Thursday, March 18, 2010

EVOLUTIION OF BUSINESS

mp3 evolution
Business consists of industry and commerce. So the evolution of business can be studied by dividing it into two parts: (1) Evolution of industry, and (2) Evolution of commerce.

(1) Evolution of Industry
Industry is concerned with the production of goods and services. There was a time in the history of mankind when there were no industrial activities. Our primitive ancestors consumed what they produced. Hunting was the first stage in the evolution of man. The needs of man were limited only to food, clothing and shelter. This was an economy of self-reliance. Gradually man entered in pastoral stage under which he started domesticating animals for milk, meat and skin. He lived near the banks of lakes and rivers because of availability of grass and water. Soon after this, man entered the agriculture stage. He began cultivating land to grow food-grains. The economy of the household remained self-sufficient.

The evolution of industry can be traced from handicraft stage where goods were manufactured for local people.
(a) Handicraft Stage : Human wants increased with the advance of civilization. They could not produce everything they needed. People came to know that man is skillful in producing a few commodities. They can make quite rapidly in large numbers and in beautiful forms. Hence, under handicraft stage artisans living in village produced products for the local people got in exchange what they needed. At this stage artisans used simple hand-tools and manual skill for producing the goods. The organization of work was quite simple and there was no division of labor. Family was the unit of industrial organization. The money exchange medium helped the expansion or industry and trade.

(b) Guild System : A guild may be defined as an organized group of artisans or traders. In the middle age (up to 15th century) working people organized themselves into Guilds. These Guilds were – Merchant Guilds and Artisan Guilds. The merchant were associations of traders. Artisans engaged in the same line formed artisan or craft guilds. The membership of these guilds was compulsory. The guilds were able to help the growth of industries development. The interests of members were protected. The members were protected. The members were expected to produce quality goods. Reasonable profitability was ensured to the craftsman.

(c) The Domestic System : With the fall guild system, a new system developed which was known as Domestic System. With the increase in population the demand for goods increased considerably. The artisans were not able to procure huge quantities of raw materials. They were also unable to purchase latest tools because of their limited resources. A new class of entrepreneurs came into existence. The entrepreneurs gave work to the artisans who worked in their homes.

(d) The Industrial Revolution : The term ‘Industrial Revolution’ is used to describe a series of changes in the British industry during the later part of the 18th century and the earlier part of 19th century. A number of inventions took place in England, which changed the entire technique of production. The word ‘revolution’ means a fundamental change. In this sense industrial revolution was a change in (a) industrial method, from handwork to work done by machines driven by power, and (b) industrial organization, from work at home to work at factories. The consequences of industrial revolution were mass production, mechanization, standardization, growth of capitalism, specialization and improvement in standard of living.

(e) Present Stage : The present age has been termed as an era of large scale production. The twentieth century has witnessed a evolution in technology. The latest technology improvements are automation, computerization and use of atomic energy for peaceful purposes. With automation industrial work can be done faster and better. The machine needs only to be started and everything goes on automatically. All complicated jobs are done with the help of machines. The computer system helps to analyze various results. The feedback system in automation helps to make adjustment if necessary. With the developments indicated above the world of industry is passing through a crucial period of change.



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