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Strategy and Structure: Chapters in the History of the American Industrial Enterprise Strategy and Structure: Chapters in the History of the American Industrial Enterprise
By Alfred D. Chandler, Jr.
2003/11 - Beard Books
158798198X - Paperback - Reprint -  479 pp.
US$34.95

This book played an important role in establishing the field of strategy as a separate study and has had a wide influence on scholars in the field.

Publisher Comments

Categories: Banking & Finance  

This title is part of the Business Histories list.

Of interest:

Declining Demand, Divestiture, and Corporate Strategy

Joint Ventures, Alliances, and Corporate Strategy

Vertical Integration, Outsourcing, and Corporate Strategy

This 1962 classic investigates the changing strategy and structure of the large industrial enterprise in the United States. Focusing primarily on a study of General Motors, DuPont, Standard Oil of New Jersey, and Sears, Roebuck and Company, Chandler surmises that a business structure is, over time, determined by its strategy and that the common denominator of structure and strategy is the application of the enterprise's resources to market demand. The editors of Business History Review chose this book for the 1964 Thomas Newcomen Award in Business History.

No book reviews available.

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. He is the author of numerous renowned books, including another book reprinted by Beard Books, Pierre S. Dupont and the Making of the Modern Corporation.

Other Beard Books by Alfred D. Chandler Jr.:

INTRODUCTION -- STRATEGY AND STRUCTURE 1
Motives and Methods 1
Some General Propositions 7
1. HISTORICAL SETTING
The Beginnings of Business Administration in the United States 20
The Coming of the Integrated, Multidepartmental Enterprise 24
Integration via Combination and Consolidation 29
Organization Building 36
Further Growth -- The Coming of the Multidivisional Enterprise 42
2. DU PONT -- CREATING THE AUTONOMOUS DIVISIONS 52
The Centralized Structure 52
The Strategy of Consolidation 53
Creating the Multidepartmental Structure 57
Structural Modifications -- 1903-1919 62
Further Centralization -- 1919 67
The Strategy of Diversification 78
Initial Steps Toward Diversification 79
Intensified Pressures for Diversification 83
The Final Definition of the Strategy of Diversifications 88
New Structure for the New Strategy 91
New Problems Created by New Strategy 92
The Problems Analyzed 94
A New Structure Proposed and Rejected 96
A Compromise Structure Adopted 100
Crisis and the Acceptance of the Multidivisional Structure 104
3. GENERAL MOTORS -- CREATING THE GENERAL OFFICE 114
The Durant Strategy 114
The Sources of Durant's Strategy 115
The Creation of General Motors 118
The Storrow Regime 120
Durant's Return and Renewed Expansion and Integration 122
Du Pont Contributions to Durant's Organization 125
The Crisis of 1920 128
The Sloan Structure 130
The Sources of Sloan's Structure 130
The "Organization Study" 133
Minor Modifications 140
Putting the New Structure into Operation 142
Defining Divisional Boundaries 142
The Development of Statistical and Financial Controls 145
Defining the Role of the Advisory Staff 153
The Role of the Executive Committee 157
The Finished Structure 158
A Comparison of Organization Building at General Motors and du Pont 161
4. STANDARD OIL COMPANY (NEW JERSEY) -- AD HOC REORGANIZATION 163
Structure and Strategy Before 1975 164
The Strategy of Vertical Integration and Continued Expansion 170
Vertical Integration and the Creation of New Functional Departments 172
Expansion and the Older Departments 175
The Growth of Staff Departments 177
The Board 181
Initial Awareness of Structural Weaknesses 182
The Initial Reorganization -- 1925-1926 185
Teagle's Troubles 186
The 1925 "Program" 188
The Coordination Department and Committee 189
The Budget Department and Committee 193
Reorganizing the Marketing Department 196
Reorganizing the Manufacturing Department 199
The Creation of the Multidivisional, "Decentralized" Structure 205
Continuing Difficulties 205
The 1927 Changes 208
Working Out the New Structure 216
Some Final Considerations 221
5. SEARS, ROEBUCK AND COMPANY -- DECENTRALIZATION, PLANNED AND UNPLANNED 225
Changing Strategy and Structure 225
Initial Strategy and Structure 226
The New Strategy 233
Structural Strains Created by the New Strategy 237
Abortive Decentralization 241
The Frazer Committee 242
The Committee's Proposal 243
Carrying Out the Committee's Proposals 249
Frazer Reviews the New Structure 252
Continuing Conflict and Resulting Proposals 253
The Territorial Organization Scrapped 260
Evolutionary Decentralization 261
The Centralized Retail Organization 261
Decentralization of the Retail Organizations 265
The Growth of Local Regional Administrative Units 267
The Return to the Territorial Organization 268
The Final Structure 276
6. ORGANIZATIONAL INNOVATION -- A COMPARATIVE ANALYSIS 283
The Adaptive Response 284
Building the Functional Departments 285
Building the Central Office 290
The Creative Innovation 299
The Conditions for Innovation 299
The Process of Innovation 303
The Significance of the Innovation 309
Organizational Innovators 314
An Organization Builder's Personality and Training 315
Sources of Information 320
7. THE SPREAD OF THE MULTIDIVISIONAL STRUCTURE 324
Industries Not Accepting the New Structure 326
Copper and Nickel 327
Steel 331
Aluminum 337
Materials 340
Industries Partially Accepting the New Structure 342
Processors of Agricultural Products 344
Rubber 350
Petroleum 352
Industries Widely Accepting the New Structure 362
Electrical and Electronics 363
Power Machinery and Automobiles 370
Chemicals 374
Variations on Structural Change 378
The Merchandising Enterprises 378
Summary of the Process of Structural Change within the Enterprise 380
 CONCLUSION -- CHAPTERS IN THE HISTORY OF THE GREAT INDUSTRIAL ENTERPRISE 380
The First Chapter -- Accumulating Resources 385
The Second Chapter-- Rationalizing Use of Resources 387
The Third Chapter -- Continued Growth 390
The Fourth Chapter -- Rationalizing the Use of Expanding Resources 393
REFERENCES 397
NOTES 399
INDEX 455

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