By Leslie Hannah
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Additional resources for Management Strategy and Business Development: An Historical and Comparative Study
Sample text
Bliss and Merganthaler Linotype. These three types of firms had many similarities. 8 When they did buy another company, they incorporated its activities into their own centralised functionally departmentalised structure. Nearly all financed their expansion out of retained earnings. And because they were financed from within, these builders and their families continued to control the stock in these firms. They remained entrepreneurial enterprises for a generation and often even longer. The other route to size was through the merger of a large number of small, single function manufacturing firms.
The general service and financial staffs, though extensive, were usually smaller and less comprehensive than those in the United States. Thus, although there were some differences in divisional organisation and activities, the basic contrast in the operation of the multidivisional form in the two nations has come in the make-up and functions of the general office. 3 For this reason over-all control and planning has been less extensive and less sophisticated in British than in American multidivisional enterprises.
In fact, the British metal making and metal working enterprises were integrated to a greater degree than those of the United States. There, except for United States Steel and Bethlehem, the metal makers did not yet produce fabricated and other finished products; and shipbuilders, machinery makers and other metal fabricators did not manufacture their own metal. Yet the British firms failed to create a centralised administrative structure to manage their sea ttered properties similar to those set up by Bethlehem, Jones & Laughlin, and Republic in the early years of the century.