The opposite of small is of course, large. Big Business is a term that is used to describe a big corporation. Even though Anco precision is smaller, independently owned company we specialize in large companies manufacturing needs. The term, Big Business, originates from the late eighteen hundreds where, after the civil war, large companies were popping up all over the country. Some of these large companies include; Sony, Disney, General Motors, Mobil and Wal-Mart. From the late eighteen hundreds through 1905 the U.S. saw a massive consolidation of small businesses into gigantic, conglomerate corporations.
These large companies exploited low worker wages and high production rates from the get go. In the long run this model made sense at the time because the large companies that were manufacturing and selling the most goods would survive the longest and make the most profit. Monopolies were also running rampant during this era seeing that now laws were in place to say otherwise. These large companies would also set limit prices on goods to keep new companies from entering their markets.
This also had a positive effect on the markets. Due to competition these large companies were forced to produce, high quality goods that would keep customers happy and returning to their brand. If you lead the market for your products you have a better chance to control the market price. Thus, adding to your profit margins. If the market became flooded with too much of one product and prices dropped the larger company would simply cut back on output which would reduce supply while demand was still high. These basic ideas are what aided large companies to become the big businesses we have in the U.S. today. In the long-run large jumps in technology assisted the large companies with their rapid growth. The industrial revolution increased the size and efficiency of plants and factories while mechanizing sections of their work force.
The lower cost for production means higher profits for the company. This technological boom also aided in the exportation and importation on goods. In the U.S. today we see a highly technological and mechanic workforce in most manufacturing sectors. In recent years robotic technology was developed for manufacturing which had a further heightening effect on large companies’ profits. As more and more large corporations grow in the U.S. we will see a decline in smaller, locally operated business but Anco machining will be here to assist in any and all work that a larger company will have.
A large corporation has the money and resources to produce and import goods at considerably lower costs than the average small business which is why using a local business, like Anco precision machining, can reduce larger companies production costs in the long run.