John D. Rockefeller made his oil debut with a single refinery. However, as a savvy businessman, he quickly turned a single factory into the world powerhouse known as the Standard Oil Company. Now, the way Rockefeller was able to achieve this was through diversification, expansion, ingenuity, and cutthroat business. Rockefeller knew that the Standard Oil Company could not survive on producing crude oil alone. Consequently, Rockefeller continually worked towards developing new products from crude.
Rockefeller’s Contributions to the Industrial Era When leading the Standard Oil Company, John D. Rockefeller was innovative in the ways he maximized his profits; while his two major breakthroughs, one affecting the petroleum industry and the other the world of business itself, contributed to society, they were also part of how Rockefeller stayed ahead of his competitors. The first was researching new uses for the by-products of oil refining (Folsom, 1988, Discovering Crude Oil section, para. 9). According to Folsom (1988), Rockefeller was disgusted by the wastefulness of those already established in the oil business (Discovering Crude Oil section, para. 5 and 7).
John D. Rockefeller, America’s first billionaire, founded one of history’s most illustrious and dominating companies in the Standard Oil Company. There are few who will dispute the success of Rockefeller’s tenure as a businessman, much less his latter years a philanthropist, giving away what would be billions of US dollars converted into today’s currency (Kumar, 2012). Even as a young man, the relentless Rockefeller was “already recognized as one of Cleveland’s outstanding young merchants”, being described as “honest, reliable, and with a shrewd sense of commodity markets” (Morris, 2005, p. 17). These traits would prove to be useful, as the founder of the Standard Oil Company would take on numerous encounters with some of the most influential businessmen of his time. Rockefeller’s swift and ambitious strategies towards vertical integration, efficiency, forming partnerships and his efforts to expedite growth in his businesses were extremely effective in creating his success in such a nascent and wasteful industry such as oil.
After the pipelines were finished Rockefeller realized he did not need the help of others any more. This was the start of Rockefeller’s Standard Oil
To the company’s luck, when the demand for Kerosene and Gasoline greatly increased, so did John D. Rockefeller’s wealth. This was a period in which Rockefeller was considered America’s wealthiest man, along with one of the most influential figures in holding a 90% (at his most) control on all oil in the U.S. Due to its use for automobiles, railroads, and electricity in general, the people grew dependent on Standard Oil. Within revolutionizing the petroleum industry, Standard Oil was also considered one of the first great business trusts in the U.S.
In the early 1860's, Rockefeller wanted to control the refinery. The refinery then expanded in business. In the early 1870's, Rockefeller then decided to establish the Standard Oil Company, where he was the president, his brother and other men. Distributing and marketing the oil products made Rockefeller make
Standard Oil was an oil producing, refining, transporting and marketing company established in 1870. With time Standard Oil was able to use a corporate strategy called “horizontal integration”, which involved undercutting competitor’s prices and buying outwards in their industry to gain total control of their given industry ("The Dismantling of The Standard Oil Trust."). Due to the complete power over the industry the public began to be disgusted by the company. This allowed the government, or more specifically President Roosevelt to take action, and the action he took was based on public opinion, as displayed later in their research: The Congressional Industrial Commission's report to President Theodore Roosevelt laid the groundwork for Roosevelt's
After his job of bookkeeper ended, Rockefeller earned good money during civil war; he decided to invest on oil refining business, major new enterprise in Cleveland. The first plan of Rockefeller was to reduce the competition; he extended his industry benefits in the oil industry and joined with other three companies to create a cartel. Standard Oil expanded its monopoly in the oil industry by obtaining rival refineries. The best product obtained by oil refining was kerosene, which converted home lighting to kerosene lamps as a result replace candles and oil lamps.. The refinery business was relatively easy and with huge profits, and of course highly competitive.
B. Some of the most important stakeholders of Standard Oil or Rockefeller's oil company were Government and the authorities, economic stockholders, workers, and employees, customers, Competitors, and suppliers. Government: John Rockefeller monopolized the oil industry by receiving rebate from railroad companies, and forced the other rival oil companies to sell their companies or go bankrupt. The government was concerned about the monopoly in the market. the monopoly endangered the healthy competition between companies; so in 1911, the U.S. supreme court ruled that Standard Oil company violated the countries Anti- trusted laws.
His brother William had created an oil refinery in Cleveland and brought him into it soon after. This eventually became the largest oil refinery in the world, and was named Rockefeller, Flagler, and Andrews. This company was the predecessor to the Standard Oil Company. In 1870, the Standard Oil Company was formed by Rockefeller.
The Standard Oil Company headed by John D. Rockefeller and Henry M. Flagler is one of the most well known monopolies to have ever existed. Dominating the oil industry during the industrial revolution, Standard Oil was the first corporation to use the trust system and grew into a national oil corporation that eventually controlled a majority of the United States oil industry. Though no longer existing, the lasting impacts of Standard Oil and its founders can still be seen today. Established in Ohio, in 1867, the Standard Oil Company grew from a small refinery into a monopoly controlling roughly 95% of the oil refining industry by 1878 (Montague, 1902). With the help of investors and the guidance of eventual firm partner Henry M. Flagler, Standard
founder of the standard oil company is Rockefeller who was the number one wealthiest man as well as. He born in New York modest family in 1839 He started from his teenage with hard work he worked $.50 a day when he was 16 years old . After a struggle life he started his company in 1863. He made up decision that create a company which was the oil refine company but in 1911 , the supreme court found Standard Oil in Violation of antitrust.
Billionaires are an anomaly of society. These individuals manage to accumulate mass amounts of money in the few years life provides us with. One of the most famous billionaires to ever live was John Davidson Rockefeller. In 1870, John D. Rockefeller along with a few of his associates created the Standard Oil Company (The Editors of Encyclopaedia Britannica). Over the years Standard Oil flourished, and eventually rose to the top of all oil refining companies.
He first went into the oil business and began to invest in the Cleveland, Ohio refinery. He expanded his industry a massive amount with the help of a few friends. He then established standard oil in the year of 1870, and controlled almost 90 percent of U.S. refineries, along with their pipelines. As his monopoly began, he gained more and more wealth. He was very determined to be the man to come out on top and beat all of his competition.
Income Tax, which is today the main source of revenue for any government, did not exist. In 1870, John D. Rockefeller established the Standard Oil Corporation, which by 1890 controlled 90% of the refined oil flows in the US and made John D. Rockefeller the richest man in the world, ever. Standard Oil had become a monopoly and was eventually broken up into 34 companies. John D. Rockefeller was the most hated and admired man in America. He established Standard Oil with emphasis on providing a reliable and a cheap product.
