1.  Pick an invention we talked about last week, and describe how it has an impact on your life today.

2. The Rise of Big Business

3.  Identify ways in which American businesses grew and developed into giant corporations

4.  Before 1860 ◦ Proprietorships ◦ Partnerships  Industrial Revolution changed that ◦ Machines made products faster  Cost money  Created new business organizations

5.  A business chartered by the state and owned by shareholding investors  Stockholders get dividends  A portion of the profits

6.  1. Selling stock can increase capital ◦ Used to expand business and production  Economies of scale- the more units of a product a company makes, the less it costs to make each unit  2. Limited liability ◦ Lose only as much money as invested ◦ Encourages people to invest  3. Not affected by death of owner ◦ Their stock is bought up by someone else ◦ Banks are more likely to lend money to corporations because of stability

7.  John D. Rockefeller ◦ Part of partnership to refine oil  Looked at steps from well to market ◦ Well  refiners  transportation firms  other businesses  consumers  Rockefeller wanted total control ◦ Vertical integration- steps involved in turning a raw material into a finished product

8.  Started SOC in 1870 ◦ Sold 10,000 shares of stock for $1 million  used to buy refineries in Cleveland area along with barrel making business  Took risks ◦ Built pipeline= no railroad ◦ Bought Pennsylvania drilling companies  Risks allowed Rockefeller to sell oil cheap and run everyone else out of business ◦ Monopoly by 1900

9.  United States Steel Corporation ◦ 1901  First corporation with stock totaling $1 billion  Unhappy with how steel was made for Brooklyn Bridge  Studied what went into producing steel, and calculated most efficient way  Produced steel, sold it at lower prices, and bought out other steel companies ◦ Horizontal integration- process of expanding in one area of production

10.  Also purchased iron mines and railroads  First ton of steel cost $56 to make ◦ Cut to $11.50 by 1900  Retired in 1901 and sold company to J.P. Morgan ◦ Spent rest of life donating over $350 million to charities and helping establish libraries and schools

11.  Dr. John Harvey Kellogg ◦ Superintendent of Battle Creek Sanitarium in Michigan ◦ Believed many bodily ills were due to improper diet and looked for way to fix it  1877 came up with Granola ◦ Wheat, oatmeal, and cornmeal  Complaints about taste  1895 better tasting cereal called Granose

12.  C.W. Post ◦ Grape Nuts advertised as remedy to malaria and loose teeth  Kellogg and his brother, W.K. Kellogg came up with Corn Flakes and began Kellogg Company in 1906 ◦ Many brands on the market by 1911  Post Toasties

13.  Kellogg said don’t buy his brand because there wasn’t enough to go around ◦ People bought more  Promotions- gimmicks to increase sales ◦ Trinkets in boxes ◦ Games on boxes

14.  Originally invented in 1830 by Barthelemy Thimonnier ◦ Redone in 1846 by Elias Howe ◦ Over 200 firms tried and failed  Isaac Merritt Singer, 1851 ◦ Straight needle instead of curved  Patent wars- legal battles over who owned various patents  Lost and had to pay Howe royalty for each machine produced

15.  To make money, Singer sold machines to manufacturers and for home use  After originally using commission agents, Singer began is own stores ◦ Installment plan- consumers can buy a machine and pay a small sum of money over several months  World’s leading producer of sewing machines ◦ 1874- largest factory in the world built in New Jersey ◦ 1885- Scotland  Made advancements for resales

16.  3bd51b62

17.  Look up a businessperson or a corporation/business and write down the steps they took to make their fortune. ◦ Steve Jobs ◦ Bill Gates ◦ Warren Buffett ◦ McDonald’s ◦ Sam Walton ◦ Disney ◦ Verizon, AT&T, Sprint ◦ GAP