Topic 14 (The emergence of managerial capitalism
The emergence of managerial capitalism
Late 19 century, early 20th century
- Growth of firms
- Growth is linked to success and profitability
- To achieve growth firms need to go for scale and scope
- Large firm must organise effectively to work efficiency -> Strategy and struture
1882 - Trust (Standard Oil Alliance): 40 companies, each operated a U-form structure linked to rockefeller(bán rong)
Function: to coordinate and recognise the production of the trust, and coordinate the flow of materials.
Result: impressive economies of scale were achieved.
-> Price to produce a gallon of Oil Dropped whilst profitability increased
0.53/gallon to 1.003/gallon.
-> Structure of these firm quickly become oligopolistic.
UK: During WW2, các ty lớn (obligopoly) vẫn chiếm phần lớn. Family/owners đưa ra hết các quyết định. Oligopolies vẫn đạt nhiều lợi nhuận. Managerial enterprise đến vs Entrepreneur UK để có mass production.
Prolong family capitalism
Germany: Các cty rất lớn đã tồn tại trước WW1(unlike UK), tập trung vào chemicals, machinery. Had managerial hierarchy even larger than those of the American firm.
Prolong Finance capitalism
Japan: Sự lớn mạnh của nền kinh tế ko đủ cho managerial enterprise, Large industry enterprise ở Nhật phát triển rất khác so vs các nc phương tây. Japan chậm trễ hơn so vs các nc khác.
Prolong Group capitalism
Ông nói gì addition về R&D:
- business system
- Finance institution
- Management system
- Operating in a system where is encourage.
- Business eco system
- Economy within which to work
- Marketing environment.
R&D is not the only aspect to gain successful, but many more aspects.
Chandler (1984) studied Du Pont in USA.
To coordinate movement of goods over the new railroad systems and flow of trade and the growing of retail structure.
M-form: decentralisation of decision.
- Faster-respond quicker to changes in the market
- Decision are taken specifically with the context in mind.
- Kuznets: science and technology define modern economic growth.
- Weber: Explains a very close relationship between the gain from regularised rational growth and scientific methods.
- Chandler: notes that technology breakthroughs were the generator of new industries, driving productivity in different economies.
- Schumpter: scientific knowledge is not enough. How r we going to change scientific knowledge to maximise capital gain