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

Corporate Development During the Industrial RevolutionThe commonplace Oil caller-out founded by legerdemain D. Rockefeller and the U.S. SteelCompany founded by Andrew Carnegie. The Standard Oil Company and U.S. SteelCompany were made successful in different ship canal 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 performer that he cut out the middle man. Carnegie bought his own iron andcoal mines because using independent companies cost too much and wereinefficient. By doing this he was suitable to undersell his competetors becausethey had to pay the competitors they went through to get the raw materials.Unlike Andrew Carnegie, tail D. Rockefeller integrated his vegetable oil business fromtop to bottom, his distinctive innovation in ordure of American industry washorizontal. This meant he followed one product through all its stages. Forexample, rockrfeller controlled the oil when it was drilled, through the nuance stage, and he maintained control over the refining process turning itinto gasoline. Although these two 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 undersized mercy. He believed primitive savageryprevailed in the jungle world of business, where only the fittest survived. Hepersued the policy of "ruin or rule.&quo t Rockefellers oil monopoly did turn outa superior product at a relatively cheap price. Rockefeller belived inruthless business, Carnegie didnt, yet they both had the most successfulcompanies in their industries. (The American Pageant, pages 515-518)Rockefeller treat his customers in the same manner 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. roughly of his employees found working under Carnegie unbearable.