USA HISTORY

Detailed explanation-1: -Generally, the advantage of the Fordism theory to the organization is that it lowers the costs through mass production. It also benefits the company through economies of scales. The economies of scales are achieved through production of goods in large quantities (Clarke 1990).

Detailed explanation-2: -Henry Ford, founder of Ford Motors had the following to say regarding his products: “Any customer can have a car painted any color that he wants so long as it is black.” Ford Motors held a monopoly in the automobile market, as they were the only automobile company that consumers can purchase from in the early 1900s.

Detailed explanation-3: -Flexibility and variety in the skills and knowledge of the core workers and the machines used for production allowed for the specialized production of goods. Modern just in time manufacturing is one example of a flexible approach to production.

Detailed explanation-4: -A natural monopoly occurs whenever an industry is high, and its market shared among two or more rival plants owning duplicate distribution networks.