Corporate Development During the Industrial Revolution

Corporate Development During the Industrial Revolution -...

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Corporate Development During the Industrial Revolution 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 middle man. 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 competetors 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
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Corporate Development During the Industrial Revolution -...

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