Production

Fresh Start International School

Second Term e-Learning Lesson Note for Grade 7 Business Studies

SCHEME OF WORK

Week: 1 (One)

Topic: Revision of last term’s question paper

Week: 2 (Two)

Topic: Production

Meaning of Production

Production refers to the creation of goods and services that satisfy or solve human problems.

Types of Production

Production can be divided into three, which are primary production, secondary production and tertiary production.

Primary production: Primary production involves the extraction or retrieval of raw materials from natural sources such as land, seas, oceans, rivers, forests, etc. Most agricultural businesses and occupations are involved in primary production. Farmers, fisher folk, hunters, miners, etc, are all involved in primary production.

Secondary Production: Secondary production has to do with converting the raw materials derived from primary production into finished goods or semi-finished goods. Finished goods are ready for human consumption or use while semi-finished goods are to be used in further production into finished goods. 

Tertiary Production: Tertiary production means providing services for human beings that solve problems for them. It does not mean producing any physical product. Hence, doctors, teachers, lawyers, scientists, engineers, politicians, etc, are all into tertiary production.

Meaning of Industry

Industry refers to the collection of related professions and businesses who work together to produce similar products or satisfy a human need.

Types of Industry

1. Extractive Industry: Extractive industry is made up of professions involving the retrieval or removal of raw materials from nature. They are farming, mining, quarrying, lumbering, etc.
2. Manufacturing Industry: The manufacturing industry includes all businesses and companies who work to make physical goods that human beings use on a daily basis. They produce food, clothes, accessories, shoes, electronic gadgets, educational items, etc.
3. Constructive Industry: This industry specializes in creating physical structures that help human beings live comfortably in society. They build houses, roads, bridges, dams, hospitals, schools, offices, etc.
4. Commercial Industry: This industry takes cake care of everything involving buying and selling and the activities associated with them. They do not produce any commodity. They concentrate on distributing the goods which have been manufactured so that the consumers in society can get access to them.

 Effects of Production on the Environment and Society

Production has both positive and negative effects on our environment and society.

Positive Effects: Some of the positive effects of production are;

1. It makes goods and services available for human satisfaction and comfort.
2. It provides employment for almost all human beings.
3. It is a source of wealth creation.
4. It leads to development in society.
5. Productivity helps human beings develop and use their talent gainfully.

Negative Effects: Some of the negative effects of production are;

1. It generates wastes that pollute the environment.
2. Uncontrolled production leads to damages in our natural environment and society.
3. Some products affect human health and lives negatively.
4. Continuous production leads humans into over-reliance on artificial items.

Homework

Can you imagine a society without production? Describe such a society.