1. Lecture 02

2. 971學期管理學A班修課統計簡報 新生： 50人 舊生： 5人 轉學生： 0人

3. (1)個人興趣： 8人 (2)課程計畫需求： 44 人 (3)未來就業需求： 3人

4. 70-80： 18人 80以上： 14人 60-70： 9人 90以上： 6人 及格就好： 2人

5. 前5%： 6人前15%： 19人 前25%： 11人 前50%： 10人 不在乎： 2人

6. McGraw-Hill/Irwin Introduction to Business © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved. Chapter One What is Business?

7. Chapter 1 What is Business?(cont’d) Differentiate the three meanings of business as commerce, occupation and organization and identify the four main kinds of productive resources. Understand the forces of supply and demand determine fair or market price. Appreciate how a company’s business model is the source of its competitive advantage and the difference between profit and profitability

8. Chapter 1 What is Business? Recognize the way specialization and the division of labor through the “invisible had of the market” lead to increasing profit and wealth. List the reasons why business organizations are created to structure business exchanges and facilitate business commerce.

12. 競爭法則

18. McGraw-Hill/Irwin Introduction to Business © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved. Chapter Two The Evolution of Business: Commerce, Occupation, and Organizations

19. Chapter 2The Evolution of Business: Commerce, Occupation, and Organizations Understand the possession of property rights work to control productive resources are used in society. Define the system of feudalism(封建制度), and the issues in combining land and labor to speed the accumulation of capital. Appreciate the functions of money in business and how the development of money promoted the rapid development of capital and enterprise.

20. Chapter 2The Evolution of Business: Commerce, Occupation, and Organizations Describe the system of mercantilism（重商主義）, and appreciate the role played by merchants, and bankers in speeding the development in global trade. Explain the causes of the industrial revolution and the development of capitalism, unionism, and the class system. Explain how and why the form of business organization used to manage business commerce has changed over time.

21. Chapter 2The Evolution of Business: Commerce, Occupation, and Organizations Property rights are the cornerstone of our society’s economics system You have the right to buy, own, and sell land and any buildings on that land You may own the mineral rights of that land and may own some of the air rights above the land

22. Chapter 2The Evolution of Business: Commerce, Occupation, and Organizations Someone once said to “buy land” - as they are not making any more”

23. Chapter 2The Evolution of Business: Commerce, Occupation, and Organizations Recall from the previous chapter – the law of demand As demand increases for your land, what is going to happen to the price of this land?

24. Chapter 2The Evolution of Business: Commerce, Occupation, and Organizations Evaluate Joe to Go video as it relates to Innovation and Technology and its significance to Entrepreneurship

25. Chapter 2The Evolution of Business: Commerce, Occupation, and Organizations You have the right to own financial assets such as stocks, bonds and money You own your labor and the right to work freely (for an agreeable wage)

26. Chapter 2The Evolution of Business: Commerce, Occupation, and Organizations You may own rights to a product’s patent or copyright Should you be allowed to download copyrighted music for free? If so, what incentive is there to produce?

27. Chapter 2The Evolution of Business: Commerce, Occupation, and Organizations These property rights allow you to control the use of productive resources in business hopefully more effectively and efficiently than your competitors

28. Chapter 2The Evolution of Business: Commerce, Occupation, and Organizations Business and its related activities began three to six thousand years ago Think of the division of labor needed to build the pyramids in Egypt Think of the food and water needed for a very valuable resource – labor

29. Chapter 2The Evolution of Business: Commerce, Occupation, and Organizations If not building pyramids or hunting dinosaurs, cooperation was necessary to accomplish the task It took leaders or rulers to plan, organize, and control the tasks among people

30. Chapter 2The Evolution of Business: Commerce, Occupation, and Organizations Feudalism Land and other resources were given by a king to the nobility and they in turn controlled the proletariats （勞工階級）or peasants（小耕農） who worked the land for a hut and a subsistence wage

31. Chapter 2The Evolution of Business: Commerce, Occupation, and Organizations Feudalism The absence of motivation on the part of the peasants gave rise to tenant farmers （佃農） sharing in more of the till and toil of the land

32. Chapter 2The Evolution of Business: Commerce, Occupation, and Organizations English aristocracy(貴族) provided maximum resources for a small nobility and subsistence for the majority The Industrial Revolution mechanized not only agriculture but society as a whole

37. Chapter 2The Evolution of Business: Commerce, Occupation, and Organizations Mercantilism Merchants saw opportunities to trade at a profit E-Bay.com could be today’s counterpart to Mercantilism as how many folks are both buying and selling (as an agent for a third party) the same product online?

38. Chapter 2The Evolution of Business: Commerce, Occupation, and Organizations Mercantilism has evolved into Capitalism today, as private industrialists produce, trade, and distribute products Evaluate eBay.com and relate to Mercantilism and Capitalism

39. Chapter 2The Evolution of Business: Commerce, Occupation, and Organizations As our economic system evolved, it became convenient to use a medium of exchange, such as money, to trade rather than barter with a good of dissimilar value

40. Chapter 2The Evolution of Business: Commerce, Occupation, and Organizations Not only does money facilitate trade using a common currency for product price comparison across the land but the exchange process is more efficient and therefore more profitable Evaluate the EU site and describe their medium of exchange

41. Chapter 2The Evolution of Business: Commerce,Occupation, and Organizations The use of money increases occupational specialization (similar to outsourcing of today) and the wealth that can be generated from labor and land

42. Chapter 2The Evolution of Business: Commerce, Occupation, and Organizations Craftspeople facilitated the occupational specialization by producing higher quality goods Demand increased the general wealth of a society increased as the craftspeople prospered

43. Chapter 2The Evolution of Business: Commerce, Occupation, and Organizations Craftspeople formed guilds （協會組織）that operated as monopolies and were able to regulate the quality and quantity of the goods they made and sold

45. Chapter 2The Evolution of Business: Commerce, Occupation, and Organizations The Industrial Revolution Increasing change and the growth of capitalism, led to technological progress and the most significant change in the business system

46. Chapter 2The Evolution of Business: Commerce, Occupation, and Organizations Innovation Advances in technology changed the ways of business Evaluate Microsoft’s homework templates and tutorials and relate to Innovation and technology

47. Chapter 2The Evolution of Business: Commerce, Occupation, and Organizations Change was pervasive （普遍的）in both farming and manufacturing as the use of technology could be used more efficiently than labor such as steam power or interchangeable parts to build sewing machines to manufacture clothing

48. Chapter 2The Evolution of Business: Commerce, Occupation, and Organizations Capitalism Private ownership of the means of production and distribution (property rights) Its growth was not without its faults as some folks were ruthless and pursued their own self interest at the expense of others

49. Chapter 2The Evolution of Business: Commerce, Occupation, and Organizations Capitalist factory owners exerted their economic power with greater demands upon labor Declining wages and longer work hours created a proletariat（無產階級） working class and the workers reacted by forming trade unions

50. Chapter 2The Evolution of Business: Commerce, Occupation, and Organizations The Industrial Revolution and the rise of capitalism contributed to the creation of a class system based upon wealth and occupation as opposed to heredity （遺傳）as in aristocracy（貴族） Evaluate/identify five factors contributing to the Industrial Revolution

51. Chapter 2The Evolution of Business: Commerce, Occupation, and Organizations Given additional education, enterprise and hard work in the future, this system will no longer be illustrated as a triangle but will evolve into a “great middle class” Illustrated as a diamond with the middle band as the “middle-middle” class between the upper middle class and lower-middle class

52. Chapter 2The Evolution of Business: Commerce, Occupation, and Organizations As business commerce evolved so did the forms of business organizations used to increase the productivity and profitability of productive resources The hierarchy of authority evolved early to reduce the transaction costs surrounding business activity

53. Chapter 2The Evolution of Business: Commerce, Occupation, and Organizations The joint stock company corporation evolved to make it easier for enterprising people to borrow capital to pursue new ventures and for wealthy people to find new ways in which they could build their capital and increase their wealth

56. Chapter 2The Evolution of Business: Commerce, Occupation, and Organizations Evaluate the evolution of an entrepreneurial business in the Joe To Go video and relate to commerce and business organization