Andrew Carnegie Advantages

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Andrew Carnegie “Aim for the Highest!.........Immense power is acquired by assuring yourself in your secret reveries that you were born to control affairs.”(Jim Rohn, 1)This quote was stated by one of the largest tycoons of the nineteenth century, Andrew Carnegie. After starting as a simple poverty compelled boy from Scotland he began working at a cotton factory. Because he was a Scottish immigrant it was harder to get out of poverty due to the discrimination that the Scottish were poor like the Irish. He went from a messenger boy to telegraph operator to secretary to the Pennsylvania Railroads Superintendents all the way to the Superintendents of the Pennsylvania Railroad’s western division in Pittsburg at age twenty(American History,1).…show more content…
“He sought to become immune from competition controlling all aspects of the production process.” Vertical integration is when a firm owns both its “upstream” and “downstream” buyers. Horizontal Integration is the acquirement of the same level in a value group. Some of the advantages of Vertical Integration are: reduction in transportation costs since there is a common ownership, improvement in supply coordination, inclusion of “upstream” and “downstream” profits. This leads to the expansion of core competencies (Quick MBA vertical, 1). Some of the advantages of Horizontal Integration are: increased market power, reduction in the cost of international trade cost, improved sales for identical product across the nation, and the expanded sharing of resources within common owned businesses (Quick MBA horizontal, 1). Carnegie used these methods not only to gain control of steel mills but worked to control iron ore, barges, coal, iron fields and railroads. However, whenever possible he would sell directly to the user so there would be less transportation fees. This allowed the customer to buy his product for…show more content…
His lack of selfishness is what makes him different from many of the other rich men of his time. He started out so low on the totem pole but worked his way up; building and adding other companies in many different fields such as his railroad businesses and realized he did not need all the money his was making. Having multiple business partners from a variety of companies allowed him to have connections to almost everything he could ever need at the lowest cost. This allowed him to further use Vertical and Horizontal Integration. Taking advantage of this allowed him to a mass, a great empire (Quick MBA vertical, 1), (Quick MBA horizontal, 1). Carnegie said,” Do your duty and a little more, and the future will take care of itself.”(Jim Rohn, 1) For Andrew Carnegie this is exactly what happened. In the end, Andrew Carnegie created one of the largest philanthropic attributes ever seen, used Vertical and Horizontal Integration to get ahead against his competition and lastly he used his power to produce one of the largest monopolies ever

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