Corporate Development During The Industrial Revolution :: essays research papers fc

Corporate Development During the Industrial RevolutionThe Standard Oil Company founded by John D. Rockefeller and the U.S. trade nameCompany founded by Andrew Carnegie. The Standard Oil Company and U.S. SteelCompany were made successful in different ways due to the actions of theirdifferent owners. The companies differed in their labor relations, marketcontrol, and structural organization.In the steel industry, Carnegie developed a system known as vertical integration.This means that he cut verboten the middle man. Carnegie bought his own iron andcoal mines because using independent companies cost too much and wereinefficient. By doing this he was able to nethersell his competetors becausethey had to pay the competitors they went d one to get the raw materials.Unlike Andrew Carnegie, John D. Rockefeller integrated his oil business fromtop to bottom, his distinctive innovation in movement of American industry washorizontal. This meant he followed one product through all its stages . Forexample, rockrfeller controlled the oil when it was drilled, through therefining stage, and he maintained control over the refining process turning itinto gasoline. Although these deuce powerful men used two different methods ofmanagement their businesses were still very successful (Conlin, 425-426).Tycoons like Andrew Carnegie, "the steel king," and John D. Rockefeller, "theoil baron," exercised their genius in devising ways to circument competition.Although, Carnegie inclined to be tough-fisted in business, he was not amonopolist and disliked monopolistic trusts. John D. Rockefeller came todominate the oil industry. With one upward stride after another he organizedthe Standard Oil Company, which was the nucleus of the great trust that wasformed. Rockefeller showed little mercy. He believed primitive atrociousnessprevailed in the jungle world of business, where only the fittest survived. Hepersued the policy of "ruin or rule." Rockefellers oil monopoly did turn outa superior product at a relatively cheap price. Rockefeller belived in unmerciful business, Carnegie didnt, yet they both had the most successfulcompanies in their industries. (The American Pageant, pages 515-518)Rockefeller treated his customers in the kindred path that Andrew Carnegietreated his workers cruel and harsh. The Standard Oil Company desperatelywanted every possible company to buy their products. Standard Oil usedruthless tactics when Rockefeller threatenedto start his own chain of grocerystores and put local merchants out of business if they did not buy oil fromStandard Oil Company. Carnegie dealt with his workers with the same cold lackof diplomacy and consideration. Carnegie would encourage an unfriendlycompetition between two of his workers and he goaded them into outdoing oneanother. Some of his employees found working under Carnegie unbearable.