Premium
Managing Multinational Expansion and Related Diversification: The Case of Australian Consolidated Industries Ltd, 1939–72[Note 1. I wish to thank the participants at the annual ...]
Author(s) -
Fountain Helen
Publication year - 2002
Publication title -
australian economic history review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.493
H-Index - 16
eISSN - 1467-8446
pISSN - 0004-8992
DOI - 10.1111/1467-8446.t01-1-00028
Subject(s) - multinational corporation , diversification (marketing strategy) , business , industrial organization , operations management , marketing , economics , finance
This case study of Australian Consolidated Industries Ltd (ACI) adopts a Chandlerian framework to assess the management of its long‐term growth strategies. ACI’s multinational expansion in South–East Asia and its related diversification in the Australian packaging industry are examined. Contrary to established views regarding Australian manufacturers, management vigorously implemented Chandlerian growth strategies, but was less effective in developing managerial capabilities and implementing an appropriate organisational structure to support its strategies’ long run expansion. Management failed to anticipate the demand for managerial resources, encountered organisation design problems, and undermined design efficiency through interventionist procedures. These explanations may shed light on a problem common among some large Australian manufacturing firms.