Classification of Businesses
Case Study: Oasis Oil & Retail
The Client Brief: Oasis started as an oil drilling company (extracting crude oil from the ground). They built a refinery to process the oil into petrol. Now they want to open petrol stations to sell directly to customers. The Government is also considering selling the state-owned electricity company to Oasis.
📚 Assessment Objectives Coverage
The Solution Room: Understanding Sectors
PRIMARY Sector
AO1 Definition: Businesses that extract natural resources from the earth.
Examples: Farming, Mining, Fishing, Oil Drilling
SECONDARY Sector
AO1 Definition: Businesses that manufacture goods by processing raw materials.
Examples: Car factories, Refineries, Construction
TERTIARY Sector
AO1 Definition: Businesses that provide services to consumers and other businesses.
Examples: Retail shops, Banks, Hotels, Transport
Key Concept: At each stage, businesses add Added Value - the difference between the cost of materials and the selling price of the finished product.
The Supply Chain Builder (AO2: Application)
Drag each stage of Oasis Oil's operations into the correct sector. Watch how Added Value increases!
Oasis Operations (Drag These):
primary Sector
secondary Sector
tertiary Sector
Sector Shift Over Time (AO3: Analysis)
Drag the slider to see how developed economies changed from 1970 to 2024. This shift is called De-industrialisation.
AO3 Chain Reaction: Manufacturing jobs moved abroad (cheaper labour) → Factories closed → Workers retrained in services → Economy shifted to Tertiary (banking, retail, healthcare). This is De-industrialisation.
The Board Vote: Privatisation Decision (AO4: Evaluation)
The Government wants to sell the state-owned electricity company to Oasis (a private company). Should they do it?
PRIVATE Sector (Oasis)
Objectives:
- ✓Profit Maximisation: Cut costs, raise prices
- ✓Efficiency: Invest in new technology
- ✓Innovation: Faster decision-making
- ✗May fire workers to reduce costs
- ✗Prices may rise for consumers
PUBLIC Sector (Government)
Objectives:
- ✓Public Service: Affordable for all citizens
- ✓Job Protection: Keep workers employed
- ✓Equality: Serve rural areas too
- ✗Slower to innovate (bureaucracy)
- ✗May be inefficient (no profit motive)
The Question:
Should the Government privatise (sell to Oasis) or keep the electricity company in the Public Sector?
🎯 Exam Success Checklist
✓ AO1 Keywords Mastered:
Primary, Secondary, Tertiary, De-industrialisation, Privatisation, Mixed Economy
✓ AO2 Application:
Always link to the specific business (e.g., "Oasis's refinery is Secondary because...")
✓ AO3 Chain:
Because → Leads to → Therefore (Show cause and effect)
✓ AO4 Judgment:
Weigh pros vs cons, then make a final recommendation with justification
Keep reading — this lesson marks itself done automatically.