WARM-UP Grab your books Pass forward your homework Answer the following questions in your notebook: Why was the transcontinental railroad such a big

Transcription

1 WARM-UP Grab your books Pass forward your homework Answer the following questions in your notebook: Why was the transcontinental railroad such a big deal for our country? Why did the government give land grants to railroad companies? Give one reason for how the expansion of railroads helped American business thrive.

2 Pages BIG BUSINESS Chapter 2, Lesson 3

3 HORIZONTAL INTEGRATION Why? Increase size Reduce competition Gain access to new consumers or markets How? Acquire another company of similar size & operations In the same industry Historical Figure Rockefeller Modern Examples Facebook acquiring Instagram Disney acquiring Pixar

4 VERTICAL INTEGRATION Why? Ensures quality control Strengthen supply chain Reduce production costs Eliminate middle man How? Acquire the company before or after yours on the supply chain Historical Figure Carnegie Modern Examples Ikea purchasing a forest for raw materials Amazon s integration with hardware to produce the Kindle Fire.

5 U.S. BUSINESSES

6 ON A SEPARATE SHEET OF PAPER Draw an example of vertical integration & horizontal integration

7 MASS REMINDERS Be quiet & respectful in the hallway Be quiet & respectful before, during, & after mass. I will place you in your assigned seats when we arrive in the audotrium.

8 WARM-UP 1. What is the difference between vertical and horizontal integration? 2. Which historic figure is associated with each?

9 THE MEN WHO BUILT AMERICA Andrew Carnegie John D. Rockefeller Cornelius Vanderbilt J.P. Morgan

10 ANDREW CARNEGIE Born & Died: November 25, 1835-August 11, 1919 Mini Bio: Scottish immigrant Mainly self-educated Worked hard in his teenage years #famous Steel Tycoon Steel used to be really expensive to produce, until Carnegie figured out a cheaper way Bessemer process Made steel quicker and more effectively First person to mass produce steel Homestead Strike, 1892

11 JOHN D. ROCKEFELLER Born & Died: July 8, 1839-May 23, 1937 Mini Bio: Deeply religious His fascination with oil began in Cleveland He married an abolitionist #famous America s first billionaire Standard Oil Company Monopoly By 1880, he controlled 90% of all the oil in the U.S.

12

13 CORNELIUS VANDERBILT Born & Died: May 27, 1794-January 4, 1877 Mini Bio: Nicknamed the Commodore Worked around boats most of his life #famous Shipping & Railroad tycoon Steamship Became one of the country s largest operators Railroad Gained control of separate railroads and established an interregional railroad system Everything was running together

14 J.P. MORGAN Born & Died: April 17, 1837-March 31, 1913 Mini Bio: Born into a wealthy family Educated in Europe #famous Most successful investment banker Bought stock in railroads Bought out Andrew Carnegie Formed United States Steel Company Bailed out the U.S. Treasury twice

15

16 ANDREW CARNEGIE To try and make the world in some way better than you found it is to have a noble motive in life.

17 CARNEGIE S LEGACY Philanthropy- the desire to promote the welfare of others, expressed especially by the generous donation of money to good causes. Museums, libraries, and schools Carnegie Museums of Pittsburgh Carnegie Library Carnegie Mellon University Net worth (in today s money) $310 billion

18 JOHN D. ROCKEFELLER God gave me money. I believe the Power to make money is a gift from God, to be used and developed to the best of our ability for the best of mankind.

19 ROCKEFELLER S LEGACY Wealthiest American in history? Rockefeller & New York Funded the University of Chicago & Rockefeller University Net worth (in today s money): $340 Billion

20 J.P. MORGAN You can t unscramble eggs.

21 MORGAN S LEGACY Legacy International banking firm Art collection Library Net worth (in today s money) $41.5 billion

22 CORNELIUS VANDERBILT I have always served the public to the best of my ability. Why? Because, like every other man, it is my interest to do so.

23 VANDERBILT S LEGACY Left more than $100 million to his son Donated $1 million to what would become Vanderbilt University Net worth (in today s money) $185 billion

24 CURRENT NET WORTH'S Bill Gates Steve Jobs Jeff Bezos $85.7 billion $19 billion $82.9 billion

25 Rockefeller Carnegie Vanderbilt $340 billion $310 billion $185 billion