1. Big Business Emerges

2. What new ideas did Big Business incorporate?
Carnegie’s Innovation
Management Technique
Better products and lower prices
Encouraged competition to increase production & cut costs
Hired only the best and vested them in the company’s performance

3. What new ideas did Big Business incorporate?
Business strategy
*Vertical integration = control every single aspect of a company from the resource production through sales
*Horizontal consolidation = buy all the competing companies in a single industry

4. What new ideas did Big Business incorporate?
Societal Issues
*Social Darwinism
Herbert Spencer coins the term in 1862…its basically means SURVIVAL OF THE FITTEST
Money = Success
The few control the masses
The wealthy are seen as blessed by god
“PULLING YOURSELF UP BY THE BOOTSTRAPS”

5. How did Big Business expand?
Continued growth and consolidation
*Oligopoly = market with only a few sellers for each product (petroleum)
*Monopoly = situation where 1 company control all the market (Comcast)
*Holding Company = corporation that only buys stocks of other companies to control them
*Trust = people who run separate companies as one larger corporation

6. Who were the leaders of Big Business?
*Robber Barons = ruthless industrialists who made money off the little guy and were named for feudal (Medieval Times) lords
John D. Rockefeller…Rockefeller Center/Plaza
Andrew Carnegie…Carnegie Hall
J.P. Morgan…Chase Morgan Bank
All the robber barons and Big Business bypassed the south due to its limited resources & capital