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Modern Rise Of Enterprise

Submitted by jatinmanchanda on May 16, 2008

Category: Social Issues
Words: 4286 | Pages: 18
Views: 72
Popularity Rank: 100,221
Average Member Grade: N/A (Add a Comment / Grade this Paper)

The Rise of the Modern Business Enterprise: The
Case of Citibank
Thomas F. Huertas
Citibank, N.,4.
A case study examines the singular in order to illuminate the
general. Although the subject of the case may be interesting and
important in its own right, the case's purpose is to test broader
hypotheses, not statistically, but qualitatively. The rich detail of
a case study can suggest nuances to propositions derived from
more sweeping surveys. In this article the propositions to be illuminated
concern the rise of the modern business enterprise, and
the case shedding light is the history of Citibank [4].
THE RISE OF THE MODERN BUSINESS ENTERPRISE
"The modern business enterprise is an economic institution
that owns and operates a multi-unit system and relies on a multilevel
managerial hierarchy to administer it [5, pp. 203-4]." When,
why, and where did this form of business arise, and what were its
consequences for the firms themselves, the industries in which
these firms operated, and the economy at large7 These are the
BUSINESS AND ECONOMIC HISTORY, Second Series, Volume Fourteen, 1985.
Copyright (c) 1985 by the Board of Trustees of the University of Illinois. Library of
Congress Catalog No. 85-072859.
143
144
questions that business historians, notably Alfred Chandler [3],
have posed and answered.
When the modern business enterprise emerged is clear. It arose
during the years 1870 to 1920. Before the earlier date, firms were
simple proprietorships, serving a single market with a single
product from a single location. Markets, not managers, coordinated
the flow of inputs to the firm and of output to the
consumer.
Then came the railroad or, more precisely, the completion of a
national railway system in the 1870s. This was important for...

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