ABSTRACT
Production-centred business is the form of business generally encountered in Europe, where it is deeply rooted in many ways. Historically, the production tools have since the time of the merchant-employers been the property of the entrepreneur, who considered his plant and its use, including the management of the hired human resources, as manifestations of the traditional values of property and leadership. The property and its exploitation constituted rights to which he personally held title, and which were not considered as functional values, that is, values fulfilling a function in society and therefore open to discussion. Business has long produced goods in a seller's market, which means that the business entrepreneur was essentially a merchant-producer, who bought raw material, and after having added a certain value to it, passed it on to the buyers. His main concern was to ensure that the cost of the added value left him an adequate margin of profit; the control of his resources consisted mainly in providing an adequate supply of raw material to the factory, maintaining or expanding the production tools, and maintaining an adequate standard of quality of product. He displayed a tendency towards backward integration, as distinct from forward integration. In other words, there was a concern for safeguarding the supply of raw materials by controlling its sources through ownership, whereas there was little tendency to control outlets through ownership of distribution facilities.
