Farm implements manufacturing plant in british empire

Info icon This preview shows pages 8–10. Sign up to view the full content.

View Full Document Right Arrow Icon
farm-implements manufacturing plant in British empire, located at 915 king street west Domestic rivalry and consolidation One of the company’s concern was the growing number of Canadian farm-implements makers who operated on minimal profit margins The rival firm of Harris was also aggressive in its pricing and distribution tactics, many marginal implement makers were eliminated and the process of consolidation started. They decided that acquisition was the best route and bought their competitor(Toronto Reaper and Mower) so that they could double their manufacturing capacity The acquisition gave Massey firm the right to make lighter binders Later Harrison’s light binder was competing with Massey’s The tariff MacDonald’s National Policy promised higher tariffs, including 35 percent on some import, and expanded list of products to which the tariff would apply
Image of page 8

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Tariff walls designed to protect Canadian steel and iron makers would increase the input costs for Massey, make the company less competitive in the international arena, and cut into profits Charles and his father decided they had to support MacDonald’s party and National Policy because of promised assurance on tariff paid by Massey on imported materials would be repaid by federal government Massey lashes out The national policy with high tariffs posed a challenge for Massey firm Hart pressed government ministers and made it clear that tariffs wall increased his inputs, and Massey would be less likely to efficiently compete in the export market, costing the firm both profits and jobs After MacDonald’s death the governing party reduced the tariff from 35 percent to 20 percent a reduction that had support of Hart Massey The Merger of Massey and Harris Massey and Harris established separate distribution networks across the country The duplication of 2 competing firms was seen as counterproductive Massey approached Harris to talk about a merger and became the Massey-Harris Company Achieved economies of scale by eliminating wasteful duplication Patterson-Wisner was merged 3 month after Massey-Harris and they posed a considerable threat because they are full line implement maker Later 4 firms merged and maintained Massey-Harris name resulting controlled 60 percent of domestic market Massey-Harris decided to continue focusing on exports rather than serving the western prairies The west the west started to grow and so there was demand for equipment and machinery Many American firms entered the west market as Massey-Harris was mainly occupied in Ontario and focused on exporting to other countries American firms located their operations in the mid-west close to prairie farmers and eventually eroded Massey-Harris market shares.
Image of page 9
Image of page 10
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern