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The British Motor Industry, 1945-1994A Case Study in Industrial Decline$
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Timothy Whisler

Print publication date: 1999

Print ISBN-13: 9780198290742

Published to Oxford Scholarship Online: October 2011

DOI: 10.1093/acprof:oso/9780198290742.001.0001

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Corporate Structure and Management Strategy: Decision-Making and Path Dependence, 1945–1968

Corporate Structure and Management Strategy: Decision-Making and Path Dependence, 1945–1968

Chapter:
(p.34) 2 Corporate Structure and Management Strategy: Decision-Making and Path Dependence, 1945–1968
Source:
The British Motor Industry, 1945-1994
Author(s):

Timothy R. Whisler

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780198290742.003.0003

Mergers do not safeguard firms from long-term decline in terms of market share and profitability. The lack of sophisticated hierarchical corporate structures and vertical integration is evident in British industry compared to American and German industry. There is also a prevalence of unsophisticated corporate structures and personal management that can be observed after mergers take place. This chapter analyses how unsophisticated management techniques and corporate structures hindered the development of the progressively concentrated British industry. The consistency and pervasiveness of the strategy and structure of the British-owned motor manufacturers prior to 1968 reveals a path dependence that lead to the creation of unique British characteristics, which can be compared to characteristics of multinational and international rivals.

Keywords:   market share, profitability, mergers, British-owned motor manufacturers, corporate structure, vertical integration

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