THE INDUSTRIAL ERA: THE TRANSITION FROM FARM TO FACTORY

THE FIRST HALF OF THE 19TH CENTURY MARKED A SIGNIFICANT PERIOD OF CHANGE,
PARTICULARLY IN THE REALM OF ECONOMIC AND BUSINESS THINKING. THE TRANSITION
FROM AGRICULTURE TO INDUSTRY WAS BROUGHT ABOUT BY THE DEVELOPMENT OF THE
FACTORY SYSTEM, AGRICULTURAL MACHINES, AND IMPROVEMENTS IN TRANSPORTATION.
AS A RESULT OF THE INDUSTRIAL REVOLUTION, THE NATURE OF AGRICULTURAL MARKETS
CHANGED, WITH MANY FARMERS SPECIALIZING IN GROWING A SINGLE CROP OR RAISING
SPECIFIC ANIMALS. THE FOUNDATION OF THE INDUSTRIAL REVOLUTION WAS THE FACTORY
SYSTEM, WHICH IMPROVED PRODUCTIVITY THROUGH SPECIALIZATION AND DIVISION OF
LABOR. THIS PERIOD ALSO SAW THE EMERGENCE OF A MARKET ECONOMY, AS CONSUMERS
PURCHASED GOODS IN SPECIALTY STORES AND BARTERING BECAME LESS IMPORTANT. THE
CANAL BOAT, STEAMBOAT, RAILROADS, AND TELEGRAPH ALSO REVOLUTIONIZED
TRANSPORTATION AND COMMUNICATION. OVERALL, THE FIRST HALF OF THE 19TH CENTURY
WAS MARKED BY SIGNIFICANT CHANGES THAT SET THE STAGE FOR THE MODERN
INDUSTRIALIZED WORLD WE KNOW TODAY.
 THE AGE OF TITANS: THE BIRTH OF THE CORPORATION

THE SECOND HALF OF THE 19TH CENTURY AND THE EARLY 20TH CENTURY ARE OFTEN
REFERRED TO AS THE AGE OF TITANS OR THE SECOND INDUSTRIAL REVOLUTION. DURING
THIS PERIOD, BUSINESS LEADERS SUCH AS ISAAC MERRITT SINGER, CYRUS MCCORMICK,
JOHN D. ROCKEFELLER, AND HENRY FORD BUILT MASSIVE BUSINESS EMPIRES, AND LARGE
INDUSTRIAL CORPORATIONS DOMINATED URBAN AREAS. TO SUPPORT THE GROWTH OF BIG
BUSINESS, THE BANKING INDUSTRY EXPANDED TO PROVIDE LARGE AMOUNTS OF CAPITAL. AS
A RESULT, INVESTORS WHO BOUGHT STOCKS BECAME THE "OWNERS" OF THE
CORPORATIONS, AND MANAGERS AND OWNERS WERE NO LONGER THE SAME INDIVIDUALS.
THE PREVAILING BUSINESS PHILOSOPHY DURING THIS TIME WAS A PRODUCTION
ORIENTATION, WITH MANAGERS FOCUSED ON IMPROVING FACTORY SYSTEMS TO ELIMINATE
WASTED MOTIONS. HENRY FORD'S CREATION OF THE ASSEMBLY LINE IN 1913 EXEMPLIFIED
THIS PHILOSOPHY, AS HE SOUGHT TO PRODUCE A LOW-COST AUTOMOBILE FOR THE MASSES.
HOWEVER, AS BUSINESSES BEGAN TO GROW AND EXPAND, THEY BEGAN TO PAY MORE
ATTENTION TO SALES AND ADVERTISING TO REACH A WIDER AUDIENCE. OVERALL, THE AGE
OF TITANS WAS A PERIOD OF SIGNIFICANT GROWTH AND TRANSFORMATION FOR AMERICAN
BUSINESS, SETTING THE STAGE FOR THE MODERN BUSINESS LANDSCAPE WE SEE TODAY.
 SALES ORIENTATION: CHANGE THEIR MINDS

AFTER THE GREAT DEPRESSION ENDED IN 1933, MANUFACTURERS WERE ABLE TO PERFECT
THEIR PRODUCTION PROCESSES, WHICH ALLOWED THEM TO PRODUCE AS MUCH AS THEY
WANTED. AS A RESULT, COMPETITION GREW, AND CUSTOMERS HAD MORE OPTIONS FOR
SPENDING THEIR MONEY. THIS SHIFT LED TO THE DEVELOPMENT OF A SALES-ORIENTED
PHILOSOPHY IN WHICH BUSINESSES FOCUSED ON CHANGING CONSUMERS' MINDS TO FIT THE
PRODUCT RATHER THAN PRODUCING AND MARKETING PRODUCTS THAT WOULD BEST SATISFY
CUSTOMERS. THE SLOGAN "PUSH! PUSH! SELL! SELL!" EPITOMIZED THIS APPROACH, WHICH
RELIED HEAVILY ON AGGRESSIVE PERSONAL SELLING AND ADVERTISING CAMPAIGNS TO
"PUSH" EXISTING PRODUCTS. THE EMPHASIS WAS ON SHORT-TERM SALES MAXIMIZATION
RATHER THAN CUSTOMER SATISFACTION. THIS PHILOSOPHY CONTINUED TO PREVAIL UNTIL
THE END OF WORLD WAR II.