1. Figure 10.2shows that during 1980-2000 large US companies accounted for a smaller percentage of total employment?a development that is attributed to "a more turbulent businessenvironment and new information and communications technologies" (p. 256). Explain why these factors might cause large corporations to reduce their size and scope.

Consolidation through mergers Expanding Scale and Scope and acquisitions Top 100 . scale economies from new Quest for scale companies' technologies and market share of 16 . new management tools dominance in total . multidivisional structure both mature and employment 14 . computers hi-tech sectors (%) . international expansion 12 Railways, canals, and Second Industrial Revolution: Growth of 10 telegraph expand firms industrial giants Restructuring, Refocusing, and geographical assisted by electricity, Downsizing: 8 reach the telephone, innovations in . Quest for shareholder value: management and focus on core competences 6 First Industrial organization and core businesses Revolution: . Turbulent business 4 Mechanization environment: inflexibility of and the factory large, complex hierarchies Digital revolution 2 system 0 1800 182 184 18 1900 20 18 19 1940 1960 198 2000 2020