(1) First classification:
The private sector:
- large corporations
- SMEs (small and medium-sized enterprises)
- individuals working on a self-employed basis
The public sector
- schools
- hospitals
- SOEs (state-owned enterprises: railways, post office)
(2) Second classification:
- Primary industries: agriculture, forestry and mining
- Secondary industries: construction and manufacturing
Manufacturing:
- capital goods (equipment and machinery used to produce other goods)
- durable goods (e.g. cars, washing machines)
- non-durable goods (e.g. food and clothing)
- Service industries:
- financial services (banking, insurance)
- property (AmE: real estate)
- retail
- computer software
- telecommunication
- healthcare
- leisure (sport, theme parks)
- media
- tourism
- catering
(3) Third classification:
Global Industry Specification Standard
/by Morgan Stanley and Standard and Poor’s/
- Consumer discretionary
- automobiles and companies
- household durables (consumer electronics, housebuilding, household appliances)
- leisure equipment and products
- textiles, apparel and luxury goods
- consumer services (hotels, restaurants, leisure facilities, education services)
- media (advertising, broadcasting, movies, entertainment, publishing)
- retailing (distributors, Internet and catalog retail, general merchandise stores, specialty retail)
- Consumer staples
- food, beverage and tobacco production
- food and drug retailing
- household and personal products
- Healthcare
- health care equipment and services
- pharmaceuticals, biotechnology and life sciences
- Financials
- banks
- diversified financials (diversified financial services, consumer finance, capital markets: asset management, investment banking and brokerage)
- real estate
- insurance
- Utilities
- electric utilities
- gas utilities
- water utilities
- multi-utilities
- Telecommunication services
- diversified telecommunication services (fixed-line, fibre-optic and wireless)
- wireless telecommunication services
- Information technology
- technology hardware and equipment (communications equipment, computers and peripherals, electronic equipment and instruments)
- software and services (internet software and services, IT services: consulting, data processing, software: application, systems, home entertainment)
- semiconductors and semiconductor equipment
- Industrials
- capital goods (aerospace and defense, building products, construction and engineering, electrical equipment, industrial conglomerates, machinery, trading companies and distributors)
- transportation (air freight and logistics, airlines, marine, road and rail, transportational infrastructure)
- Materials
- chemicals
- construction materials
- containers and packaging
- metals and mining
- paper and forest products
- Energy
- energy equipment and services
- oil and gas
- In some industries, like steel of tyres, there are few companies: these industries are concentrated.
- Other industries are fragmented: for example, there are millions of restaurants worldwide, and even the largest chain, McDonalds, only has a market share of less than one per cent in terms of all restaurent meals served worldwide.
- Some industries have low entry barriers – anyone with a small amount of capital can open a restaurant. If an industry has low entry barriers and is attractive because of its high potential profitability, there will always be new entrants. This was the case for Internet service providers at the turn of the century with a lot of companies offering this service.
- Other industries, like steel, require massive investment in equipment, know-how, etc. – these are high entry barriers and new entrants to the industry are rare.
- Labor-intensive refers to a process or industry that requires a large amount of labour to produce its goods or services. Labor-intensive industries include restaurants, hotels, agriculture, mining and the construction industry. Advances in technology and worker productivity have moved some industries away from labor-intensive status, but many still remain.
- A business is considered to be capital-intensive based on the ratio of the capital required to the amount of labor that is required. Some capital-intensive industries include oil production and refining, telecommunications, and transportation, such as railways, autos and airlines. In all of these industries, a large financial commitment is required to fund the operation.
(4) New industies of the 21st century
- 3-D Printing
- Solar Energy Development
- Social Network and App Gaming
- Generic Pharmaceuticals
- Home Health Care
- Remote Staffing
- Data Services
- Gamification
- Fantasy Sports Services
- Public Sector Technology
Exercise 1: Match the companies with their descriptions!
Video 1: The world in 2050