Analyzing US Automobile Boom
Analyzing US Automobile Boom
Up until late 1960th, large hierarchically organized American automobile corporations have been taking the leading positions in the world economy. The reason for this is rooted in lack of competition. However, situation changed to the opposite in 1970th as from then and on global competition was shaping organizational structure and production methods of American companies.
Technological contribution of automobile industry in mass production had a positive effect on overall economic performance in the industry. Automobile industry provided a large number of unskilled jobs, whereas American public was a pool for consumers. Until 1970th , the two major American automobile producers – Ford and General Motors employed the most productive technological solutions and interfirm relationships that were adopted throughout Europe.
When it comes to analysis of the management structures and methods that were employed by automobile industry in US after WWII, there are two competitive approaches. One way to perform analysis is through observation of strategic decisions within a company as a response to changes in external environment. This analysis technique is referred to as intrafirm perspective. Another way to confront the issue of changes in management techniques and production processes is through analysis of the relationships of automobile companies with suppliers, once again, in the framework of emerging changes in external environment.
In general, intrafirm perspective is favoured among scholars and was widely applied in 1980th as a way to find ways to stop the decreasing competitiveness of American automobile companies which had begun in 1970th. In an attempt to assess organizational changes, scholars attribute changes in management techniques not solely to external environment, but also to the strategic reorganization that took place within an automobile company.
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