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Manufacturing
This kind of business uses raw material, 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 which 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.
Service
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.
Merchandising
This is the most common type of business we come across in our daily life. 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.
Hybrid
Hybrid business is a mix of two or more different types of businesses. It can be in service or manufacturing or
merchandising or all of these. It does business in the form of goods and services. For example, a restaurant is
in manufacturing by preparing a ready to eat food in the form of fine dining. At the same time, it works as a
merchandiser by selling beverages with the fine meals. It also provides services by serving home deliveries through
online or offline orders.
Important Features of Different Types of Business
Let us learn about the important features of different types of business.
Manufacturing Service Merchandising
Production of goods using Provides services of Buying goods at whole price
Activity Involved
raw material. different types. and selling at retail price.
Raw material, intermediate Service cannot be stored Finished products are stored in
Storage and finished products are in warehouses or boxes. warehouses.
stored.
Raw material, intermediate, Services are intangible
Tangibility finished products are all as they cannot be Finished products are tangible.
tangible. touched.
Skilled professionals and
Staff Skilled and unskilled labour. Sales personnel.
experts.
Ultra Tech Cement Ltd, JSW
Examples Steel Ltd, Maruti Suzuki HDFC Bank, Zomato, Grocery stores, retail clothing
India Ltd, etc. Airtel, etc. stores, etc.
Entrepreneurial Skills-I 103

