Examples of Businesses

To set up and grow a business, any company needs to first define the type of business model it is going to follow. In return for money or even other goods and services, a business firm employs economic resources to give goods or services to clients. Diverse sorts of businesses exist, as do different ownership structures.

What differentiates various Businesses?

The type of Business model followed by any company is the main determinant of the kind of business conducted. The word “business model” refers to the profit strategy of any company. It defines the products or services that the company or industry intends to sell and focuses on the target market and any estimated costs. 

Both new and established firms require business models. Established businesses should revise their business strategies regularly, or they will miss out on future trends and issues. Investors use business plans to analyse companies that they are interested in.

Types of Business models:

There are about as many sorts of business models as there are different kinds of businesses. Traditional business models are those in which the customer has to physically visit the store and buy an itinerary. Franchising, direct sales, and advertising are just a few examples of traditional business techniques. Hybrid models are businesses that mix online selling with physical shops or with a sporting organization such as the NBA.

Different Business examples based on the type:

A modest, family-owned private limited firm might look like this:

Consider a toy manufacturing business based in Pune, Maharashtra. Mr. Ram established the company in 1990. It is a privately held limited corporation that is still owned by Mr. Ram’s family and is administered by his granddaughters, Neha and Jyoti. The business model followed by the company is Sole proprietorship. The company employs about 35 people and manufactures everything in India. The company produces a wide range of teddy bears, from ‘typical’ Imported bears to special event bears (for example, it delivered the official memorial bears for the Asian Games, and Commonwealth Games) and a variety of ‘novelty’ bears. These bears are sold all over the world, with a strong export business in Japan, where they have developed a cult following. Collectors’ products include antique bears and special edition bears, and there are even company collector organizations and events.

Reliance Industries Ltd: A huge, shareholder-owned public limited company:

Reliance Industries Limited (RIL) has its headquarters in Mumbai. It is India’s largest private company, operating in five primary industries: Exploration and production, refining and marketing, petrochemicals, retail, and telecommunications.

Dhirubhai Ambani and his brother Champaklal Damani established the company in 1960. It was converted to a public limited corporation in 1966. The company began as a manufacturer of synthetic fibres and textiles, then expanded into telecommunications, then natural gas and mineral oil exploration, retail, and petrochemicals. 

Although there is a significant number of stockholders, the founding family still holds over 40% of the stock. The company employs over 20,000 people worldwide and generates over 28 billion dollars in annual revenue.

Mercadona’s supermarkets: An example of a huge, family-owned, private limited company.

Mercadona is a Spanish grocery business with a total workforce of approximately 74,000 workers. It had 1499 supermarkets in Spain in 2014. It began as a tiny butcher shop in 1977 by married couple Francisco Roig Ballester and Trinidad Alfonso Mocholi and is currently owned by the family. Mercadona competes well against foreign grocery chains in Spain by maintaining low costs through long-term supplier contracts, minimally paid to advertise, and decreased packaging, as well as increasing productivity through significant employee training. It is presently the leading food retailer in Spain in terms of sales.

These were some examples of Businesses based on the organizational structure of the company. 

Examples of Businesses based on sectoral classification:

Based on the sectoral analysis, the examples of businesses are as follows:

Services:

Services are intangible products which means those products that do not have any physical form. In exchange for professional or talent fees, service firms provide skills, labour, expertise, and other related services. 

For example, Accounting, consulting, taxes, advertising, engineering, legal, research agencies, computer programming, personal services such as laundry, beauty salon, photography, automotive repairs, automobile rental, car wash, parking spots, and so on are all examples of business services.

Merchandise:

This business model includes purchasing things wholesale and reselling them at retail. They profit by selling their items at a higher price than they paid for them.

For example, all distribution and retail stores, such as department stores, grocery stores, hardware stores, clothing, and accessory stores, consumer electronics, home furnishings, appliance stores, drug stores, and so on, are examples.

Manufacturing Businesses:

In manufacturing, raw materials, labour, and overhead costs are all combined. The finished goods are subsequently sold to clients.

For example, manufacturing businesses include food processing, bakeries and oil mills, as well as canned meat, frozen items, dairy products, and bottled beverages. Fabric mills and textile production from cotton, wool, and polyester; and also clothing factories that use textile as raw material. 

Conclusion

Many businesses flourish by expanding their foreign markets, production, and supply networks. These businesses are classified based on their organizational structure and manpower employed by them. Building a successful business requires commercial leadership backed by economic expertise, market insight, and the ability to pick up on political and cultural trends.