1.Industrial enterprise : “a large private, profit-oriented business firm involvedin the handling of goods in some or all of the successive industrial processesfrom the procurement of the raw material to the sale to the ultimate customer”(8); thus, transportation, utility, and purely financial companies are notconsidered industrial enterprises (8).2.Administration : “includes executive action and orders as well as the decisionstaken in coordinating, appraising, and planning the work of the enterprise andin allocating its resources” (8).3.
: administration is an identifiable activity, differing from buying, selling, processing or transporting of goods, and is the main concernof executives in large industrial enterprises [their specialized, full-time job isadministration] (8-9)4.
: the administrator must handle two types of administrativetasks, both (a) those concerned with the long-run health of the company and(b) those concerned with its smooth and efficient day-to-day operation (9).5.
: the executives in a modern, “decentralized” company carryout their administrative activities from four different types of positions, eachwith its own range of activities and level of authority that vary from companyto company (9). The four types of positions are (9):i.
administers [i.e., coordinates, appraises, plans, andallocates resources] a number of quasi-autonomous, fairly self-contained divisions, each of which handles either a major product lineor a geographical region.ii.
Division’s Central Office:
administers a number of departments,each of which is responsible for a major function (e.g. manufacturing,selling, research)iii.
administers a number of field unitsiv.
runs a plant, sales office, engineering lab, accountingoffice, etc. Note: these are conceptual terms referring to activities and not office buildings(9-10). All four types exist in the most complex of industrial enterprises,though they can exist separately too (12).6.Formulation of policies and procedures (11)i.Strategic : concerned with the long-term health of the enterpriseii.Tactical : deal more with the day-to-day activities necessary for smooth and efficient operationImplementation of policies and procedures: involves allocation or reallocation of resources—funds, physical equipment and/or skills of personnel (11, 14)7.Entrepreneurs : executives who actually allocate available resources; thedecisions made by these key men are entrepreneurial decisions (11)Managers: executives who coordinate, appraise, and plan with the meansallocated to them; their decisions are called operating decisions (11) Note: entrepreneurs may be powerful but they do not necessarily possess
vision (12). According to Chandler, however, to be effectiveentrepreneurs, they should be paying attention to the long-term (12).