1. Why are industry executives so rich? What risks do they take that justify them making SO much money? Should they make that much money? John D. Rockefeller’s net worth…….340 Billion dollars Andrew Carnegie………………480 million J.P. Morgan………………………….41.5 Billion

2. FLT: I will be able to explain the key terms of big business and analyze the titans of industry What was a Titan?

6. Time zones were established in order to make keeping track of time easier when traveling across the country

8. Vertical integration – buying out suppliers in order to control the raw materials and transportation systems Horizontal integration – companies producing similar products merge Trust – a small group of business people who manage many companies in a unified way and effectively eliminate the competition Merger – when one corporation buys out another; a firm that bought out all its competitors could achieve a monopoly

9. Minerals Metals Plastics Circuit Boards Packaging Transportation Stores Own & Operate all parts of product process

12. SprintVerizonAT&TT-MobileBoost Own & Operate multiple businesses in the same industry

15. In your notes: Choose an industry (example: shoes, clothing, computers, etc.) Create an example of vertical integration Create an example of horizontal integration Which business structure would you prefer ? Why?

16. Take a look at Forutne 500’s list of the top ten companies in 2014. Answer the questions in complete sentences.

17. Availability of work force (immigration) Inventions Lower-cost production Access to raw materials and energy National markets created by transportation Financial resources Advertising

20. Cornelius VanderbiltAndrew Carnegie John D. RockefellerHenry Ford

21. _______________________________________________ Philanthropists Robber Barons

22. John D. Rockefeller - Standard Oil Andrew Carnegie - Steel Henry Ford - Automobile Cornelius Vanderbilt - Railroads

23. Read the four biographies of the industrial titans and answer each of their questions on your Titans FourSquare. When finished, compare your findings with your group to confirm Work together to complete your Titans FourSquare

25. His single island-hopping ferry expands to an ocean going fleet and he becomes synonymous with shipping earning the nickname ‘Commodore’. Creates the largest shipping empire in the world. Invests in the new railways believing they’ll unite America. By war’s end, he’s the richest man in America with a net worth of over $65 million equivalent to nearly $75 billion today.

26. By 1866, he’s 72, and 30 years past the average age expectancy. His railroad rivals think he’s weak and ready to fall. He owns the only rail bridge into New York City, and it is both the gateway to country’s largest and busiest port and, in his hands, a weapon. Close Albany Bridge effectively blockading the millions of dollars of cargo of other rival railroads. The rival rail road presidents try to sell their shares. There’s a massive sell off, price falls, Vanderbilt buys up. In just days, he creates the largest single railroad company in America

27. Lowered costs, increased efficiency, and sped up travel and shipment times Opens the Grand Central Depot, the biggest train station in the country. It covers 22 acres. He also gives the largest charitable donation in American history with a $1m gift to a university that still bears his name. Vanderbilt realizes the rail network has been overbuilt and future profits will come from transporting new cargo, not from building new lines. Kerosene that lights the lamps of the newly industrializing America will be explosive.

28. 1. How did he first acquire his wealth? Became one of the country’s largest steamship operators 2. What was his nickname? The Commodore 3. To which industry did he shift his focus and build an empire? The railroad industry 4. How did he transform the railroad network with his new system? Lowered costs, increased efficiency, and sped up travel and shipment times 5. Which major construction project is he responsible for? Manhattan’s Grand Central Depot 6. How did he donate his money? not much to charity, but $1million to Vanderbilt University

30. Scottish immigrant Uses Bessemer steel to mass-produce strong railroad rail ties. Builds St. Louis bridge and connects east to west. Opens steel plants and produces 10,000 tons of steel a month and makes $1.5 million profits per year. Bought out suppliers – coal fields, iron mines, ore freighters, and railroad lines The first Chicago skyscraper is built with Carnegie steel.

31. Johnstown disaster The dam bursts and more than 2,000 people are killed. It’s the worst manmade disaster in American history, prior to 9/11 Carnegie feels responsible and donates millions to rebuild Johnstown. Homestead Steel Works strike- 12 hour days and six day weeks with workplace injuries and fatalities

32. Sells Carnegie Steel for 480 million and becomes richest man to ever Personal fortune of over $310 billion. The largest private fortune the world has ever seen Carnegie spends the rest of his life giving away more than 350 million dollars, or 67 billion in today’s money. “The Gospel of Wealth” – the rich are supposed to help the poor

33. 1. In which industry did he make a name for himself? Who and what inspired him? The steel industry after meeting Henry Bessemer and the Bessemer Process 2. What two management practices led to his success? Make better products more cheaply, attracted talented people to work 3. How did he use vertical integration to grow his industry? Bought out suppliers – coal fields, iron mines, ore freighters, and railroad lines 4. How did he use horizontal integration to grow his industry? Attempted to buy out competing steel producers; controlled almost the entire steel industry 5. To whom did he sell his business and for how much? JP Morgan for $480 million 6. What was the title of his written essay and what did he say in it? “The Gospel of Wealth” – the rich are supposed to help the poor

35. Born Poor In 1863, at just 24, he invests everything into his first refinery. By 27, he’s on the verge of bankruptcy Agrees to meet with the rail road magnate Vanderbilt, hoping to secure competitive transport rates. But Rockefeller narrowly misses his 6:25am train to New York. Creates the country’s first monopoly. He now controls 90% of the North American oil supply. The 1873 crash panics the New York Stock Exchange. The rich come out un-effected.

36. His Standard Oil comes to symbolize big, bad business. Roosevelt is re-elected and files dozens of law-suits against dozens of trusts. As Edison’s electricity lights America, it reduces the need for the Rockefeller supplied kerosene in traditional oil lamps. Invests in gasoline used to fuel cars. Uses kickbacks, political bribes, predatory pricing and when all else fails, intimidation.

37. Violates Anti-Sherman Act 34 smaller companies are formed. These will later become Exxon, Mobil and Chevron The defeated Rockefeller is still left with a net worth, in today’s money, of $660 billion. Before he dies, aged 97, he gives $100 billion of that away.

38. 1. What was the name of his trust company? Standard Oil 2. How did he make huge profits? Paid employees extremely low wages and driving his competitors out of business 3. Why do you think monopolies may be illegal? Monopolies can manipulate the market with predatory pricing 4. What did the Sherman Antitrust Act do? Made it illegal to form a trust that interfered with free trade between states or with other countries 5. Would you consider him more of a philanthropist or a robber baron? Why? Philanthropist – gave away lots of his money ; Robber baron – manipulated the market

40. Henry Ford is born on 30 July 1863 to an Irish immigrant father and a Michigan born mother. Ford raises $28,000, just enough to build his first factory outside Detroit Ford Model T goes on sale. Uses assembly line. It costs $900 dollars, nearly half the price of its competitors, making it affordable for the average consumer to buy.

41. In 1914, Ford pays his workers $5 per day, double the rate of most US factories. Rather than hand craft each car one at a time, they’re assembled piece by piece by a line of workers. Standardize the eight hour workday and the five day week Paid all races the same wages.

42. 1. In which industry did he make a name for himself? The automobile industry 2. What was the name of his company? His first model? Ford Motor Company – Model T What were some of his revolutionary new mass-production methods? Use of large production plants, standardized interchangeable parts, and the moving assembly line 4. What mass-production technique is he most famous for innovating? The assembly line 5. What was the significance of mass production? Cut down on the time required to produce, which allowed costs to stay low 6. What did he do for his workers in setting a new standard for the industry? Increased the daily wage more than twice as much

44. Which of the four titans of industry that we have studied do you think had the largest impact on American society both back then and today? Give at least 3 reasons why you think so.

45. The newspaper just announced that McDonalds has bought out Wendy’s, Burger King and Jack in the Box in a surprise move. Is this a good news or bad? Why? What is this called?

46. Switch Henry Ford and John D. Rockefeller bios and complete 4-square Questions Write up/Homework