Introduction
Good day students, Today's lesson will be about Business sectors.
Please watch the video below:
Task
Due Date : 31 August
Marks: 15
Task 1
Please answer the following questions:
- Give an explanation and an example of forwards integration. (2)
- Give an explanation and an example of backwards integration. (2)
- Explain how the three business sectors are related (4)
- In your own words, explain using examples how the business sectors are in relation. (4)
- Evaluate the difference between vertical integration and horizontal integration (3)
TOTAL 15
Process
Please watch the following video for more clarity on the business sectors.
Primary sector:
-Are those that are involved directly in the extraction or cultivation of natural resources from the earth or sea, which includes:
-mining, fishing, forestry, animal farming, agricultural farming
-The goods or raw materials extracted in the primary sector are made available to the secondary sector for processing.
-Natural resources which can be replaced or re-grown are renewable, eg.Crops, pine forest, animal farming
-Natural resources which cannot be replaced once they are used are non-renewable, eg. Coal, oil, peat.
Secondary sector:
-Are those involved in manufacture, processing or construction using raw materials obtained by the primary sector.
-It converts products into more usable form, using inputs from the primary sector which are then processed into outputs
-Manufacturing products such as food, clothes and cars.
Tertiary sector:
-Facilitates the flow of goods and services from the primary and secondary enterprises, ensuring that the products or services reach the consumer
-It includes the following, wholesale, retail, motor trade, catering, accommodation, insurance
5 links and challenges:
-Linking with suppliers to secure an input or obtain a more competitive price.
-Finding better suppliers in order to improve the quality of the product.
-External differentiation occurs when one step in the production is transferred to a separate business.
-Vertical integration shortens the business column. This takes place when two or more consecutive processes are combined in the same business.
-Forward integration occurs if the fruit farm buys the canning factory
-Backward integration occurs if the canning factory buys the fruit farm
-Horizontal integration occurs when two similar enterprises combine or one buys the other, to combine resources or reduce competition.
Evaluation
Marking criteria for the task given:
| questions | marks |
|---|---|
| 1. Explaination answered. | 2 |
| 2. Explanation answered. | 2 |
| 3. Business sectors explained | 4 |
| 4. Explanation answered. | 4 |
| 5. Evaluation done | 3 |
Conclusion
Students please go through this video below in preparation for our next lesson, which is forms of ownership and also check page 78 in our business studies textbook.
Teacher Page
I hope you enjoy this online lesson as covid is making it hard to be at school to teach every day.
if you find it difficult or want to send any queries.
email me on : bonenephala@gmail.com