miércoles, 2 de marzo de 2011

Business activity & objetives

In this entry I'm going to explain the diferent aims of businesses in the private and public sector.

There're four sectors of business activity, those are:

  • Primary Sector- Consist in changing natural resources into primary products. Most products from this sector are considered raw materials for other industries. Major businesses in this sector include agriculture, agribusiness, fishing, forestry and all mining and quarrying industries.
  • Secondary Sector- This sector generally takes the output of the primary sector and manufactures finished goods, semi-finished goods, or where they are suitable for use by other businesses or sale to domestic consumers.
  •  Tertiary Sector- The tertiary sector, also know as public sector, in this sector people offer their knowledge and time for the others, in other words, this sector doesn't product finale goods or tangible goods. The production of the tertiary sector include attention, advice, experience..."intangible goods".
  • Quarternary Sector- The quaternary sector is an economic sector that includes highly intellectual services such as research, development, innovation (R & D, I + D + I). Traditionally it is considered part of the tertiary sector but growing increasingly important and distinct has led some authors advocate considering it as a separate sector.
Private Sector:

 In our days we have companies that are involved in most of economics sectors, for example:

  • Oil exploration and drilling (Primary)
  • Refining oil (Secondary)
  • Distribution of petrol from refineries to petrol stations (Tertiary)
  • Research and development (Quaternary) 
Now its time to explain the main objectives of private sector business, everybody knows that all private business are created in order to obtain a benefit, so the main objective is the PROFIT. But that objective is not the only, there're other like:

-Image and reputation
-Share price
-Social Issues
-Market power

Every company should know their objectives, for example there're companies that do everything for the main objective (Make a Profit), for example, the famous and loved Nike, Adidas, Reebok and many more. (I've named that companies because they use child labor, and for me that's unforgivable). There're others that take care of enviroment and research in order to throw less polution to our atmosphere, others only do that because is better for their image and reputation, but at least they do something.

Public Sector: The public sector differs a lot of the private, the main objectives are:
  • Access & equity available to everybody regarless of their background, location, status, income, class, race or religion
  • Affordability, this is very important because the services are offered at prices that are cheaper than private sector or free, like the social security, you can use private hospitals or public ones.
The public sector range of business
-Trading standards
-Museums and arts
-Social Services
-Street lighting

and many more.


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