1. Monday October 20, 2014 Mr. Goblirsch – U.S. History
OBJECTIVE – Students Will Be Able To – SWBAT:
Describe management and business strategies that contributed to the growth of big businesses in the late 1800s.
AGENDA:
WARM-UP: Success Journal
CONCEPT: Big Business
GUIDED READING: Carnegie Biography
VIDEO CLIP: Carnegie Steel (5 min)
PARTNER TASK: Inventions Poster
Success Journal WARM-UP: (Follow the directions below)
***5 Minutes***
Write a paragraph journal entry on the topic below.
What personal qualities do you think a person has to have in order to become billionaire?

2. Industrial Boom:
Big Business
Ch 6 Sec 3

3. Big Businesses take Control
Large capital, improved technologies, and multiple investors
Used Social Darwinism to justify laissez faire economy (No Govt Regulation of Business)
If Your Wealthy = Successful in Business
If Your Poor = Failure in Business or Lazy
Success and failure in business was governed by natural law

4. SECTION 3: BIG BUSINESS AND LABOR
Andrew Carnegie was one of the first industrial moguls
He entered the steel industry in 1873
By 1899, the Carnegie Steel Company manufactured more steel than all the factories in Great Britain combined

5. CARNEGIE BUSINESS PRACTICES
Carnegie initiated many new business practices such as;
Searching for ways to make better products more cheaply
Accounting systems to track expenses
Attracting quality people by offering them stock & benefits
ANDREW CARNEGIE

6. CARNEGIE’S VERTICAL INTEGRATION
Carnegie attempted to control as much of the steel industry as possible
How? Vertical integration; he bought out his suppliers (coal fields, iron mines, ore freighters, and rail lines) in order to control materials and transportation

7. HORIZONTAL INTEGRATION
Additionally, Carnegie bought up the competition through friendly and hostile takeovers
This is known as Horizontal Integration; buying companies that produce similar products – in this case other steel companies
MERGERS

8. Structured Academic Discussion
Horizontal integration is when a business _____________ in an attempt to control the industry.
Vertical integration is when a business ______________.

9. Inventions Advertisement Group Poster
New inventions changed the way people lived and worked during the mid to late 1800s. Your group will be selecting an invention and your task is to create an attractive advertising poster to promote your new invention. Your poster should be creative, original, and include: the name of your invention, an illustration, and benefits of your invention.
1869 – Transcontinental RxR (P. 237)
1837 – Steel Plow (P. 217) – Typewriter (P. 232)
1831 – Reaper (P. 217) – Telephone (P. 232)
1874 – Barbed Wire (P. 217) 1879 – Light bulb (P. 232)
Late 1800s – Oil (P. 231) Late 1800s – Steel (P. 232)

10. C. Dominant Business Men
1. Andrew Carnegie – controlled steel industry
2. John D. Rockefeller – controlled oil industry
Used Horizontal & vertical integration, mergers, & Trusts to control industries
Andrew Carnegie John Rockefeller

11. BUSINESS GROWTH & CONSOLIDATION
Mergers could result in a monopoly (Trust)
A monopoly is complete control over an industry
An example of consolidation: In 1870, Rockefeller Standard Oil Company owned 2% of the country’s crude oil
By 1880 – it controlled 90% of U.S. crude oil
CHICAGO’S STANDARD OIL BUILDING IS ONE OF THE WORLD’S TALLEST

12. SOCIAL DARWINISM
The philosophy known as Social Darwinism has its origins in Darwin’s theory of evolution
Darwin theorized that some individuals in a species flourish and pass their traits on while others do not
Social Darwinists (like Herbert Spencer) believed riches was a sign of God’s favor, and being poor was a sign of inferiority and laziness
DARWIN (RIGHT) LIMITED HIS FINDINGS TO THE ANIMAL WORLD
SPENCER WAS THE ONE WHO COINED THE PHRASE “SURVIVAL OF THE FITTEST”

14. ROBBER BARONS
Alarmed at the cut-throat tactics of industrialists, critics began to call them “Robber Barons”
Famous “Robber Barons” included Carnegie, Rockefeller, Vanderbilt, Stanford, and J.P. Morgan
J.P MORGAN IN PHOTO AND CARTOON

16. ROBBER BARONS WERE GENEROUS, TOO
Despite being labeled as greedy barons, rich industrialists did have a generous side
When very rich people give away lots of money it is called “Philanthropy”
Carnegie built libraries, Rockefeller, Leland Stanford, and Cornelius Vanderbilt built schools
ROCKEFELLER CHAPEL – UNIVERSITY OF CHICAGO