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different sectors of economy

Free essay example:

Unit 1 Exploring Business Purposes

Pre-Access to Business – Level 2

Unit 1 Exploring Business Purposes

Name: Mehul Islaniya

Assignment Title: Assignment 2

Tutor: Clare Thompson

Due date: 5th December 2008



  1. Introduction                                                                 3
  1. Primary, secondary and tertiary sectors (P2)                                                                                4
  1. Examples of all three sectors (P2)                9
  1. Summary of findings (P2 and M2)                15
  1. Bibliography                                                                16


The main point behind this assignment is to understanding of the classification of business activities.

This assignment I have covered description of primary, secondary and tertiary sector and three businesses as an example for each sector in local, national and global scale.

I have also made one presentation which includes understanding of growth and decline of all three sectors, sub-sectors and current crisis.

Task 1 P2

Provide a description of each of the three sectors (primary, secondary, tertiary) with appropriate definitions.

“An economy is a system that involves the production, distribution and consumption of goods and services between the entities in a particular society.”

(Source: www.en.wikipedia.org/wiki/Economics)

“Industry is the process or activity of making or creating a product or service.” For example car industry is all those businesses and people involved in making cars.

(Source: www.bbc.co.uk/bitesize)

Industry is part of the economy and industries classified into primary sector, secondary sector and tertiary sector which cover all the businesses in UK.

All three sectors show that they are linked together and often referred to as the supply chain.  The supply chain involves a flow of production and processes through each of the three industrial sectors.


(Source: www.thetimes100.co.uk)

  • Primary Sector

Primary industries are those which use the earth's natural resources and produce raw materials for primary products.  It involves growing, extracting or converting raw materials from the earth into raw materials.

It includes industries such as agriculture, hunting, forestry and logging, fishing, mining and quarrying.

In developed countries like UK and USA, a decreasing proportion of workers are involved in the primary sector. About 3% of the U.S. 1.5% of the UK labour force is engaged in primary sector activity today, where in developing countries like INDIA, primary sector employees the largest number of people.

(Source: www.geography.about.com)

Agriculture, hunting and Forestry

Agriculture involves growing crops and rearing animals, providing food, wool and skins and landscape gardening and horticultural businesses.

Forestry and logging

Forestry and logging includes all businesses involved with planting, conserving and filling timber.


Fishing involves catching sea life

Mining and quarrying

Mining and quarrying involves extracting raw materials - oil and coal, natural gas, all types of stone, slate, gravel and salt production.

  • Secondary Sector

The Secondary sector involves improving raw materials and turning them into other products.  This sector includes all business which manufacture, process or assemble products.

It includes industries such as metal working and smelting, automobile, textile, chemical and engineering industries, aerospace manufacturing, energy utilities, engineering, breweries and bottlers, construction, and shipbuilding.


Image: This image shows a glass-making factory in Austria. On the left are the furnaces where molten glass is produced. On the right, workers blow the molten glass to form glasses and goblets.


Manufacturing - making products from raw materials (or other manufactured products), such as cars.


Engineers are employed in manufacturing industries, mainly in relation to design and functioning of machinery and equipment.

Energy production

This sector includes all those businesses that produce and distribute gas and electricity, such as e-on, British gas.  This also includes water companies like Severn Trent water.


This sector includes house builders, civil engineers, electricians, plumbers, plasterers, joiners, painters and glaziers.  Among them they build all types of buildings as well as motorways, bridges, roads and railways.

  • Tertiary Sector

The tertiary sector (also called the service sector) involves all the services that are provided to businesses and consumers.  This sector includes all business that offers a service.

The vast majority of people in the UK work in service industries so they can be extremely varied in nature.

Tertiary Sector is divided into two sub-sectors - Quaternary Sector and Quinary Sector

Quaternary sector of economy consist research and development, information technology, consulting and entertainment.

Quinary sector is made of Education, government, health, finance, insurance, police, fire, retail, etc.

(Source: www.geography.about.com)


Image: Fire fighters would be an example of people who work in the tertiary sector - they provide a service to the public.

Information Technology

Information technology is working with computers, providing IT services to other companies.

Research and Development

Research and Development (R&D) jobs involve inventing and improving things, particularly in scientific fields, such as pharmaceuticals (health drugs). Often people will be based in universities and research facilities, such as Cambridge Science Park.


Retail is selling goods produced by the secondary sector in shops.


Tourism is providing services to people who are travelling for fun.


Health is providing services to ill people.


Education is teaching people new skills in schools and colleges.


Banking is providing financial services, such as lending people money and helping them invest their money.

Task 2 P2

Using your research for Task 1 describes 3 businesses for each classification there must be local and national examples.

Three businesses I have researched for primary, secondary and tertiary sector are very different in scale and in their sector too.

Businesses I have chosen for primary sector are – Seldom Seen Farm, UK Coal and Shell.

Businesses I have chosen for secondary sector are – Cofresh, Volkswagen Group and   .

Businesses I have chosen for tertiary sector are - Hayles Farrar & Partners, NHS and Barclays.

  • Businesses in primary Sector

Seldom seen farm – Local

Seldom seen farm are the farmers which are locally based in Leicester. They are the farmer who produces the vegetables, fruits and milk.

Their main purpose is only to produce these products fresh and to be a good quality product. After the production they sell these raw materials to the local supermarkets or the secondary sector industries.


Industries buy fruits and vegetables from local farms to make the products like juices, chocolates, cheese, butter, etc.

Seldom seen farm does not manufacture any products they are only the producer that’s why they are known as primary sector business.

UK Coal PLC – National

UK Coal plc is the Britain’s largest coal mining company and biggest producer of coal.  It is based in Harworth, Doncaster.image08.jpg

UK Coal has four deep mines located in Central and Northern England.

UK COAL owns a power generation business utilising waste gas from mines to generate electricity and provides the approximately 7% of the United Kingdom’s electricity.  They have also received planning permission for the development of the Group's first wind farm.

(Source: www.ukcoal.com/company-information)

With substantial land and property interests, UK COAL develops and regenerates brownfield sites, manages business parks on former mine sites and manages a substantial agricultural portfolio of land and buildings.

UK Coal plc runs it business in United Kingdom only so it is national organisation.  The company operates its business in coal mining, renewable energy and real estate but coal mining is their main business therefore UK Coal plc comes under primary sector.

Shell Oil Company - Global


Shell Oil Company is subsidiary of Royal Dutch Shell plc, simply as Shell, a multinational oil company which is amongst the largest oil companies in the world.

Shell Oil Company is one of America’s largest oil and natural gas producers, natural gas marketers, gasoline marketers and petrochemical manufacturers.

Shell products include oils, fuels, and card services as well as exploration, production, and refining of petroleum products.

Shell Oil Company is a 50/50 partner with the Saudi Arabian government-owned oil company Saudi Aramco.  It also holds 80% of an exploration firm called Pecten that explores and drills in various offshore locations.

(Source: www.en.wikipedia.org/wiki/Shell_Oil_Company)

  • Businesses in secondary

Cofresh – Local

Cofresh is a family run business which started over thirty years ago in UK.  It is a secondary sector business which is based locally in Leicester. image10.png

It is one the one of the fastest growing manufactures of authentic Indian snacks in Leicester.

The main purpose of the company is to manufacture the Indian snacks products by buying the raw materials from the other businesses which operates in primary sector.

Cofresh’s products are sold in major supermarkets like ASDA, Tesco, Sainsbury’s, Somerfeild and Asian retail grocery stores, Cash & Carry’s and Wholesalers throughout the UK.

Cofresh is also the manufacturer of ice cream, table sauces, cooking sauces and lot more.

Mansell - Nationalimage11.jpg

Mansell is a construction partner of choice with national capability and regional delivery to the community.

Their focus is on constructing community’s places where people live, work, learn, meet, travel, have fun and is cared for.  They build houses, hospitals, schools, colleges and universities.

They have developed a reputation for reliability, personal service and innovative solutions and are very proud of the fact that 90% of their business comes from customers for whom they have previously worked.

(Source: http://www.mansell.plc.uk/AboutUs)

Mansell is a construction company that means it is a secondary business.  And one of their recent built buildings includes abbey park campus of Leicester College.

Volkswagen Group – Global

Volkswagen Group is a German automobile manufacturing group, currently the third largest automobile maker in the world and the largest in Europe. That’s why it is secondary organization.

It operates worldwide although Volkswagen Group's core market is Europe.image12.png

Volkswagen group is made of Volkswagen passenger cars and Volkswagen commercial vehicles but also Audi, SEAT, Lamborghini, Bentley, Bugatti, Skoda, Scania AB and MAN AG.

In 2007 the Volkswagen Group sold 6.19 million automobiles, claiming over 10% of the world passenger car market.

It has made profit of € 4.12 billion (2007) and employs 329, 305 (2007) people.

(Source: www.en.wikipedia.org/wiki/Volkswagen_Group)

  • Businesses in tertiary Sector

Hayles Farrar & Partners - Local

Hayles Farrar and Partners is a partnership business and provides accountancy services to small and medium size businesses therefore it is a tertiary business.image02.jpg

It is based at 39 Castle Street, Leicester.

Hayles Farrar and Partners provides compliance services, annual accounts preparation services, accountancy, filling service, collection and returning forms service, business consultancy service, advice on business structures and costing and profitability analysis services.

NHS – National


NHS is provides health services to people of United Kingdom therefore it comes under tertiary sector.

National Health Service (NHS) is the name of the publicly funded healthcare system in the UK.

NHS provides healthcare to anyone normally resident in the UK and most services are free at the point of patient.  NHS receives its funding from general taxation including proportion of National Insurance payments.

NHS is controlled by the UK government through the Department of Health.  Most of the expenditure of The Department of Health (£98.6 billion in 2008-09) is spent on the NHS.

(Source: www.en.wikipedia.org/wiki/National_Health_Service)

As of March 2005, the NHS has 1.3 million workers, and is variously the third or fifth largest workforce in the world.


Barclays - Global

Barclays Bank operates in UK and other 50 countries and provides banking services to consumers and business customers.  It is a global tertiary business.image04.png


Barclays Bank is a subsidiary of Barclays Plc which listed on stock exchange.  Barclays Bank’s headquarter is located at one Churchill Place in Canary Wharf, London.

Barclays Bank offers different type of accounts such as current account, saving account, student account and young person account.

Its other services are personal loan, home loan, credit cards, online, banking and different type of investments schemes.  It also does foreign currency exchange.

Task 4 P2 and M2

Complete a conclusion which summaries your findings and shows your understanding of the:

  • Three sectors at a local, regional or national level
  • Growth and decline in local, regional or national level
  • Your thoughts on the future changes that may happen within these sectors

From task 1 and task 2 and my researched, I have learnt about all three sectors of economy and how businesses are divided into all these different sectors.

I have included local, national and global sized businesses in all three sectors which prove that primary, secondary and tertiary sector businesses are operating at all level.

I have shown growth and decline of all three sectors in task 3 presentation.  I have also included reasons for this growth and decline of sectors.

I think in future time, primary sector will be steady or decline at low rate, secondary sector will decline more in future.

Tertiary sector will grow more and more in next few years.  But these all change depend on other factors such as money market, economy, global economy, etc.



Carysforth C. Neild M. (2006) BTEC First Business, London, Heinemann

Gillespie A. (2001) Advanced Business Studies, Oxford, Oxford University Press












Other source:

Class notes

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General knowledge

Mehul Islaniya

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