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Extractive industry refers to those businesses that take or extract raw materials form eg: the land eg agriculture mining and forestry
the sea eg: fishing oil and gas exploration
the air eg: wind power

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The  construction industry refers to those businesses involved in the building of houses, factories, roads, airports, schools and hospitals. Alot of the materials the industry uses come from the extractive industry, e.g. metal, wood, stone and sand, while the rest are man made.

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The manufacturing industry is made up of firms that manufacture or make finished

products for the consumer using raw materials from the extractive industry as well as

other man-made materials. Manufacturing firms produce a wide range of products,

including laptops, mobile phones, MP3 players, furniture, clothes, electrical goods,

motor cars, CDs, china, glass and pottery, toys, chemicals, electronics and many

moreThe manufacturing industry is made up of firms that manufacture or make finished

products for the consumer using raw materials from the extractive industry as well as

other man-made materials. Manufacturing firms produce a wide range of products,

including laptops, mobile phones, MP3 players, furniture, clothes, electrical goods,

motor cars, CDs, china, glass and pottery, toys, chemicals, electronics and many

more

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The service industry gets its name because the firms involved provide a service rather

than a product to the consumer. These services include insurance, banking,

communications, legal services, transport, accounting and medical services

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Manufacturer

➜

Consumer

Goods that are distributed directly from the manufacturer to the consumer include

ships, aeroplanes and custom-made clothes or jewellery.

Example:

Aer Lingus dealing directly with Boeing or Airbus when buying new aircraft; Dell

selling computers directly to the consumer.

Manufacturer

➜

Retailer

➜

Consumer

Most consumer goods, such as food, drinks, clothing, etc., are sold directly from

the manufacturers to the large retailers, such as Superquinn and Tesco, who then

sell them on to the consumer.

Example:

Independent Newspapers selling the

Irish Independent

and

Evening Herald

to the

newsagents, who then sell them on to consumers.

Manufacturer

➜

Wholesaler

➜

Retailer

➜

Consumer

Sometimes manufacturers will not sell directly to smaller shops because the orders

are too small. These retailers buy their goods from the wholesaler instead.

Wholesalers buy in bulk from manufacturers and sell in smaller quantities to

retailers.

Example:

Mary O’Malley, owner of The Corner Shop, travels each week to Byrne’s Cash and

Carry to purchase sweets, cans and crisps for sale in her small shop.

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A channel of distribution refers to the method used by firms to get their products or

services from the factory to the consumer

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The wholesaler  buys in bulk from manufacturer and sells in smaller quantities to the retailer

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A retailer is a person who buys goods and services from manufacturers or wholesaler sells them in smaller quantities to the consumer at a profit

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1The wholesaler buys in large quantities from the manufacturer.

2. The wholesaler stores the manufacturer’s goods.

3The wholesaler promotes the goods of some manufacturers.

4The wholesaler provides information to the manufacturer about Trends in the market.

What the retailers think about the manufacturer’s goods.

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1The wholesaler sells goods in smaller quantities to the retailer. This is known as

‘breaking bulk’.

2The wholesaler provides credit to retailers. This is very important to retailers, as

otherwise they may not be able to stay in business.

3. The wholesaler may provide a delivery service.

4. The wholesaler sells a wide range of goods from different manufacturers.

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Characteristics of a cash and carry wholesaler 

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Characteristics of a cash and carry wholesaler 

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They do not give credit – all sales are cash or Laser card.

They may not provide a delivery service.

Prices are lower than in the traditional cash and carry business.

They provide a wide range of goods from a large number of different manufacturers.

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A chain store is a retailer that has a number of

branches around a city or country in which they

sell different types of goods. For example,

Dunnes Stores is a chain store selling

groceries, clothes, household goods, toys, CDs and DVD’s

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A franchise exists when the owners of a business give permission to another person to set up a branch of their business in another location in return for a fee.