By Alfred D. Chandler
"Scale and Scope" is Alfred Chandler's first significant paintings considering the fact that his Pulitzer prize-winning "The obvious Hand". Representing ten years of study into the heritage of the managerial company method, this publication concentrates on styles of development and competitiveness within the US, Germany, and nice Britain, tracing the evolution of enormous organisations into multinational giants and orienting the overdue twentieth century's most crucial advancements.
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Additional info for Scale and Scope: The Dynamics of Industrial Capitalism
The purpose was not to obtain control over the industry's output: the alliance, a loose federation of forty companies, each with its own legal and administrative identity but tied to Scale, Scope, and Organizational Capabilities 25 John D. Rockefeller's Standard Oil Company through interchange of stock and other financial devices, already had a monopoly. At that time, in fact, the members of the alliance produced 90% of America's output of kerosene. 6 Instead, the Standard Oil Trust was formed to provide a legal instrument to rationalize the industry and exploit economies of scale more fully.
A ~ g Finance Legal Staff ~ Executive Committee s:: 0) g-a -·0 cg; 0-t oo TT Chief Executive Officer Board of Directors Scale, Scope, and Organizational Capabilities 17 to markets and supplies or to prevent competitors from obtaining such access, to obtain control over competitors, to eliminate competition in other ways, or merely to reinvest retained earnings. In more recent years financial reasons have played a role: to improve the firm's overall tax position, to alter the price of its securities, to carry out other financial manipulations, or merely to extend its portfolio of investments.
These concepts and generalizations are then used to develop an explanatory theory concerning the beginnings and continuing evolution of the modem industrial enterprise. In the concluding section to the volume, I draw together its underlying themesparticularly those that explain the dynamics of industrial capitalism-and then relate these themes to the evolution of the modem industrial enterprise after World War II. In between, I concentrate not on the similarities but on the differences. I describe the differences and demonstrate how they support the generalizations and explanatory theory developed in Chapter 2.