THE EVOLUTION OF AMERICAN BUSINESS

The course
History 419A
Spring 1996
M/W 11:00-12:30
IBM-TQ Teaching Theater
Van Munching Hall 2203

The instructor
Dr. David Sicilia
Office: Key 2101-J
Office phone: 405-7778
E-mail: DS190@umail.umd.edu

Office hours: M 9:00-10:00, W 8:30-10:00


This course explores the evolution of American entrepreneurship, businessmanagement, and organizational structure within the context of changing public policy, technology, labor, ideology, and markets. We will give special emphasis to entrepreneurial innovation, the rise of big business, regulation, mass marketing, and global competition.

"The Evolution of American Business" is designed to facilitate student-centered, interactive learning. We will rely on the case method developed at the Harvard Business School and utilize many of the powerful instructional hardware and software tools in the IBM-TQ Teaching Theater. Students will be expected to engage regularly and thoughtfully in class oral and electronic discussions, collaborative projects, and electronic reflector dialogues.


Prerequisites:

None. Typing skills useful. This course is designed for students with an interest in business, business history or modern United States history. It is likely you will encounter one or more new pedagogical methods or technologies in this course. If you presently are not proficient with case method instruction, e-mail, or World Wide Web, for example, you will become so early in the semester.

Computer accounts:

By the fourth class meeting you are required to:

Requirements:

1) You will be required to complete all of the course reading assignments (approximately 50-80 pages per week). Readings must be completed before class.

2) Based on this reading, you will be asked to submit short writing assignments andparticipate in class activities. These will include:

3) A research project, to be designed in cooperation with the instructor. This project can take any number of forms -- written, multimedia, consulting, etc. -- depending on your interests and skills. The instructor will distribute a project plan and discuss this assignment more in class.


Grade composition:

Each course unit (corresponding to a class meeting) will be graded, except for the units in weeks 1 and 15. You will be evaluated for each unit based on your performance with all assignments related to that unit (quizzes, reflector participation, in-class discussion, etc.) Each graded unit will count for three percent of your total course grade, for a total of 75 percent. The research project will account for the remaining 25 percent.

* * *

Calendar of Discussion Topics and Reading Assignments


WEEK 1: INTRODUCTION

1/29 Introduction: What is special about this course?

1/31 Uses of business history

Reserve reading: George David Smith and Laurence E. Steadman, "Present Value of Corporate History," Harvard Business Review 59 (November-December 1981): 164-173.


WEEK 2: THE AGE OF THE MERCHANT

2/5 Mercantilism in the New World

Reserve reading: S. Bruchey, The Colonial Merchant: Sources and Readings (New York, 1966), 95-116, 189-196.
2/7 The case of John Jacob Astor

HBS case: T. K. McCraw, "John Jacob Astor - 1763-1848," 9-391-261.


WEEK 3: EARLY INDUSTRIALIZATION

2/12 Textile industry pioneers

HBS case: T. K. McCraw, "Samuel Slater, Francis Cabot Lowell...," 9-792-008.
2/14 Banking and Finance in the Early Republic

HBS case: T. K. McCraw, "Second Bank of the United States," 9-391-262.


WEEK 4: RAILROADS AND THE BIRTH OF MODERN MANAGEMENT

2/19 The Transportation Revolution

Course book: H. C. Livesay, Andrew Carnegie and the Rise of Big Business (Boston, 1975), chs. 1-5.
2/21 The "First Big Business"

HBS case: T. K. McCraw, "Railroads and the Beginnings of Modern Management," 9-391-131.

WEEK 5: THE RISE OF GIANT INDUSTRY

2/26 The Carnegie Formula

Course book: H. C. Livesay, Andrew Carnegie and the Rise of Big Business (Boston, 1975), chs. 6-11.

2/28 John D. Rockefeller and Standard Oil

HBS case: T. K. McCraw, "Standard Oil Company," 9-391-244.

WEEK 6: CORE AND PERIPHERY

3/4 Consolidation and Morganization

HBS case: T. K. McCraw, "J. P. Morgan - 1837-1913," 9-391-263.
3/6 The Persistence and Role of Small Business

Reserve reading: M. G. Blackford, A History of Small Business in America (New York, 1991), 27-62.

WEEK 7: BIG BUSINESS, UNIONS, AND WORKERS

3/11 Workers Organize

HBS case: T. K. McCraw, "Organized Labor and the Worker," 9-391-256.
3/13 Frederick Taylor and Scientific Management

Reserve reading: F. W. Taylor, Principles of Scientific Management (NewYork, 1911), 30-85.

WEEK 8: THE REGULATORY STATE

3/25 Regulating Railroads

Reserve reading: M. Klein, "Competition and Regulation: The Railroad Model," Business History Review 64 (Summer 1990): 311-325.
3/27 Regulating Trusts

T. K. McCraw, "Antitrust: Perceptions and Reality...," 9-391-292.

WEEK 9: R & D AND DIVERSIFICATION: THE CASE OF DU PONT

4/1 Controlling Innovation

Reserve reading: D. A. Hounshell and J. K. Smith, Science and Corporate Strategy: R&D at Du Pont, 1902-1980 (New York, 1988), 1-55.
4/3 The Multidivisional Structure

Reserve Reading: A. D. Chandler, Jr., Strategy and Structure: Chapters in the History of the American Industrial Enterprise (Cambridge, Mass., 1962), 52113.

WEEK 10: THE RISE OF MASS DISTRIBUTION

4/8 The Mass Retailers

Reserve Reading: H. E. Resseguie, "Alexander Turney Stewart and the Development of the Department Store," Business History Review 39 (Autumn 1965): 301-322.
4/10 Cars for the Masses: GM passes Ford

Reserve reading: R. S. Tedlow, New and Improved: The Story of Mass Marketing in America (New York, 1990), 112-181.

WEEK 11: UNEASY PARTNERS: BUSINESS AND THE STATE SINCE 1933

4/15 Business and the New Deal

Reserve reading: McQuaid, Kim, "Corporate Liberalism in the American Business Community, 1920-1940," Business History Review 52 (Autumn1978): 342-368.
4/17 Business-Government Relations, 1940-1980

Reserve reading: Vogel, David, "The 'New' Social Regulation in Historical and Comparative Perspective," in Thomas K. McCraw, Regulation in Perspective: Historical Essays (Cambridge, Mass., 1981), 155-185.


WEEK 12: THE CONGLOMERATE ERA

4/22 Unrelated Diversification

Course book: M. Holland, When the Machine Stopped: A Cautionary Tale from Industrial America (Boston, 1989), 1-128.
4/24 Student projects


WEEK 13: FACING GLOBAL COMPETITION

4/29 Course book: M. Holland, When the Machine Stopped, 129-280.

5/1   Reserve reading: Jeffrey A. Hart, "A comparative analysis of the sources of America's relative economic decline," in Michael A. Bernstein and David E.Adler, eds., Understanding American Economic Decline (Cambridge, England, 1994), 199-239.


WEEK 14: MERGERS, FINANCE, AND RESTRUCTURING IN THE 1980s

5/6 The Case of Michael Milken

        reading: to be announced

5/8 Student projects


WEEK 15: CONCLUSION

5/13 Student projects

FINAL CLASS MEETING will be held during the final exam period:
Thursday, May 16, 8:00-10:00 a.m. in the IBM Teaching Theater.