Markets and managerial discretion: Tooth & Co., 1970–1981

Abstract

Studies of business have often sought to explain features of management activity, particularly labour management activity, with reference to the product market conditions faced by managers. This paper argues that a more nuanced understanding of management can be gained by examining both the product and financial market environment. These conditions influence the structuring of management and the development and application of managerial policy. This paper examines the management, particularly the labour management, of one of Australia's leading companies during the twentieth century. Specifically it examines how the product and financial market environment faced by this company in the 1970s influenced the labour management strategies pursued. It shows that particular market conditions will privilege or provide justification for certain types of labour management activity. This is illustrated by examining this company's operation under two distinct sets of market conditions.

Keywords:

• brewing
• financial markets
• product markets
• management discretion

Acknowledgements

This paper was largely prepared while the author was a visiting scholar in the Department of Management Studies at the University of York. The author would like to thank Steve Toms and Andrew Pendleton for their support during this visit and Greg Patmore for his comments on an earlier draft of this paper.

Notes

 1. Gospel has arguably been developing these ideas over a number of years (see for instance Gospel, 1973, 1989).

 2. The Managing Director of Tooths estimated that while sales of bulk beer increased 64% between 1969 and 1975 sales of packed beer increased by 158% during the same period (see Miller, 1976).

 3. Printout showing breakdown of ordinary shareholders, dated 16 May 1975. Noel Butlin Archive Centre (hereafter NBAC), Tooths Holding, Box 29 Z352.

 4. Various Annual Reports and minutes from Tooth and Co. Annual General Meetings, 1970–1974, NBAC, Tooth Holding Box 28 Z352.

 5. NBAC, Tooth Holding, Box 33 Z352.

 6. Memo regarding Special Board Meeting, 3 April 1970. NBAC, Tooth Holding Box 33 Z352.

 7. In 1975 there were 13 unions represented at the Kent brewery with 39 delegates from these unions on site at various times. List of Unions and Delegates at Kent, Irving St & Carlton St Breweries, 14 March 1975. NBAC, Tooth Holding, Box 2335 N20.

 8. Notes for the Chairman on Industrial Relations in Financial Year 1978. NBAC, Tooths Holding, Box 30 Z352.

 9. In the 1930s the FEDFA had insisted that it be able to nominate workers to fill vacancies that arose in jobs for firemen and engine drivers. This ‘union book’ method of filling vacancies prevailed for FEDFA positions at the brewery into the 1970s. Memo to Mr Watson from Mr Hancock, re Engine Drivers Union, 11 November 1935. NBAC, Tooths Holding, Box 1473 N20 and Interview with Industrial Relations Manager, Kent Brewery (1974–1980), 22 February 2006.

10. In March 1971 Tooth and Company, through their solicitors, appealed to the Secretary of the FEDFA to ensure union members ceased undertaking industrial stoppages and additionally removed a series of work rules that were deemed to interrupt and restrict production. Letter from Asher, Old, and Jones to the Secretary/Treasure FEDFA (NSW), 23 March 1971. NBAC, FEDFA Holding Box 174 N81.

11. Letter from Asher, Old, and Jones to the Secretary/Treasure FEDFA (NSW), 23 March 1971. NBAC, FEDFA Holding Box 174 N81.

12. Report by Chairman at the Annual General Meeting, 17 July 1974. NBAC Tooths Holding, Box 29 Z352.

13. Economic Understanding of the Company Position, 28 September 1976. NBAC, Tooths Holding, Box 53 Z352.

14. Chairman's Notes, Annual General Meeting, 16 July 1975. NBAC , Tooths Holding, Box 29 Z352.

15. Chairman's Report, Annual General Meeting, 3 August 1976. NBAC, Tooths Holding, Box 30 Z352.

16. All these ventures were referred to in the Chairman's address to the Annual General Meeting in 1978. NBAC, Tooths Holding, Box 30 Z352.

17. Memorandum from McKinsie and Company to Tooths Board of Directors, 17 September 1975. NBAC, Tooths Holding, Box 53 Z352.

18. Comments by Paul Haege at Tooths AGM on 3 August 1976. NBAC, Tooths Holding, Box 30 Z352.

19. Initial Planning Documents for Board Meeting, p. 10, Tooth & Co. Ltd, 17 February 1976. NBAC, Tooths Holding, Box 54 Z352.

20. Managing Directors' Report to a special meeting of the Board of Directors, 25 August 1978. NBAC, Tooths Holding, Box 52 Z352.

21. The Chairman's address to the Annual General Meeting for the years 1975, 1976, 1977, 1978 and 1979. NBAC, Tooths Holding, Boxes 29, 30 and 31 Z352.

22. Interview ex-FEDFA delegate from the Tooths Waverly Brewery, 9 November 2005.

23. McKinsey Report. NBAC, Tooths Holding, Box 53 Z352.

24. Tooth and Co. Ltd, Operations ‘Know How’ Document, Mark 1, 20 March 1979. NBAC, Tooths Holding, Box 53 Z352.

25. Tooth & Co. Ltd Statistics, September 1980. NBAC, Tooths Holding, Box 53 Z352.

26. Memo, To All Directors, Discussion Notes, prepared by G.A. Haines, 26 November 1980. NBAC, Tooths Holding, Box 55 Z352.

27. Letter to the Sydney Stock Exchange from the Tooth and Co. Company Secretary, 7 July 1981. NBAC, Tooths Holding, Box 55 Z352.