You might be wondering how someone of Carnegie’s background became so successful; it was not, opposite to what some might believe, because he worked rightfully.
As a starting note, Andrew Carnegie attempted to control as much of the steel industry as possible by using “vertical integration”, a method that resulted in him buying out his suppliers (coal fields, iron mines, ore freighters, and rail lines) in order to control materials and transportation. This later meant that his cost of production would decrease exponentially and he would be able to produce a greater quantity of steel for a much lower price as he now owned all the necessary equipment to make high-quality steel.
Moreover, Carnegie not only succeeded at buying his suppliers but
Andrew Carnegie was born November 1835, in Dunfermline, Scotland. He grew up poor and lived in a small cottage attic with his family. In 1848 the carnegie family made the hard decision to immigrate to the United States. Carnegie was locally famous for decoding messages when he was a telegraph operator. He later worked himself up to being one of the most famous men in business during the late 1800’s.
The book “ANDREW CARNEGIE and the Rise of Big Business” written by Harold C. Libesay, explains Andrew Carnegies life with chronological events beginning how he and his family moved from Dumferline, Scotland in November of 1835. This books thesis is on how his skills and experienced he learned before starting Carnegie Steel intersect with each other and show how he dominated the steel industry. Carnegie’s industrial career is explained in depth how he acquired the knowledge on how businesses worked, as a manager capitalist then leading into a entrepreneur. The authors purpose I believe was to show not only Carnegies life leading to just Carnegie Steel, but also how determination and hard work can help you achieve success. This book on Andrew Carnegie explains well on in detail how Carnegie’s came to create his dominating steel industry empire.
Andrew Carnegie was a Scottish industrialist who led the expansion of the steel industry back in the 19th century and is known as one of the richest men. One reason that Andrew Carnegie
1) Andrew Carnegie used vertical integration, controlling every step in the process of manufacturing a product, dominating the market. Vertical integration is when the company owns all means of distribution from beginning to end, this makes supplies more reliable and improved efficiency. It controlled the quality of the product at all stages of production. Horizontal integration was used by John D. Rockefeller and is an act of joining or consolidating with one’s competitors to create a monopoly. In Ohio in 1870 he organized the Standard Oil Company.
He also put a profit sharing plan in place to motivate his workers. Carnegie felt his employees would work harder if they had a stake in the company's profits. This belief led Carnegie to distribute company stock to his employees which would rise and fall in value depending on company performance. To ensure the company would perform better, and that their stocks would produce higher returns, Carnegie's workers had to work harder. Both these practices were revolutionary in the business world at the time they were implemented and couldn't have been implemented without free enterprise, thus making free enterprise essential to Carnegie's
During this time, Carnegie bought stock and made several other investments, but in 1873 Carnegie sold out his other interests and focused primarily on the steel business. Carnegie later created the Carnegie Steel Business. Carnegie’s success can be credited to hard work, qualified help and his attention to small details. Carnegie was able to benefit from the 1890’s great depression. While some were going bankrupt, Carnegie used his wisdom and was able to obtain more steel production corporations by buying coal and iron mines, warehouses, ships and railroads so that he could gain control of all parts of the steel process.
He was already elderly and had a contempt for the law. He was used to getting his way and the addition of more wealth only made his self important attitude worse. He was universally an unemphatic individual placing the acquisition of wealth far above any other individual. Andrew Carnegie, the steel baron, was a Scottish immigrant who worked his way to the top. He was the master of Vertical Integration, owning all aspects of his industry from mining to selling the product.
Andrew Carnegie comes from a humble beginning; as to show he worked when he was a 13 year older at a factory all day long just to later study at night. Andrew Carnegie’s interest in education begins during this period of his life because they lent him books to study, but he grew up he focused mainly on businesses and money. Working as a telegraph messenger boy he gets to know his new boss, the Superintendent of the Pennsylvania Railroad, yet Carnegie later takes his bosses job. Carnegie’s new job gives him the opportunity to invest in companies what were not expected to have to much profits, however, this investments gave him the opportunity to invest in other sectors such as oil. As Carnegie grew rich he founded the first steel company in
During the late 1800s, there were some very bad, powerful people. One of them was Andrew Carnegie, captain of the steel industry. Andrew Carnegie was a Scottish immigrant who came to America to seek a better life. He made his money in the steel industry after figuring out a way to manufacture it faster. Andrew Carnegie was a villain because he didn’t care about his workers, preached about world peace and then turned around and gave the U.S. Navy steel, and because his club tampered with a dam, killing thousands.
Summary Andrew Carnegie's steel empire started in eighteen seventy and ended in nine teen o seven because He sold it for millions of dollars, and it made him one of the most successful men then. when he entered the steel business he became a dominate force to other companies and people, and later sold it for four hundred eighty million dollars, making him one of the most successful men then had the most successful philanthropist too. Andrew Carnegie expanded railroad investments and found the steel empire. He was a very successful man in the industry. Exploration Andrew Carnegie was just a little boy when he moved to the USA.
The United States began to enter a prosperous and increasing period after the civil war known as industrialization. Despite the fact that industrialization led the United States to wealth, it also led it to many social and economic problems during the late 19th and early 20th centuries. During this time, Upton Sinclair and Andrew Carnegie were the people who responded to the economic and social problems generated by industrialization. Andrew Carnegie was one of the wealthy men in America and was very charitable, he impacted the United States with his steel to transform cities. During these economic and social problems generated by industrialization, he responded by providing money to fund charities.
In the past, there have been many influential economic figures in the industrial business industry. Andrew Carnegie is one of the most famous of these figures but not just in a business scheme, but also in an economic and national scheme. Andrew Carnegie is a business man that caused a major controversial issue to arise; the topic of being labeled a Robber Baron or a Captain of Industry by the public. A Robber Baron is someone who has become wealthy through heartless and unethical business actions that will only benefit the individual. On the other hand, a Captain of Industry is a business leader who has become rich by accomplishing activities that will, overall, benefit the people of the community such as expanding a market or providing more jobs.
Carnegie was considered a Robber Baron for many reasons. For example, he gained huge profits because of his workers low wages. In the excerpt, “Who was Andrew Carnegie,” the author said, “his steel workers were often pushed to long hours and low wages.” Workers worked in harsh conditions and received no benefits causing them to live in poverty with scarce food, clothing, and shelter. Workers were tired of the low wages and decided to go on strike.
Andrew Carnegie was one of the most famous and wealthiest American industrialist during the Industrial Age. He was a robber baron who made a fortune in the steel industry and applied vertical integration to his business. Carnegie contradicted his views as a robber baron because he supported, but destroyed many unions. This made many of his views unethical.
Working as a personal telegrapher he came up with two ideas to help make the railroads more efficient and these two ideas were the most successful ideas. In 1859, he was promoted to Pennsylvania railroad superintendent. In 1861, Carnegie started the freedom iron company. Since the railroads were getting destroyed in war and deteriorating over time the iron business allowed him to bring in a lot of money since he was the biggest iron maker. In 1865, Andrew changed paths and sold the freedom iron company to make the keystone bridge company, this was revolutionary because this is when bridges started being built with iron instead of wood.