Tycoons of the 19th century

Tycoons of the 19th Century

Poll

Do you think you could accurately tell Mrs. Kiser what horizontal and vertical integration are and the difference between them?

• Yes, I could 100% do it.

• I could tell you what they both are, but I might confuse them.

• I could kind of tell you what they are, but would need some help

• I could tell you a little bit about them, but not much.

• I have no idea what those things are.

Multiple Choice

Canes starts buying farms to produce the wheat needed for their texas toast. This is an example of

• Horizontal Integration

• Vertical Integration

• Neither

• Both

Multiple Choice

Is this an example of forwards vertical integration or backwards?

• Forwards

• Backwards

Multiple Choice

JetBlue merged with Spirit Airlines to offer more flights around the country. This is an example of

• Horizontal Integration

• Vertical Integration

• Neither

• Both

Tycoon #1: Andrew Carnegie

• Industry: Steel

  • Bessemer Process

• Business Strategy: Be better than everyone

  • Better products for cheaper costs

  • Hired experts

• Business Techniques: Vertical Integration

​Todays Worth: 122.3 Billion

​Company: US Steel

Fill in the Blanks

Carnegie used the

Process to produce steel.

Tycoon #2: John D. Rockefeller

• Industry: Oil

  • Exxonmobil

• Business Strategy: Region by Region Takeover

  • Undersell competition 

  • Raise prices

  • Buy out failing companies

• Business Techniques:

  • Trusts

  • Horizontal Integration

​Todays Worth: 306.4 Billion

​Company: Standard Oil

Multiple Choice

Rockefeller was an expert in using which of the following to his advantage?

• Vertical Integration

• Horizontal Integration

• Holding Companies

• The Bessemer Process

Tycoon #3: J.P Morgan

• Industry: Banking and Investment

  • JP Morgan Chase

• Business Strategy: Reduce Competition

  • Buy competitors out, but keep the business names 

  • Illusion of choice

• Business Techniques: Holding Companies

​Todays Worth: 2.3 Billion

​Company: Drexel, Morgan Co.

​What are 2 other holding companies today? Google them!

Open Ended

What are 2 other holding companies today

Tycoon #4: Cornelius Vanderbilt

• Industry: Railroads

  • controlled who went where, when, and how.

• Business Strategy: Own the Logistics

• Business Techniques: Horizontal Integration

​Todays Worth: 248.2 Billion

​Company: Hudson & NY Central RR

Fill in the Blanks

Vanderbilt's strategy was to own the

Draw

Draw yourself as a 19th Century Tycoon

• Low wages

• Dangerous working conditions

• Corruption

  • Price fixing

• Consumers have no power

Robber Baron-Bad

• Innovative

• Efficient

• New Jobs

• Charity

  • Donations

  • Libraries

  • Colleges

  • Parks

Captain of Industry- Good

Captains of Industry or Robber Barons