Page 105 - AI Ver 1.0 Class 9
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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 differences between 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.




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