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Customer Review

on August 31, 2000
This book is a management "classic" and tells how American corporations have dealt with a common economic problem - the effective administration of an expanding business. Chandler's main point is that the structure of a company depends on the strategy of the company - a company must determine its strategy before it can organize properly. He also feels that corporations have two management tiers. VP's or executives set the vision of the company and then managers execute the vision.
Chandler summarizes the history of the expansion of the nation's largest industries during the past hundred years. He then examines in depth the modern decentralized corporate structure as it was developed independently by four companies - Dupont, General Motors, Standard Oil, and Sears.
In all fours cases, firms had to deal with their growing business. When firms had a good strategy, they developed the proper organization. Without a good strategy, various reorganizations were required. However, the growing economy solved many of their organization and strategy problems.
19 helpful votes
20 helpful votes
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