The Modern Industrial EnterpriseEssay Preview: The Modern Industrial EnterpriseReport this essayThe Modern Industrial EnterpriseMany factors supported the emergence of the modern industrial enterprises. The influence of production, distribution, and management helped create the enterprises. Forces and historical events also supported the development. These influences worked together in their own way in shaping the national diamond into what it is today.
Forces and events of influence included transportation, communication, and the manufacturing of goods. These industrial activities helped the growth of the industrial economy. The engineering achievement of the railroad started a travel, trade and transportation revolution. The railroad could move more goods than ever before, faster than any man on horse, or ship, and very importantly maintain punctuality. Companies, previously small and local, could now expand to distant places and increase production as a result. Along with the railroad came the telegraph. With the telegraph, people and companies could exchange ideas and news almost immediately. These two influential factors linked the east to the west, creating a network, coast to coast, beginning the development of the national diamond. Manufacturing was also involved in the emergence of modern industrial enterprises because manufacturing firms made up the majority of countrys GDPs. The manufacturing industries were very in depth and thus branches into sub divisions that created more employment through networks.
Along with the factors were the entrepreneurs who took the risks. These people made the first investments into the determinants of the modern enterprise. They invested into larger facilities for expansion, into a marketing and distribution, and management of a company. The expansion of the facilities was to develop if possible economies of scale and the marketing investment was to keep the sales up to the new pace of production. The management included the training of employees and the monitoring of them, to prepare for the future. These entrepreneurs took hold of a market and gained a competitive advantage over any company coming into the market later. If the entrepreneur made a big enough investment on a plant large enough to develop the economies of scale and scope, along with the necessary investment in distribution and management, then they were termed a “first-mover.”
These first-movers played a significant role in the distribution determinant that supported the emergence of industrial enterprises. The enterprises grew by integrating forward in distribution and backward in purchasing. Integrating forward into distribution was the sale of a product upon completion; this spared of many storage and warehousing costs. The product would be sold to retailers and distributor facilities, or directly to a buyer as a wholesaler would do. With the use of the backward integration into purchasing, companies were able to buy directly from a supplier instead of going though a middleman. Contracts were worked out with suppliers and a steady flow of supplies entered the plant in a scheduled manner. This replaced commercial mediaries and set the companies closer to economies of scale.
The scope in production was the change in capital-labor ratios that lead to the efficient use of machine, technology, and general size of a plant. In labor-intense industries, more people or machines were used to increase production. But to improve the newer industries, companies improved the machines, reworked the process of production, and brought intermediary steps into a single unit. The investments made into production were about the most efficient use of the technologies of production, ones to cut cost and up production. These enterprises reached minimum efficient scale, on that produced a unit and the lowest possible cost. This technology was related to the optimum size that a plant should be. And the optimal
to the growth rate of the plants was important. In the new industry, the value of a plant is not defined. It is always subjective. The production cost of its kind varies, the quality of its services varies. For example, on machines, in which the costs of a plant with one or more machines or a variety of chemicals or other kinds of processing are greater than the costs of a farm that produces raw material using machines, a plant with 20 machines a year will produce as much as 4,500 lb.a. more each year than a farm that produces raw materials using machines. In a system like ours, the value of a plant’s kind depends on the value of the machines the plant produces.
We know, then, that we can improve our plant with machines to cut energy use by about 1 to 2% and improve our production rate by 1 to 2%. A plant with 100 machines a year produces as much as 500,000 lb.a. a year. A plant that only employs 100 machines a year produces as much as 1,100,000 lb.a. per unit, not 1 to 2. The machine works much better in a larger area. When the plant was first set up, the labor requirement was the same. You could hire a new person for 100 machines per year. Now you will have at least two workers. All of these workers are paid a salary. Now, they will put the money into improvements. But these improvements must have an element of the profit. It becomes a question of how much money needs to be spent in order to buy these improvements. Therefore, the workers become more productive, the efficiency increases, that are only the result of the use of machine. A few years ago, they increased their productivity by 100,000,000. In the next 20 years, they will do it again by as much. In one year, those workers will be at a higher productivity. Then, they will be able to develop more skills in production, better tools, more materials, lower costs, less capital overhead, etc., and to create more productive areas. That’s the reason that we need to have greater efficiency in the development of machines, and it only requires a little more time, more ingenuity, and more ingenuity.
The first steps we take in production include the development of new machinery and equipment, and the development of new factories. The use of machines cannot always be easily separated from the use of machines. The use of machines needs to be differentiated from the use of production machines precisely by means of production time required to develop production and the time needed to improve it. A machine is needed for a certain number of hours to operate a machine, but a lot more to improve it, to help it expand, to replace new machinery with more effective ones. The number of hours necessary to do good production needs to be divided into the total time needed
to the growth rate of the plants was important. In the new industry, the value of a plant is not defined. It is always subjective. The production cost of its kind varies, the quality of its services varies. For example, on machines, in which the costs of a plant with one or more machines or a variety of chemicals or other kinds of processing are greater than the costs of a farm that produces raw material using machines, a plant with 20 machines a year will produce as much as 4,500 lb.a. more each year than a farm that produces raw materials using machines. In a system like ours, the value of a plant’s kind depends on the value of the machines the plant produces.
We know, then, that we can improve our plant with machines to cut energy use by about 1 to 2% and improve our production rate by 1 to 2%. A plant with 100 machines a year produces as much as 500,000 lb.a. a year. A plant that only employs 100 machines a year produces as much as 1,100,000 lb.a. per unit, not 1 to 2. The machine works much better in a larger area. When the plant was first set up, the labor requirement was the same. You could hire a new person for 100 machines per year. Now you will have at least two workers. All of these workers are paid a salary. Now, they will put the money into improvements. But these improvements must have an element of the profit. It becomes a question of how much money needs to be spent in order to buy these improvements. Therefore, the workers become more productive, the efficiency increases, that are only the result of the use of machine. A few years ago, they increased their productivity by 100,000,000. In the next 20 years, they will do it again by as much. In one year, those workers will be at a higher productivity. Then, they will be able to develop more skills in production, better tools, more materials, lower costs, less capital overhead, etc., and to create more productive areas. That’s the reason that we need to have greater efficiency in the development of machines, and it only requires a little more time, more ingenuity, and more ingenuity.
The first steps we take in production include the development of new machinery and equipment, and the development of new factories. The use of machines cannot always be easily separated from the use of machines. The use of machines needs to be differentiated from the use of production machines precisely by means of production time required to develop production and the time needed to improve it. A machine is needed for a certain number of hours to operate a machine, but a lot more to improve it, to help it expand, to replace new machinery with more effective ones. The number of hours necessary to do good production needs to be divided into the total time needed