BA 107BA 107Political and Social Political and Social

Environment of BusinessEnvironment of Business

Week 3: The Rise of Big Week 3: The Rise of Big Business and Big GovernmentBusiness and Big Government

Section OutlineSection Outline

ReviewReview• Week 1: Core ConceptsWeek 1: Core Concepts

Nonmarket Environment, Market Failures, Legitimacy, StaNonmarket Environment, Market Failures, Legitimacy, Stakeholderskeholders

• Week 2: Analysis, Strategy in the Nonmarket EnviroWeek 2: Analysis, Strategy in the Nonmarket Environmentnment

Analyzing Non-Market IssuesAnalyzing Non-Market Issues• The Four I’sThe Four I’s

Integrated StrategyIntegrated Strategy• Framework for analyzing strategyFramework for analyzing strategy

Today: The rise of big business and big governToday: The rise of big business and big governmentment

Week 3Week 3

Historical DevelopmentHistorical Development• Importance of HistoryImportance of History

Big business and big governmentBig business and big government Timeline:Timeline:

• 1800 – Agrarian society1800 – Agrarian society• Mid-1800 – Rise of railwayMid-1800 – Rise of railway• Late 1800 – Consolidation: Rail, Oil, Late 1800 – Consolidation: Rail, Oil,

Steel, Financial MarketsSteel, Financial Markets

Week 3 Discussion QuestionsWeek 3 Discussion Questions

What are the conditions that enabled What are the conditions that enabled big business to grow in the US?big business to grow in the US?

Week 3 Discussion QuestionsWeek 3 Discussion Questions

What are the conditions that enabled What are the conditions that enabled big government to grow in the US? big government to grow in the US?

Week 3 Discussion QuestionsWeek 3 Discussion Questions

How has American ideology changed How has American ideology changed in the century since the passage of in the century since the passage of the Interstate Commerce and the Interstate Commerce and Sherman Antitrust Acts? Sherman Antitrust Acts?

Week 3 Discussion QuestionsWeek 3 Discussion Questions

How do trends in business How do trends in business organization today compare to those organization today compare to those of a century ago? What is similar of a century ago? What is similar and what is different? and what is different?

Week 3 Discussion QuestionsWeek 3 Discussion Questions

Are there "robber barons" today in Are there "robber barons" today in the sense of a few business leaders the sense of a few business leaders who enjoy immense economic who enjoy immense economic power? power?