Industrial Revolution

The Entrepreneur and the Growth of Big Businesses

Unit 1Industrial Revolution

INDUSTRIAL REVOLUTION

I. OverviewII. EntrepreneursIII. LaborIV. Westward

ExpansionV. Empire

Labor EntrepreneurProduct

or Service

Land

Capital

Corporation

INDUSTRIAL REVOLUTION

I. OverviewII. Entrepreneurs

A. Big BusinessB. Ideology

III. LaborIV. Westward

ExpansionV. Empire

• A business with the legal status of an individual• Owned by many people,

called shareholders• Decision-making is done by a

board of directors• Managers/Corporate officers

run the daily operations

INDUSTRIAL REVOLUTION

I. OverviewII. EntrepreneursIII. LaborIV. Westward

ExpansionV. Empire

Labor EntrepreneurProduct

or Service

Land

Capital

How would you maximize your profits?

The competitive edge

INDUSTRIAL REVOLUTION

I. OverviewII. Entrepreneurs

A. Big BusinessB. Ideology

III. LaborIV. Westward

ExpansionV. Empire

• Horizontal integration• Consolidation of a product/service to

decrease competition and increase the economy of scale

• Trusts: Consolidation of competing companies under a board of trustees.

• Cartel: competitors agree to limit production to hike prices

• Monopoly: complete control over an industry.

• Vertical integration• Consolidation of the supply chain to

increase efficiency

Robber Baron or Captain of Industry?

OPTIC Analysis

OverviewPartsTitleInter-relationshipsConclusion

INDUSTRIAL REVOLUTION

I. OverviewII. Entrepreneurs

A. Big BusinessB. Ideology

III. LaborIV. Westward

ExpansionV. Empire

The Empire Builders

INDUSTRIAL REVOLUTION

I. OverviewII. Entrepreneurs

A. Big BusinessB. Ideology

III. LaborIV. Westward

ExpansionV. Empire

• Captains of Industry or Robber Barons?

From left, James J. Hill, Andrew Carnegie, Cornelius Vanderbilt, John D. Rockefeller, J. Pierpont Morgan, Jay Cooke or Edward H. Harriman, and Jay Gould

What Business Industry? Strategy?

Entrepreneur

Philanthropy Robber Baron/Captain of Industry?

New Gilded Age?

INDUSTRIAL REVOLUTION

I. OverviewII. Entrepreneurs

A. Big BusinessB. Ideology

III. LaborIV. Westward

ExpansionV. Empire

• Spread of Industry• Then• Now

• Income Gap• Then• Now

INDUSTRIAL REVOLUTION

I. OverviewII. Entrepreneurs

A. Big BusinessB. Ideology

III. LaborIV. Westward

ExpansionV. Empire