Big Business - PowerPoint PPT Presentation

1 / 14
About This Presentation
Title:

Big Business

Description:

Big Business 5-3 Corporation Organization owned by many people but treated as one person Stock Shares of a corporation Sold to raise money and spread the financial ... – PowerPoint PPT presentation

Number of Views:42
Avg rating:3.0/5.0
Slides: 15
Provided by: matth524
Category:

less

Transcript and Presenter's Notes

Title: Big Business


1
Big Business
  • 5-3

2
Corporation
  • Organization owned by many people but treated as
    one person

3
Stock
  • Shares of a corporation
  • Sold to raise money and spread the financial risk

4
Economies of Scale
  • Corporations make goods cheaply by making a lot
  • Fixed Costs
  • Operating Costs

5
Pools
  • Corporations worked together to fix prices
  • Often fell apart

6
Andrew Carnegie
  • Born in Scotland, immigrated in 1848
  • Entered Steel Industry in 1873
  • By 1899, Carnegie Steel was making more steel
    than all of Great Britain

7
Bessemer Process
  • New process for making steel
  • Could be made quickly and cheaply

8
Carnegies Strategies
  • Vertical Integration
  • Bought up all of his suppliers
  • Owned mines, railroads, quarries, etc.

9
Carnegies Strategies,contd.
  • Horizontal integration
  • Combined similar companies into one large
    corporation
  • Bought up competitors



10
Monopoly
  • One company controls a market
  • Sets prices and production levels

11
John D. Rockefeller
  • Owner of Standard Oil
  • First trust
  • Stockholders in many companies give their stock
    to the trustee
  • He runs all of the companies as one
  • The stockholders are given stock in the trust

12
J.P. Morgan
  • Formed the first holding company U.S. Steel
  • Does not produce goods, but owns stock in
    companies that do and runs them as one company
  • Morgan bought out Carnegie for 500 million

13
Too Much Stuff
  • American companies were overproducing, they need
    to sell more products
  • Created Advertising Industry

14
New Markets
  • Department Stores
  • Chain Stores
  • Catalogs
Write a Comment
User Comments (0)
About PowerShow.com