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    Lecture 2 - 30-01-08

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    Ali Ahmad
    This document summarizes different types and levels of business activity. It discusses the primary, secondary and tertiary sectors of industry. The primary sector involves extraction of natural resources, the secondary sector is manufacturing that transforms raw materials, and the tertiary sector provides services. It also discusses different types of economies, including free market, planned, and mixed economies. The advantages and disadvantages of free market and planned economies are outlined. Finally, it discusses how businesses can grow internally through expansion or externally through mergers and acquisitions.

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    Lecture 2 - 30-01-08

    Uploaded by

    Ali Ahmad
    77 views17 pages
    This document summarizes different types and levels of business activity. It discusses the primary, secondary and tertiary sectors of industry. The primary sector involves extraction of natural resources, the secondary sector is manufacturing that transforms raw materials, and the tertiary sector provides services. It also discusses different types of economies, including free market, planned, and mixed economies. The advantages and disadvantages of free market and planned economies are outlined. Finally, it discusses how businesses can grow internally through expansion or externally through mergers and acquisitions.

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    This document summarizes different types and levels of business activity. It discusses the primary, secondary and tertiary sectors of industry. The primary sector involves extraction of natural resources, the secondary sector is manufacturing that transforms raw materials, and the tertiary sector provides services. It also discusses different types of economies, including free market, planned, and mixed economies. The advantages and disadvantages of free market and planned economies are outlined. Finally, it discusses how businesses can grow internally through expansion or externally through mergers and acquisitions.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    77 views17 pages

    Lecture 2 - 30-01-08

    Uploaded by

    Ali Ahmad
    This document summarizes different types and levels of business activity. It discusses the primary, secondary and tertiary sectors of industry. The primary sector involves extraction of natural resources, the secondary sector is manufacturing that transforms raw materials, and the tertiary sector provides services. It also discusses different types of economies, including free market, planned, and mixed economies. The advantages and disadvantages of free market and planned economies are outlined. Finally, it discusses how businesses can grow internally through expansion or externally through mergers and acquisitions.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 17

    LECTURE # 02

    TYPES OF BUSINESS ACTIVITY


    BY FAIZ MOHAMMAD BHUTTA

    15/03/07

    LEVELS OF BUSINESS ACTVITY


    Tertiary Sector

    Extraction

    Primary
    Manufacturing

    Natural/resources

    Secondary
    Services JOBS Environment

    Baking Aircraft Construction computers

    Tertiary Price and quality

    Insurance Hotels Banking Transport

    LEVELS OF BUSINESS ACTVITY


    Tertiary Sector

    Extraction

    Primary
    Manufacturing

    Extracts and uses natural resources Of earth

    Secondary
    Services JOBS

    Manufactures goods using Raw materials provided by Primary sector Provides services to consumers Environment And the other sectors Price and quality Of industry

    Tertiary

    Which sector of industry is most Important in your country? DISCUSSION


    1. Number of workers employed in each sector 2. The value of output of goods and services

    Business insurance
    forestry

    Primary

    secondary

    Tertiary

    Coal mining
    Computer assembly Travel agent Car show room Hotel

    Academy
    Health care

    LEVELS OF BUSINESS ACTVITY


    Tertiary Sector

    Free market economy

    Private owned Profit oriented Demand/supply Incentive based

    Planned economy
    JOBS Environment

    State controlled No incentives

    Mixed Economy
    Price and quality

    Mix of both

    FREE MARKET ECONOMY


    Advantages

    Tertiary Sector

    Consumers are free to choose what they want to buy Workers are encouraged to work hard because of low tax on incomes Business can compete thus making prices low new businesses are encouraged to set up in order to make profits Profit oriented

    Disadvantages
    No government provided goods Only those who can afford to buy can enjoy life No government control on economy Business can develop monopolies

    No country in the world which has complete free market system

    COMMAND OR PLANNED ECONOMY


    Advantages

    Tertiary Sector

    Govt control should eliminate any waste resulting from competition between firms There should be work for every body The needs of population are met but little production for luxury goods for wealth people Basic needs of people are met at all cost

    Disadvantages
    There is little incentive for work as Govt fixes wages and private property Is not allowed. Govt may not produce goods which people want to buy Lack of a profit motive for firms leads to low efficiency

    Communist countries before 1989

    Tertiary Sector

    MIXED ECONOMY Every country has mixed of private and Public sector with Government as regulatory body

    ITEM Railway Local bus service

    GOVT

    PRIVATE

    Water supply
    Electric supply TV and Radio

    Telecom Hotel Train


    Health care

    SECTORS OF INDUSTRY
    PRIMARY SECONDARY TERTIARY

    By Activity

    By Ownership

    Private sector Owned by Private people

    Public sector, Owned by Govt or state Agencies

    Privatization Tertiary Sector

    Arguments in favor of privatization and Against privatization

    Assignment # 02

    Activity # 2.4 Group assignment

    COMPARING THE SIZE OF BUSINESS


    Tertiary Sector

    Comparing by number of employees Comparing business by value of output and sales Comparing business size by profit Comparing business size by capital employed

    JOBS Environment Price and quality

    HOW CAN BUSINESS GROW


    Tertiary Sector

    By internal growth Open more offices By external growth Take over or merger

    Horizontal Merger or horizontal integration - Merger or take over in same industry with same stage of production Vertical Merger or Vertical Integration JOBS - Merger or take over in same industry with Environment different stage of production

    Price and quality

    VERTICAL INTEGRATION
    Tertiary Sector

    Backward integration - Merger or take over with earlier Stage of production

    Forward Integration - Merger or take over in same industry with later stage of production Conglomerate merger JOBS - when one firm merges or takes over a firm in Environment A completely different industry. This is known as Diversification. Price and quality

    SUMMARY

    Internal How business grow

    External
    Merger or take over
    Horizontal

    Conglomerate

    Vertical

    THANKS

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