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Rockefeller

An overview of John D. Rockefeller's accomplishments in the business world

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Rockefeller

  1. 1. John D. Rockefeller, Sr. Corrupt Titan or Admirable Businessman? Becky Anderson
  2. 2. Photo Courtesy of University of Rochester
  3. 3. Corrupt Robber Baron? <ul><li>Standard Oil was broken up in 1911 by the Supreme Court </li></ul><ul><li>Undercut competitors prices </li></ul><ul><li>Sabotage </li></ul><ul><li>Physical Threats </li></ul><ul><li>Bribery </li></ul>(Wooten 34)
  4. 4. But.. <ul><li>Rockefeller is often misrepresented </li></ul><ul><li>At the time, his actions were not illegal and were common practices in business. Standard was broken up for being trust-holding ex post facto </li></ul><ul><li>Greatest philanthropist to ever live- donated $550 million </li></ul>
  5. 5. Why would people buy from Standard if it was so bad? <ul><li>Better quality product </li></ul><ul><li>Standard’s second-grade product was better than other companies’ first-grade </li></ul><ul><li>Dramatic decrease in the price </li></ul><ul><li>Greater output of oil and gas (30x more) </li></ul>
  6. 6. Admirable businessman? <ul><li>Reduced the costs of production </li></ul><ul><li>Large Profits </li></ul><ul><li>Horizontal Integration </li></ul><ul><li>Vertical Integration </li></ul><ul><li>Efficient </li></ul><ul><li>Excellent administrator </li></ul>
  7. 7. Thesis <ul><li>Despite the fact that he remains one of the most hated businessmen of all time, John D. Rockefeller’s success came because his skills as a business administrator helped him eliminate inefficiencies within the industry. </li></ul>
  8. 8. Horizontal Integration <ul><li>Acquiring competition in the same industry </li></ul><ul><li>Consolidated all of the oil companies in Ohio </li></ul><ul><li>Bought out competitors at fair prices </li></ul><ul><li>Began to consolidate the oil companies throughout America </li></ul>
  9. 9. Vertical Integration <ul><li>Merging companies against production </li></ul><ul><li>Barrel making </li></ul><ul><li>Pipeline systems </li></ul><ul><li>Railroad rebates </li></ul>
  10. 10. Efficiency <ul><li>Acquiring other companies was a way of increasing efficiency </li></ul><ul><li>Efficient machines </li></ul><ul><li>Monetary efficiency </li></ul><ul><li>Reduced the amount of solder used to seal barrels from 40 drops per barrel to 39, saving hundreds of thousands of dollars </li></ul>
  11. 11. Administration <ul><li>Brought together some of the best businessmen in America to join his company </li></ul><ul><li>Created a model for corporate business administration </li></ul><ul><li>Subsidiary companies headed by former rivals </li></ul><ul><ul><li>Jacob Jay Vandergrift in charge of pipelines </li></ul></ul>
  12. 12. Lasting Impacts on the oil industry <ul><li>Although Standard Oil was broken up, remnants of its company still remain in the industry today </li></ul><ul><li>Exxon-Mobil, Texaco, Chevron, Conoco, and other companies still remain to this day </li></ul>
  13. 14. Bibliography <ul><li>University of Rochester. 14 June </li></ul><ul><li>2007. <history.rochester.edu> </li></ul><ul><li>Varvra, Bob. “Rockefeller’s Power, </li></ul><ul><li>Wealth Changed American Business.” </li></ul><ul><li>National Petroleum News 92.13. (2000). </li></ul><ul><li>16-17. ProQuest. George Mason U Lib., </li></ul><ul><li>Fairfax, VA. 2 June 2007 </li></ul><ul><li><http://www.proquest.com>. </li></ul><ul><li>Wooten, Sara. People At the Center </li></ul><ul><li>of the Industrial Revolution . San Diego: </li></ul><ul><li>Blackbirch,2004. </li></ul>

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