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Chapter 1C Lecture

Management (MGT)
Course Code
Ingrid L.Stefanovic

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Chapter 1B. ppt / 1
Laurence, Hugh
MGTA03, Lec. 03
Introduction to Management II September 17th, 2009
o Business and Exchanges ± the Economic System
o How do Markets Work?
o Competition and the Structure of Markets
o The Role of Government in the Market
Economic Systems
o Command Systems
o Hutterites
The most successful economic system in Western Canada
Planning exploits economic opportunities
People are assigned effectively to an economic activity and work hard
Equipment is used efficiently
Community is dedicated to efficiency to handle growth
o Market-based Systems
o Individuals, or groups recognized as legal persons, own the means of production
o Decisions are made based on perception of success in the marketplace
o Activity in markets, and the expectation of profits, becomes a key goal and the
key form of regulation
o Pure free market systems now rare
o Historical examples from 19th Century
Mines, mills and factories of England
Great capital empires of later ¶V
o Gooderham and Worts
Came to Canada in 1832 with 5,000l.
Started a flour mill, as the family was in the milling business in England
Branched out into grain production, cattle feeding to vertically integrate
their activity
Then started a distillery as another outlet for the grain
o Gooderham & Worts
Invested in a railroad to carry in the grain
Invested in a sugar mill to refine raw sugar from the West Indies
Established the Bank of Toronto and London Savings and Loan Company
Established the Confederation Life Insurance Company
Only one of several such large family ventures
Massey-Harris, later Massey-Ferguson
Flavelle and Canada Packers
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