Alfred D. Chandler Jr.

“Increase on productivity and decrease in unit costs (often identified with economies of scale) resulted far more from the increases in the volume and velocity of throughput then from a growth in the size of the factory and plant.”

“The minutest details of cost of materials and labor in every department appeared from day to day and week to week in the accounts; and soon every man about the place was made to realize it. The men felt and often remarked that the eye of the company were on them through the books.”

“Effective coordination of throughput required the placing of vigorous management controls over these despots.”

“To maintain and continue a high volume of flow demanded organizational innovation. It would be achieved only by creating an administrative hierarchy operated by many full-time salaried managers.”

“In the 1850s and 18605 the modern commodity dealer who purchased directly from the farmer and sold directly to the processor took over the marketing and distribution of agricultural products. In the same years the full-line, full-service wholesaler began to market most standardized consumer goods. Then in the 1 870s and 188os the modern mass retailer — the department store, the mail-order house, and the chain store — started to make inroads on the wholesaler's markets.”

“Men's mind and abilities grow and expand with use of responsibilities.”

“The systems and controls developed at the armory were as critical to the development of what became known as the 'American System of Manufacturing' as the new metalworking machinery and machine tools.”

“Modern factory management (but not it must be stressed the management of large modern multi-unit enterprises) had the genesis in the United States in the Springfield Armory.”

“Complete accountability is established and enforced throughout; and if there there is any error committed, it will be discovered on a comparison with the books and can be traced to its source.”

“Multi-unit business enterprise replaced small traditional enterprise when administrative coordination permitted greater productivity, lower costs, and higher profits than coordination by market mechanisms.”

“Strategy can be defined as the determination of the long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals”