Activity stakeholders

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The primary and secondary sector has both declined through time because of numerous reasons. The primary sector has declined because of less demand of British raw materials such as fruit apples and wood. Many businesses import raw goods/materials from abroad as this is much cheaper to locate their supplies from a low colony country such as India. This would enable the business to maximise profits and help the bank balance.

The decline in secondary sector means less raw materials needed for manufacturing so this has also played a part for the decline. As more retail outlets buy many raw materials from abroad such as exotic fruits because as the decline of the primary sector many businesses look to aboard for service. Their has been more use of plastic than wood so there are various factors for the decline in this sector. The main reason for the decline of the primary sector is that demand is low so many companies that operate in this sector would look elsewhere to run a business and help keep them financially stable. This sector has been hit the worst compared to manufacturing and decreased more rapidly than the secondary. The UK trends for this sector have differed as many businesses are leaving this sector to gain profits from the tertiary.

The secondary sector that concerns manufacturing of raw materials have declined as the primary sector does not produce much materials that can be manufactured. This has a knock effect that has left this sector to decline but not as swiftly as primary. The more use of technology has played a positive and negative effect for this sector. It has helped productivity level to increase but has left many people out of work as labour is taken over by computers, more machinery that has left work minimal. Manufacturing industry has is not recruiting many new businesses because of the downfall making the need for this sector minimal.

This is because of cheap labour abroad and UK now imports many products by foreign countries. This is a common trend in this day and age to import foreign goods because of the main reason of cheap labour and manufacturing expenses. The same factors that occurred for the decline in the primary sector are similar to the trends of decline in this sector. So both these sectors are both in comparison because of the factors that make these sectors to decline.

However, as these two businesses have been in decline this has played a positive effect on the tertiary sector. This is mainly because of the loss of business in agriculture and manufacturing businesses now have chosen to gain losses by pushing into the tertiary sector. IGURE 2 is the national data of how many people are in employed in each sector. By looking at the table you see the great movement in people employed in each sector and the amount employed. Yu can see much movement into the retail and financial services by business to gain profits and their has been a rise of people employed mainly because of the great rush to offer services to the public as the other two sectors have been declining. This would be much safer than opening a business in the primary or secondary.

Finally, the tertiary sector overall has been increasing rapidly and the knock on effect played by the other two sectors has brought more business in this sector. Many farmers from the primary sector have now opened up farm lodges where people can stay and also opened up their farm for the public to see. This type of activities have become more popular for businesses who may want to maximise profits or make up for any losses because of the decline.

More companies in the tertiary sector now employ more workers because of the amount of businesses that operate in the sector. The use of technology has also helped businesses carry out their daily activity more effectively and has less brutal effects than in the other two sectors. So from all three sectors this sector has been doing the best and as more companies are becoming part of it has to be known that this is a common trend for the UK for business to become part of this sector. The two companies that I will be looking at both operate in the tertiary sector but one is also involved in manufacturing. The first company I will be looking at is BMW that is a limited company that manufactures and sells their own vehicles and parts. The other company is the Co-op that is a co-operative business that operates in the retail sector.


BMW operates in the secondary sector, involved in manufacturing and construction of raw materials from the primary sector. The company is privately owned and operated by numerous groups across the UK. The BMW car-manufacturing sector has had a notable number of car sales during the early years of 1988-1989, as this was a great time of public expenditure. However, the following three years showed a downfall in expenditure and therefore sales had rapidly decreased for the sector. Nevertheless, in 1994 the sale of cars had regained confidence and thus an increase in car sales was noted.

The diagram fig.1 illustrates the trend in car sales over the years. It is evident that the sale of private cars performed well during 1988-1989 and a sudden downfall during the nineties. The car sales seem to have gradually recovered during 1994 onwards. In comparison, the sale of other vehicles i.e. lorries and vans has remained constant with a slight improvement during 1998. However, this could be because, the sale of these vehicles were low to begin with so therefore, it was not hard to increase sales. Overall, the total number of vehicle registrations has shown an increasing trend and after the downfall in sales during the early nineties it has regained consumer confidence and therefore led to increased sales.

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