WHAT IS THE TURN OF A COMPANY? TYPES AND EXAMPLES - JOB - 2025

The turn of a company refers to the activity or business that it develops. These activities are classified into different categories according to their purpose and their importance within the company.

There are three broad categories that group business lines according to their activity: industrial, commercial and services. However, within these three large groups there is a great diversity of possible activities.

A company can have several lines of business at the same time. According to their importance and the income they generate for the company, these can be classified into main, secondary and auxiliary.

Classification of business lines (types)

Business lines can be very diverse and changing. As new technologies develop, new possibilities and needs appear. In addition, human beings are in a constant process of innovation.

Therefore, it is not possible to construct a defined and stable classification of business lines. However, there are different classifications that allow a better understanding of the activities of companies.

According to the most frequent classification, business lines are classified as industrial, commercial and services. Which, in turn, are subdivided into other types.

Industrial turn companies

Industry refers to the manufacture of goods. An industrial business is one that exploits natural resources or changes the shape of products in any of the stages between the raw material and the finished product.

There are companies dedicated to taking a raw material to manufacture a material that will later be transformed by other companies. These types of products are known as “producer goods”.

Fishing works directly with raw materials from the sea. By Edu3k, from Wikimedia Commons

Within this category are both materials and machines used in industry.

Therefore, a company is considered to produce “producer goods” when it makes fabrics for garment companies, just as it does when making industrial sewing machines.

On the other hand, there are companies whose business is to produce goods that are intended for direct consumption by users. This type of product is known as “consumer goods”.

You may be interested in The Industrial Market: Characteristics, Segments and Strategies.

Business line companies

Trade refers to all activities that bring goods from the producer to the user. Its objective is to make it easier for customers to access products regardless of where they were manufactured.

These companies are classified into wholesalers or retailers based on how they sell the products.

Wholesalers are those that sell large quantities, usually destined for other companies. Retailers are those that sell per unit, usually intended for users.

Supermarkets offer a food service. Author: Karamo. Source: Pixabay.

Within this category are all the stores and supermarkets where you can buy everyday consumer products.

They also include large merchants such as import companies or new merchants such as virtual sales businesses.

You may be interested The 22 Main Market Types.

Service business

Services refer to intangible assets. This turn, therefore, includes all those companies that are in charge of delivering services to the population.

It is another form of commercial company, the fundamental difference is that it works exclusively with intangible assets.

Sometimes, the provision of a service may require a specific product in order to develop. These assets are considered only added values ​​and do not change the line of business.

Pharmacies are an example of a service business.

For example, a company that offers home internet service must necessarily install a modem in the homes of its customers.

However, this does not mean that the company sells modems, it is simply understood that this device is necessary for the provision of the service that is offered.

The services line includes companies that offer:

• Public services: includes energy, water, telephone and Internet.
• Private services: includes administrative, accounting and legal services.
• Transport: includes the transport of people and goods.
• tourism
• Education
• Health
• Culture and entertainment

Main, secondary and auxiliary activities

A company can be focused on more than one business line. In this case, the business activities are classified into main, secondary and auxiliary.

The main activity

It refers to the most important business activity carried out by the company. This activity is characterized by generating more than 50% of the company's total income and by influencing the development of the other activities of the company.

Secondary activity

It refers to a productive activity that eventually produces income but is not the heart of the business. By eliminating this activity, the company would still exist.

However, most companies produce some type of secondary product or service.

Auxiliary activities

It refers to those business activities that are necessary for the operation of the company but that do not generate any product or service for public consumption.

Tech companies are a great example of businesses with diverse lines of business.

A company that manufactures educational hardware, such as interactive whiteboards, has as its main business line the manufacture of its products.

However, these products usually also require training for their use. Therefore, the company may have a secondary turn that is the offer of training for the use of its technology in the classroom.

Finally, this same company can also develop auxiliary activities, for example, the manufacture of tools for its own use.

The latter, although it is also an economic activity, is not considered within the scope of the company because it is not sold to the consumer.

Example of business lines

Industrial business: mining

This sector dedicated to the extraction of natural resources, therefore they generate products from raw materials. In turn, this extractive-type company requires personnel and machinery to transform the product.

Business line company: Walmart

This chain of stores is the most important retailer in the world. Among the services it offers are hypermarkets, clothing and footwear markets, factory or training. Therefore, they work with consumer goods to satisfy human needs.

Turning services company: Harvard University

The private university offers education as a turn of services in order to build knowledge and greater possibilities of labor insertion.

Emerging business lines

The development of Information and Communication Technologies have generated new needs in the population. Thanks to this, new business lines have been formed in recent years.

These novel approaches are related to technology in different ways. There are companies oriented to the maintenance of technological devices, training in technological skills or the provision of virtual services.

One of the main examples of the new business turns is the businesses related to digital marketing. Social networks are a relatively new phenomenon, however there is a whole market around them.

Digital marketing agencies are just one example of possible business activities. There have also been multiple designed academies that provide training in social networks and even virtual platforms to find professionals who offer their services.

References

1. Agarwal, R. (SF). Classification of Business Activities: Industry and Commerce. Recovered from: yourarticlelibrary.com.
2. Investopedia. (SF). Tertiary Industry. Recovered from: investopedia.com.
3. Soto, B. (SF). Classification of companies. Recovered from: gestion.org.
4. Sage. (SF). Main characteristics of emerging businesses. Recovered from: tienda.sage.es.
5. United Nations. (2008). International Standard Industrial Classification All Economic Activities. Recovered from: unstats.un.org.