Report on Classification Of Business

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Report on Classification Of Business

Classification of Businesses according to their types of activity:

Primary Sector Businesses: The gathering of raw materials, such as

fish, oil, or coal from the land or sea or growing using the earth to

grow things such as crops or trees

Examples: Rio Tinto (Mining), JCI Gold (Mining), Anglo Amer (Mining),

BP (Oil and Gas), and Soco International (Oil and Gas).

Secondary Sector Businesses: The processing of raw materials into

finished goods. Examples of this are food production, computer

component manufacture, and car manufacture.

Examples: Schweppes (Food and Drink), Unilever (Food and Drink), Intel

(Computer Component Production) and Ati (Computer Component

Production).

Tertiary Sector Businesses: This sector contains organisations

supplying services, and includes both commercial services providers

(banking, finance and retail), as well as direct service providers

(Health and education).

Examples: Stagecoach (Transport), British Airways (Transport), CGNU

(Insurance), BT (Telecommunications) and Natwest (Banking).

Classification of Business According to their Broad Ownership:

Public Sector: The part of an economy that consists of state owned

institutions, including nationalised industries and services provided

by local authorities.

Examples: BBC (Television Broadcast), Post Office (Communications),

and The National Grid (Electrical Distribution).

Public Companies: Companies whose shares may be purchased by the

public and traded freely on the open market and whose share capital is

not less than a statutory minimum.

Examples: Marconi (Communications and Defence), Sony (Electrical

Equipment), Hitachi (Electrical Equipment).

Classification of Business according to their Size:

Number of Employees: Total Number of people employed by a company.

Currently the top company in the UK using this method is;

Unilever (Food Products) (261, 000 employees)

Profit: Total amount of capital left after deducting all costs.

Currently the top company in the UK using this method is;

Royal Dutch/Shell Group (Oil and Gas) ($M12, 719)

Market Capitalisation: The value of 1 share times the amount of

shares. Currently the top company in the UK using this method is;

Royal Dutch/Shell Group (Oil and Gas) ($M216, 361)

Revenue: The gross income a business enterprise, usually...

... middle of paper ...

...5, 724, and so far this year, its revenues come to £M6, 942.

Although the company is turning over a very large revenue, their

profits in recent years have been in decline.

Last years earnings per share were 18pence, and so far this year, the

earnings per share are a loss of 10pence. Share Prices dropped

dramatically over the summer of 2001, to an all time low of 52.9pence.

Some investors thought that the shares could not possibly drop any

further, and so invested in some shares. Unfortunately, share prices

did drop even further to 28.4pence. There is currently a slow trickle

of increase in profit, to their current price of 32.5pence, due to

Marconi coming into profit again (£5,000,000 in the second quarter,

compared to an operating loss of £222,000,000 in the first quarter).

Marconi, like Marks and Spencer Plc have a strong brand name, but this

is only as important in their industry as in that they have a long

list of clients, built up over the years, many of who will do repeat

transactions with the company.

Web sites:

- http://www.ft.com

- http://www.forbes.com

Newspapers:

- The Financial Times

Books:

- Collins Concise English Dictionary

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