_woodgreen_petscharity_dog-alogue_digital.pdf
ikea_woodgreen_petscharity_dog-alogue_digital.pdfikea_woodgreen_petscharity_dog-alogue_digital.pdf
ikea_woodgreen_petscharity_dog-alogue_digital.pdf
agatadrynko
 
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challenges
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challengesEvent Report - SAP Sapphire 2024 Orlando - lots of innovation and old challenges
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challenges
Holger Mueller
 
Training my puppy and implementation in this story
Training my puppy and implementation in this storyTraining my puppy and implementation in this story
Training my puppy and implementation in this story
WilliamRodrigues148
 
Discover the innovative and creative projects that highlight my journey throu...
Discover the innovative and creative projects that highlight my journey throu...Discover the innovative and creative projects that highlight my journey throu...
Discover the innovative and creative projects that highlight my journey throu...
dylandmeas
 
amptalk_RecruitingDeck_english_2024.06.05
amptalk_RecruitingDeck_english_2024.06.05amptalk_RecruitingDeck_english_2024.06.05
amptalk_RecruitingDeck_english_2024.06.05
marketing317746
 
3.0 Project 2_ Developing My Brand Identity Kit.pptx
3.0 Project 2_ Developing My Brand Identity Kit.pptx3.0 Project 2_ Developing My Brand Identity Kit.pptx
3.0 Project 2_ Developing My Brand Identity Kit.pptx
tanyjahb
 
The Influence of Marketing Strategy and Market Competition on Business Perfor...
The Influence of Marketing Strategy and Market Competition on Business Perfor...The Influence of Marketing Strategy and Market Competition on Business Perfor...
The Influence of Marketing Strategy and Market Competition on Business Perfor...
Adam Smith
 

Recently uploaded (20)

Premium MEAN Stack Development Solutions for Modern Businesses
Premium MEAN Stack Development Solutions for Modern BusinessesPremium MEAN Stack Development Solutions for Modern Businesses
Premium MEAN Stack Development Solutions for Modern Businesses
 
Exploring Patterns of Connection with Social Dreaming
Exploring Patterns of Connection with Social DreamingExploring Patterns of Connection with Social Dreaming
Exploring Patterns of Connection with Social Dreaming
 
Putting the SPARK into Virtual Training.pptx
Putting the SPARK into Virtual Training.pptxPutting the SPARK into Virtual Training.pptx
Putting the SPARK into Virtual Training.pptx
 
Business Valuation Principles for Entrepreneurs
Business Valuation Principles for EntrepreneursBusiness Valuation Principles for Entrepreneurs
Business Valuation Principles for Entrepreneurs
 
Bài tập - Tiếng anh 11 Global Success UNIT 1 - Bản HS.doc
Bài tập - Tiếng anh 11 Global Success UNIT 1 - Bản HS.docBài tập - Tiếng anh 11 Global Success UNIT 1 - Bản HS.doc
Bài tập - Tiếng anh 11 Global Success UNIT 1 - Bản HS.doc
 
The effects of customers service quality and online reviews on customer loyal...
The effects of customers service quality and online reviews on customer loyal...The effects of customers service quality and online reviews on customer loyal...
The effects of customers service quality and online reviews on customer loyal...
 
Cree_Rey_BrandIdentityKit.PDF_PersonalBd
Cree_Rey_BrandIdentityKit.PDF_PersonalBdCree_Rey_BrandIdentityKit.PDF_PersonalBd
Cree_Rey_BrandIdentityKit.PDF_PersonalBd
 
Project File Report BBA 6th semester.pdf
Project File Report BBA 6th semester.pdfProject File Report BBA 6th semester.pdf
Project File Report BBA 6th semester.pdf
 
Kseniya Leshchenko: Shared development support service model as the way to ma...
Kseniya Leshchenko: Shared development support service model as the way to ma...Kseniya Leshchenko: Shared development support service model as the way to ma...
Kseniya Leshchenko: Shared development support service model as the way to ma...
 
Authentically Social Presented by Corey Perlman
Authentically Social Presented by Corey PerlmanAuthentically Social Presented by Corey Perlman
Authentically Social Presented by Corey Perlman
 
Recruiting in the Digital Age: A Social Media Masterclass
Recruiting in the Digital Age: A Social Media MasterclassRecruiting in the Digital Age: A Social Media Masterclass
Recruiting in the Digital Age: A Social Media Masterclass
 
Organizational Change Leadership Agile Tour Geneve 2024
Organizational Change Leadership Agile Tour Geneve 2024Organizational Change Leadership Agile Tour Geneve 2024
Organizational Change Leadership Agile Tour Geneve 2024
 
LA HUG - Video Testimonials with Chynna Morgan - June 2024
LA HUG - Video Testimonials with Chynna Morgan - June 2024LA HUG - Video Testimonials with Chynna Morgan - June 2024
LA HUG - Video Testimonials with Chynna Morgan - June 2024
 
ikea_woodgreen_petscharity_dog-alogue_digital.pdf
ikea_woodgreen_petscharity_dog-alogue_digital.pdfikea_woodgreen_petscharity_dog-alogue_digital.pdf
ikea_woodgreen_petscharity_dog-alogue_digital.pdf
 
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challenges
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challengesEvent Report - SAP Sapphire 2024 Orlando - lots of innovation and old challenges
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challenges
 
Training my puppy and implementation in this story
Training my puppy and implementation in this storyTraining my puppy and implementation in this story
Training my puppy and implementation in this story
 
Discover the innovative and creative projects that highlight my journey throu...
Discover the innovative and creative projects that highlight my journey throu...Discover the innovative and creative projects that highlight my journey throu...
Discover the innovative and creative projects that highlight my journey throu...
 
amptalk_RecruitingDeck_english_2024.06.05
amptalk_RecruitingDeck_english_2024.06.05amptalk_RecruitingDeck_english_2024.06.05
amptalk_RecruitingDeck_english_2024.06.05
 
3.0 Project 2_ Developing My Brand Identity Kit.pptx
3.0 Project 2_ Developing My Brand Identity Kit.pptx3.0 Project 2_ Developing My Brand Identity Kit.pptx
3.0 Project 2_ Developing My Brand Identity Kit.pptx
 
The Influence of Marketing Strategy and Market Competition on Business Perfor...
The Influence of Marketing Strategy and Market Competition on Business Perfor...The Influence of Marketing Strategy and Market Competition on Business Perfor...
The Influence of Marketing Strategy and Market Competition on Business Perfor...
 

01 business classification

  • 1. © Business Studies Online: Slide 1  What Are Businesses?What Are Businesses?  Businesses can be classified in 3 main ways:  (1) By Activity  (2) By Size  (3) By Legal  Structure
  • 2. © Business Studies Online: Slide 2  1) Classification by Activity1) Classification by Activity  Traditionally business have been classified into 3  sectors:  The Primary Sector:  Firms in this sector extract raw materials from naturally occurring  resources.  The Secondary Sector:  Firms in this sector assemble and manufacture products  The Tertiary Sector:  Firms in this sector provide services  Some argue that a 4th sector now exists:  The Quarternary:  Firms in this sector provide support for IT based products
  • 3. © Business Studies Online: Slide 3  The Link Between These SectorsThe Link Between These Sectors  Each sector is dependent on the others:  This is called The Chain of Production
  • 4. © Business Studies Online: Slide 4  Trends in the UK Industrial SectorsTrends in the UK Industrial Sectors  2.4  1.9  1.9  1  0.5  0.6  ­3.6  ­2.8  1997  1998  1999  2000  ­4  ­3  ­2  ­1  0  1  2  3  % change year on year  Manufacturing  All Services  EMPLOYMENT CHANGE IN THE UK
  • 5. © Business Studies Online: Slide 5  Reasons for the TrendsReasons for the Trends  Tertiary sector has grown for 2 main reasons  Wages and leisure time are increasing, and people spend  much of their extra time and money on services.  The UK is a net exporter of services, so world­wide economic  growth increases demand for services.  The Secondary sector  now employs fewer people, but produces more!  This is due to “capital deepening”.  The Primary sector  has seen little change:  although output has increased this has been at a lower rate that  the rest of the economy.  In 1950 Agriculture accounted for 6% of GDP, but by 2000 this  has dropped to below 2%.
  • 6. © Business Studies Online: Slide 6  2) Classification by Size2) Classification by Size  Business size can be measured in 5 ways:  Turnover:  Measures the total value of sales over a given time.  Small  = Turnover < £1.4 M  Medium  = Turnover between £1.4 M and £5.75 M  Large  = Turnover over £5.75 M  Employees:  Classifies businesses according to the number of workers:  Small  = Less than 50 workers  Medium  = Between 50 and 250 workers  Large  = Over 250 Workers  Capital Employed:  Compares the amount of money invested within the business  Profit:  Compares the profit levels of firms  Stock Market Value:  Compares the value of companies whose shares are traded
  • 7. © Business Studies Online: Slide 7  Is Size Everything?Is Size Everything?  In practice measuring the size of a business is very  difficult.  Consider the following:  In 2001, Vodafone had market capital of £154,683.6 Million,  with turnover of £7,873 Million.  Tesco meanwhile, had market capital of £17,771.2 Million,  whilst their turnover was £20,988 Million.  Which is the biggest company?  Using profits can be used ­ but fluctuations make it  unreliable, e.g. Marks & Spencer etc  Using employee numbers is unreliable ­ since a small  business can create huge sales turnover
  • 8. © Business Studies Online: Slide 8  3) Classification by Legal Structure3) Classification by Legal Structure  The UK  Economy  The Private  Sector  The Public  Sector  Unincorporated  Businesses  Incorporated  Businesses  Franchises  Sole Trader  Partnership  Private Limited  Company (LTD)  Public Limited  Company (PLC)  Local  Government  Central  Government  Nationalised  Industries
  • 9. © Business Studies Online: Slide 9  Public Vs Private CorporationsPublic Vs Private Corporations  Public Sector  Private Sector  Shareholders  Who Gets  The Profits?  Government  Managing Director  Who Makes  day­to­day  Decisions?  Managers  Board of Directors  Who Makes  Long­term  Decisions?  Relevant  Government Minister  Shareholders Who Owns It?  Government on  behalf of the people