The Growth of Big Business

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The Growth of Big Business
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What are Robber Barons and Captains of
Industry?

• Robber Barons People who built their fortunes by
  stealing from others.
• Captains of Industry People who built factories,
  expanded markets and raised productivity in a
  POSITIVE way!

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WHAT DO YOU THINK?

• As we learn about these big businessmen, decide
  what you think they are? Did they do good
  (Captain of Industry) or bad (Robber Baron.)

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ANDREW CARNEGIE!

• Captain of the STEEL Industry!
• Drove his competitors out of business by being
  the first to open steel plants using the Bessemer
  Process. (able to cut costs)
• Was a philanthropist!
• Preaches the gospel of wealth people should
  be free to make as much money as they can but
  responsibility to then give it away!

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Carnegie Hall and Carnegie Library
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Social Darwinism

• A Sociological Theory that society should do as
  little as possible to interfere with peoples
  pursuit of success. (meaning Government,
  laissez-faire)
• Then those who are most fit would succeed and
  become rich. (People left to compete with one
  another)
• Society as a whole would therefore benefit and
  the unfit will be weeded out!

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Gaining a competitive edge
1. Monopoly a company/person has complete
control of a product or a service! Good or bad?
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What if Starbucks had a monopoly on the coffee
shop business? What could they do to the
prices? What could they do to their product?
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2.Cartel

• A loose association of businesses that make the
  same product and agree to make a limited amount
  of their product to keep their prices high!
• Our next Big Businessman began by being a part
  of a cartel!

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John D. Rockefeller
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John D. Rockefeller
Captain of OIL!
Standard Oil Company
Trust a board of trustees who manage companies
as a single unit!
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Methods of Industrial Control
Horizontal Integration Bringing together many
firms that were in the same business!
Vertical Integration Gaining control of the many
businesses that make up all phases of a product
development!
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Which one did they do?
Carnegie Vertical!
Rockefeller Horizontal!
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Vertical Consolidation
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People who built their fortunes by stealing from
others are referred to as

1. ROBER BARONS
2. CAPTAINS OF INDUSTRY
3. ROBIN HOODS
4. SOCIAL DARWINS

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WHO IS THIS MAN?

1. JOHN D. ROCKEFELLER
2. CORNELIUS VANDERBILT
3. ANDREW CARNEGIE
4. SANTA CLAUSE

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TRUE(A) OR FALSE(B)??

• John D. Rockefeller was the captain of steel!
• FALSE!

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Which of the following is NOT true about Social
Darwinism?

• Society should do as little as possible to
  interfere with people pursuit of success.
• Then those who are most fit would succeed and
  become rich.
• C. Society as a whole would therefore benefit and
  the unfit will be weeded out!
• D. A loose association of businesses that make
  the same product and agree to make a limited
  amount of their product to keep their prices
  high!

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WHICH OF THE FOLLOWING DESCRIBES HORIZONTAL
INTEGRATION?

• Bringing together many firms that were in the
  same business!
• B. Gaining control of the many businesses that
  make up all phases of a product development!

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WHICH DO YOU THINK ROCKEFELLER AND CARNIGIE WERE??

1. ROBBER BARONS
2. CAPTAINS OF INDUSTRY