Innovations in agricultural technology and business practices and assess their impact on the West. Week 4 Day 4

Macro Concepts Change-the transformation of a person, place or thing. Transportation-the willing or forced relocation of an object to a different area. Micro Concepts Industrialization-the process of people producing things using mass production and machinery. National economy-a financial system controlled by a central government. Vertical Integration-the complete control of all aspects/parts of a company’s business. Horizontal Integration-the complete control of an entire type of business [ex. An oil company takes over other oil companies].

Andrew Carnegie Andrew Carnegie  Andrew Carnegie was a steel magnate who owned the largest steel company in the United States.  Created a business strategy called vertical integration.  Vertical integration-strategy to combine separate elements of a business under one organization. The efficiency could not be matched and competitors were eliminated.  Money was saved by Carnegie because he did not have to use outside companies to make his product. Sale Production Labor Raw materials

John D. Rockefeller John D. Rockefeller John D. Rockefeller was an oil baron who monopolized the oil industry His pricing model and trust strategy drove competitors out of business Combined his operations with willing competitors and reduced his prices below cost [losing money temporarily] When all competition was eliminated he raised prices of oil to whatever he wanted. Customers had no other options and had to pay whatever he charged Horizontal integration was used by Rockefeller to dominate an entire industry by allying with selected competitors into trusts. Dominant business spreads out and takes over competing businesses. Dominant business Competing business

Refrigerated Railroad Cars  Railroad companies invented a refrigerated car in order to preserve crops from spoiling.  Railroads were able to charge more for the freight and earn more money.  Farmers were able to earn more money because their crops were saved to be sold.

Barbed Wire Barbed Wire  On the Western Frontier cattle rancher used barbed wire to contain and fence in their livestock to prevent them from being stolen from cattle rustlers.  Border and property disputes occurred because there was less open free range.  The invention of barbed wire was developed Joseph Glidden as a way to improve the strength and effective of existing types of fence wire.

Windmill Windmill Windmills were used to harness the power of the wind for electricity and farm machinery. The energy generated by the technology was free [after the cost of purchase] and renewable. Also, no pollution was created as a result of using windmills. It allowed farmers to be energy independent.

Farmers’ Cooperatives  In order to create more opportunities for poor farmers to succeed despite large odds against them cooperatives were founded.  The purpose of a cooperative was to pool [gather/combine] resources such as land, cash and equipment.  Farmers could borrow money from the cooperatives to buy seed, fertilizer or workers. Example of farming cooperative Click on link below

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