Ford Motor Company in the Production of the Model T - Essay Example

In Britain ownership is much less concentrated, with almost half of all shareholdings—generally by the financial sector—amounting to less than 5 percent of company stock. (2) In Germany—in contrast to Britain—the network of interlocking directorates is closely related to the capital network, i.e., it serves to enhance the power of the owners. (3) In Germany—in contrast to Britain—both networks are concentrated within the same industry, i.e., potential competitors are associated with one another.  Germany thus illustrates ‘co-operative capitalism’ whereas Britain exemplifies ‘competitive capitalism.

The rise of the multiple-division (M-form) form of business organization in the 20th century.

            The M-form of the business organization first begins to show itself in the 1920s, as noted by Alfred D. Chandler.  This system strongly resembles the standards-based systems of accountability. 

According to Porter (2006), “He found a relatively consistent pattern of basic changes in the strategy being followed by major adjustments in organizational design. The changes in organizational design roughly matched the needs for information and decisions called for in the new strategy. Chandler called the organizational design that emerged during this period the multiple division form, replacing a unitary/functional form. The three key elements of a multiple division design are, first, activities must be divisible into relative elements of a multiple division design are, first, activities must be divisible into relatively independent bundles of activity. Second, there is a central guidance group that is supported by an analytic staff and which has the power to discipline the actions of the various divisions. And third, there are summary statistics that make possible interdivisional comparisons for purposes of evaluating the performance of divisions.”

Summary performance measures and their development strongly led to the success of the M-corporation.  The fall of the system can be explained relatively simply, too.  According to Porter (2006), “Implementation of this new strategy requires, I argue, substantial changes in institutional structures. This project traces the emergence of this new strategy and suggests institutional design changes appropriate to more effective implementation of the new strategy.”

The advantages of the ‘networked’ firm in the modern global economy.

            Networked firms can obtain a significant competitive advantage in the modern global economy.  Their products and services are hard to copy.  In the beginning, networked firms rely on their partners for comparable assets.  One must be careful to evaluate the cost-effectiveness of such boundary-crossing in a networked firm, however (Jones and Zeitlan, 2010).

            In networked firms, open innovation can occur.  This means that networked firms can use open ideas to benefit one another.  They should use both internal and external knowledge when working with one another and attempting to come up with solutions to problems and scenarios (Jones and Zeitlan, 2010).

The rationale for the creation of ‘national champions’ in post-war British industrial policy.

            According to Heufers (2010), “The debate whether governments should interfere in the markets to establish large national corporations is ever-present. These so-called "national champions" are giant corporations which are supposed to acquire immense competitiveness that creates growth and employment in the national economy and also enhances the national reputation abroad.”

            There is a rationale behind this approach.  This is especially true for post-war British industrial policy.  This includes government intervention, high levels of competition, the creation of growth and profit, and high levels of employment.  Altogether, it enhances the economy.