carnegie, rockefeller, and success. america’s first big business railroads combine and...
TRANSCRIPT
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Fun With Big BusinessCarnegie, Rockefeller, and
Success
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Railroads America’s First Big Business Railroads combine and corporations
are formed (helped by the government)
Cornelius Vanderbilt dominated the industry and became extremely wealth (2nd in history) "Gentlemen: you have
undertaken to cheat me. I won't sue you, for the law is too slow. I'll ruin you. Yours truly, Cornelius Vanderbilt."
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How to Build a Corporation Vertical Integration- own all means of
production from the top down (you cut out the middle man and cut costs)
Horizontal Integration- take control of all the companies that make the same product
How would you vertically or horizontally integrate your lemonade business?
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Andrew Carnegie
Doesn’t he look like the guy from Jurassic Park?
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Andrew Carnegie Scottish immigrant who achieved the “rags
to riches” dream (the best example of this) Built steel mill in 1870 and focused on
cutting costs and keeping prices low Practiced vertical and horizontal
integration Carnegie Steel becomes the World’s
largest corporation Sold company to J.P. Morgan for $450
million
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Is Carnegie a Robber Baron?
YES, HE IS A BAD GUY NO, HE IS A GREAT GUY
He cut costs and workers salaries
Violently and ruthlessly ended the homestead strike
Helped keep workers in state of pauperism
Created unsafe and difficult conditions for his workers
He created thousands of jobs with his industry
He helped create products and technological developments that benefitted society
He was a great philanthropist and donated over $300 million to charityHenry Clay
Frick
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John D. Rockefeller
I’m thinking of growing a moustache like this…
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J.D. Rockefeller Founded Standard Oil Company in
1870 Scrutinized every aspect of
production to cut costs Advertized heavily and was a master
of marketing First Horizontal, then Vertical Consolidation > Competition
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Richest People Ever http://www.nytimes.com/ref/business/
20070715_GILDED_GRAPHIC.html#
http://www.neatorama.com/2008/07/09/10-richest-people-of-all-time-and-how-they-made-their-fortunes/
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Types of Monopolies Pools- informal agreements to set
rates, prices, and business Trusts- stockholders transfer control
to a board of trustees Holding companies- One major
corporation would buy the stock and exert direct control
Example: Standard Oil in New Jersey