Definition of Industrialization
Industrialization refers to widespread increase and growth of industries because of technology. The community changes from agriculture dependent to manufacturing and the country`s ability to produce secondary goods and services is boosted. However, industrialization is not only the physical growth of individuals, but it involves psychological change. The society changes its discernment of character. Additionally, people have to revolutionize their sociological practices of ubiquitous rationalization.
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The First Big Business in the United States
According to Howard, train was the first large business established at the time industrial revolution was beginning in America. It was linking port cities to the distant areas, and it grew at an astounding pace. Atchison and Pike’s Peak Railroad report of 1866 illustrates that considerable existing commerce, which is rapidly increasing competence in railway authority expresses, leading to a conviction that, within a period of five years from the opening a single track, there will be inadequate business flowing.
These were the first means of transportation to surpass the swiftness of a horse. Transcontinental railway lines were established, sharing skills between various states began to surface and its coordination between exchanging lines was in place at 1841.
As this business expanded geographically, it needed more people to operate as analyzers of business, finance managers or the general operation managers. It from its early times structure the present railway industry materialized as perrow argues that railroad organizations were the biggest and richest organizations in the country, and then the world, since they had set organizational forms that would dominate all of industry for the next century.
Advantage the United States in the Area of Management for this Business
America had several advantages in the area of management of the railway industry. At this time of railway construction, there was an iron and steel industry in this country. The industry had already absorbed the weak ones and had introduced new techniques, which increased iron output.
It could meet the iron needed for railway construction easily. In the meantime, there was the establishment of an oil refining industry and other minor companies like meat packers, which was a source of goods that the railway would transport. There were other minor industries establishing at this time, and there was no other means of transport present. Therefore, railway was the fastest and reliable means of transport, and it had to grow.
Necessary Things for Big Business Prosperity
Every business must have three absolute factors for it to grow and remain competent. The main factors are management practices, industrial experience, technical support and planning ability. It involves defining strategies for the businesses clearly, and executing them before it is late. Moreover, businesses require merging and partnership. In Brand New, Nancy F. Koehn presents interconnected “big business biographies” of six creative entrepreneurs in the course of more than 250 years of olden times.
Built consequential brands are used to begin companies, often plainly from scratch, which have tolerated to this day. It their skill to determine when to supply and demand is changing. They responded accordingly to ensure their profit margins remain. Therefore, flexibility and aggression, is another factor keeping business strong and growing.
Difference between Market and Political Entrepreneurs
In the business world, there exist two entrepreneurs, the political entrepreneurs and market entrepreneurs. Political entrepreneurs provide goods or services to an organized group of public in return of political favors. They offer public goods as in expectation of voters support, public recognition and personal popularity.
In addition, they are after help and protection from the government. They also gain through government subsidies, protectionism or government contracts. However, the market entrepreneurs succeed in business through selling newer, cheaper or better products that do not involve government subsidies, and they do not need any political favors when transacting their business.
Directions for Expanding the Business
The business expanded across the geographical area, whereby the sheer size of operations ranging from surveys and engineering to scheduling and accounting, which was needed by the organization on a large scale. There was an expansion on the business support of the industry, whereby the management, finance, business analysis and distribution were influenced by the infrastructure aimed at facilitating the modern business enterprise.
Factors Making United State Hospitable for Business
Some of the factors that contributed to providing a hospitable environment for business were good infrastructure, labor supply and availability of raw materials.
Effects of Big Business on Population of the Country
The effects of the big business on the population related to enhancing coordination function, which was a necessity in the process of fundamental services of running time and avoiding accidents. In their case, passengers, employees, pedestrians and livestock were affected by the violent force of locomotive train, which was running at unprecedented speed, while emitting hazardous sparks.
Atchison & Pike’s Peak Railroad Company. Statement Showing the First Mortgage Gold Bearing Six Per Cent Bonds of the Atchison & Pike’s Peak Railroad Company (Central Branch of the Union Pacific) to be A First-Class Investment. New York: B. J. Beck & Co., Stationers and Printers, 1866.
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Howard, Edward, “A Railroad Study.” Harper’s New Monthly Magazine, 28 No. 2 (September 1877): 614-620
Perrow Charles. Organizing America: Wealth, Power and the Origins of Corporate Capitalism. Princeton: Princeton University Press, 2002.
- Edward Howard, “A Railroad Study.” Harper’s New Monthly Magazine, September 1877) p. 614
- Atchison & Pike’s Peak Railroad Company. Statement Showing the First Mortgage Gold Bearing Six Per Cent Bonds of the Atchison & Pike’s Peak Railroad Company (Central Branch of the Union Pacific) to be A First-Class Investment ( New York: B. J. Beck & Co., Stationers and Printers, 1866) p. 9
- Charles Perrow. Organizing America: Wealth, Power and the Origins of Corporate Capitalism (Princeton: Princeton University Press, 2002) p. 215