Strategy and Structure - Chapters in the History of the Industrial Enterprise by Alfred Chandler - Book Report/Review Example

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The review "Strategy and Structure - Chapters in the History оf the Industrial Enterprise by Alfred Chandler" narrates about "orthodox economics" pointing out that during the period studied the modern, hierarchical industrial firm was responsible for America's economic growth. The firms obtained market power without anticompetitive conduct…
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Strategy and Structure - Chapters in the History of the Industrial Enterprise by Alfred Chandler
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Download file to see previous pages The railroads pioneered modern management in the 1850s and later, through bills оf lading, intercompany billing, equipment identification and management, cost accounting, pricing, and so forth. But in Scale and Scope, the essential thesis is that between the 1850s and the 1880s the transportation and communications networks established the technological and organizational base for the exploitation оf economies оf scale and scope in the processes оf production and distribution. (p. 58) The entrepreneurial response in distribution preceded that in production because innovation in distribution was primarily organizational, not technological. The reasons for the decline of оf commission agents and the growth оf full-line, full-service wholesalers and mass retailers are not entirely clear from Chandler's analysis.[1] Many оf the names оf the mass retailers that emerged after the Civil War are still familiar today and include Macy's, Lord & Taylor, Strawbridge & Clothier, John Wanamaker, Marshall Field, and Emporium. Montgomery Ward and Sears Roebuck came to dominate the rural market, relying heavily on mail-order operations. These houses built administrative systems to handle more transactions in a day than most traditional merchants could handle in a lifetime. The new forms оf transportation and communication eventually created an even greater revolution in production, stimulating impressive technological as well as organizational changes. The laying down оf railroad and telegraph systems precipitated a wave оf industrial innovation in Western Europe and the United States far more wide-ranging than that which had occurred in Britain at the end оf the eighteenth century. This wave has been properly termed by historians the Second Industrial Revolution. . . (p. 62)  and involved systemic innovations in oil refining, steel, machinery, glass, artificial dyes, fibers, fertilizers, and food processing. But for the potential оf these innovations to be realized, entrepreneurs had to make the three-pronged investment. [2] ...Download file to see next pagesRead More
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