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The Model of LargeScale Integrated Managerial Enterprise

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Chandler stresses the importance of the managerial functions that had been necessitated by the development of electric power, and the accompanying enormous capital mobilization which sought to exploit the opportunities that these new technologies presented. Industries thus shifted focus and became more capital intensive, which put overwhelming pressure on the managers to increase their performance so that the large investments could be safeguarded. Though each system is quite distinct from the other two, there are several elements that run right through all of them, especially in terms of their function such as enabling the effective focus of capital and labour in profitable ventures, increasing a country’s technical in terms of important technological knowledge and also ensuring the growth of managerial skills. The question concerns the application of this theory to the real world, and whether the ideas presented therein hold true for the real world. The theories put forward by Chandler enjoy massive empirical support and I, therefore, agree with them for the reasons that will be mentioned in the forthcoming sections. The approach will consist of analyzing each of the different capitalism structures in the context of their associated economies, and also in other similar economies where their effects can be traced, and relevance of the theories to the wide range of economies that will be covered. Associated with Great Britain, personal capitalism is characterized by major large scale businesses being run byowner-managers. This system is heavily reliant on the actions, motivations and effects of the entrepreneur, wherein they were the people responsible for the gathering of the factors of production and arranging them in such a manner as to create value and therefore enrich the entrepreneur through the profits that accrued.