business evolution

Evolution of Business
Tracy Gregory
Foundations of Business/BUS210
December 7, 2014

Overview
• Feudalism
• Mercantilism
• Capitalism
• Commerce
• Property Rights
• The Industrial Revolution

Feudalism
• Business or economic system in which one class of people
(Aristocrats) control the property rights to all valuable resources, including people.
• Laborers began to receive more rights and rewards
• To make their estates more profitable, land owners assigned the most reliable workers to take control of specific farms on their estate.

Mercantilism
• Merchants are traders who noticed a difference between the value and price of a product.
• Bankers are those who estimate the risks of association with new ventures and determine the ways to profit from a venture that should be shared.

Capitalism
• Private property rights the basis production, trade, and distribution of goods and services.
• Capitalist have many negative overtones because of industrialist like Rockefeller and Carnegie.
• Proletariat is the new working class, the vast, faceless mass of laborers who work for subsistence wages.
• Trade unions and class systems were developed.

Commerce
• The hierarchy of authority evolved early to reduce the transaction cost surrounding business activity.
• Barter to money
• Money to capital
• Capital buyers and capital suppliers

Property Rights
• Claims by those whom own, use and sell to valuable resources.
• Hierarchy of English Aristocrats

Industrial Revolution
• The industrial revolution was the transition to new manufacturing processes in the period from
1760-1840.
• Affected both farming and manufacturing and led to a dramatic increase in the wealth a prosperity. Conclusion
The evolution of business has history and we still use the terms today. As the start of of feudlism it transitioned one stage to another. Using systems to increase productivity and profitability.

References
• Jones, G. R. (2007). Introduction to business: How companies create value for people. New York,NY:
McGraw-Hill/Irwin

References: • Jones, G. R. (2007). Introduction to business: How companies create value for people. New York,NY: McGraw-Hill/Irwin