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The Enduring Logic of Industrial Success
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The Enduring Logic of Industrial Success
Small is Beautiful
by Alfred D. Chandler
by Schumacher
Proliferation & big is not ALWAYS good
Managerial Enterprise:
- large units tend to break up into smaller units
large industrial concerns in which
decisions are made by a hierarchy
of managers
Not every big country is rich
- cost reduction by economies of scale & scope
To compete globally you have to be
small
sized industry is more competitive
- invest in marketing, distribution, and management -> competitive advantage
Increasing number of prosperous businesses organized in smaller units
BIG
- eg. GM - a federation of small firms
VS
Duality of the human requirement
- freedom of lots of small autonomous units
- organization and unity at a large scale
become a first mover
-> structure of industries
Compartmentalization
to get things sorted need compartmentalization
-> scale depends on purpose
Footloose
diversification -> restructuring
- due to highly developed transportation and communication -> mobility -> vulnerability
- greater size = more affected
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