Is Bigger Better

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Is Bigger Better

Schumacher’s Argument: Main idea: "Small is beautiful" because small-scale organizations are more sustainable and humane. Main key points: Small firms are more adaptable to local conditions. Focus on human-centric values and sustainability over profit maximization. Growth beyond a certain point leads to inefficiency and alienation.

Schumacher’s approach may not scale to meet global economic demands in industrial sectors. Small organizations might lack the resources for innovation or resilience during crises.

Arguments against the ideology

His focus aligns with modern concerns about environmental degradation and corporate ethics.

Small organizations promote sustainability and community well-being.

Benefits:

Chandler

Counter Arguments: Chandler’s model can overlook human and environmental costs, focusing narrowly on efficiency.

Arguements to support his pov: Historical evidence supports the success of large firms in dominating industries (e.g., General Motors, Standard Oil). Vertical integration effectively reduces transaction costs.

Large firms gain efficiency through vertical integration. Organizational coordination reduces costs and streamlines production. Long-term investments in management and infrastructure lead to market dominance.

"Bigger is better" because economies of scale and scope enhance efficiency and competitiveness.