1 / 14

Development of Business

Development of Business. Monopoly. Has anyone ever played monopoly? What is the goal/objective of it? To own everything Same as a corporation. Business Integrations. Business mergers of the late 1800s followed 2 strategies: vertical or horizontal

richard-maxwell
Download Presentation

Development of Business

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Development of Business

  2. Monopoly • Has anyone ever played monopoly? • What is the goal/objective of it? • To own everything • Same as a corporation

  3. Business Integrations • Business mergers of the late 1800s followed 2 strategies: vertical or horizontal • Vertical integration: joining all areas of one business (i.e. companies that supplied a business) • Horizontal integration: joining competing businesses in one area (i.e. taking over competing companies) • Trust: in an attempt to gain dominance, some competing companies merged to form a trust. When a trust gained complete control over an industry, it held a monopoly

  4. Vertical Includes raw materials, production & distribution Ex: Andrew Carnegie To streamline his business at steel plants, he bought iron deposits, coke fields, ships & RR Horizontal Merger of competing companies in one area of business Ex John D. Rockefeller He bought up refineries so by 1882, his Standard Oil Company owned most of the nation’s oil industry Differences Between Integrations

  5. Integrations continued

  6. Types of Companies

  7. Background of Industry • Britain leads the Industrial Revolution • Industrial Revolution: change of making goods by hand & in home > work of machines in factories • Began in GB in 1700s because of political stability, factors of production, raw materials • Spread to Europe & US (1800s)

  8. Entrepreneurs: risk takers who started new ventures within the economic system Capitalism: economic system called free enterprise, in which most businesses are privately owned Laissez-faire: French for “leave alone” companies operate without gov’t interference Social Darwinism: philosophy of survival of the fittest (applied to business) Business Key Terms

  9. Laissez-Faire

  10. Inventions • New inventions make production faster, easier, cheaper • Ex: Spinning jenny, flying shuttle, steam-powered machines

  11. Industrial Tycoons • John D. Rockefeller: Standard Oil Co. • Andrew Carnegie: Carnegie Steel Co. • Cornelius Vanderbilt: Invested in RR; gave money to education • George Pullman: Designed sleeper cars to make travel more comfortable

  12. Many workers were children (10-16 yrs working 12-16 hr days, 6 days/week) no paid vacation or sick leave > labor Organized workers who hoped to pressure employees to give better pay & safer workplaces First effective organization = Knights of Labor Accepted unskilled workers, women, African Americans Campaigned for 8-hr work day, end of child labor, equal pay for equal work Beginnings of Unions

  13. Strikes & riots were ways workers protested against cuts in wages Employers responded by forcing employees to sign documents saying they would not join unions 1st official organized union = AFL (1886) American Federation of Labor organized by Samuel Gompers Won wage increases & shorter work weeks Strikes & Labor

  14. Causes & Effects of Industrialization • At the bottom of your lecture, create a t-chart & put the following events/terms in a t-chart for cause/effects. Simply write the # under cause or effect • 1. Widespread use of corp. business; 2. monopolies; 3. large scale cotton production in the S.; 4. unrestricted immigration; 5. growth of cities; 6. mass-production technology; 7. gov’t aid to R.R.; 8. higher standard of living; 9. need to protect rights of consumers/workers; 10. high tariffs; 11. large deposits of raw materials; 12. stable banking system; 13. new inventions; 14. foreign investment in Amer. factories; 15. development of new sources of power; 16. lengthened canals; 17. growing population

More Related