What is production? Production is the process of taking resources and changing them into products or services
Three Sectors of Production Primary Sector Secondary Sector Tertiary Sector
Primary Sector The primary sector produces goods using natural resources –Extracted from the ground –Grown –Collected
Secondary Sector The secondary sector manufactures goods –Capital goods used to make other goods and services –Consumer goods –Utilities and construction
Tertiary Sector The tertiary sector provides services –To other businesses –Directly to consumers
Task 1.Title: Sectors of Production 2.Write a list of all the businesses involved in producing a pair of trainers 3.Draw a table 3 columns wide by 10 rows deep Across the first row add the 3 sectors of production
Sector Changes Sectors can change – some expand while others decline. Over 100 years ago, the UK was a world’s leader in manufacturing. Today, we import manufactured goods. IN the 1950’s mining, ship building and steel production were booming. Now we employ more people in fast food restaurants than in all these areas combined.
Employment by Sector YearPrimary SectorSecondary Sector Service Sector 19814.9%30.9%64.2% 19864.0%26.9%69.1% 19913.1%23.5%73.4% 19962.2%21.4%76.4% 20011.8%19.7%78.4%
Why changes occur Changes occur due to consumer demand varying. Technological developments also effect how business activities are carried out.
Changes in consumer demand When consumers demand more of something, then retailers make more demand on manufacturers, who in turn then require more raw materials. There are many reasons for these changes, some are as follows:
Tastes and preference Lifestyle Population Trends Seasonal factors Value for money Income and wealth Technological developments
Task: Products A Frozen ready meals, low alcohol lager, microwave ovens, CDs B Canned fruit, camera film, televisions C Satellite dishes, camcorders, foreign holidays D Condensed milk, sewing machines, wireless sets E Electric hairdryers, yoghurt, wine, duvets F Energy drinks, baseball caps, mayonnaise, cereal snacks G Sliced bread, crisps, jeans, eating out Match the decades to the groups: 1940s, 1950s, 1960s, 1970s, 1980s, 1990s, 2001
Answers Products A Frozen ready meals, low alcohol lager, microwave ovens, CDs 80s B Canned fruit, camera film, televisions 50s C Satellite dishes, camcorders, foreign holidays 90s D Condensed milk, sewing machines, wireless sets 40s E Electric hairdryers, yoghurt, wine, duvets 70s F Energy drinks, baseball caps, mayonnaise, cereal snacks 2001 G Sliced bread, crisps, jeans, eating out 60s