BUSINESS
OPERATIONS
3.1-3.4
Miss McCombe
BUSINESS
OPERATIONS
3.1-3.4
Miss McCombe
How does wheat become Dominos pizza? What stages are involved
Production refers to the creation of goods or services. There are three types of production.
TYPES OF PRODUCTION
Primary production or Extracting raw materials
Secondary Production or Manufacturing
Tertiary Production or Services.
•This involves souring the earth’s resources and this may include:
•Removal (Extraction) of raw materials from the land and sea e.g fishing, farming, mining, quarrying, forestry and oil drilling.
•It is also using the earth’s resources. Farming items eg fruit, trees, crops.
PRIMARY INDUSTRY
Northern Ireland relies on primary industry more than most of the UK, especially agriculture.
Over 70% of NI land is used for farming — one of the highest proportions in the UK.
Livestock farming (cattle and sheep) dominates, rather than crop farming.
Even though few people work directly in farming, thousands of jobs depend on it indirectly (food processing, transport, retail).
PRIMARY INDUSTRY IN NI
READ BOOKLET PARAGRAPH
This involves taking materials and turning them into finished and semi-finished products. Examples include construction, coach building and baking.
SECONDARY INDUSTRY
Examples of products made from the secondary industry
TERTIARY INDUSTRY
This involves providing services to consumers or to other businesses. Services may be commercial services e.g. banking, marketing and insurance or professional services such as entertainment, hospitality, legal and medical services.
FIWI DSRPEROIV
CYLECRNIG EIVSSRCE
RAILBIRE
TASETE GTEANST
UNJUMBLE THE WORDS FOR EXAMPLES OF TERTIARY
Jot down the answers in your booklet
WIFI providers → FIWI DSRPEROIV
Recycling services → CYLECRNIG EIVSSRCE
Libraries → RAILBIRE
Estate agents → TASETE GTEANST
ANSWERS...
ACTIVITY IN BOOKLET...
ANSWERS...
Which ever option you think is the odd one out, hold up that number of fingers
Car manufacturer
Furniture maker
Electronics assembler
Hairdresser
Impostor: Hairdresser
Why: The first three produce goods (secondary); a hairdresser provides a service (tertiary
Teacher
Nurse
Hotel receptionist
Clothes factory worker
Impostor: Clothes factory worker
Why: Teaching, nursing and hotel work are services (tertiary); factory work is manufacturing (secondary).
Dentist
Pharmaceutical factory worker
Physiotherapist
GP
Impostor: Pharmaceutical factory worker
Why: Healthcare roles provide services (tertiary); factory work is secondary production.
Food processing worker
Oil rig worker
Coal miner
Quarry worker
Impostor: Food processing worker
Why: The first three extract natural resources (primary); food processing changes raw materials (secondary).
Steel factory worker
Forestry worker
Car assembler
Clothing manufacturer
Impostor: Forestry worker
Why: The first three manufacture goods (secondary); forestry involves extracting raw materials (primary).
Fisherman
Fish farmer
Pearl diver
Fishmonger
Impostor: Fishmonger
Why: The first three obtain raw materials from nature (primary); a fishmonger sells a service/product (tertiary).
•Identify the type of production in each of the following:
a) Extraction of raw materials from land or sea –
b) The provision of services such as banking –
c) The conversion of raw materials into finished goods –
[3]
EXAM PRACTICE
3 marks = 3 minutes
A01 is being assed as this is an IDENTIFY question
a) Primary
b) Tertiary
c) Secondary
ANSWERS
BBC BITESIZE QUIZ
Record scores
Each stage of production is dependent on the other two in order to get the finished product to the consumer- this is known as the Chain of Production.
Businesses carry out different activities depending on what stage of the production process they are working on.
Every business operates in one or more of three industries, primary, secondary or tertiary.
Interdependence = different stages/industries depending on each other
CHAIN OF PRODUCTION
ACTIVITY
Use the images to order the stages of production and then fill in your asnwers in the table
•Farmers grow potatoes – Primary
•Potatoes are transported to the Tayto Factory – Tertiary
•Potatoes are sorted and processed into crisps – Secondary
•Boxes of crisps are distributed to shops –Tertiary
•Crisps are sold to the general public – Tertiary.
1. Which part of the video shows the secondary sector? How do you know?
2. What primary sector activities are needed even though we don’t see them?
3. Which tertiary services are needed to support this product once it’s made?
QUESTIONS TO CONSIDER DURING VIDEO
https://www.youtube.com/watch?v=c1LePreHLY0
1.What could happen if one stage of the production chain stopped working? What would be the effect on the product?
2.Can you think of products you use that go through a similar chain of production?
EXTENSION QUESTIONS...
Page 3 in revision booklet 3
6 marks = 6 minutes
Structure -
state type of production, briefly explain it and provide an example industry
PAST PAPER QUESTION
Questions on page 5, 6 and 7.
The main changing trends across the types of production are;
The modern trend in employment is for a move away from primary and secondary sectors towards employment in the tertiary sector. This trend is known as de-industrialisation. 80% of people employed in NI are working in the tertiary sector.
CHANGING TRENDS ACROSS THE TYPES OF PRODUCTION
When a country shifts away from the industrial manufacturing, and moves towards service-based industries such as finance, healthcare, and technology
WHAT IS DE-INDUSTRIALISATION ?
DE-INDUSTRIALISATION IN NI
Shirt factories, Ship building and Mining are all industries of the past . Why? What factors have caused de-industrialisation
Globalisation – factories moved abroad where labour is cheaper.
Automation – machines replaced many industrial jobs.
Cheaper imports – overseas goods cost less than UK-made products.
Decline in demand – coal and heavy industry are used less today.
Growth of services – more jobs are now in the tertiary sector.
REASONS FOR DE- INDUSTRIALISATION ?
In primary production, farming has become more mechanised with fewer people needed. There are also fewer jobs in the secondary sector due to modern machinery replacing workers.
There are few raw materials in NI apart from trees for timber industry and stone for quarrying. Thus, fewer people are needed.
REASONS FOR CHANGING TRENDS...
Changes to apple harvesting
Any other examples?
Traditional industries have closed because of competition, resulting in lower prices for foreign goods, eg many manufactured goods are imported from China.
Education standards are high in NI and many choose professional careers rather than work in primary/secondary sectors.
REASONS FOR CHANGING TRENDS...
People are spending more on leisure and entrepreneurs are focusing on this market.
Demand for services such as education, personal banking, insurance, investment and legal advice, leading to more employees being needed in these areas.
REASONS FOR CHANGING TRENDS...
Manufacturing now accounts for less than 10% of UK jobs and there is little prospect of this reversing, as new automated technologies continue to boost productivity and overseas competition remains fierce.
Health, education and business services have been the biggest growth areas since the late 1970s and are likely to continue to expand.
THE IMPORTANCE OF TYPES OF PRODUCTION
The service sector will continue to grow with new jobs in the health sector as an ageing population further increases demand in this area. The NHS is pushing towards more healthcare being provided in the community and more doctors, nurses and other carers will be needed.
A significant number of workers may lose their jobs due to technology and smart machines, although these should be compensated for by job creation in other services areas including new digital job creation.
About 83 % of jobs in the UK in the service (tertiary) sector in 2025.
The growing trend for self-employment is likely to continue due to the rise of digital age companies.
Identify a changing trend across the types of production and explain two reasons for that trend. (5 Marks)
Guidance...
State the change (1 mark)
State the reason and explain it X2 (4 marks combined)
PAST PAPER QUESTION...
A major changing trend in the UK and Northern Ireland is the shift from primary and secondary industries towards the tertiary (service) sector. This is known as de-industrialisation.
Reason 1: Many manufacturing jobs have moved abroad because labour and production costs are cheaper in other countries. This has reduced employment in secondary industries like shipbuilding and mining.
Reason 2: Technology and automation mean that fewer workers are needed in factories, as machines can perform tasks that used to require people.
As a result, more people are now employed in services such as healthcare, retail and education, and the tertiary sector now dominates employment.
MODEL ANSWER ...
COMPLETE THE KEY TERMS BOOKLET
TRY WRITE THE ANSWERS FROM MEMORY BUT IF YOU NEED TO FLICK BACK THROUGH YOUR BOOK, PUT A STAR BESIDE IT
•Production- The creation of goods and services.
•Types of Production- Primary, Secondary and Teritary.
•Primary Production- The extraction of natural resources from the Earth (e.g. farming, fishing, mining).
•Secondary/manufacturing: The manufacturing and assembly process that turns raw materials into finished goods.
•Tertiary: The provision of services to consumers and businesses (e.g. retail, banking, education).
•Chain of Production- The sequence of stages involved in the production and distribution of a product, from raw materials to final consumer.
ANSWERS TO KEY TERMS TABLE...
•Interdependence - The way businesses in different sectors (primary, secondary, tertiary) rely on each other to operate successfully.
•De-industrialisation- The decline in the importance of the secondary (manufacturing) sector in an economy, often accompanied by growth in the tertiary (services) sector.
•Value Added- A business will add value to raw materials used in its production process so that there will be a significant difference between the cost of purchasing raw materials and the selling price of the finished article.
CONTINUED...
https://wheelofnames.com/
In light of the learning intentions - Write 2 things you learned today and 1 thing you need clarification on
•Distinguish between the main types of production
•Classify businesses according to the following types of production:
–primary
–secondary
–tertiary
•Demonstrate an awareness of the changing trends across the types of production
•Discuss the reasons for the changing trends
•Discuss the changing nature and importance of the types of production.