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Date Posted: 20:43:04 02/04/03 Tue
Author: B
Subject: Ch24 Econmic Organization

Economic Organization
A. Modern Administrative System
1. America business going toward national organization and consolidation
a. Steel
2. General Motors, 1920 was the fifth largest American corporation
a. Founded by William Druant
b. Didn’t replace the informal personal management when it expanded
3. The leadership fell to Alfred P. Sloan
a. Created a modern administrative system with an efficient divisional organization
i. System made it easier to control subsidiaries and for other corporations too
B. Trade Associations
1. Few great corporations tried to stabilize themselves not through consolidation bur through cooperation.
a. An national organization
2. Encourage coordination in production and marketing techniques
3. Efforts by industrialists throughout economy to find ways to curb competition through consolidation

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