1. Team Leader’s meeting – after Benchmark
DO NOW: Continue Industry Activity List
What is the difference between a “mom & pop” store and a corporation?
Can you give examples for:

2. New ways of organizing business in the 19th century (mid-late 1800’s):

3. Three terms that describe our economy:
Capitalism: private ownership. Owner decides what/how much to make, where to sell, etc.
Free Enterprise: government usually does not interfere with business
Laissez Faire: French term: allow to do (let be)- “government hands off”

4. New ways to expand businesses:
Corporations: sold shares of stock in their company to investors, run by a Board of Directors that make the day-day decisions.
Monopolies: control of an entire industry
Trust: groups of corporations run by a single Board of Directors

5. Powerful 19th century leaders:
Vanderbilt: Railroads (“Commodore” & Railroad Baron)
Carnegie: Steel (“King of Steel”)
Rockefeller: Oil (Standard Oil Trust had 90% control of the Oil industry)
J.P. Morgan: Banking (loaned capital ($)

6. Imagine -
Imagine that you owned a company, what methods would you use to eliminate your competition?

9. Vertical and Horizontal Integration
Andrew Carnegie used
Vertical Integration: owning the businesses involved in each step of a manufacturing process. To lower production costs, Carnegie bought the iron ore mines, the coal fields, and the railroads needed to supply his steel mills.
Rockefeller used both vertical and horizontal integration.
Horizontal integration: owning all the businesses in a certain field

10. Example: Vertical Integration

11. Example: Horizontal Integration

12. Robber Barons or Captains/Pioneers of Industry?
Robber Baron: low wages to employees, limited competition, ruthless methods of doing business
Captain of Industry: developed efficient methods of business, allowed individuals to invest, donated millions to charity (philanthropists)

13. Government Involvement:
Sherman Antitrust Act: outlawed monopolies and trusts that restrained (stopped) trade or competition.
Effects: Why do you think this Act was difficult to enforce?

14. Corporations: Positives: Helped American industries to grow
Thousands of people bought stocks.
Millions of $ borrowed from banks
Stockholders are not personally responsible for the debts of the business
Stockholders may sell their shares
Negatives:
Large corporations force many smaller businesses to close
Limited competition allowing prices to increase

15. Team Activity Directions:
In packets: Teams review and evaluate the assigned information (bio information, political cartoon, and quotes) on either Andrew Carnegie or John D. Rockefeller
Use key information to complete your Robber Baron and Captain of Industry/Industrial Pioneer scale (3 bullet points for each side).
Based on your scale information, evaluate whether your team’s assigned business leader was a Robber Baron or Industrial Pioneer.

16. Venn Diagram: Directions: Develop a Venn Diagram that includes information about the following:
Early years
Key industries
Methods used
Philanthropy