Mr. Vital Schaap
ltd company and self interest
* "it would attract the lowest sort of people" * ltd could weakened the power of self-interest
Adam Smith: against mercantilism
Lesson 3:
Industrial revolutions
1st industrial revolution: 1780-1830
- Agrarien revolution based on scientific revolution during enlightenment
- Use of non-animal/human energy, by way of steam coal
2nd industrial revolution: 1880-1930
- Increased and improved transport and communication
- Railways, telecom, cars
- Enlarged national markets
- People moved from farms to the cities and new cities were born
* Big businesses
- Horizontal and vertical integration
- Managerial capitalism, proffesional leader
3rd industrial revolution: 1970-20??
the great divergence (1500-1800)
Why Great Britain?
- Worlds richest country
- Many capitalists in london
- Coal and iron, canals and harbors
-Rule Britannia - most powerful country
Names to remember:
Alfred Chandler, worked at Harvard. He said that big businesses acted as a visible hand and drove the economy.
The Candlerian firrm
- Heavy investments in R&D
- 3M's (Manufacturing, Marketing, Managing)
American big businesses
- merger wave (1897-1904, 4227 firms merged into 257 firms)
- Horizontal and vertical integration
Horizontal integration is buying a competitor (e.g. Statoil buys shell and esso)
Vertical integration is buying a supplier
Managerial capitalism
- Owners lost control
3rd Industrial revolution (flexible specialization)
FDI: Foreign Direct investment
1. Digitalization
2. Liberalization
3. Globalization
Short product cycles and unstable markets
Higher unit costs
Lower cost of adjustment and alteration
Shareholder capitalism
- Companies are valued after shareholders value
- The shareholder is the only stakeholder
- Principle-agent theory (- aligning the interest of the manager with the owner)
Lesson 4
The emancipatory and
* "it would attract the lowest sort of people" * ltd could weakened the power of self-interest
Adam Smith: against mercantilism
Lesson 3:
Industrial revolutions
1st industrial revolution: 1780-1830
- Agrarien revolution based on scientific revolution during enlightenment
- Use of non-animal/human energy, by way of steam coal
2nd industrial revolution: 1880-1930
- Increased and improved transport and communication
- Railways, telecom, cars
- Enlarged national markets
- People moved from farms to the cities and new cities were born
* Big businesses
- Horizontal and vertical integration
- Managerial capitalism, proffesional leader
3rd industrial revolution: 1970-20??
the great divergence (1500-1800)
Why Great Britain?
- Worlds richest country
- Many capitalists in london
- Coal and iron, canals and harbors
-Rule Britannia - most powerful country
Names to remember:
Alfred Chandler, worked at Harvard. He said that big businesses acted as a visible hand and drove the economy.
The Candlerian firrm
- Heavy investments in R&D
- 3M's (Manufacturing, Marketing, Managing)
American big businesses
- merger wave (1897-1904, 4227 firms merged into 257 firms)
- Horizontal and vertical integration
Horizontal integration is buying a competitor (e.g. Statoil buys shell and esso)
Vertical integration is buying a supplier
Managerial capitalism
- Owners lost control
3rd Industrial revolution (flexible specialization)
FDI: Foreign Direct investment
1. Digitalization
2. Liberalization
3. Globalization
Short product cycles and unstable markets
Higher unit costs
Lower cost of adjustment and alteration
Shareholder capitalism
- Companies are valued after shareholders value
- The shareholder is the only stakeholder
- Principle-agent theory (- aligning the interest of the manager with the owner)
Lesson 4
The emancipatory and