Some of the countries that benefited from this method are USA, Germany, and Japan. The concept refers to the companies or enterprises that contribute to the development of the economy. It speaks how the expertise of potential enterprises contributes to the economy in terms of production. It is the potential business enterprises that make the respective countries show their presence in the world market. Therefore, the concept is very important for many nations for acquiring economic growth.
Though managerial expertise has contributed to the success of many economies it can be seen that there are many other factors that have contributed to it. The work gives a clear understanding of how the concept has contributed to the success of the nations mentioned above. First, the concept of Chandler can be studied in detail before looking into its contribution to the nations. After carefully learning the concept in detail the benefits that the economies of USA Germany and Japan have attained through this are seen.
Alfred Chandler is a business historian. He was the person who developed the theory of Managerial Enterprise.
According to him the managerial expertise and the stiff competition that contributes towards the establishment and development of the companies and organization go hand in hand. He points out that it is this understanding that made the economies of USA, Japan, and Germany to be successful during World War 1. According to him, the application of the 3M strategy made different companies be successful during those periods. He analyzed that during the period of 1920 to 1960 many companies in the USA adopted this theory and was very successful. He has mentioned the examples of General Motors, DuPont, etc. for this. “GM itself tells a fascinating story of transition from personal to the corporate enterprise.” (Landes, 2001).