BA 1100 Lecture Notes - Lecture 12: Vertical Integration, Diamond Match Company, Oligopoly
8 Sep 2016
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Why the visible hand: before 1850 and after 1850 (two eras of business) Before 1850: owned and operated by the same person in one location, focused on one type of product. Cotton, provisions, wheat, dry goods, hardware, drugs: focused on one piece of distribution chain. Retailing, wholesaling, importing, exporting: corporate structure, accounting techniques. Double entry book keeping: all business relationships existed through families. After 1850: era instigated by the invention of railroads. Need the people that know outside the families: business began to structure among modern lines, mass production. Managing the resources we already have, and take the most out of it. Spurs the creation of sales teams, advertising and branding techniques. Advertising not changing your product and just advertise it: major brands. American tobacco, diamond match, quaker oats, pillsbury flour, campbell. Soup, heinz, borden, carnation, libby, procter & gamble, and kodak. Why these few leaders succeed: organization made them successful, oligopoly.
