Page 125 - Ai_417_V3.0_C9_Flipbook
P. 125
There are two types of product-based businesses:
• Manufacturing: This kind of business uses raw materials, labour, technology, capital and other resources for
the production of finished goods. It follows a step-by-step approach of putting together raw materials, parts
and components, moving from one workstation to the other with the help of technology, machinery, robots,
computers, and labour.
Finished goods are sold to the wholesalers, who in turn sell them to retailers. The consumers generally purchase
these finished goods from the retailers. Some of the examples of manufacturing businesses are that of food,
beverages, apparels, furniture, mobile phones, laptops, cosmetics and many more.
Let us understand this with the help of a case study given below:
✶ Precision Engineering Ltd.
Precision Engineering Ltd. specialises in manufacturing precision
components for aerospace and automotive industries. Founded by
a team of engineers with expertise in machining and fabrication,
the company started in a small workshop but quickly gained
recognition for their high-quality products and adherence to
industry standards. They invested in state-of-the-art machinery
and continuous staff training to maintain their competitive edge.
By fostering long-term relationships with key clients and expanding
their product range to include customised solutions, Precision
Engineering Ltd. established itself as a trusted manufacturer in a
competitive market.
• Trading: This deals with buying and selling a product. In this, the finished products are purchased at wholesale
price and sold to consumers at retail price. The form of the products is not changed but the products are sold
at a little higher price than the purchase price that helps them to earn profits. They also transport the product
from the factory to warehouses. Examples of these businesses include wholesalers, distributors and retail shops.
Service business
This kind of business provides services in the form of consulting, accounting, hospitality and many more of such
types which can be delivered either physically or in a digital form through the Internet or mobile apps. These
services are not in the physical form which can be touched or stored or bought from the retailers. They are
provided by professionals or experts in such areas. Salon is an example of Service business.
Let us understand this with the help of a case study given below:
• CleanTech Solutions
CleanTech Solutions provides eco-friendly cleaning services to
residential and commercial clients. Founded by Anirudh, who was
passionate about sustainability, the business began with a focus on
using non-toxic cleaning products and energy-efficient practices.
Through targeted marketing campaigns and partnerships with
environmentally-conscious businesses, CleanTech Solutions gained
traction in the local market. They expanded their service offerings
to include specialised cleaning services for sensitive environments
like hospitals and schools, demonstrating their commitment to
innovation and client satisfaction.
Entrepreneurial Skills-I 123

