The Production Side Of The Business Industry

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An industry in simple words could be described as hard work. The broader explanation would be that an industry is related to the production side of the business. Meaning it refers to the manufacturing and processing of raw materials to produce products and services. All this production takes place within an economy and the revenue of a particular company is indicated by its industry. The Industrial revolution is what led to factories being built for large-scale production purposes. Industries can be classified into various types; primary industry, genetic industry, extractive industry, manufacturing industry, construction industry and service industry. Automotive industry would be categorized in the manufacturing industry. Since the…show more content…
This could be explained through a very simple example, for instance the weather conditions in a city can greatly affect the sales of ice cream in that particular city but the company selling the ice cream has little control over the weather and hence is left affected. This is where the main difference between external and internal comes in, that is the variables under internal factors can be reasonably controlled as compared to those in external. The influence of external factors cannot be changed but the company has fair amount of control over them and this control is achieved by understanding and anticipating the internal factors by the management. To understand these external factors better, they are divided into mega-environment and task environment. Mega-environment refers to the general environment, which reflects the trends and conditions of a society within which an organization operates. We can use the ‘PESTEL’ framework to classify these factors. They include political, economical, sociocultural, legal, environmental and technological. Furthermore, the other list of external factors could be classified into Task environment. These are the external elements that a business interfaces in the course of conducting its business. It consists of customers, competitors, government policies, suppliers and labor supply.
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