Large quantities more advantageous large scale buying

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large quantities more advantageous-Large-scale buying, routing of raw materials, plant location in relation to materials and markets kept costs even lower-Integrated companies dominated America’s industries by 20thcentury-James Buchanan creation of machines for cigarettes that produced much more than average worker allowed him to focus on marketing, purchasing and storing of raw materials-Rockefeller, founder of Standard Oil-Holding companies to tied industrial company to stock market, amount of capital traded went from millions to billions in one decade in 1903 – Carnegie Steel-Social Darwinism of Herbert Spencer, supported by Rockefeller, opposed state intervention -New companies changed society, society soon adopted labor unions -For producer goods industry, focused more on control of sources of supply, making semi-finished goods from raw materials so produced uniform goods for less customers-Oil industry with Rockefeller, Steel industry with Carnegie-For finished producer goods industry, control over price and production more of a motive in combination-Machinery makers purchased departments to make parts, vital to assembly, only took small portion of output and sold rest -Henry Ford insisted on controlling raw materials, integrating from mine to market-Natural and physical sciences developed new processes and products-Industries affected by new sources of power (electricity and internal combustion engine) had major innovations after 1900-Leading integrated industrial corporations had central headquarters, made major policy decisions, evaluated performance of departments and production-Executives became specialists in one function (sales, purchasing, finance)
-1890 Sherman Antitrust Act defined monopolies, didn’t set how to punish/prevent them-The company became participant in politics, more representative of economic interests than state-Companies embraced philanthropy, Carnegie built public libraries -Companies could enter society if they had obligations to society, founding universities and serving on public boards-The large scale of companies created barriers for others to enter without space for additional capacity, reason why few companies dominated industries
-Late 19thand early 20thcentury, teams of salaried managers made decisions regarding production and goods-Managerial hierarchies appeared in 1850s to coordinate movement of trains and flow of goods over railroads-Then used to manage retailing establishments (ex. Mail orders)-Emergence of managerial capitalism can be seen through integrated industrial enterprises-In Europe, US, Japan, they clustered in same industries, became large by integrating forward (marketing, distribution), then into controlling raw material, sometimes investing in research and development-Enterprises grew through mass production, volume distribution, mass production is attribute of specific technologies-In capital intensive industries, technology allowed for much greater economies of scale, greater cost advantage

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