Industrial Revolution

Industrial Revolution

Corporate development during the Industrial Revolution was made in part by entrepreneurs. Entrepreneurs
were the people who took responsibility for the organization and operation of a new business venture.
These business men often risked the initial money for setting up different types of businesses. With the risk
of large sums of money, some of these entrepreneurs made enormous profits. Two major entrepreneurs of
American history are John D. Rockefeller and Andrew Carnegie.
The Standard Oil Company founded by John D. Rockefeller and the U.S. Steel Company founded
by Andrew Carnegie, both were two corporations that had a great impact on the lives of most Americans.
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 simply cut out the middle man. Carnegie bought his own iron and coal mines, because using
independent companies was unreliable, cost too much and were inefficient. By doing this he now was able
to undersell his steel making 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 o...

Industrial Revolution

Login

Join