MGMT 1030 Chapter Notes - Chapter Essay: Making Money, Electric Machine, Courtaulds
23 Jan 2018
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In some industries primary way1 to increase output- add more workers and machines: other, improve and rearrange inputs (pg. 480: first set of industries- labour intensive, second set- capital intensive, second set- technology permitted much greater economies of scale (cost advantage, cost per unit decreased as volume increased. In capital incentive, throughput needed to maintain the minimum efficient scale requires careful coordination of flow through processes of production, flow of inputs from suppliers and flow of outputs to retailers. This demands managerial hierarchy: economies depends on human organization to exploit the potential of technological processes. In 1890s the second industrial revolution brought sharp decrease in costs: a few plants had level of output so high they global and national demand could be met, these industries became oligopolistic. First, technology of production in which realization of potential scale economies and maintenance of quality control demanded close and constant coordination and supervision of material flows.
