Six Eras In the History of Business PDF

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Six Eras In The History Of Business In the roughly 400 years since the first European settlement appeared on the North American continent, amazing changes have occurred in the size, focus, and goals of U.S business. U.S business is divided in six periods:

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The Colonial Period The Industrial Revolution The Age of Industrial Entrepreneurs The Production Era The Marketing Era The Relationship Era

1-The Colonial Period: Colonial society emphasized rural and agricultural production. Colonial town were small empared with European cities, and they functioned as market place for formers and craft people. The economic focus of nation centered on rural areas because prosperity depends on the output of farms plantations. The success or failure of crops and influenced every aspect of the economy. Colonists depended on England for manufactured item as well as financial backing for their infant industries. Even after the revolutionary war (1776-1783) The United States maintained close economic ties with England. British investors continued to provide much of the financing for developing the U.S. business system, and this financial influence continued well into 19th century. The colonial history of the United States covers the history of European settlements from the start of colonization of America until their incorporation into the United States. In the late 16th century, England, France, Spain and the Netherlands launched major colonization programs in eastern North America. European settlers came from a variety of social and religious groups. No aristocrats Settled permanently, but a number of adventurers, soldiers, farmers, and tradesmen arrived. Colonizers came from European kingdoms with highly developed military, naval, governmental and entrepreneurial capabilities. The Spanish and Portuguese centuries-old experience of conquest and colonization during the Reconquista, coupled with new oceanic ship navigation skills, provided the tools, ability, and desire to colonize the New World. England, France and the Netherlands started colonies in both the West Indies and North America. They had the ability to build ocean-worthy ships, but did not have as strong a history of colonization in foreign lands as

did Portugal and Spain. However, English entrepreneurs gave their colonies a base of merchantbased investment that needed much less government support.

2-The Industrial Revolution: The industrial revolution began in England around 1750. It moved business operations from an emphasis on independent, skilled workers who specialized in building products one by one to a factory system that mass down produced items by bringing together large number of semiskilled workers. The factories profited from savings created by large scale production, bolstered by increasing support from machines over time. As business view they could often purchases raw materials more cheaply in larger lots than before. Specialization of labor, limiting each worker to a few specific tasks in the production process, also increased production efficiency. Influenced by these events in England, business in United States began a time of rapid industrialization. Agriculture became mechanized, and factories sprang up in cities. During the

mid-1800s, the pace of revolution was increased a newly built railroad system provided fast, economical transportation. In California for example the combination of rail road construction and gold rush fueled a tremendous demand for construction.

3-The Age of Industrial Entrepreneurs: Building on the opportunities created by the industrial revolution entrepreneurship increased in United States. In 1900, Arthur R. Wilson and several partners paid 10,000$ in Gold coins for a 27 acre parcel of Granite-rich land in California. This natural resource was the base granite rock co. Which provided material for roads and buildings in California’s booming economy. The company now called Graniterock response in to technological, completive and market place demands continues to survive in 21st century. Today the firm which has stores throughout California, offers consumer’s product such as granite countertops as well as many green products made from recycled material. Inventors created a virtually endless array of commercially useful products and new production method. Many of them are famous today:  

Eli Whitney introduced the concept of inter changeable parts, an idea that would later facilitate mass production on a previously impossible scale. Robert McCormick designed a horse-drawn reaper that reduce the labor involved in harvesting wheat.

His son, Cyrus McCormick saw the commercial potential of the reaper and launched a business to build and sell machine. By 1902 the company was producing 35 percent of the nation’s farm machinery. Cornelius Vanderbilt P. Morgan and Andrew Carnegie (steel) among others, took advantage of enormous opportunities for anyone willing to stake the risk of starting new business. The entrepreneurial spirit of this golden age in business did much to advance the U.S. business system and rise the overall standard of living of its citizens. The market transformation, in turn, created new demand for manufactured goods.

4-The Production Era As Demand for manufactured goods continued to increase through 1920s, business focused even greater attention on the activities involved in producing those goods. Work became

increasingly specialized and huge. Labor intensive factories dominated U.S. business. Assembly lines introduced by Hennery Ford, became common place in major industries. Business owners turned over their responsibilities to a new class of managers trained in operating established companions. Their activities emphasized efforts to reduce even more goods through quicker methods. During the production era, business focused attention to the internal process rather than external influence. Marketing was almost and after throughout designed solely to distribute items generated by production activities. Little attention was paid to consumer’s wants and needs.

5-The Marketing Era: The Great Depression of early 1930s changed the shape of U.S business yet again. As incomes nose-divided, business could not automatically count on selling everything they produced. Managers began to pay more attention to the markets for their goods and services and sales and advertising took on new importance. During this period selling’s was often synonymous with marketing. Demand for all kind of consumer goods exploded after World War II. After nearly five years of doing without new automobiles, appliances, and other items, consumers were buying again. At the same time, however, competition also heated up. Soon businesses began to think of marketing as more than just selling; they envisioned a process of determining what consumers wanted and needed and then designing products to satisfy those needs. In short, they developed a consumer orientation. Businesses began to analyze consumer desires before beginning actual production. Consumer choices skyrocketed. Automobiles came in a wide variety of colors and styles, and car buyers could choose among them. Companies also discovered the need to distinguish their goods and services from those of competitors. Branding, the process of creating an identity in consumers' minds for a good, service, or company, is an important marketing tool. A brand can be a name, term, sign, symbol, design, or some combination that identifies the products of one firm and differentiates them from competitors' offerings. Jim Senegal, cofounder and CEO of Costco, brought branding to an unlikely market—discount retailing. Costco has nearly 500 warehouse-style stores and boasts sales over $52 million a year by appealing to people who can afford to pay full price, as well as those who value its bargains for economy-size packages of items such as juice and paper goods. What makes the Costco brand valuable is superior customer service, which results from the company's policy of treating its employees well. This reduces turnover and creates a knowledgeable and enthusiastic sales staff. The company also has a generous policy that allows returns of any item for any reason. Costco further nurtures its brand by regularly offering “treasure hunt” designer items like Coach Handbags and Fila jackets at low prices for limited time periods. “The attitude is that if you see it, you have got to buy it because it

may not be there next time,” says Senegal. “We purposely try to merchandise to that type of mind-set.”18 The marketing era has had a tremendous effect on the way business is conducted today. Even the smallest business owners recognize the importance of understanding what customers want and the reasons they buy.

6-The Relationship Era: The ways companies interact with customers. Since the Industrial Revolution, most businesses As business continues in the 21st century, a significant change is taking place in have concentrated on building and promoting products in the hope that enough customers will buy them to cover costs and earn acceptable profits, an approach called transaction management. In contrast, in the relationship era, businesses are taking a different, longer-term approach to their interactions with customers. Firms now seek ways to actively nurture customer loyalty by carefully managing every interaction. They earn enormous paybacks for their efforts. A company that retains customers over the long haul reduces its advertising and sales costs. Because customer spending tends to accelerate over time, revenues also grow. Companies with long-term customers often can avoid costly reliance on price discounts to attract new business, and they find that many new customers come from loyal customer referrals. Business owners gain several advantages by developing ongoing relationships with customers. Because it is much less expensive to serve existing customers than to find new ones, businesses that develop long-term customer relationships can reduce their overall costs. Long-term relationships with customers enable businesses to improve their understanding of what customers want and prefer from the company. As a result, businesses enhance their chances of sustaining real advantages through competitive differentiation. The relationship era is an age of connections—between businesses and customers, employers and employees, technology and manufacturing, and even separate companies. The world economy is increasingly interconnected, as businesses expand beyond their national boundaries. In this new environment, techniques for managing networks of people, businesses, information, and technology are critically important to contemporary business success. As you begin your own career, you will soon see how important relationships are, beginning with your first job interview. Business meals are another important relationship builder; see the “Business Etiquette” feature for suggestions on being a successful host.

Business Etiquette:

1. If you are in a position to hire, take potential employees out to eat. “I can tell a lot about people by the way they act toward the food server,” says Julia Stewart, IHOP's chief executive. “If you have a complete conversation with me and you never acknowl- edge the food server, you are being disrespectful and will never work for me.” 2. Check your guests' food preferences ahead of time and make a reservation at an appropriate restaurant. If any special accommodations need to be made, such as for someone with a handicap or food allergy, make tactful preparations with the restaurant ahead of time. 3. If possible, choose a few reliable restaurants to become familiar with, to avoid unpleasant surprises and to allow you to cultivate business relationships with the servers and the manager. 4. Remember that a business meal has a business purpose. Treat it like a meeting in a conference room and always arrive on time. If you are the host, be early to welcome your guests. 5. If there is a coat check, offer to check your guests' hats, coats, umbrellas, and the like, and tip the attendant yourself when your party retrieves belongings after the meal. 6. Keep cell phones, glasses, and bags and briefcases off the table. 7. Unless you expect an emergency to interrupt the meal, turn your cell phone off. If you must answer, keep your conversation brief and quiet. 8. Suggest your group order their meals before beginning any business discussion. This will help you conclude the meal in a reasonable time period. 9. If you have questions about items on the menu, ask before you order. It's better to know what you are getting than to be served something you can't or don't want to eat. 10. The meal begins only after everyone at the table has been served and the host has taken his or her napkin from the table....