Transcript Big Business…

Factory
Simulation
Reflection
Assembly Line Production
Reflection
1. List 5 words that describe the process
for creating your first portrait –
Individual Production.
2. List 5 words that describe the
production of the 2nd portrait –
assembly line production.
3. What are the Pros and Cons of:
a.
b.
Individual Production
Assembly Line Production
Big
Business…
In the Industrial
Age
Robber Barons
Businessmen &
industrialists
Ruthless tactics to earn $
Rockefeller
90% of oil refining business
Paid low wages
Dropped prices to drive others out
of business
Bought out bankrupt competitors,
then hiked up prices
Rockefeller
Andrew
Carnegie
Success due to management
practice

make better products cheaper
Carnegie's Greed
Wanted to control entire steel
industry
 Bought
out all suppliers
 controlled
materials &
transportation

control over quantity and quality
Carnegie’s Greed
sold, in 1901
producing
80% of the
world’s steel
monopolized whole steel
industry
Carnegie’s Mgt.
Attracted talented people
 Offered
stock
 Encouraged competition
between employees to
increase production
Social Darwinism
Philosophical
explanation for success
“Survival of the Fittest”
Social Darwinism
Biological Evolution
Some
species flourish and
pass traits onto others(the
fittest) and some don’t
Natural selection
The
weak are weeded out
and the strong survive
Monopolies
2 types of monopolies
 Vertical
Monopoly- owns all
parts and supplies needed for
production (ex: Carnegie
purchasing steel, coal &
Railroads)
 Horizontal Monopoly – own all
competitors or like producers
(ex: Rockefeller owning
virtually all oil production)
Problem Monopolies
How many of you have ever played
monopoly
 How do you win?
 How does it feel to lose?
Real life example- Microsoft
 Positives?
 Negatives?
The Government
Takes A Stand
Govt. says monopolies are
no longer allowed
Sherman Anti Trust Act
Any attempt to interfere
with free trade by
forming a trust was illegal
Political Implications
Robber Barons gave $$$ to
politicians
Politicians did not oppose actions
of Barons
Big business ruled!