The Multidivisional corporation
3 important questions on The Multidivisional corporation
Why M-form? Due to factors...
- Drop of GNP and aggregate demand in 1930s
- Firms were no longer able to count exclusively on external factors
- Managers had to get rid of a surplus of internal resources or make better use of them
- Growth in R&D
- Firms were no longer able to count exclusively on external factors
- Managers had to get rid of a surplus of internal resources or make better use of them
- Growth in R&D
When FM overtook Ford, meaning was clear:
strong professional management and a well-designed administrative structure were key components in maintaining a large firm’s competitiveness.
Rathenau observed two types of shareholders:
- Those who have made a permanent investment of their capital (
in line with the management ) - Those who acquire shares purely for speculative reasons (
a threat because only interested in the short term gains. )
in line with the management ) - Those who acquire shares purely for speculative reasons (
a threat because only interested in the short term gains. )
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