Cha. 17 Industrial America: Corporations and Conflicts Flashcards
Gospel of Wealth
Andrew Carnegie argued that even though industrialization increased the gap between rich and poor, everyone’s standard of living rose.
“the poor enjoy what the rich could not before afford. What were the luxuries have become the necessaries of life.”
Management revolution
Systems which Managers gradually invented to solve problems: They distinguished top executives from many responsible for day-to-day operations. They departmentalized operations by function– purchasing, machinery, freight, traffic, passenger traffic.
Vertical integration
A model in which a company controlled all aspects of production from raw materials to finished goods.
Swift and Co
Book: The processing system that enabled Swift and other large packers to save money through high volume and deskilled labor.
Case: in which the Supreme Court ruled to break up the meatpacking trust on the grounds that manufacturing could be interstate commerce because its products moved into the stream of commerce. This overturned their previous decision that manufacturing was only intrastate.
Predatory pricing
A sales tactic which big packer slashed prices in certain markets to below production costs, driving independent distributors to the wall. With profits from its sales elsewhere, a large firm survive temporary losses in one locality until competitors went under.
Titusville, Pennsylvania
A place that a clean-buring fuel for domestic heating and lighting–from crude oil, enormous oil deposits were discovered.
John D. Rockefeller
King of petroleum石油. His firm–Standard Oil of Ohio was Cleveland’s leading refiner.
Horizontal integration
A strategy which drives competitors to the brink of failure through predatory pricing, then invites them to merge their local companies.
Trust
A new legal form which organized a small group of associates– the board of trustees– to hold stock from a groups of combined firms, managing them as a single entity实体.
J.P. Morgan
Who created U.S. Steel, the nation’s first billion-dollar corporation by purchasing several steel companies in 1901, including Carnegie Steel.
Research laboratories
Steelmakers invested in chemistry and materials science to make their products cheaper, better, and stronger.
Chain stores/F.W. Woolworth
which soon stretched nationwide
Department store/Macy’s
- which was pioneered in 1875 by John Wanamaker in Philadelphia.
- These megastores displaced small retail shops, tempting customers with large show windows and Christmas displays.
- They developed economies of scale that enabled them
Mail order companies/Sears
They used money-back guarantees to coax wary customers to buy products they could not see or touch.
Advertising
- The active shaping of consumer demand became in itself, a new enterprise.
- Rather than charging subscribers the cost of production, magazines began to cover their costs by selling ads.
- Cheaper subscriptions built a mass readership, which in turn attracted more advertiser.
White-collar workers
People who wore white shirts with starched collars and held professional positions in corporations
Middle managers (middle workers)
- People who directed the flow of goods, labor and information throughout the enterprise.
- They were key innovators, counterparts to the engineers in research laboratories who, in the same decades, worked to reduce costs and improv efficiency.
Sales psychology
Walt Dill Scott published his Scott’s principles which included selling to customers based on their presumed “instinct of escape” and “instinct of combat”—were soon taught at Harvard Business School. Others also promised that a “scientific attitude” would “attract attention” and “create desire.”
Female office workers
Since in a large corporation, secretarial work became a dead-end job, and employers began assigning it to women. For white working-class women, clerking and office work represented new opportunities. Clerking and secretarial work were clearer and better paid compare to domestic service and factory work.
Telephone operators
The rise of the telephone is one of the new technologies provide additional opportunities for women. Thousands of young women found work as telephone operators. Like other women office workers, these switchboard operators enjoyed relatively high pay and comfortable working conditions, especially in the early years of the telephone industry, before operators’ work routines speeded up.
Skilled workers
Before skilled workers retained considerable autonomy in many industries. Such workers abided遵守 by the stint定额工作量, a self-imposed limit on how much they would produce each day. However, the informal system of restricting output infuriated激怒 efficiency-minded engineers. A machinist promptly packed his tools, declaring that he had not “been brought up under such a system of slavery.”