Which Of The Following Is A Business Strategy In The Service Sector

3 Classifying businesses by industry sector

Businesses also patently differ by what they exercise. It is very common to distinguish businesses past industry or sector. An industry is a grouping of businesses that are related in terms of their main activeness, for instance manufacturing cars or selling groceries. Smaller industries (for instance, the car manufacturing manufacture) can exist grouped into larger industry sectors (for example, the manufacturing sector in general). An individual business is classified as belonging to a certain industry on the basis of its main activity. So, for instance, a car manufacturing business may besides have a small financial services arm (to provide finance to customers to help them buy a new car) but that financial services arm would probably simply be about 10% of the business's overall activity, whereas car manufacturing might be 80%. Therefore, this concern would be classified as belonging to the motorcar manufacturing industry, and not financial services.

Economists often distinguish three broad sectors of the economic system:

• The master sector involves extracting and harvesting natural products from the world (for example, agriculture, fishing and mining).
• The secondary sector consists of processing (for case, the processing of food stuffs produced by agriculture), manufacturing and construction. That is to say, the secondary sector takes the products from the primary sector and does something more than with them.
• The tertiary sector provides services, such as retail services, entertainment or financial services.

Some people as well distinguish a fourth sector, which is fabricated upwards of intellectual activities, such equally instruction.

Information technology is useful to distinguish these wide economic sectors as nosotros can see that at that place volition be important differences between a business operating in the primary sector and one that provides a service. Nonetheless, information technology would likewise seem obvious that there may exist big differences between businesses within the aforementioned broad economic sector. A farm and a coal mine will be very different although they are both in the master sector; and a business organisation that makes, say, potato chips and i that builds railway tunnels will too differ along many lines. In that location are quite a number of different classifications of industries and some of them get into very fine detail. Some of these coding systems have been developed to aid government agencies to allocate industry groups; others have been developed past financial ratings agencies to help financial investment companies make investment decisions. At that place is no need to get into particular on any of these classification systems hither. What is of import, yet, is to be aware that the industry a business is in will have an important influence on how that business operates. For example, the operations of a fisheries business organisation, a mill or a service provider such equally a telesales company, will be very different in terms of complication, the kind of engineering used and the level of investment required to set up information technology up. In that location are too big differences in marketing a primary agronomical product to nutrient manufacturers and marketing a service such as, say, carpeting cleaning to consumers. While a variety of businesses in different industries face like bug in some respects, many of the item opportunities and challenges are strongly shaped past their industry context.

Which Of The Following Is A Business Strategy In The Service Sector,

Source: https://www.open.edu/openlearn/money-business/business-strategy-studies/different-types-business/content-section-3

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