COMM101 Lecture Notes - Lecture 6: Social Evolution, Root Mean Square
Week 6
Comm101 - Principles of Responsible Business
The Historical Development of Modern Business Enterprises
Lecture Outline
-Consider a very brief account of the historical development of modern national and
multinational corporations
-Consider the benefits and costs of two major characteristics of such corporations
•Increased size of the corporation
•Separation of ownership and control
-Discuss some of the processes by which firms have tried to reduce the
Why Is History Important?
-understanding historical developments helps us to learn and perhaps apply lessons
from the past: are there commonalities between the past and present?
-Understand the importance of path dependancy, e.g. that some past decisions have
had long term impacts and so current period decisions may also affect future
generations —> what we do or not do about global warming is likely to impact future
generations
-Appreciate the inevitability of continual economic and social evolution yet understand
that we have some influence on how and when such changes should occur
Important Historical Developments (very brief)
-started pre 1800’s in industrialising UK and Europe
-Typically…
•small scale
•family run
•concerned with a single product/function
-Exceptions…
•government owned enterprises —> military shipyards and arsenals
•Transient opportunities for rapid expansion for some private sector businesses in
times of war —> clothing for soldiers, etc
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Document Summary
Consider a very brief account of the historical development of modern national and multinational corporations. Consider the bene ts and costs of two major characteristics of such corporations: increased size of the corporation, separation of ownership and control. Discuss some of the processes by which rms have tried to reduce the. Appreciate the inevitability of continual economic and social evolution yet understand that we have some in uence on how and when such changes should occur. Started pre 1800"s in industrialising uk and europe. Typically : small scale, family run, concerned with a single product/function. Exceptions : government owned enterprises > military shipyards and arsenals, transient opportunities for rapid expansion for some private sector businesses in times of war > clothing for soldiers, etc. Major construction, requisite infrastructure, requiring large land acquisitions, needed engineering/ rms/mines/smelters. By 1904 top ten british rms were all railway owners or operators: steam powered shipping.
