Business Sectors and their Environments Business Studies Grade 12 Study Notes. The business sector refers to the part of the economy that is concerned with producing goods and services. There are three main types of business sectors: primary, secondary, and tertiary.
Topics under Business Sectors and their Environments
- Economic Sectors
- Business Environments
- Business Control Over the Micro Environment
- Business Control Over the Market Environment
- Business Control Over Macro Environment
Three Types of Business Sectors: A Summary of the Primary, Secondary, and Tertiary Sectors
There are three main types of business sectors: primary, secondary, and tertiary.
Primary Sector:
The primary sector is concerned with the extraction of raw materials, such as agriculture, fishing, and mining. This sector is also known as the extractive sector, as it involves the removal of resources from the earth. For example, a farmer who grows crops or a fisherman who catches fish are both involved in the primary sector.
Secondary Sector:
The secondary sector is concerned with the processing of raw materials into finished goods, such as manufacturing, construction, and energy production. This sector is also known as the production sector, as it involves the creation of goods through the use of raw materials. For example, a car manufacturer or a construction company are both involved in the secondary sector.
Tertiary Sector:
The tertiary sector is concerned with the provision of services, such as retail, healthcare, and finance. This sector is also known as the service sector, as it involves the provision of services to consumers. For example, a hospital, a bank, or a retail store are all involved in the tertiary sector.
Business Environment:
The business environment refers to the external factors that affect the operations of a business. There are three main types of business environments: macro, market, and micro.
- The macro-environment includes factors such as the economy, political system, and social trends, while
- The market environment includes factors such as competition and consumer preferences.
- The micro-environment includes factors such as the company’s employees, suppliers, and customers.
The extent to which a business may control each of these environments varies, with businesses having more control over the micro environment and less control over the macro environment.
Business Challenges:
Businesses face a variety of challenges in each of the three business environments. For example:
- In the macro environment, a business may face challenges such as economic downturns or changes in government policies.
- In the market environment, a business may face challenges such as increased competition or changes in consumer preferences.
- In the micro environment, a business may face challenges such as employee turnover or supply chain disruptions.
The primary, secondary, and tertiary sectors represent the different parts of the economy that are involved in the production of goods and services. Understanding the business environment and the challenges that businesses face in each environment is important for success in the business world. The extent of control that businesses have over each environment varies, with businesses having more control over the micro environment and less control over the macro environment.
Exam Quizzes (Questions & Answers) Covered under this Section
- THREE types of business sectors
- a business sector from given scenarios
- the business environment from given scenarios and state the extent to which a business may control each of these environments
- business challenge according to the THREE business environments from given scenarios
- the extent of control businesses have over each environment e.g micro: full control, market: little control, macro: no control