essay- big businesses

essay- big businesses - Mehta 1 In order to industrialize...

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Mehta 1 In order to industrialize the United States successfully, people saw the need of big businesses. It was a radical change in how people in the United States had conducted commerce. It was important to create big businesses to reduce uncertainty and a quest for efficiency. Product standardization was one of the things that made consumers happy. It was achieved by producing products through machines instead of manual power. Furthermore, machines have the capability to work 24 hours a day, where as human beings could only work for a limited period of time continuously. As big businesses grew, competition between businesses increased dramatically. They found opportunities to expand their business overseas by selling their products internationally. Government created many laws for businesses to be successful; however, businesses did not agree with all the laws that the government created and therefore, relations Wars, and the Great Depression. between businesses and the government changed during the Progressive Era, the Two World. There are 6 major characteristics of big businesses. First and one of the most important characteristics is that a big business must have economy of scale, which can occur when a business produces more products, and the cost per unit declines. However, a business can only achieve it by relying on machines and not on people because machines have higher workload capacity compared to the limited human working power. Second characteristic of big business is division of labor, meaning that a business must have layers of management like supervisor or manager. Therefore, the manager can make sure that the workers are doing their assigned jobs especially finishing a task on time. As a result, the business runs smoothly. Third characteristic of big business is vertical integration. It is a 3 step control: how the goods are made, how the goods are distributed, and source of the raw materials needed to make the goods. A business vertically integrates to control the quality of it’s goods, to make them cheaper and reduce the risk of doing
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Mehta 2 a business such as Starbucks . In contrast to vertical integration, horizontal integration is when only one business controls one step of the process like Exxon . Forth characteristic of big business is keeping accurate records. It is extremely important to keep accurate records in order to know if a business is making profit or loss. Fifth characteristic of big business is capital intensive industries, which are the industries that use machines to make goods. Sixth characteristic is corporate ownership and trusts, which are owned by investors, most are publicly owned. In addition, some can be owned by a person or a family. These characteristics of big businesses allow big businesses to have access to new markets and sell products internationally. Because
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essay- big businesses - Mehta 1 In order to industrialize...

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