Identification of Types of Business and Product/Service

Identification of Business Types

Sole Traders: These are businesses owned and run by a single individual who is responsible for all its liabilities. They are the simplest form of business structure.
Partnerships: These are businesses owned and run by two or more people who share its profits or losses. Partnerships usually occur between professionals like solicitors, doctors, or accountants.
Limited Companies: These businesses have their own legal identity separate from their owners. The liability of the shareholders for the company’s debts is limited.
Public Limited Companies: These are companies whose shares can be bought and sold by the public. They have a separate legal existence from their owners.
Co-operatives: These are businesses owned and controlled by their members. The purpose is usually to benefit the member-owners, and they can distribute profits among their members.
Franchises: These businesses are based on a marketing concept that can be adopted by an organisation as a strategy for business expansion.

Identification of Product/Service Types

Tangible Goods: These are physical products that are produced, bought or sold, then stored, transported, delivered, and used. Examples include cars, furniture, food, and clothing.
Intangibles - Services: These are non-physical products that often involve providing a form of work or expertise. It can’t be stored or transported, is produced and consumed at the same time. Examples are hairdressing, plumbing, medical check-ups, and legal advice.
Intangibles - Digital Products: These are non-physical products that are often stored, delivered, and used in electronic format. Examples are e-books, digital music, online courses, software, and streaming media.
Experiences and Events: These are forms of product/service that involve providing an event or series of events for consumers. They tend to be consumed at the same time they are produced, and create memorable moments for consumers. Examples include concerts, city tours, and sporting events.
Places and Properties: These involve providing a physical environment or area for consumers to use or enjoy. Examples include hotels, rentals, tourist attractions, and venues for art exhibitions or sport events.

Role of Businesses and Their Products/Services in International Business

As businesses venture into international markets, their type and products/services become key considerations for strategy formulation.
For instance, a company selling tangible goods might need to consider different shipping and logistics compared to a company offering digital products.
Importantly, an in-depth understanding of their own business type and product or service classification can help businesses explore new markets, manage risks, and make critical business decisions.