Classification of Business Activities

8/3/2019 Classification of Business Activities

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CLASSIFICATION OFBUSINESS ACTIVITIES

INDUSTRY AND COMMERCE

INDUSTRY

COMMERCE


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INDUSTRY


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INDUSTRY

Industry refers to the production of aneconomic good within an economy. A basiccategory of business activity.

According to the Industrial Disputes Act, 1947.Industry means any systematic activity carriedon by co-operation between an employer and

his workmen for the production, supply ordistribution of goods or services with a view tosatisfy human wants or wishes.


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INDUSTRIAL SECTORS

There are four key industrial economic sectors:the primary sector, largely raw materialextraction industries such

as mining and farming, the secondary sector,involving refining, construction,and manufacturing, the tertiary sector, whichdeals with services such as law and medicineand distribution of manufactured goods.


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Primary : This involved the extraction of resourcesdirectly from the Earth, this includes farming, miningand logging. They do not process the products at all.In 2010 its contribution to the GDP was 16.1%.

Secondary : This group is involved in the processingproducts from primary industries. This includes allfactories those that refine metals, produce furniture,or pack farm products such as meat. In 2010 itscontribution to the GDP was 28.6%.Tertiary: This group is involved in the provision ofservices. They include teachers, managers and otherservice providers. In 2010 its contribution to the GDPwas 55.3% .


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Primary sector- 16.1 %

Secondary sector- 28.6 %

Tertiary sector- 55.3 %

Pie Diagram

16%

29%55%

GDP (Year 2010)primary Secondary Tertiary


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HISTORY

Industry in the sense of manufacturing became akey sector of production and labourin European and North American countries duringthe Industrial Revolution. Industrial countries thenassumed a capitalist economic policy. Railroadsand steam-powered ships began speedilyestablishing links with previously unreachableworld markets, enabling private companies to

develop to an enormous size and wealth.Following the Industrial Revolution, perhaps athird of the world's economic output is derivedfrom manufacturing industries more than

agriculture's share.


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Early industries involved manufacturing goods fortrade.In medieval Europe, industry became dominated

by the guilds in cities and towns, who offeredmutual support for the member's interests andmaintained standards of industry workmanshipand ethical conduct.

Many developed countries and many developingcountries (India etc.) depend significantly onindustry. Industries, the countries they reside in,and the economies of those countries areinterlinked in a complex web of interdependence.


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EXAMPLES

TEXTILE INDUSTRY

AUTOMOTIVE INDUSTRY

FMCG INDUSTRY


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COMMERCE


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COMMERCE

Commerce means the whole system of aneconomy that constitutes an environment forbusiness.

Commerce is a system or an environment thataffects the business prospects of an economyor a nation-state. We can also define it as asecond component of business which includesall activities, functions and institutions involvedin transferring goods from producers toconsumers.


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Commerce primarily expresses the fairlyabstract notions of buying and selling ,whereas trade may refer to the exchange of a

specific class of goods.

Business can refer to an organization set up

for the purpose of engaging in manufacturingor exchange, as well as serving as a loosesynonym of the abstract collective "commerceand industry".


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E-COMMERCE

The Internet is now a flourishing industry. With the technologyadvancing at a fast rate, more and more people are open tocomputers and internet. Increasingly they are learning toutilize the Internet for their day to day needs. HereEcommerce websites take a front seat, moving out to the

millions of people searching for your kind of product orservices online. Advantages of E-Commerce:Revealation - Your products showcased on your website,provides a huge exposure to the millions of visitors on theweb.Time and Convenience - Time is one of the crucial factor inour lives now-a-days. A customer may find it difficult to visityour store physically everytime.Cost Effective - Sustaining a store in a primary locality is nothighly expensive. On the contrary using the ecommerce is awhole lot easier technique of demonstrating and providing

information about your products.


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HISTORY

Some commentators trace the origins of commerce tothe very start of communication in prehistoric times.In historic times, the introduction of currency as astandardized money facilitated a wider exchange ofgoods and services.The circulation of a standardized currency providesthe major disadvantage to commerce of overcomingthe "double coincidence of wants" necessary

for barter trades to occur . Currency solved thisproblem by allowing a society as a whole to assignvalues and thus to collect goods and serviceseffectively and to store them for later use, or to splitthem among several providers.


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Today commerce includes acomplex systemof companies that try to

maximize theirprofits byoffering products and services tothe market (whi

ch consists bothof individualsand othercompanies) atthelowest producti

on cost.


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Thank you.

Classification of Business Activities

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