Secondary economic activity involves the processing of raw materials (primary products). An example would be turning iron-ore into steel. Basically it sounds like a very simple idea, but it can determine the success or failure of a business. It is used to determine the key factors of the location of your business. These include the following: (not necessarily in this order) markets, raw materials, labor supply, transport facilities, government policies, services, and capital. You need to keep in mind that any factory should be seen as a system involving inputs processes and outputs.