“rags to riches” expanded the steel industry ◦ “carnegie steel company” philanthropist ...
DESCRIPTION
Vertical Integration ◦ Buying out all suppliers ◦ Controlling all stages of manufacturing ◦ Gives power to control quality and cost Horizontal Consolidation ◦ Buying out competition ◦ Companies with similar products “merge” through this strategy Carnegie almost monopolized the steel industry!TRANSCRIPT
The Rise of Big Business
“Rags to Riches” Expanded the steel
industry◦ “Carnegie Steel Company”
Philanthropist Good management
◦ Products made more cheaply
◦ New techniques/machinery
◦ Attracted talented people
Andrew Carnegie
Vertical Integration◦ Buying out all
suppliers
◦ Controlling all stages of manufacturing
◦ Gives power to
control quality and cost
Horizontal Consolidation◦ Buying out competition
◦ Companies with similar products “merge” through this strategy
Carnegie almost monopolized the steel industry!
Vertical Integration/Horizontal Consolidation
“Only the strong survive”
Laissez Faire- “allow to do”◦ Allow business to be free
Idea that anyone can be rich
Poor were inferior or lazy
Justified millionaires efforts
Social Darwinism & Business
Founder of the Standard Oil Company.
Philanthropist.
Paid his employees low.
Drove competitors out.
Known as a “Robber Baron”
John D. Rockefeller
Attempt by congress to regulate big business – like Monopolies
Stated that forming a trust was illegal
Not very effective
Sherman Antitrust Act