Andrew Carnegie Millionaire Steel Mill operator. Millionaire Steel Mill operator. Worth 500 million...
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Transcript of Andrew Carnegie Millionaire Steel Mill operator. Millionaire Steel Mill operator. Worth 500 million...
Andrew CarnegieAndrew Carnegie
Millionaire Steel Mill operator.Millionaire Steel Mill operator. Worth 500 million dollars.Worth 500 million dollars. Practiced Practiced
Vertical & HorizontalVertical & Horizontal
Integration.Integration.
VERTICAL INTEGRATIONVERTICAL INTEGRATION
OWNERSHIP OF A BUSINESS OWNERSHIP OF A BUSINESS INVOLVED IN EACH STEP OF THE INVOLVED IN EACH STEP OF THE MANUFACTURING PROCESS..MANUFACTURING PROCESS..
PRACTICED BY ANDREW CARNEGIEPRACTICED BY ANDREW CARNEGIE WHAT WAS THE BENEFIT OF VERTICAL WHAT WAS THE BENEFIT OF VERTICAL
INTEGRATION?INTEGRATION? RELIABLE TRANSPORTATION, AND RELIABLE TRANSPORTATION, AND
STEADY AMOUNT OF RAW MATERIALSSTEADY AMOUNT OF RAW MATERIALS
EACH STEP OF THE EACH STEP OF THE MANUFACTURING PROCESSMANUFACTURING PROCESS
TRANSPORTATIONTRANSPORTATION
TRANSPORTATIONTRANSPORTATION
CHEAP AND RELIABLE FORMS OF CHEAP AND RELIABLE FORMS OF TRANSPORTATION TO GET RAW TRANSPORTATION TO GET RAW MATERIALS TO STEEL MILL MATERIALS TO STEEL MILL
AND DELIVER THE FINISHED AND DELIVER THE FINISHED PRODUCT TO THE BUYER.PRODUCT TO THE BUYER.
HORIZONTAL INTEGRATIONHORIZONTAL INTEGRATION
OWNERSHIP OF SEVERAL COMPANIES THAT MAKE OWNERSHIP OF SEVERAL COMPANIES THAT MAKE THE SAME PRODUCT.THE SAME PRODUCT.
OR EXPANSION OF ONE AREA OF PRODUCTION.OR EXPANSION OF ONE AREA OF PRODUCTION. PRACTICED BY JOHN D. ROCKEFELLER, & PRACTICED BY JOHN D. ROCKEFELLER, &
WASHINGTON DUKE.WASHINGTON DUKE. WHAT WAS THE PROBLEM WITH HORIZONTAL WHAT WAS THE PROBLEM WITH HORIZONTAL
INTEGRATION? INTEGRATION? ELIMINATED COMPETITION, ELIMINATED JOBSELIMINATED COMPETITION, ELIMINATED JOBS
SHERMAN ANTI TRUST ACTSHERMAN ANTI TRUST ACT
WHAT WAS IT?WHAT WAS IT? A LAW PASSED IN 1890 TO A LAW PASSED IN 1890 TO
ELIMINATE MONOPOLIES.ELIMINATE MONOPOLIES. WHY WERE MONOPOLIES BAD WHY WERE MONOPOLIES BAD
ECONOMIC PRACTICE?ECONOMIC PRACTICE?
Homestead Steel Homestead Steel strikestrike
Description:Description:Strikers at Homestead, Strikers at Homestead, Pennsylvania. The Populist Pennsylvania. The Populist platform appealed not only to platform appealed not only to farmers caught in an farmers caught in an economic squeeze; it also economic squeeze; it also addressed the interests of addressed the interests of laboring men. A series of laboring men. A series of strikes in the 1890s made it strikes in the 1890s made it clear that the government's clear that the government's interests lay with interests lay with businessmen and industrial businessmen and industrial leaders rather than the leaders rather than the workers. In 1892, Andrew workers. In 1892, Andrew Carnegie and Henry Frick Carnegie and Henry Frick (1849-1919) announced that (1849-1919) announced that they were lowering wages at they were lowering wages at their Homestead Steel plant their Homestead Steel plant by 20%. When the by 20%. When the Amalgamated Iron and Steel Amalgamated Iron and Steel Workers called a strike, Frick Workers called a strike, Frick locked out the strikers, who locked out the strikers, who then surrounded the plant.then surrounded the plant.
VERTICAL AND HORIZONTAL VERTICAL AND HORIZONTAL INTEGRATIONINTEGRATION
BOTH TYPES OF INTEGRATION ARE BOTH TYPES OF INTEGRATION ARE CONSIDERED MONOPOLIES.CONSIDERED MONOPOLIES.
WHICH WOULD MAKE YOU THE MOST WHICH WOULD MAKE YOU THE MOST MONEY & WHY?MONEY & WHY?
MANY INDUSTRIALIST WERE MANY INDUSTRIALIST WERE REFERRED TO AS ROBBER BARONS REFERRED TO AS ROBBER BARONS FOR THEIR RUTHLESS TATIC IN FOR THEIR RUTHLESS TATIC IN BUSINESS.BUSINESS.