Strategy and Structure: Chapters in the History of the American Industrial Enterprise / Edition 1

Strategy and Structure: Chapters in the History of the American Industrial Enterprise / Edition 1

by Alfred D. Chandler
     
 

ISBN-10: 0262530090

ISBN-13: 9780262530095

Pub. Date: 01/04/1994

Publisher: MIT Press

This book shows how the seventy largest corporations in America have dealt with a single economic problem: the effective administration of an expanding business. The author summarizes the history of the expansion of the nation's largest industries during the past hundred years and then examines in depth the modern decentralized corporate structure as it was

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Overview

This book shows how the seventy largest corporations in America have dealt with a single economic problem: the effective administration of an expanding business. The author summarizes the history of the expansion of the nation's largest industries during the past hundred years and then examines in depth the modern decentralized corporate structure as it was developed independently by four companies -- du Pont, General Motors, Standard Oil (New Jersey), and Sears, Roebuck.
This 1990 reprint includes a new introduction by the author.

The MIT Press

Product Details

ISBN-13:
9780262530095
Publisher:
MIT Press
Publication date:
01/04/1994
Edition description:
Reprint
Pages:
480
Product dimensions:
5.25(w) x 8.00(h) x 1.00(d)
Age Range:
18 Years

Table of Contents

Introduction--Strategy and Structure1
Motives and Methods1
Some General Propositions7
1Historical Setting19
The Beginnings of Business Administration in the United States20
The Coming of the Integrated, Multidepartmental Enterprise24
Integration via Combination and Consolidation29
Organization Building36
Further Growth--The Coming of the Multidivisional Enterprise42
2Du Pont--Creating the Autonomous Divisions52
The Centralized Structure52
The Strategy of Consolidation53
Creating the Multidepartmental Structure57
Structural Modifications--1903-191962
Further Centralization--191967
The Strategy of Diversification78
Initial Steps Toward Diversification79
Intensified Pressures for Diversification83
The Final Definition of the Strategy of Diversification88
New Structure for the New Strategy91
New Problems Created by New Strategy92
The Problems Analyzed94
A New Structure Proposed and Rejected96
A Compromise Structure Adopted100
Crisis and the Acceptance of the Multidivisional Structure104
3General Motors--Creating the General Office114
The Durant Strategy114
The Sources of Durant's Strategy115
The Creation of General Motors118
The Storrow Regime120
Durant's Return and Renewed Expansion and Integration122
Du Pont Contributions to Durant's Organization125
The Crisis of 1920128
The Sloan Structure130
The Sources of Sloan's Structure130
The "Organization Study"133
Minor Modifications140
Putting the New Structure into Operation142
Defining Divisional Boundaries142
The Development of Statistical and Financial Controls145
Defining the Role of the Advisory Staff153
The Role of the Executive Committee157
The Finished Structure158
A Comparison of Organization Building at General Motors and du Pont161
4Standard Oil Company (New Jersey)--Ad Hoc Reorganization163
Structure and Strategy Before 1925164
The Strategy of Vertical Integration and Continued Expansion170
Vertical Integration and the Creation of New Functional Departments172
Expansion and the Older Departments175
The Growth of Staff Departments177
The Board181
Initial Awareness of Structural Weaknesses182
The Initial Reorganization--1925-1926185
Teagle's Troubles186
The 1925 "Program"188
The Coordination Department and Committee189
The Budget Department and Committee193
Reorganizing the Marketing Department196
Reorganizing the Manufacturing Department199
The Creation of the Multidivisional, "Decentralized" Structure205
Continuing Difficulties205
The 1927 Changes208
Working Out the New Structure216
Some Final Considerations221
5Sears, Roebuck and Company--Decentralization, Planned and Unplanned225
Changing Strategy and Structure225
Initial Strategy and Structure226
The New Strategy233
Structural Strains Created by the New Strategy237
Abortive Decentralization241
The Frazer Committee242
The Committee's Proposals243
Carrying Out the Committee's Proposals249
Frazer Reviews the New Structure252
Continuing Conflict and Resulting Proposals253
The Territorial Organization Scrapped260
Evolutionary Decentralization261
The Centralized Retail Organization261
Decentralization of the Retail Organization265
The Growth of Local Regional Administrative Units267
The Return to the Territorial Organization268
The Final Structure276
6Organizational Innovation--A Comparative Analysis283
The Adaptive Response284
Building the Functional Departments285
Building the Central Office290
The Creative Innovation299
The Conditions for Innovation299
The Process of Innovation303
The Significance of the Innovation309
Organizational Innovators314
An Organization Builder's Personality and Training315
Sources of Information320
7The Spread of the Multidivisional Structure324
Industries Not Accepting the New Structure326
Copper and Nickel327
Steel331
Aluminum337
Materials340
Industries Partially Accepting the New Structure342
Processors of Agricultural Products344
Rubber350
Petroleum352
Industries Widely Accepting the New Structure362
Electrical and Electronics363
Power Machinery and Automobiles370
Chemicals374
Variations on Structural Change378
The Merchandising Enterprises378
Summary of the Process of Structural Change within the Enterprise380
Conclusion--Chapters in the History of the Great Industrial Enterprise380
The First Chapter--Accumulating Resources386
The Second Chapter--Rationalizing the Use of Resources387
The Third Chapter--Continued Growth390
The Fourth Chapter--Rationalizing the Use of Expanding Resources393
References397
Notes399
Index455

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