My name is Jessica Batten and I am going to explaining the Evolution of Business starting from feudalism to the industrial revolution.
The revolution of business has gone through several different stages of evolution starting from feudalism to the industrial revolution. In the following presentation each stage will be discussed.
“ Feudalism is the business or economic system in which one class of people (aristocrats) control the property rights to all valuable resources, including people” (Axia College, 2007, p. 40). Feudalism was a simple system that allowed the king almost complete control of all land. The land was divided up into portions among the church, baron, knights and serfs. The largest portion of the land was kept by the king as his personal asset. By granting these groups such an extravagant gift, the king ensured himself a heft return in good, gold, servants and power. Many business systems today follow the same idea as the feudalism system. There are large corporations, or parent companies who create small businesses that they delegate other professional minds to control in return for a profit.
“ Mercantilism is part of the business system in which a product’s price differences are exploited by trading the product across markets and countries” (Axia College, 2007, p.45). During the sixteenth to eighteenth centuries, Western Europe developed this system. This term is defined by Adam Smith that describes an arrangement in which exportation is increased in return for the accumulation of valuable metals.
“ Capitalism is the economic or business system in which the private ownership of resources becomes the basis for the production and distribution of goods and services” (Axia College, 2007, p. 51). Capitalism became one of the leading forms of business in America.
Throughout the history and evolution of business, the most obvious and consistent focus has been commerce. The constant exchange for gold and “dealings between individuals or groups in society: interchange of ideas, opinions, or sentiments” Webster (2002) is what has and will continue to shape the world of business, around the globe, for centuries. According to Wikipedia (n.d.), today’s commerce includes a system of companies who try to maximize their profits by offering products and services to the market at the lowest production cost.
“ Property rights are the claims by people to own, use, or sell valuable resources” (Axia College, 2007, p.39). In today’s society property rights do not only pertain to land. Property rights were a large part of how feudalism worked. The king had exclusive property rights; meaning he had full authority to decide how that land was to be used. As his land was gifted to the nobles, knights, etc. those rights were passed along with it.
“ An era in the eighteenth and nineteenth centuries that marked improved production and trade brought about my advances in technology” (Axia College, 2007, p. 48). As the eighteenth century came about, the era known as the Industrial Revolution became the foundation for development in business and invention. It started with the invention of the steam engine, and would become the age of mechanization.
In today’s society the Evolution of Business has expanded but has also followed the same route back in the Middle Ages. Business in today’s society is buying and selling of goods, especially on a large scale between cities or nations. For instance, if we look at all the goods, products, clothing, etc. that we get from China. We purchase them because it is cheaper for us to get the items from there rather than making them here in the United States. The Evolution of Business I feel will grow as the time progresses.
Evolution of business
Evolution of Business Jessica Batten Foundations Of Business/BUS 210 4/15/12
Feudalism One of the oldest business schemes Middle Ages 500-1500 The king had complete control
Mercantilism Exported one country’s goods for another country’s gold International trading locations Monarchs and Aristocrats
Capitalism Economy to grow exponentially Greater demand on labor Capitalists- Rockefeller and Carnegie Class systems Trade and distribution of products
Commerce Barter to money Money to capital Sales and purchases Supplying goods and services
Property Rights Land- Buildings and structures on it Labor- The right to work freely Enterprise- The products such as patents and copyrights to the product Capital- The rights to financial assets. Ex. Stocks, bonds, money
The Industrial Revolution Started in the late 18th century It spread to the United States during the 19th century Provided new opportunities for capital Shifted production and trade
Summary The Evolution of Business has a history and we still use the terms today. As the start of Feudalism it transitions from one stage to another.
ReferencesAxia College. (2007). The Evolution ofBusiness. Retrieved from Axia College, BUS210week 2Commerce. (n.d.). In Wikipedia. Retrieved fromhttp://en.wikipedia.org/wiki/CommerceWebster, 2002