Political Science 2211E Study Guide - Oligopoly, Life Insurance, National Bank Act
21 Feb 2013
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Document Summary
The visible hand the maturing of modern business enterprise . World war i marks the turning point of development of modern business enterprise in the usa. Three significant developments complete the history of modern business enterprise development: Revealed weakness in the organizational structures of large industrial enterprise. New large industrial and marketing enterprises introduced professionalization of management. Today"s modern businesses were shaped by institutional changes since world war i. Lack of ability to adjust flows readily to fulfill changes in demand. Very few firms adjusted inventory quickly enough. Failure of top managers to plan effectively. Senior executives did not make plans to handle slump in demand and only focused on day-to- day operations. Ford passed the burden of slackening demand to the dealers by forcing them to buy and pay for cars they could not sell by threatening to cancel their franchises. Many corporations had to write down the value of their overstocked inventory (i. e. gm)
