Modern Business in Comparative Perspective (EXAM PREPARATION) Essay - 2

Modern Business in Comparative Perspective (EXAM PREPARATION) - Essay Example Chandler has helped expand the fields of strategic management in the field of economic development. His work emphasize on the need for organizational innovation, managerial expertise, and performance of the business. His theories are applied in the modern setting to help in economic advancement and help in improve sectors such as managerial uprising and organizational management structure. Chandler emphasized on modern industrial capitalism and was against the personal capitalism. Depending on a sequence of changes in internal and external environments, large companies are appreciating a new form of organizational structure. Post war or 1930s multidivisional organizational structure is different from this new method of organization as it is based on knowledge of expertise rather than economies of scale and scope. Managerial enterprise in large companies is industrial concerns whereby decisions of the company are based entirely on a hierarchy of managers for the best interest of the o rganization. National managerial enterprise patterns arose in the search for organizational capabilities and the need to gain benefits from diversification of companies. Comparing the UK to Germany and the US, UK trailed downward basically because of personal capitalism model. The public policy and the monetary policies of Britain were viewed as challenges to the uprising of the Britain economy. In Japan however, the enterprise system was due to delayed industrialization. Japan economies replaced personal capitalism with well-organized managerial structures that contributed greatly to the success of the economy. This kind of a system creates a competitive advantage both to the organization and between other nations once it has kicked off. Competitive advantage enables growth of the organization, and it’s hence a motivational tool as many large firms are responding to such competition by advancing their management structure. Due to this management