“The major reasons for diversification were by this time well established : to employ excess plant capacity, to eliminate seasonal humps, to guard against dependency on one industry, to enter new expanding industries, to supplement existing product lines, to use old products to create new product, and to secure a larger share of business in general.”

—  Neil Fligstein

Source: The transformation of corporate control, 1993, p. 128

Adopted from Wikiquote. Last update June 3, 2021. History

Help us to complete the source, original and additional information

Do you have more details about the quote "The major reasons for diversification were by this time well established : to employ excess plant capacity, to eliminat…" by Neil Fligstein?
Neil Fligstein photo
Neil Fligstein 40
American sociologist 1951

Related quotes

Arthur James Balfour photo

“It is necessary for us as a nation not merely to be organized for war but to be organized for peace, not only to be an armed nation while other nations are armed but to have our industry, our productive capacity organized while other nations are organizing their industry and their productive capacity.”

Arthur James Balfour (1848–1930) British Conservative politician and statesman

Cheers.
Speech in Hanley (4 January 1910), quoted in The Times (5 January 1910), p. 7
Leader of the Opposition

Gholam-Reza Aghazadeh photo

“Now that Iran has entered into production of nuclear fuel on an industrial [scale], there will be no limit on the production of nuclear fuel in Iran.”

Gholam-Reza Aghazadeh (1949) politician

Aghazadeh: We Are Aiming to Operate 50,000 Centrifuges http://memri.org/bin/latestnews.cgi?ID=IA34207 (April 2007)

Marshall McLuhan photo

“Marx shared with economists then and since the inability to make his concepts include innovational processes. It is one thing to spot a new product but quite another to observe the invisible new environments generated by the action of the product on a variety of pre-existing social grounds.”

Marshall McLuhan (1911–1980) Canadian educator, philosopher, and scholar-- a professor of English literature, a literary critic, and a …

Source: 1970s, Take Today : The Executive as Dropout (1972), p. 63

Manuel Castells photo

“In the industrial mode of development, the main source of productivity lies in the introduction of new energy sources, and in the ability to decentralize the use of energy throughout the production of circulation processes. In the new informational mode of development the source of productivity lies in the technology of knowledge generation, information processing and symbolic … what is specific to the informational mode of development is the action of knowledge upon knowledge itself as the main source of productivity… in a virtuous circle of interaction”

Manuel Castells (1942) Spanish sociologist (b.1942)

Source: The Rise of the Network Society, 1996, p. 16-17 as cited in: Andy Hargreaves (2003) Teaching in the Knowledge Society: Education in the Age of Insecurity. p. 16

Alfred P. Sloan photo

“But as president of General Motors, I realized our thinking affected the lives of hundreds of thousands directly and influenced the economic welfare of many important communities, in some of which we were almost the sole provider. In some way, visible or invisible, as we expanded, the economic welfare of millions was becoming linked with the welfare of General Motors. Previously, when industry was smaller, the absorbing problems of industrial management were largely limited to the fields of engineering, production and distribution. Out of its endeavors in these fields had come a continuous stream of new products, providing new comforts and making possible better ways of living. General Motors was becoming large through a, but only because it was rendering a service to community. As its volume of business expanded it became able to do more for workers, stockholders and customers.”

Alfred P. Sloan (1875–1966) American businessman

Source: Adventures of a White-Collar Man. 1941, p. 144

Joseph Chamberlain photo

“Our existence as a nation depends upon our manufacturing capacity and production”

Joseph Chamberlain (1836–1914) British businessman, politician, and statesman

1900s
Context: When Mr. Cobden preached his doctrine he believed, as he had at that time considerable reason to suppose, that while foreign countries would supply us with our foods and raw materials we should remain the workshop of the world and should send them in exchange our manufactures. But that is exactly what we have not done. On the contrary... we are sending less and less of our manufactures to them, and they are sending more and more of their manufactures to us... Our existence as a nation depends upon our manufacturing capacity and production.

Speech in Glasgow (6 October 1903), quoted in The Times (7 October 1903), p. 4.

“Companies are in the midst of a revolutionary transformation. Industrial age competition is shifting to information age competition. During the industrial age, from 1850 to about 1975, companies succeeded by how well they could capture the benefits from economies of scale and scope. Technology mattered, but, ultimately, success accrued to companies that could embed the new technology into physical assets that offered efficient, mass production of standard products.
During the industrial age, financial control systems were developed in companies, such as General Motors, DuPont, Matsushita, and General Electric, to facilitate and monitor efficient allocations of financial and physical capital. A summary financial measure such as return-on-capital employed (ROCE) could both direct a company’s internal capital to its most productive use and monitor the efficiency by which operating divisions used financial and physical capital to create value for shareholders.
The emergence of the information era, however, in the last decades of the twentieth century, made obsolete many of the fundamental assumptions of industrial age competition. No longer could companies gain sustainable competitive advantage by merely deploying new technology into physical assets rapidly, and by excellent management of financial assets and liabilities.”

David P. Norton (1941) American business theorist, business executive and management consultant

Source: The Balanced Scorecard, 1996, p. 2-3

Robert S. Kaplan photo

“Companies are in the midst of a revolutionary transformation. Industrial age competition is shifting to information age competition. During the industrial age, from 1850 to about 1975, companies succeeded by how well they could capture the benefits from economies of scale and scope. Technology mattered, but, ultimately, success accrued to companies that could embed the new technology into physical assets that offered efficient, mass production of standard products.
During the industrial age, financial control systems were developed in companies, such as General Motors, DuPont, Matsushita, and General Electric, to facilitate and monitor efficient allocations of financial and physical capital. A summary financial measure such as return-on-capital employed (ROCE) could both direct a company’s internal capital to its most productive use and monitor the efficiency by which operating divisions used financial and physical capital to create value for shareholders.
The emergence of the information era, however, in the last decades of the twentieth century, made obsolete many of the fundamental assumptions of industrial age competition. No longer could companies gain sustainable competitive advantage by merely deploying new technology into physical assets rapidly, and by excellent management of financial assets and liabilities.”

Robert S. Kaplan (1940) American accounting academic

Source: The Balanced Scorecard, 1996, p. 2-3

“The purpose of the large horizontal (same-product) mergers was to reduce the number of plants and, hence, control production enough to insure a reasonable rate of profit. Mergers would allow a newly created large firm to produce full-time in its most efficient plants, and thereby maintain prices, production, and profits.”

Neil Fligstein (1951) American sociologist

Source: The transformation of corporate control, 1993, p. 55

Fritjof Capra photo

“A major clash between economics and ecology derives from the fact that nature is cyclical, whereas our industrial systems are linear. Our businesses take resources, transform them into products plus waste, and sell the products to consumers, who discard more waste…”

Fritjof Capra (1939) American physicist

Epilogue: Ecological Literacy
The Web of Life (1996)

Related topics