The Strategy and Structure of British Enterprise by Derek F. Channon

By Derek F. Channon

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This shortage of qualified engineers inevitably led to the substitution of pure scientists less well-equipped to exploit discoveries. 8 Further, managerial deficiencies have been claimed as a contributory cause especially in the aircraft industry. 9 In Britain there, has been a tendency for management to produce products with advanced engineering or design for its own sake, rather than to cater to market needs and/ or products which would show an adequate return on investment. These factors, coupled with private industry's failure to invest sufficient capital for new plants, were cited 10 as possible explanations for a general lack of competence in exploiting the comparative strength of Britain's wide technological base.

In 1950 it was estimated there were less than 500 self-service stores; by 1957 the number had grown to 4,000. By 1966 the estimate was over 17,000. , p. 215. The Strategy and Structure of British Enterprise 32 began operating in Britain in 1956, there were about 870 by 1961, and they were estimated at 3,000 in 1966. 6 Multiple stores selling specialist products began discounting from list prices in the early 1960s, and the appearance of private label and fighting brands (lowpriced version of a producer's main branded product) also occurred.

The second of the variants resembled the multidivisional structure. Again, however, there was no central office for the determination of corporate strategy, coordination, and policy, the holdingcompany board was not divorced from operations, and there was no radonalization of potential conflict between subsidiaries. The organization structures of the population were, therefore, classified into one of these three main structural variants, namely, functional, holding company, or multidivisional. The multidivisional structure, in turn, was broken down to indicate distinctions by product, geography, and international operations.

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