3 Types Of Business Activities

What are business activities?

What are business activities? The scope of business activities is very broad. Actually, business activities grouped into three types of business activities: production, distribution, and consumption.

What are business activities

What are business activities

Business Activities: Production

Production is all business activities that add value to the goods for human needs. Production categorized into three kinds: primary, secondary and tertiary production.

1. Primary production

Is the activity/process of generating materials – raw materials or raw materials by taking it directly from nature. In the field of human mining took iron beans, tin copper, gold, silver, aluminum, and other minerals to be used as the raw material of the industry. Examples the fishermen take fish directly from the sea or humans take fish that are in rivers or lakes and some of them take direct forest results such as wood, fruits, sago, coconuts, and other foodstuffs without having to plant first.

2. Secondary production

Secondary production is an activity undertaken to process raw materials/raw materials into semi-finished materials. For example, iron beans are processed into profiles – the profile of iron or become slabs of steel. Yarn is processed into cloth. Additionally, secondary production also includes assembly production.

3. Tertiary production

Tertiary production is supporting or supporting primary and secondary production in its activities. For an example of tertiary production are telecommunications, real estate, banking, insurance, finance, hotels, and restaurants. And also included professionals – experts like teachers, doctors, midwives, lawyers, artists, are a form of tertiary production.

Production factors

Business systems in conducting their activities desperately need input from the community called the production factor. The production factors in the classification become a factor in the production of raw/raw materials, energy, capital, and entrepreneurship.

1. Raw Materials

Raw materials are materials from the natural such as minerals – minerals (iron, copper, gold, silver, aluminum, etc.), seafood, lakes, and rivers (fish, shrimp, clams, etc.), forest results (wood, sago, fruit, coconut, etc.).

2. Power

Power production factor is all people who work in the company ranging from the manager, supervisor, head of a section, technician, operator, quality control, warehouse, administration, to the marketing part.

3. Capital

Capital is a fund to finance all production activities. That is to pay employee salaries, buy raw materials, advertising costs, pay electricity, water, medical personnel, transport, buy spare parts, etc. In addition shares, loans, and company profits are also the company’s capital

4. Entrepreneurship

Is the person who regulates or he’s the company Entrepreneur besides working for the company itself also works in other companies. The owner of the company recruits managers – professional managers to run the business.

Business Activities: Distribution

The meaning of distribution is an activity of moving goods and services from producers to consumers. The distribution includes all the activities of moving goods, whether that is from suppliers to the company or the transfer of goods in the storage of goods, packing, to the end user. Distribution system There are two kinds of direct and indirect distribution. Direct distribution is very effective and efficient. For example, farmers sell their goods to housewives. But nowadays many are using indirect distribution. For example, the company distributes its goods through large merchants and retailers to distribute to consumers. Distribution is useful for expanding the market network and facilitating consumers in the need for goods.

Business Activities: Consumption

The company must always maintain the amount of market demand for the goods and services it produces, maintain products quality, innovations and promotions. In addition, companies must know the factors that can increase public consumption. For example depending on the age factor. What children, teenagers, and adults would have liked. Usually, clothes and toys are offered for children. Teenagers of school age need school equipment, books, sporting equipment. Adults need health facilities

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