Harrison Business Management Theory

Submitted By Yayayayal1
Words: 606
Pages: 3

Harrison believed most of the large firms in the 1900s had been transformed into a concentrated power known as decentralized power deriving from production. The production will be decentralized in power, finance, distribution, and control will remain in control in big firms. The model produced flexibility for changes in the market conditions.
He talks about how famous car companies, such as Honda and Toyota have factories all over the world having many different assembly lines. The main purpose why large firms do this is to make profit. They can make a larger profit by employing the same number of people in India like US, but pay them a lower wage to get things done. It gives them many technical advantages, such as standardization and mass production. Many brand name wines, sweaters, electronics, and etc have both a high price style and and a less expensive style. An example he gives that Toyota can offer a Corolla, and a luxury Lexus car. Robert
B. Reiche even agrees with Harrison, he thinks that everything is a “global web” circling around the largest institutions, government agencies, hospitals, banks, libraries. This global web is responsible for linking and creating a place for managers from both big and small companies in different industries and areas of the world.
Harrison discusses the 4 building blocks in the big firm revitalization from the
1970s to the 1980s. The first step was the lean production strategy. This example was shown in the 1990s recession where it showed a slow recovery, many companies decided to do lots of restructuring. They came up with core competencies” eliminating everything except the companies core functions. These core competencies and farm out the rings of

work to suppliers. The core is like the networker. The networker of the brain tells the networkers, and then the suppliers what to do. The second one explains there is more flexibility within the companies as they move in and out of markets, adapting to new ways and ideas. Third, is having the company build network, or alliances with another region, or industry. The last one, makes the company a better place to workers. It gives them a sense of flexibility and security. For example, a big firm needs a network, alliance, and deeds with another company, and government. They also use a smaller