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

Learning Outcomes Explain the nature of business activity in each sector (AO2) Analyse the impact of sectoral change on business activity (AO2)

Four Business Sectors Primary Sector Secondary Sector Tertiary Sector Quaternary What do you already know 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.

Quaternary Sector The quaternary sector consists of those industries providing information services, such as computing, ICT (information and communication technologies), consultancy (offering advice to businesses) and R&D (research, particularly in scientific fields). It is know as the knowledge-based sector of the economy. The quaternary sector is sometimes included with the tertiary sector, as they are both service sectors.

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? Lets find out……..

Look at the data….. DP_sector_composition DP_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 factbook/geos/rp.html 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 – Question Sheet Answer the Business Sectors Question Sheet