stages in the historiography of anti-trust Rule of reason - only contracts and combinations unreasonably restraining trade are subject

t to antitrust laws, proof is difficult 1917 FTC investigation of the meatpacking industry emergence of managerial capitalism and mass consumption 1917-1918, investigated big 5 companies, found vertically integrated monopolies, monopoly in interstate trade (not local), real efficiencies (barriers to entry), no evidence of collusion or abuse of monopoly power, NO PROSECUTION as long as they did not collude, go into other areas, divest some assets OUTCOME: weak regulations, oligopolistic market structure left intact key elements of Sloan's strategy for dealing with GM crisis - interdivisional committee structure, management accounting system, centrally planned product strategy, multidivisional organizational structure Coordination challenges at GM-1920-2000 - Divisions did not work together no accounting not pricing, marketing different lines in rational/coordinated ways (fire sales) Alfred Chandler's "visible hand" - all about organizational structures and management strategies, not about people in charge (in contrast

with Carnegie) management function becoming professionalize, specialization, numbers, and support staff GM Acceptance Corp - early 1900s, provided GM dealers with the finance to maintain vehicle inventories and customers to purchase new vehicles easily and conveniently because with the advent of the assembly line, manufacturers wanted dealers to buy in large quantities to keep production going Corporate financial reporting 1900-1932 - imperfect information, fear of competition, accountants had a conflict in interest, caveat emptor New Deal regulation of securities industries - (1930s) big priority to stabilize, tied with banking industry, Securities Act of 1933 and 1934- annual reports/new stock offerings (info check), imperfect information not market, SEC to work with accounting New Deal industry regulation - relationship to managerial capitalism, attitudes toward monopoly and capitalism, regulations toward ruinous competition, fear of market, NIRA job creation/NRA, labor laws, businesses had to join an industry trade association, NRA unconstitutional/weak federal direction (PROBLEMS!) WW2 war mobilization - huge demand side stimulus, FDR negotiated w/ businesses on wartime production, govmt became "visible hand" of managerial capitalism, total control of economy

Peter Drucker's analysis of GM's analysis drucker wroter favorably on GMs structure stating the success of the company was due to not only the wkrings of their company through harmaony socially and professionally, there was decentralizing structure that provide them to become so efficient. There was also great coordination and a 2 way flow of HQ and its divisions. Sloan Meetings - to deal with the issues of GM there must be fast the issues at hand. They must know the inventory and financials, also here Sloan was able to find the people he knew will be wrking with him. 1920s Opportunity for Headquarters to understand divisional problems/dilemmas, special meetings, increased coordination "organizational man" ethos a novel written by William Whyte explain the social stigma coming from the office work that it has become meaningless and the belongness William Whyte, teamwork & cooperation, ethos of belongingness, social ethic, culture says its good, but Whyte says it fosters mediocrity, group think, lack in profit maximization scientism, Hawthorne experiment Estes Kefauver's Senate investigation - mid 1900s looked into management strategies of highly concentrated industries, price fixing, manipulation, non-competitive practices Kefauver says it results in higher costs and prices, excess capacity, less interest in tech innovation, opportunity for foreign competition

little reaction or concern pricing strategies of auto companies in 1950s - new management mentality-target profit rates, price leadership, attitudes toward market share welfare capitalism - 1920s higher wages, company unions, profit sharing, group insurance, pensions, employee cafeterias, recreational activities, health care clinics, corp motivation Wagner Act - 1935, unions weak before->turn around rules for union elections, created national labor relations board (nlrb), supervised labor practices, elections new union leadership focused on unskilled/organized factory strikes epitomized new management attitudes/new union powers(limits) new M-L relations GM Strike - epitomized new management attitudes/new union powers(limits) new M-L relations Union achievements in 1950s and 60s - came from a decade of strikes and confrontations with both sides breaking the law. had increasing visibility labor unity bargaining success (PENSIONS, WAGES, INSURANCE) no real partnership, control over work, management retains power huge economic stimulus into age of affluence 1969 University of Michigan study of AOL - prevent, limit publication of research on AOL and carcinogenic

effects, industry fear of public repercussions, bad marketing, possible regulations. The industry provided a great number of percentage in the market and with research that showed that exposure to the chemical can lead to cancer..they tried to cover up the results. 1962 Consumer Bill of Rights - Right to safety Right to a choice Right to know Right to be heard & to obtain redress Right to value to expect product to perform as advertised big SHIFT to social regulation by knowledge and industrial drivers ignores problems with big business Rachel Carson - 1962 big SHIFT to social regulation by knowledge and industrial drivers understandings popularized by her book Silent Spring Industry response by attacking Carson and marshaled own experts shows growing distrust in business Competitiveness crisis - 70s/80s "golden age ends" Japanese competition particularly awesome with better quality goods/management and lower prices crisis causes panic and blame competition comes from history, from the lack of domestic and international competition from

countries recovering from war in context of other (energy)crisis and union activism, social regulation/ environmental problems IMPACT: stagflation, shortages and managers, workers, consumers VS: mentality from before (Kefauver) US balance of trade with Japan in the 1970s - higher quality of goods, lower prices, better management systems --> the trade balance was the highest relative to the other nations causes competitive crisis relates to the Kafauver hearings OPEC oil embargo - started in 1973, whole supply side changes, economic shock, had to live with scarcity recession/stagflation, shortages, problems for manufacturers, workers, consumers Chrysler's problems in the late 1978 - during competitiveness crisis, problems with: organizational, financial, design, quality, market found by Lee Iacocca and solved by him Chrysler's bailout - even with Lee Iacocca's fixes to the company, they still needed finance they had opposition, but went to congress to have a hearing made an intense argument Iococca's "equality of sacrifice" strategy - refers to

the perceived fairness of a seemingly coercive policy Lee Iacocca lowered his wage tremendously before asking all of his employees to do the same in order to save Chrysler shows sincerity in wanting to save the company and not looking for a handout showed responsibility in commercial. With signature.the lowering of his own paycheck is very admirable. evolution of corporate management of public and government affairs in 70s/80s - massive corporation investment in public affais, governmental affairslobbying related to competitiveness crisis put onus of problem on unions and government framed social and environmental regulations as huge economic burden REAGAN, secured pro- business policies, blocked new social regulations Drivers behind globalization of US business in 1970s and 80 - competitive pressures (minimize costs, saturated U.S. markets), obtain benefits of host country incentives, trade agreements, fluctuating exchange rates, access to raw materials tech innovation foreign investment in the US/recession (broader context) foreign investment in US in late 1970s and 1980s "inward" "outward" foreign investment Japanese U.S. direct investment more and more

visible scared of losing control (competitive crisis) corporations and nation interest increasingly divorced Matrix corporate organizational structure 1970s globalization MNC management challenges function/product, divisional/whole company interests economies of scale, cultural, political, economic difference => structural adaptation, trial and error progression which looked for scope, flexibility, adaptability late 1970s-80s backlash against globalization of business - huge criticism on MNC exploitation goals contradicting profit maximizing investment not toward country poor are unhappy aspiring to be white impact on policy: local ownership laws, co-production agreements supply chain business model - related to competitiveness crisis changing supply chain management of functions, employees, vertical disintegration, relationships with independent suppliers, joint ventures, strategic alliances, licensing agreements manufacturing, r&d design work, assembly technology increases, quality, responsiveness, delivery, cost, environment

shift back to market capitalism. speeding up of everything cisco in the 1990s - supply chain, dot.com era Icon of the era- most valuable company in the world supply chain business model outsourcing looked great in the 90s, but questions continued about jobs hollow corporations shift back to market capitalism. speeding up of everything Monsantos genetically engineered crops - massive restructuring of firms new technologies darker side-threats: to food supple, natural ecosystems (poster child for paradox globalization: high tech mfg, e-commerce, service industries, finance, changes in firm shift back to market capitalism. speeding up of everything Just in Time system - American competitiveness inventory control that minimizes costs in extensive use of contracts, indirect labor, and systematic speedup; it forbids producing ahead and idle time parallels technological disequilibrium and cost accounting

shift back to market capitalism. speeding up of everything Paper entrepreneurialism in the 1980s - financial management innovation accounting, tax rules roots in management's response to competitiveness crisis and back rethinking corporate governance, managerial accountability SEC law requires companies to make quarterly reports, financial deregulation, money managers Ivan Boesky - Wall Street financiers, corporate raiders, insider trading, paper entrepreneur driver Valhalla Oil trading fraud - 1987 represented paper entrepreneurship problems with bonus system, employee performance review system Dennis Kozlowski - corporate fraud, ceo greed, theft of corporation money, Recruitment/training Employee performance review system Flawed bonus system Weak risk management system Upscaling problem - took more to feel material success, growing materialism career and wealth opportunity in 80s and 90s hollow people "living good life but feeling empty"

american dream evolving emulation and competitive culture, marketing --> work ethic/ life style Housing Act of 1968 - hollow people 90s love affair with credit securitization of credit, late 1960s mortgage credit crunch and urban crisis Replaced specialized secondary (re-sale) market in mortgages created/managed by FNMA (New Deal agency) With infrastructure that create market in mortgage backed securities GOAL:increase flow of credit to mortgage market, increase access to low income to mortgage credit IMPACT-housing bubble, 07/08 meltdowns GMs GoFast program - GoFast, a program to reduce bureaucratic waste; Synchronous, a top-down process engineering program; and GMS, the companys version of the lean production system that has made Toyota and other Japanese manufacturers ascendant