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Andrew Carnegie Millionaire Steel Mill operator. Millionaire Steel Mill operator. Worth 500 million dollars. Worth 500 million dollars. Practiced Practiced.

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Presentation on theme: "Andrew Carnegie Millionaire Steel Mill operator. Millionaire Steel Mill operator. Worth 500 million dollars. Worth 500 million dollars. Practiced Practiced."— Presentation transcript:

1 Andrew Carnegie Millionaire Steel Mill operator. Millionaire Steel Mill operator. Worth 500 million dollars. Worth 500 million dollars. Practiced Practiced Vertical & Horizontal Integration.

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3 HORIZONTAL VS. VERTICAL INTEGRATION

4 VERTICAL INTEGRATION OWNERSHIP OF A BUSINESS INVOLVED IN EACH STEP OF THE MANUFACTURING PROCESS.. OWNERSHIP OF A BUSINESS INVOLVED IN EACH STEP OF THE MANUFACTURING PROCESS.. PRACTICED BY ANDREW CARNEGIE PRACTICED BY ANDREW CARNEGIE WHAT WAS THE BENEFIT OF VERTICAL INTEGRATION? WHAT WAS THE BENEFIT OF VERTICAL INTEGRATION? RELIABLE TRANSPORTATION, AND STEADY AMOUNT OF RAW MATERIALS RELIABLE TRANSPORTATION, AND STEADY AMOUNT OF RAW MATERIALS

5 EACH STEP OF THE MANUFACTURING PROCESS TRANSPORTATION TRANSPORTATION

6 TRANSPORTATION CHEAP AND RELIABLE FORMS OF TRANSPORTATION TO GET RAW MATERIALS TO STEEL MILL CHEAP AND RELIABLE FORMS OF TRANSPORTATION TO GET RAW MATERIALS TO STEEL MILL AND DELIVER THE FINISHED PRODUCT TO THE BUYER. AND DELIVER THE FINISHED PRODUCT TO THE BUYER.

7 HORIZONTAL INTEGRATION OWNERSHIP OF SEVERAL COMPANIES THAT MAKE THE SAME PRODUCT. OWNERSHIP OF SEVERAL COMPANIES THAT MAKE THE SAME PRODUCT. OR EXPANSION OF ONE AREA OF PRODUCTION. OR EXPANSION OF ONE AREA OF PRODUCTION. PRACTICED BY JOHN D. ROCKEFELLER, & WASHINGTON DUKE. PRACTICED BY JOHN D. ROCKEFELLER, & WASHINGTON DUKE. WHAT WAS THE PROBLEM WITH HORIZONTAL INTEGRATION? WHAT WAS THE PROBLEM WITH HORIZONTAL INTEGRATION? ELIMINATED COMPETITION, ELIMINATED JOBS ELIMINATED COMPETITION, ELIMINATED JOBS

8 US Standard Oil trust certificate from 1896

9 SHERMAN ANTI TRUST ACT WHAT WAS IT? WHAT WAS IT? A LAW PASSED IN 1890 TO ELIMINATE MONOPOLIES. A LAW PASSED IN 1890 TO ELIMINATE MONOPOLIES. WHY WERE MONOPOLIES BAD ECONOMIC PRACTICE? WHY WERE MONOPOLIES BAD ECONOMIC PRACTICE?

10 Homestead Steel strike Homestead Steel strike Description: Strikers at Homestead, Pennsylvania. The Populist platform appealed not only to farmers caught in an economic squeeze; it also addressed the interests of laboring men. A series of strikes in the 1890s made it clear that the government's interests lay with businessmen and industrial leaders rather than the workers. In 1892, Andrew Carnegie and Henry Frick ( ) announced that they were lowering wages at their Homestead Steel plant by 20%. When the Amalgamated Iron and Steel Workers called a strike, Frick locked out the strikers, who then surrounded the plant. Description: Strikers at Homestead, Pennsylvania. The Populist platform appealed not only to farmers caught in an economic squeeze; it also addressed the interests of laboring men. A series of strikes in the 1890s made it clear that the government's interests lay with businessmen and industrial leaders rather than the workers. In 1892, Andrew Carnegie and Henry Frick ( ) announced that they were lowering wages at their Homestead Steel plant by 20%. When the Amalgamated Iron and Steel Workers called a strike, Frick locked out the strikers, who then surrounded the plant.

11 VERTICAL AND HORIZONTAL INTEGRATION BOTH TYPES OF INTEGRATION ARE CONSIDERED MONOPOLIES. BOTH TYPES OF INTEGRATION ARE CONSIDERED MONOPOLIES. WHICH WOULD MAKE YOU THE MOST MONEY & WHY? WHICH WOULD MAKE YOU THE MOST MONEY & WHY? MANY INDUSTRIALIST WERE REFERRED TO AS ROBBER BARONS FOR THEIR RUTHLESS TATIC IN BUSINESS. MANY INDUSTRIALIST WERE REFERRED TO AS ROBBER BARONS FOR THEIR RUTHLESS TATIC IN BUSINESS.

12 ANDREW CARNEGIE’S Gospel of Wealth The wealthy should donate their money to worthy causes. The wealthy should donate their money to worthy causes.


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