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Evolution of business

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Evolution of business

  1. 1. Evolution of Business
  2. 2. Overview: Feudalism Mercantilism Capitalism Commerce
  3. 3. Feudalism, Mercantilism and Capitalism FeudalismBusiness or economic system inwhich one class of peoplearistocrats, possess propertyrights to all valuableresources, including people. Mercantilism Business or economic system in which merchants and bankers organize the trade of products across markets and countries until they are put to their most valued use. Capitalism Business or economic system in which capitalist or industrialist privately own the physical capital of industrial production and use it to produce, trade and distribute products.
  4. 4. Feudalism Is the business or economic system in which one class of people (aristocrats) control the property rights to all valuable resources, including people. A business system based on the control of property rights to land and labor. To make their estates more profitable landowners assigned the most able workers to take control of specific farms on their estates.
  5. 5. Mercantilism Is the business system in which products are traded across markets and countries until they are put to their most highly valued use. They recognize an opportunity to profit from the difference in prices by trading commodities between one market and the next. Merchants and bankers are traders who notice a difference between the value and the price of commodities.
  6. 6. Capitalism The economic or business system in which the private ownership of resources becomes the bases for the production and distribution of good and services. Capitalist are people who personally own or control the physical capital of industrial production such as machinery, factories and distribution networks, raw materials and technology. Capitalism gave rise to increasing conflicts between capitalist and workers. Capitalism started the social hierarchy.
  7. 7. The Class System in Capitalism Upper class Upper Middle Class Lower Middle Class Lower Middle Class Working Class and Proletariat
  8. 8. Commerce Labor and land are normally used in conjunction with capital and enterprise to promote trade and commerce. Business as commerce, occupation, and organization evolved to allow land, labor, capital, and enterprise to be used most productively and profitably. When people meet to barter one kind of good or service for another, a problem economist call the double coincidence of wants arises.
  9. 9. Conclusion Each business system operated based upon the unique situations of the time and the resources that were available for use. Using systems to increase productivity and profitability. Understanding innovation and techniques.
  10. 10. References University of Phoenix readings.  The Evolution of Business (2007) Ch. 2 Pgs. 38-62