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The risk takers of the 19 th 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 risk takers 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 their genius in devising ways to circumvent competition. Although, Carnegie inclined to be tough-fisted in business, he was not a monopolist and disliked monopolistic trusts. John D. Rockefeller came to dominate the oil industry. With one upward stride after another he organized the Standard Oil Company, which was the nucleus of the great trust that was formed. Rockefeller showed little mercy.
He believed primitive savagery prevailed in the jungle world of business, where only the fittest survived. He pressed the policy of ruin or rule. Rockefellers oil monopoly did turn out a superior product at a relatively cheap price. Rockefeller believed in ruthless business, Carnegie didnt, yet they both had the most successful companies in their industries. Rockefeller treated his customers in the same manner that Andrew Carnegie treated his workers: cruel and harsh. The Standard Oil Company desperately wanted every possible company to buy their products.
Standard Oil used ruthless tactics when Rockefeller threatened to start his own chain of grocery stores and put local merchants out of business if they did not buy oil from Standard Oil Company. Carnegie dealt with his workers with the same cold lack of diplomacy and consideration. Carnegie would encourage an unfriendly competition between two of his workers and he goaded them into outdoing one another. Some of his employees found working under Carnegie unbearable. These rivalries became so important to the employees that some didnt talk to each other for years.
Although both Carnegie and Rockefeller created extremely successful companies, they both used unscrupulous methods in some aspect of their corporation building to get to the top. The success of the Standard Oil Company and U. S. Steel company was credited to the fact that their owners ran them with great authority. In this very competitive time period, many new businesses were being formed and it took talented businessmen to get ahead and keep the companies running and make the fortunes that were made during this period.
Free research essays on topics related to: john d rockefeller, standard oil company, andrew carnegie, u s steel, successful companies
Research essay sample on The American Business Man John D Rockefeller
