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The Standard Oil Company founded by

John D. Rockefeller and the U.S. Steel Company

founded by Andrew Carnegie. The Standard Oil

Company and U.S. Steel Company were made

successful in different ways due to the actions

of their different owners. The companies differed

in their labor relations, market control, and

structural organization.



In the steel industry, Carnegie developed a system

known as vertical integration. This means that

he cut out the middle man. Carnegie bought his

own iron and coal mines because using independent

companies cost too much and were inefficient.

By doing this he was able to undersell his

competetors because they had to pay the competitors

they went through to get the raw materials. Unlike

Andrew Carnegie, John D. Rockefeller integrated

his oil business from top to bottom, his

distinctive innovation in movement of American

industry was horizontal. This meant he followed

one product through all its stages. For example,

rockrfeller controlled the oil when it was

drilled, through the refining stage,

and he maintained control over the refining process

turning it into gasoline. Although

these two powerful men used two different methods

of management their businesses were still very

successful (Conlin, 425-426).



Tycoons like Andrew Carnegie, "the steel king,"

and John D. Rockefeller, "the oil baron," exercised

their genius in devising ways to circument

competition. Although, Carnegie inclined to be

tough-fisted in business, he was not a monopolist and

disliked...