By Mr. Ali Course # (B B) 8 credit hour 1BY MR ALI Lecturer-4 STRATEGY- BOOK-Chapters 13, 14 and 15

MY LECTURER DETAILS LECTURER NAME OF BOOKS CHAPTER Lecturer -1Course Introduction (week-1) Lecturer -2Section 3: Firm Effects (week-2)Chapters7, 8 Lecturer -3Section 4: Strategic Innovation (week-3)Chapters 10 and 12 Lecturer -4Section 5:Org. Structure, Learning and KMChapters 13 Student Presentation Lecturer -5 Section 5:Org. Structure, Learning and KM Chapters 15 Student Presentation Lecturer -6Section 6: Changing Context (week-6) Chapters 16 Student Presentation Lecturer -7Section 6: Changing Context (week-7)Chapters 18 Student Presentation Week -8 Lecturer -8 Section 1: Policy Chapters 3 Lecturer -9Section 2-3: Competition Policy and Science and Technology Chapters 5and 7 Lecturer -10Section 3: Science and TechnologyChapters 9 Lecturer -11Section 3: Science and TechnologyChapters 10 TMA DUE DATE Lecturer -12Section 4: Trade and Investment PolicyChapters 13 Student Presentation Lecturer -13Section 5- : Regional Policy Chapters 15 Student Presentation Week-15 WEEK -16 REVISION FINAL-EXAM 2BY MR ALI Strategy Policy TMA MID-TERM : course –cover –CH -7,8,10,12,13 and 15 Note: The rest of the chapters which are not listed here are optional reading for students. However, Students will be divided into 6 groups to present to the class any of these chapter assigned by their tutor.

BY MR ALI CHAPTER 13 The Dynamics of industrial Capitalism Introduction: Chandler claims that the competitiveness is not based on markets and technologies but on manager’s strategy and organization. Organizations shape the market and technology not vice versa. This review essay is about Scale & Scope "The Dynamics of Industrial Capitalism (1990) by Alfred Chandler. How the competitiveness of nations has depended in an important way upon the organizational and financial capabilities of firms, and their supporting institutions. Professor Chandler recounts the history of how managers in the United States, Britain, and Germany built the organizations and took the risks of investment necessary to capture the economies of scale and scope opened up by technological innovations of the second industrial evolution. Chandler uses these resources in each country to examine what in the United States he labels "competitive Managerialism", in Britain "Personal Capitalism", and in Germany, "Cooperative Managerialism". Chandler’s definition of Strategy: He defines strategy as the determination of the basic long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources for achieving these goals.

BY MR ALI Q: what are the steps recommended by Professor Chandler for the success of market Professor Chandler, recommended that “ marketplace success involved three essential steps by top management”. (1)The investment in production facilities large enough to achieve the cost advantage of scale and scope. (2)Investment in product-specific marketing, distribution, and purchasing networks. (3)Recruiting and organizing of the managers needed to supervise and coordinate functional activities and allocate resources for future production and distribution. Major features in scale and scope Economies 1.CAPITALISM: Economic system based on private ownership of the means of production, in which personal profit can be acquired through investment of capital and employment of labor. 2. CAPITALISM is grounded in the concept of free enterprise, which argues that government intervention in the economy should be restricted and that a free market, based on supply and demand, will ultimately maximize consumer welfare. Types of managerial capitalism: 1.Competitive capitalism. USA Mainly because of the scale and scope: "Between 1850 and 1880s the transportation and communications network established the technological and organizational base for the exploitation of economies of scale and scope in the processes of production and distribution. The merger movement is to Chandler one of the most important evolutions in the US. The companies that were 'the first to make the essential, interrelated three pronged investments in (1) production (2) distribution (3) management.

BY MR ALI The logic of managerial capitalism: Historical record indicate that the business enterprise thru the development of organizational capabilities. Once, organizational capabilities created, it should be maintained for leading enterprises to stay ahead. The logic of managerial capitalism: Historical record indicate that the business enterprise thru the development of organizational capabilities. Once, organizational capabilities created, it should be maintained for leading enterprises to stay ahead. Note: 2. Personal capitalism. British The story of the Cadbury Brothers Ltd. Chandler attributes that smaller size, family ownership, and less professional management of British firms to the smaller size of British economy, the greater importance of foreign trade to the British Companies, and the historical fact that Britain had industrialized and urbanized before the coming of the transportation revolution. British entrepreneurs failed to grasp the opportunities the new technologies had opened up, precisely because they failed to make the necessary, interrelated three-pronged investment in production, marketing, and management. 3.Co-operative managerial capitalism. --German German universities and institutions were ahead of the United States in providing industrial enterprises with scientific knowledge and skilled technicians and managers and, unlike the US and Britain, the banks played a major role in providing the finance necessary to facilitate the investment needed to capture the economies of scale and scope inherent in the new technologies. Banks encouraged the creation of a wholly new financial intermediary

BY MR ALI MANAGERIAL CAPITALISM Competitive -USA Personal - British Co-operative -German Factors of success: 1-It was the modern, hierarchical industrial firm that was responsible for American growth 2- Its ability to develop & commercialize the new technologies through the 3 strategy of investment in manufacturing, distribution & management systems & people 3- the large size of US market British entrepreneurs failed to make the essential 3 pronged investment in manufactory, marketing & distribution and management factors of failure: 1- the smaller size-recruiting smaller managerial teams- 2- family ownership 3- less professional management of British firms 4- The smaller size of the British economy Organizational dynamics for modern industrial capitalism. Factors of success: the government played only a minor role while financial (banks) and educational institutions played a more important role. Thus, success in investing in the 3 strategies. Q: what are Determinants of the scale & scope of the enterprise: 1.Exploitation of economies of scale is main determinant of a firm size. 2.Explanation for the „scale and scope ‟ of a particular firm depends on organizational factors (i.e. investment in management and people). 3.Key inventions vapidly become public Knowledge. Therefore it is necessary to be quick imitator. 4.Government legal system, and institutional system and governance understanding industrial outcomes.

BY MR ALI