Strategy and Structure Chapters in the History of the American Industrial Enterprise

by Chandler, Alfred D.

Edition: Reprint

ISBN13: 9780262530095

ISBN10: 0262530090

Format: Paperback

Pub. Date: 1969-08-15

Publisher(s): The MIT Press

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Summary

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.

Author Biography

Alfred D. Chandler, Jr., received an A.B. in 1940 and a Ph.D. in 1952 from Harvard University. He is the Isidor Straus Professor of Business History, Emeritus, at Harvard Business School, where he has taught since 1970.

Introduction--Strategy and Structure	p. 1
Motives and Methods	p. 1
Some General Propositions	p. 7
Historical Setting	p. 19
The Beginnings of Business Administration in the United States	p. 20
The Coming of the Integrated, Multidepartmental Enterprise	p. 24
Integration via Combination and Consolidation	p. 29
Organization Building	p. 36
Further Growth--The Coming of the Multidivisional Enterprise	p. 42
Du Pont--Creating the Autonomous Divisions	p. 52
The Centralized Structure	p. 52
The Strategy of Consolidation	p. 53
Creating the Multidepartmental Structure	p. 57
Structural Modifications--1903-1919	p. 62
Further Centralization--1919	p. 67
The Strategy of Diversification	p. 78
Initial Steps Toward Diversification	p. 79
Intensified Pressures for Diversification	p. 83
The Final Definition of the Strategy of Diversification	p. 88
New Structure for the New Strategy	p. 91
New Problems Created by New Strategy	p. 92
The Problems Analyzed	p. 94
A New Structure Proposed and Rejected	p. 96
A Compromise Structure Adopted	p. 100
Crisis and the Acceptance of the Multidivisional Structure	p. 104
General Motors--Creating the General Office	p. 114
The Durant Strategy	p. 114
The Sources of Durant's Strategy	p. 115
The Creation of General Motors	p. 118
The Storrow Regime	p. 120
Durant's Return and Renewed Expansion and Integration	p. 122
Du Pont Contributions to Durant's Organization	p. 125
The Crisis of 1920	p. 128
The Sloan Structure	p. 130
The Sources of Sloan's Structure	p. 130
The "Organization Study"	p. 133
Minor Modifications	p. 140
Putting the New Structure into Operation	p. 142
Defining Divisional Boundaries	p. 142
The Development of Statistical and Financial Controls	p. 145
Defining the Role of the Advisory Staff	p. 153
The Role of the Executive Committee	p. 157
The Finished Structure	p. 158
A Comparison of Organization Building at General Motors and du Pont	p. 161
Standard Oil Company (New Jersey)--Ad Hoc Reorganization	p. 163
Structure and Strategy Before 1925	p. 164
The Strategy of Vertical Integration and Continued Expansion	p. 170
Vertical Integration and the Creation of New Functional Departments	p. 172
Expansion and the Older Departments	p. 175
The Growth of Staff Departments	p. 177
The Board	p. 181
Initial Awareness of Structural Weaknesses	p. 182
The Initial Reorganization--1925-1926	p. 185
Teagle's Troubles	p. 186
The 1925 "Program"	p. 188
The Coordination Department and Committee	p. 189
The Budget Department and Committee	p. 193
Reorganizing the Marketing Department	p. 196
Reorganizing the Manufacturing Department	p. 199
The Creation of the Multidivisional, "Decentralized" Structure	p. 205
Continuing Difficulties	p. 205
The 1927 Changes	p. 208
Working Out the New Structure	p. 216
Some Final Considerations	p. 221
Sears, Roebuck and Company--Decentralization, Planned and Unplanned	p. 225
Changing Strategy and Structure	p. 225
Initial Strategy and Structure	p. 226
The New Strategy	p. 233
Structural Strains Created by the New Strategy	p. 237
Abortive Decentralization	p. 241
The Frazer Committee	p. 242
The Committee's Proposals	p. 243
Carrying Out the Committee's Proposals	p. 249
Frazer Reviews the New Structure	p. 252
Continuing Conflict and Resulting Proposals	p. 253
The Territorial Organization Scrapped	p. 260
Evolutionary Decentralization	p. 261
The Centralized Retail Organization	p. 261
Decentralization of the Retail Organization	p. 265
The Growth of Local Regional Administrative Units	p. 267
The Return to the Territorial Organization	p. 268
The Final Structure	p. 276
Organizational Innovation--A Comparative Analysis	p. 283
The Adaptive Response	p. 284
Building the Functional Departments	p. 285
Building the Central Office	p. 290
The Creative Innovation	p. 299
The Conditions for Innovation	p. 299
The Process of Innovation	p. 303
The Significance of the Innovation	p. 309
Organizational Innovators	p. 314
An Organization Builder's Personality and Training	p. 315
Sources of Information	p. 320
The Spread of the Multidivisional Structure	p. 324
Industries Not Accepting the New Structure	p. 326
Copper and Nickel	p. 327
Steel	p. 331
Aluminum	p. 337
Materials	p. 340
Industries Partially Accepting the New Structure	p. 342
Processors of Agricultural Products	p. 344
Rubber	p. 350
Petroleum	p. 352
Industries Widely Accepting the New Structure	p. 362
Electrical and Electronics	p. 363
Power Machinery and Automobiles	p. 370
Chemicals	p. 374
Variations on Structural Change	p. 378
The Merchandising Enterprises	p. 378
Summary of the Process of Structural Change within the Enterprise	p. 380
Conclusion--Chapters in the History of the Great Industrial Enterprise	p. 380
The First Chapter--Accumulating Resources	p. 386
The Second Chapter--Rationalizing the Use of Resources	p. 387
The Third Chapter--Continued Growth	p. 390
The Fourth Chapter--Rationalizing the Use of Expanding Resources	p. 393
References	p. 397
Notes	p. 399
Index	p. 455
Table of Contents provided by Ingram. All Rights Reserved.

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Strategy and Structure Chapters in the History of the American Industrial Enterprise

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Strategy and Structure Chapters in the History of the American Industrial Enterprise

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