LOGO Chapter 1 The Evolution Of The Modern Firm 主主主 主主主 : : 主主主主 主主主主
LOGO
Chapter 1The Evolution Of The Modern Firm
主講人主講人 :: 趙琪老師趙琪老師
The Word In 1840
Doing Business in 1840John’s DecisionWhat did impact John’s Decisions?InformationJohn’s risk attitude and ability (personal role selection)
The Determinants of Industrial Scale and Structure
Risk and information
Output uncertainty
1.The willing to invest by their own resource2.Banks’ willing to finance business expansion
Small firms
Conditions in Business in 1840 : Life Without a Modern Infrastructure
Transportations railroad (case 1. The Emergence of Chicago) waterwayCommunications post telegraphFinance
Production Technology unstandardized small firmsGovernment public infrastructure
The Emergence of Chicago Figure 1.1
Case 1
Summary
Infrastructure
Extended demand and technology development
High speed and high volume production and
distribution
Change organization and coordination
Transaction costs down
The Word In 1910
Doing Business in 1910
Integration
Large firms
Professional managers
Organizational hierarchy
Business Condition in1910: A “Modern” Infrastructure
Production Technology Vertical integration Scale economic Horizontal integration scope economicTransportation Infrastructure throughput production capacity expansionCommunications M-form firms division and professional managers
coordination and control problems (1)overexpansion: (2)bureaucracy
FinanceGovernment Professional manager demand education market
MBA/university
Case 2
Responding to the business environment: The case of American whaling
*No advantage from revolutionizing technology
*Demand and competition*Risk*No scale economic for production &
distribution
The World Today Doing Business Today *Market niche strategy *Diversity: Distribution channel, skill, and acquire
Antitrust *SBU *Matrix Structure coordination * Function outsourcing The Infrastructure Today
Transportation Automobile and Air Way Better coordination Communication Fax and Internet Finance Cost and managerial accounting Activity-based accounting Production Technology CAD/CAM: customizing, high quality, and low cost Government Relax the regulation Regional free trade zone
Case 3
Evolution of the steel industry*Early age: vertical integration
Competitive disadvantage: Specific assets
*Modern age: Heavy Light Competitive advantage: Minimill advantage
Infrastructure in Emerging Markets
Infrastructure in Emerging Markets
Economic gyrations and traffic gridlock
in Thailand
Case 4
Summary
Coordination Vertical integration
Three Different World:
Consistent Principles, Changing Conditions,
and Adaptive Strategies.*Make: 1910 1.Scale economic accessibility Firms
were willing to invest 2.Poor infrastructure Coordination
difficulty Hierarchy control
*Buy:1.1840 (1)No scale economic (2)Poor infrastructure Limited
market size2.Today Infrastructure coordination cost
outsourcing function
Case 5
Infrastructure and emerging markets:The Russian Privatization Program*Goal conflict between manager and
employees*No incentive
Example1.5
Building national infrastructure: The transcontinental railroad.
Example1.6
The risks of modernity :The Halifax .
Example1.7
Parties, Scandals, and DirectorsBehaving Badly: After the ball.
Example1.8
Blaming Wal-Market: The Prequel.