Chandler's claims for superiority of managerial capitalism' are Essay

Chandler's claims for superiority of managerial capitalism' are specific to a particular time and place and cannot be generalized disscuss - Essay Example 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 Ð ¾f economies Ð ¾f scale and scope in the processes Ð ¾f 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 Ð ¾f commission agents and the growth Ð ¾f full line, full service wholesalers and mass retailers is not entirely clear from Chandlers analysis.[1] Many Ð ¾f the names Ð ¾f the mass retailers that emerged after the Civil War are still familiar today and include Macys, 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 laying down Ð ¾f railroad and telegraph systems precipitated a wave Ð ¾f industrial innovation in Western Europe and the United States far more wide ranging than that which had occurred in Britain at the end Ð ¾f 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, fibres, fertilizers, and food processing. But for the potential Ð ¾f these innovations to be realized, entrepreneurs had to make the three pronged investment. [2] In industries where only one or two pioneering enterprises made the three pronged investment, these enterprises quickly dominated the market. More Ð ¾ften, however, the modern industrial enterprise in the United States appeared after merger or acquisition (p.