Mgec40 Notes Essay

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MGEC40H3-Y ECONOMICS ORGANIZATION AND MANAGEMENT TEXTBOOK NOTES CHAPTER #1 CHAPTER STARTS OFF BY DISCUSSING HOW TRADE TOOK PLACE BACK IN 1840S • Factor – a seller (in this case a merchant selling agriculture) • Agent – a buyer (in this case a buyer in a foreign city that the factor has to manually locate) • Broker – someone who helps the two find one another • Transactions were informal, infrequent, inefficient • Price risk – the risk that the price that buyer and seller expected at the beginning is not the price which was received during transaction LIFE WITHOUT MODERN INFRASTRUCTURE: • Infrastructure – includes those assets that assist in production and distribution of goods and services that the firm itself cannot easily…show more content…
Bcs Chicago’s businessmen were the first to take advantage of new technology o Swift and Amour – was a butcher shop who adopted the “refrigerated train cart” (a fridge lined with ice) that reduced costs and risks o Cyrus McCormick – took advantage of the grain elevator to store/transport grain o ^probably don’t need to know these examples o Throughput – movement of inputs and outputs through a production process (aka rate of production) 1910s • Mass production – new technologies enabled goods to be produced at costs far below what older technology achieved (it was reliant on volume) • Vertical integration – when you choose to produce raw materials and/or distribute finished goods themselves rather than rely on independent suppliers, factors and agents for these tasks o Vertical integration was the crazy o A couple years after this horizontal integration was the focus • Multidivisional or M-form – refers to organizational structure by which firm is separated into several semi-autonomous units which are guided and controlled by financial targets from the centre o 1960s was mostly M-form industries • Scientific Management – a method which sought to identify most efficient techniques for management through “time and motion” studies and then motivated worked to adopt these ways of working through the use of
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