IB Business and Management 1.1 Business Sectors: Primary, Secondary and Tertiary

Learning Outcomes Explain the nature of business activity in each sector Analyse the impact on business activity of changes in economic structure (HL only)

Three Business Sectors Primary Sector Secondary Sector Tertiary Sector What can you tell me about them?

Video …. Just to clarify……. Watch the video

Primary Sector The primary sector of the economy extracts or harvests products from the earth. Activities associated with the primary sector include agriculture mining, forestry, farming, grazing, hunting and gathering, fishing, and quarrying

Secondary Sector The secondary sector of the economy manufactures goods for customers Activities associated with the secondary sector include metal working, automobile production, textile production, chemical and engineering industries, energy utilities, engineering, breweries and bottlers, construction, and shipbuilding

Tertiary Sector The tertiary sector of the economy is the service industry. This sector provides services to the general population and to businesses. Activities associated with this sector include retail and wholesale, transportation and distribution, entertainment restaurants, clerical services, media, tourism, insurance, banking, healthcare, and law.

Which business Sector/Sectors?

Questions Think about these 3 industry sectors How could we measure the size of them? How do you think the relative size of these sectors compares from country to country? What factors contribute to the differences? Lets find out……..

Look at the data….. http://en.wikipedia.org/wiki/List_of_countries_by_GDP_sector_composition Questions: What facts can you find? What conclusions can you draw? Are there any figures that surprise you? Why? What prediction would you make regarding figures for the Philippines?

The business sectors of the Philippines https://www.cia.gov/library/publications/the-world-factbook/geos/rp.html What can explain the difference in % when the size is measured by GDP and labour force?

Task Pick any country (everyone pick a different one) Using the CIA world factbook Create a presentation 3 slides long which shows… 1. A graph of the industry sectors by %GDP 2. A graph of the industry sectors by % Employment 3. Your analysis of the reasons behind the comparative sizes of the different sectors

Business Sector Trends….. Lets specifically think about the UK economy….. Can you give reasons for why……… The primary sector has decreased significantly in the last 50 years The secondary sector has decreased significantly in the last 50 years The tertiary sector has increased significantly in the last 50 years?

Task What primary, secondary, tertiary activities would be involved in getting this Big Mac to you? Write a list for each sector with as many activities as you can think of This is known as the chain of production

Chain of Production The chain of production consists of the various stages involved in the production of a particular product before it reaches the consumer

Added Value As raw materials are made into finished goods value is added. When the product is sold in the tertiary sector more value to the product is added. £30 £2.50 £0.50

Task – Question Sheet Answer the Business Sectors Question Sheet