Chapter 1: Early 19th Century - Mid 19th Century: The Antebellum Organization
What was the general state of transportation infrastructure during the Antebellum period?
Poor, with high transportation costs and limited, unreliable road networks.
What two key inventions connected previously isolated markets, enabling the rise of larger corporations?
Railroads and telegraphs.
In the late 20th century, did companies begin to rely more on internal development or external hiring for management roles?
External hiring.
Were businesses in the Antebellum period more likely to be small and independent or large and cooperative?
Small and independent, with a focus on nearby markets.
What is one main advantage that Chandlerian firms achieved through vertical integration?
Control over the supply chain, ensuring stability and reducing reliance on external
What is one consequence of companies shifting to market-based coordination and away from internal development?
Reduced employee loyalty and continuity in leadership, as companies focused more on short-term needs than long-term development.
Describe the nature of economic coordination in the Antebellum period. Was it market-based or managerial?
It was market-based, relying on decentralized decisions driven by supply and demand.
What is the multidivisional structure (M-Form), and why was it important for large firms?
The M-Form is an organizational structure that divides a company into semi-autonomous divisions based on products or markets, allowing for specialized management while maintaining central oversight.
What is the “Vanishing Hand” concept, and how does it contrast with Chandler’s “Visible Hand”?
The “Vanishing Hand” refers to the shift back to market-based coordination, where companies increasingly rely on external suppliers and modular production, contrasting with Chandler’s “Visible Hand” of managerial control in vertically integrated firms.