The American Business Man, John D. Rockefeller
The American Business Man, John D. Rockefeller
The “risktakers” of the 19th century were the men who made the American businessman who he is today. Men such as, Bill Gates, are considered to be the great businessmen of our time. People ask about the practices that he does to get where he is today but lawful or not he can be considered an entrenpenuer. He followed in some of the footsteps of great businessmen. Such as John D. Rockefeller, the founder of the Standard Oil Company, and Andrew Carnegie, the founder of the U.S. Steel Company. These men were considered the “risktakers” of this time because of the way in which they did business. They would see an idea and run with it. The idea may have been risky but risk is the only way to make profit. Some people see these men as ruthless capitalists but only because their businesses became so strong and powerful that the government feared that it could be over taken by these businesses. I do not see these men as ruthless capitalists but ingenious men who were willing to take a chance.
The Standard Oil Company founded by John D. Rockefeller and the U.S. Steel Company founded by Andrew Carnegie. The Standard Oil Company and U.S. Steel Company were made successful in different ways due to the actions of their different owners. The companies differed in their labor relations, market control, and structural organization. In the steel industry, Carnegie developed a system known as vertical integration. This means that he cut out the middleman. Carnegie bought his own iron and coal mines because using independent companies cost too much and were inefficient. By doing this he was able to undersell his competitors because they had to pay the competitors they went through to get the raw materials. Unlike Andrew Carnegie, John D. Rockefeller integrated his oil business from top to bottom, his distinctive innovation in movement of American industry was horizontal. This meant he followed one product through all its stages. For example, Rockefeller controlled the oil when it was drilled, through the refining stage, and he maintained control over the refining process turning it into gasoline.
Although these two powerful men used two different methods of management their businesses were still very successful. Tycoons like Andrew Carnegie, “the steel king,” and John D. Rockefeller, “the oil baron,” exercised...