The document discusses criteria for classifying phases of economic development, including means of livelihood, extent of economic activity, and medium of exchange. It provides examples of how people obtained food through hunting and fishing in early phases, transitioned to farming and ownership of land, and now rely on manufacturing companies using machinery. Economic activity expanded from satisfying needs within families to relations between families and grouping of villages. Exchange evolved from direct bartering of goods and services to using stable objects as money and eventually incorporating credit through promises of future payment.

1. THE FIRM AND ITS
ENVIRONMENT

2. Phases of
economic
development

3. ECONOMY
ORGANIZATION AND MANAGEMENT: THE FIRM AND ITS ENVIRONMENT
An economy encompasses all activity related to
production, consumption and trade of goods and
services in an area. An economy applies to everyone
from individuals to entities such as corporations and
governments. The economy of a particular region or
country is governed by its culture, laws, history, and
geography, among other factors, and it evolves due to
necessity.

4. CriteriainClassifyingPhasesofEconomicDevelopment
ORGANIZATION AND MANAGEMENT: THE FIRM AND ITS ENVIRONMENT
MEANS OF LIVELIHOOD

5. ORGANIZATION AND MANAGEMENT: THE FIRM AND ITS ENVIRONMENT
MEANS OF LIVELIHOOD
Ancestors obtained
food by hunting and
fishing.

6. ORGANIZATION AND MANAGEMENT: THE FIRM AND ITS ENVIRONMENT
MEANS OF LIVELIHOOD
Presence of large
number of livestock.

7. ORGANIZATION AND MANAGEMENT: THE FIRM AND ITS ENVIRONMENT
MEANS OF LIVELIHOOD
Items or objects were made by
skilled and trained manual
laborers (sculptures, jewelry,
furniture)

8. ORGANIZATION AND MANAGEMENT: THE FIRM AND ITS ENVIRONMENT
MEANS OF LIVELIHOOD
Concept of land ownership.
Began to work as a farmer or a
fisherman.

9. ORGANIZATION AND MANAGEMENT: THE FIRM AND ITS ENVIRONMENT
MEANS OF LIVELIHOOD
Presence of manufacturing
companies. Machineries
were used.

10. CriteriainClassifyingPhasesofEconomicDevelopment
ORGANIZATION AND MANAGEMENT: THE FIRM AND ITS ENVIRONMENT
MEANS OF LIVELIHOOD
EXTENT OF ECONOMIC ACTIVITY

11. ORGANIZATION AND MANAGEMENT: THE FIRM AND ITS ENVIRONMENT
The needs of the family
were satisfied first
through the contribution of
the family members.
EXTENT OF ECONOMIC ACTIVITY

12. ORGANIZATION AND MANAGEMENT: THE FIRM AND ITS ENVIRONMENT
Economic and social
relations spread among
various families
EXTENT OF ECONOMIC ACTIVITY

13. ORGANIZATION AND MANAGEMENT: THE FIRM AND ITS ENVIRONMENT
Grouping of villages
into bigger and
broader social
EXTENT OF ECONOMIC ACTIVITY

14. CriteriainClassifyingPhasesofEconomicDevelopment
ORGANIZATION AND MANAGEMENT: THE FIRM AND ITS ENVIRONMENT
MEANS OF LIVELIHOOD
EXTENT OF ECONOMIC ACTIVITY
MEDIUM OF EXCHANGE

15. ORGANIZATION AND MANAGEMENT: THE FIRM AND ITS ENVIRONMENT
Done during primitive era, exchange
was done which was the direct
exchange of goods for goods,
services for services, goods for
services or services for goods.
MEDIUM OF EXCHANGE

16. ORGANIZATION AND MANAGEMENT: THE FIRM AND ITS ENVIRONMENT
There came to circulatein the market
certain objects, such as bars of metal,
buttons, tools, and utensils which were
stable in value, durable and generally
acceptedby the public. Money was used
as the “medium of exchange”.
MEDIUM OF EXCHANGE

17. ORGANIZATION AND MANAGEMENT: THE FIRM AND ITS ENVIRONMENT
Due to increase in volume and frequency, it
became imperative to allow others to purchase
one’s goods or engage one’s service with
payments to be paid at some future date.
CREDIT – is the power to obtain economic goods
and services in exchange for the promise to pay
the agreed equivalent at some future date.
MEDIUM OF EXCHANGE