1/28 Class

Question 1

innovators

Answer 1

entrepreneur, who is making new things

eager to utilize his opinion of the future

Question 2

role of individual

Answer 2

..

Question 3

gilded age

Answer 3

…

Question 4

ropes of sand

Answer 4

term refers to early efforts by firms to merge or informally or divvy up the market

Question 5

Great Merger Movement

Answer 5

4207 large firms consolidated into 250ish

Question 6

Alfred Chandler

Answer 6

emphasizes vertical integration, centralized shifts
mergers were the inevitable result of bigness chasing efficiency gains
visible hand of the corp replaced the invisible hand of the market; admin coordination replaced market coordination
tech and vertical integration were paramount
effort to move beyond robber baron approach to the period that focused on the great business leaders, Carnegie, etc
Overall, positives outweighed the negatives
implication: monopolies are efficient
only firms who innovate will survive

Question 7

Chandler critics

Answer 7

he is a tehnological determinist
sherman antitrust act encouraged mergers
depression beginning in 1893 was key
overproduction and depression led to brutal pricing wars and thus impetus to merge
mergers were not inevitable; they were not done for efficiency’s sake but to gain market control
bankers called the shots
mergers were often purely horizontal
often occurred when products were undifferentiated commodities (one match is like any other)
mergers occurred mostly in high fixed cost industries that went through rapid growth and then leveled off

Question 8

legacy of the merge movement

Answer 8

…

Question 9

normative control

Answer 9

control by giving benefits to make people do better

Question 10

rationalized control

Answer 10

getting the employee to assume risk and be creative,