Somewhat similarly, the great meat packing houses Steel and manufactured finished products, and shipped the products Ore from the ground, transported it to its mills, turned it into Integrated vertically, it brought together various phases in the Prior to the Civil War, merchants, wholesalers,Īnd manufacturers tended to specialize in a single operation.īut the late 19th century, greatly expanded their rangeĭuring the late 19th century, businesses typically grewĪs a result of vertical and horizontal integration. Of locations, the new corporations also engaged in more kinds In addition to carrying out business in an increasing number As early as 1900, General Electric had plants New corporate enterprises carried out their functions in widely Most sales were made to customers in the immediate area. Before the 1880s, mostįirms operated in a single town from a single office or factory. Yet another sweeping change in business operation was the corporation's Unlike the older middle class, which consisted ofįarmers, shopkeepers, and independent professionals, the new middleĬlass was made up of white collar employees of corporations. The managerial revolution helped to create a "new"
Were devised, and formal rules were created to govern the company's Various levels of managers were established, clear lines of authority To address this challenge, businesses created formalĪdministrative structures, such as purchasing and accounting departments. A business' success increasingly depended on centralĬoordination. To insure honesty in aĭistant office, a merchant might staff it with a relative.Īs businesses grew larger, new bureaucratic hierarchies were Usually involved only a few partners and clerks. Little in the way of management and administration. In the days before big business, business operations required Within corporations, a management revolution took place.
THE CATTLE INDUSTRY BECAME BIG BUSINESS PROFESSIONAL
In the modernĬorporation, actual management was increasingly turned over to professional Before the Civil War, almost allīusinesses were owned and managed by the same people. Late 19th century and earlier businesses lies in the systems Rockefeller's Standard Oil Company was worth $600 millionĪnother contrast between the new corporate enterprises of the Even the largest textile factories represented less than a million dollars in investment. As late as 1880, the average factory had less than $1,800 in investment. As a result, most businesses represented the wealth of only a few individuals. The typical business establishment before the 1870s was financed by a single person or by several people bound together in a partnership. The most obvious contrast involved the corporation's larger size and capitalization. Digital History Printable Version The Corporate Revolutionĭuring the late 19th century, a radical transformation took place in the way in which American business was structured and operated.
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