Problems faced by large scale industries?

Answer 1

One major problem is waste of resources. While economics of scale means that larger industrial operations can produce more goods, the increased difficulties of co-ordinating production and the centralization of authority (i.e. the oft complained about 'senseless mandates from upper management' of many industries) also results in larger scale waste. A bad butcher may make a few bad cuts, but one bad butchery machine can make thousands, if not millions, of them.

In essence, this is a problem endemic of all large human organizations. A corporation is no different than a government, and as a large government becomes wasteful and inefficient, so too does a large corporation, and for similar reasons.