Introduction to Business (MGT211)

Introduction to Business (MGT211). Dr. Rizwan Saleem.

Human Journey from Stone Age to the Age of AI. 2.5 million BCE – Stone Age → Use of tools, fire, early hunter-gatherer societies 10,000 BCE – Neolithic Revolution → Agriculture, permanent settlements, domestication of animals 3,000 BCE – Early Civilizations → Mesopotamia, Egypt, Indus Valley, China → Invention of writing, early trade and barter systems.

Human Journey from Stone Age to the Age of AI. 1,000 BCE – Iron Age → Metal tools, expansion of trade routes, coinage introduced 🔸 500 BCE–500 CE – Classical Era → Greek, Roman, Indian, and Chinese empires → Philosophies, taxation, early markets, legal systems 🔸 500–1500 CE – Medieval Era → Feudalism, guilds, caravan trade, Islamic Golden Age → First banks and merchant institutions.

Human Journey from Stone Age to the Age of AI. 1500–1700 CE – Age of Exploration → Global maritime trade, colonial empires, mercantilism → Rise of global business networks 🔸 1750–1900 CE – Industrial Revolution → Steam power, mechanized production, railways → Rise of factories and urban business centers.

Human Journey from Stone Age to the Age of AI. 1900–1950 – Modern Business & Capitalism → Assembly lines, corporate management, World Wars → Rise of consumer economy, stock markets.

Human Journey from Stone Age to the Age of AI. 1950–2000 – Information Age → Computers, internet, globalized economy → Services dominate, outsourcing, e-commerce begins.

Human Journey from Stone Age to the Age of AI. 2000–2020 – Digital Transformation → Smartphones, social media, cloud computing → Gig economy, digital marketing, fintech 🔸 2020–Present – Age of Artificial Intelligence → AI in business, automation, machine learning, big data → Ethical debates, smart systems, human-AI collaboration.

Human Journey from Stone Age to the Age of AI. Future – Conscious Tech & Bio-Digital Fusion? → Brain-computer interfaces, quantum computing, post-work society?.

Trade in Ancient Civilizations. Mesopotamia (modern Iraq) One of the first civilizations to develop writing (cuneiform) for recording trade transactions. Traded wool, grain, pottery, and textiles for metals, wood, and precious stones. Developed early banking practices using clay tablets and temple-based storage. Merchants used ox-drawn carts and river transport to reach cities like Ur and Babylon..

Trade in Ancient Civilizations. Ancient Egypt Nile River enabled domestic and foreign trade. Exported grain, linen, and papyrus; imported gold, ebony, ivory, and incense from Nubia and Punt. Pharaohs controlled large-scale state trade. Used grain as currency and had detailed accounting systems managed by scribes..

Trade in Ancient Civilizations. Indus Valley Civilization (modern Pakistan/India) Major cities like Harappa and Mohenjo-daro had advanced trade infrastructure (granaries, docks, standardized weights). Traded beads, seals, cotton textiles, and metals with Mesopotamia and Central Asia. Seals found in Mesopotamia show evidence of long-distance trade. Sophisticated urban planning supported organized commercial life..

Trade in Ancient Civilizations. Ancient China Early dynasties traded silk, jade, tea, and ceramics. The Silk Road became a major international trade route linking China to Central Asia, the Middle East, and Europe. Developed early forms of currency: cowry shells and later bronze coins. The concept of trust and reputation (known as "xin") became a key ethical pillar in business dealings..

Ancient Business Practices. Barter System The barter system is the oldest form of trade, where goods and services were exchanged directly without using money. Example:A farmer might exchange grain with a potter in return for clay pots. Features: Simple and direct Based on mutual need No standard measure of value Difficult to store wealth or conduct large-scale trade.

Ancient Business Practices. Limitations: Double coincidence of wants: Both parties had to want what the other had. Lack of common value: No fixed pricing system. Difficulty in division: Hard to divide some goods fairly (e.g., how to trade half a cow?). Relevance: While primitive, barter was the first step toward more complex commercial systems and eventually led to the invention of money..

Ancient Business Practices. Role of Markets and Bazaars Markets (open spaces for regular trade) and bazaars (more permanent, organized marketplaces) were crucial centers for local and regional exchange. Functions: Enabled daily trade of food, tools, cloth, and other necessities. Created a place for price discovery, negotiation, and value exchange. Fostered social interaction, spreading news, culture, and ideas. Facilitated credit arrangements and early partnerships..

Ancient Business Practices. Examples: The Agora in ancient Greece: both a market and a civic center. Khan el-Khalili in Cairo (established later, but reflective of ancient trading styles). Central Asian caravanserais: offered services for traders along trade routes. Business Practices in Bazaars: Verbal contracts and trust-based trade Use of scales and standard weights The role of brokers and middlemen Reputation and personal relationships mattered more than written agreements.

Industrial Revolutions. 1760-2030.

1. First Industrial Revolution (1760–1840). Core Innovation: Mechanization, steam power, and textiles. Key Developments: Steam Engine (James Watt, 1775) → Powered factories and railroads. Textile Industry (Spinning Jenny, Power Loom) → Mass-produced clothing. Iron Production (Bessemer process later improved steel). Impact: Shift from agrarian economies to urban factories. Rise of capitalism and wage labor. Case Example: British Cotton Mills (e.g., Manchester’s "Cottonopolis") dominated global trade..

2. Second Industrial Revolution (1870–1914). Core Innovation: Electricity, mass production, and heavy industry. Key Developments: Electricity (Edison, Tesla) → Lit cities and powered machines. Assembly Line (Henry Ford, 1913) → Affordable cars (Model T). Telegraph/Telephone → Faster communication. Impact: Birth of modern corporations (e.g., Standard Oil, U.S. Steel). Globalization (steamships, railroads). Case Example: Ford’s Highland Park Plant reduced car assembly time from 12 hrs to 93 mins..

3. Third Industrial Revolution (1960s–2000s). Core Innovation: Digital technology, automation, and computers. Key Developments: Computers & Internet (1970s–90s) → ERP systems, e-commerce. Robotics → Automated manufacturing (e.g., Toyota’s plants). Renewable Energy (Early solar/wind tech). Impact: Outsourcing and supply chain globalization. Rise of knowledge workers. Case Example: Amazon (1994) leveraged the internet to disrupt retail..

4. Fourth Industrial Revolution (2010s–Present). Core Innovation: AI, IoT, and smart systems. Key Developments: Artificial Intelligence (ChatGPT, autonomous robots). Internet of Things (IoT) → Smart factories (Industry 4.0). Blockchain → Secure, decentralized transactions. Impact: Hyper-personalization (e.g., Netflix’s AI recommendations). Ethical debates (job displacement, data privacy). Case Example: Tesla’s Gigafactories use AI-driven robotics to produce EVs at scale..

Emerging: Fifth Industrial Revolution (2030s–Future?).

Books to Remember on History of Business. 1. A Brief History of Entrepreneurship by Joe Carlen 2. The Silk Roads: A New History of the World by Peter Frankopan 3. Empire of Cotton: A Global History Book by Sven Beckert 4. Sapiens: A Brief History of Humankind Book by Yuval Noah Harari 5. Early Islam and the Birth of Capitalism Book by Benedikt Koehler.

Defining Business. An economic activity undertaken to fulfill the needs of the society within the legal boundaries for earning profit. Business An organization that strives for a profit by providing goods and services desired by its customers..

What is the Nature of Business?. 1.Economic Activity 2.Deals in Goods and Services 3.Creates Utility 4.Profit Motive 5.Risk of Loss 6.Series of Deals 7. Legal Activity.

Introduction to Business MGT211. Module 02.

Scope of Business. 1. Primary Sector – Extraction of Natural Resources This level involves directly using natural resources from the earth. Examples: Farming Fishing Forestry Mining Oil extraction.

Scope of Business. 2. Secondary Sector – Manufacturing and Processing This sector involves turning raw materials into finished or semi-finished goods. Examples: Construction Textile production Food processing Automobile manufacturing Steel production.

Scope of Business. 3. Tertiary Sector – Services This level focuses on providing services rather than goods. Examples: Retail and sales Education Healthcare Transportation Banking and finance Tourism.

Scope of Business. 4. Quaternary Sector – Knowledge and Information This includes intellectual services that involve research, innovation, and technology. Examples: Scientific research IT services Data analysis Software development Education and consulting at high levels.

Introduction to Business MGT211. Module 03.

Scope of Business. Scope of business includes both industry and Commerce Industry is about manufacturing, construction, extraction and genetics While Commerce includes Trade and Aid to Trade.

Scope of Business. Trade: Buying & Selling Home Trade VS Foreign Trade Aids to Trade: Agents, Transportation, Warehousing, Banking, Insurance, Communication, Advertising etc..

Introduction to Business MGT211. Module 04.

Understanding the Business Environment. Businesses do not operate in a vacuum but rather in a dynamic environment that has a direct influence on how they operate and whether they will achieve their objectives..

Understanding the Business Environment. [image] The diagram is a circle with a core that is labeled and sections surrounding the core that are labeled Outside of the circle is the external environment which affects the contents of the circle The core is labeled as Internal Environment entrepreneurs managers workers and customers The sections surrounding the core are as follows technological and economic and political slash legal and demographic and social and competitive and global All these sections have arrows pointing inward to the core internal environment.

Introduction to Business MGT211. Module 05.

How Business and Economics Work?. Economics is the study of how a society uses scarce resources to produce and distribute goods and services. The resources of a person, a firm, or a nation are limited. Hence, economics is the study of choices—what people, firms, or nations choose from among the available resources..

How Business and Economics Work?. Economic system is the combination of policies, laws, and choices made by a government/state/society to establish the systems that determine what goods and services are produced and how they are allocated..

The Basic Economic Systems. [image] Of Bus i co Of Capitalism are i rfe Ce. trade. NO or g o Ver Strong becau se p rofi in by own S a or enterpr•ses. NO incentive hard o prod it-y products. of World Socialism railroads and are by gov Very high taxation as successful private are controlled, and free. Significant governrnent plan State enterprises are These enterprises are rely profita ble_ private—sector incentives and public- sarne as •n a planned Mixed ECO nor-ny own e rship Of land and businesses bur private sector •s energy and o ffi controlled or high ly reg u lated. private—sect or the sarne as c a p ital is n. the public.

The Basic Economic Systems. [image] Management Of Enterprises Each enterprise IS managed by owners or professional managers with little government interference. Centralized management by the government bureaucracy. Little or no flexibility in decision- making at the factory level. Significant government planning and regulation. Bureaucrats run government enterprises. Private-sector management similar to capitalism. Public sector similar to socialism..

Introduction to Business MGT211. Module 06.

Economics as a Circular Flow. [image] The diagram is a circle with a labeled core There is a band surrounding the core and an outer band surrounding both the core and inner band The outward flow of the outer band is labeled as follows Money income such as rent wages and interest profits goes into households Money is then spent by consumers in product markets This flows into business revenues which flows into costs then into resource markets Next is the inner band which is labeled as follows The resource markets outputs such goods and services flows into inputs such as natural resources labor capital and entrepreneurship In the center of the core is labeled Government federal state and local Arrows pointing inward and outward are in pairs and are labeled From the resource markets In arrow inputs out arrow revenues From the households In arrow taxes out arrow public goods and services From the product markets in arrow outputs out arrow revenues From businesses in arrow taxes out arrow public goods and services business revenues.

Introduction to Business MGT211. Module 07.

Understanding Demand & Supply. "Catch a parrot and teach him to say `supply and demand,' and you have an excellent economist.“Thomas Carlyle Demand The quantity of a good or service that people are willing to buy at various prices. Supply The quantity of a good or service that businesses will make available at various prices..

Law of Demand & Supply. The law of demand states that the quantity purchased varies inversely with price. In other words, the higher the price, the lower the quantity demanded. The law of supply states that, all other factors being equal, as the price of a good or service increases, the quantity of that good or service that suppliers offer will increase, and vice versa..

Introduction to Business MGT211. Module 08.

Perfect Competition Monopolistic Competition Oligopoly Monopoly Numbers of firms in market Many Many, but fewer than perfect competition Few One Firm’s ability to control price None Some Some High Barriers to entry None Few Many Subject to government regulation Product differentiation Very Little Emphasis on showing perceived differences in products Some Differences No products that compete directly examples Farm products such as wheat and corn Retail specialty clothing stores Steel, automobiles, airlines, aircraft manufacturers Utilities such as gas, water, cable television.

Introduction to Business MGT211. Module 09.

Business Cycle. The business cycle is a natural rise and fall of economic growth that occurs over time. It is typically divided into four main phases: Expansion Peak/Boom Contraction/Recession Trough/Depression.