Before producing, a business must
determine on what it should produce. Once these decisions are made, the
business must be aware of which category of production they fall in in order to
establish relationships with other business. These few types of production are:
Primary Production
This field of production involves
the extraction of raw materials
which are to be sold to other businesses to manufacture their products.
Examples of this are mining, logging and
fishing.
Secondary Production
This production comprises of the processing of raw materials to produce semi-finished or finished products. The
semi-finished products will be continued by other secondary productions in
profession. Examples of this production are factories.
Tertiary Production
These businesses such as restaurants and barber shops provide services to the customer. The
product of this production is the service itself.
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