ipl-logo

John Davison Rockefeller: The Founder Of The Standard Oil Company

808 Words4 Pages

Imran Hossain

Endlay

History 1302

4 Feb 2018

John Davison Rockefeller

The great standard oil company was the number one in world’s oil company early 1880s .The 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.

In 1882 Rockefeller was buying other company giving money half of price of the value .After that whatever he bought the company he just …show more content…

For his products marketing he used private train to delivery oil to others with a secret code. Peoples were buying from his because his low cost product and his easier transport system. He was the specialist for petroleum refining with quality products and low cost nobody can sell this price. His standard and cheap oil became most popular oil company all over the world. The special gift was to the world kerosene oil which was affordable price for anyone …show more content…

His process kerosene made up world brighter, warmer, and cleaner as well as better. Rockefeller wrote that we are reefing oil for the poor man and must have it cheap and good. Not only United States he discoveries new petroleum but also abroad independent oil companies brought competition on the industry there are some modern names like Exxon, Mobile ,Amoco ,Cheveron, ARCO ,Conoco and Sohio the world class bend he made those company influence on oil pricing. Those company are till working as refining all the world .For Instance some developing countries till using their technology to get gas and taking a major percentage of gas those countries like Cheveron and other as well as.

But in 1911 the US supreme got them in violation which was a problem which is antitrust issues monopoly which is the a company kills all other competitor the reason his company got hold to the government. Rockefeller was by the law many times before congress he was known to subpoenas by tour place to place .But he was finally gave iconic testimony about his company

Show More
Related
840 Words | 4 Pages

By keeping his prices low, Rockefeller strategically lured in customers. “Rockefeller demanded rebates, or discounted rates, from the railroads. He used all these methods to reduce the price of oil to his consumers.” (Source 1 “the New Tycoons- John D. Rockefeller”) Rockefeller did whatever it took to make

Read More
1260 Words | 6 Pages

He did this by buying smaller refiners or drove them out of business across the United States. By the early 1880’s, the Standard Oil company had control in about ninety percent of the oil refineries located in the United States. To eliminate business Rockefeller was accused of using unethical practices. Including, undercutting oil prices of other companies known as predatory pricing. He was also accused of colluding with railroads to eliminate his competitors ability to distribute product.

Read More
800 Words | 4 Pages

Not long after his first company took off, in 1870, he created Standard Oil Co., which was a combination of a few of the other businesses he had started. Rockefeller used refineries to extract oil, rather than some of his competitors who preferred to use oil rigs. What truly helped Rockefeller rise above his competitors was actually undercutting their prices, and even offering money to railroad companies to only ship materials to him, which caused his competitors’ businesses to go bankrupt. He used a business tactic called the trust, where he took shares in other companies, offering the owners a place on the board of directors and dividends in the company. This tactic gave Rockefeller more control over his competitors’ businesses, which affected everyone else negatively.

Read More
1248 Words | 5 Pages

Rockefeller had an admiration for his integrity as a businessman and had a strong calling to his faith. His mother was a key role in his growth in faith and his father had taught him the importance of saving money. His values had always been grounded in tending to those who are less fortunate and quickly gain his respects to the business of producing oil. He had always had a fascination with oil and one of the members of his church, Samuel Andrews, who was an investor in oil. Both Andrews and Rockefeller joined together to make the business which would be called the Standard Oil Company.

Read More
114 Words | 1 Pages

John D. Rockefeller was the founder of the Standard Oil Company and became one of the wealthiest men of his time. His company was the major leader of the oil business in the United States during his reign. Standard Oil company served as a prime example of how companies should function, which helped to guide others to follow in his footsteps. He was a major philanthropist and used his large fortune to fund many philanthropic causes. His donations helped pay for the creations of the University of Chicago, the Rockefeller University, the establishment of Central Philippine University, and many others.

Read More
173 Words | 1 Pages

Also for the longest time Rockefeller had a monopoly over oil. Rockefeller produced oil, called Standard il. Since nobody else could figure it out they had to only buy from him. So he could make oil as expensive as he wanted. The il he prduced made light everyone needs light, so pf course he got a ton of business.

Read More
1139 Words | 5 Pages

Rockefeller was always looking for ways to expand his company while still maintaining a low expenses. Which led to him being one of the first businessmen to use a vertically integrated company, meaning he controlled every stage of production. Being one of the largest companies in the United States came with certain benefits other small companies could not afford, such as stability when oil prices crashed and cheaper rates with the

Read More
938 Words | 4 Pages

He was able to influence the prices of oil and make his the most appealing, lowering the price in areas of high competition but lowering it in areas with little demand. Without legal documentation, Rockefeller bought out other companies, bribing them with money if they kept the buy a secret. He quickly was able to dominate the oil industry because he had secretly bought out all his competition without the other companies knowing, or the public, who were unaware that he controlled 90% of the oil market in the United States. At his prime, many claimed Rockefeller to be a robber baron, stating he engaged in business practices that were not only illegal, but then prohibited any other competition from existing to create a marketplace that would

Read More
791 Words | 4 Pages

In particular, John D. Rockefeller, founder of the Standard Oil Company, was known for his ruthless grip on the oil industry through eliminating competition. He even made it a point to call competition “a sin” and [ANOTHER QUOTE], and followed suit with this philosophy by making deals with railroad companies for reduced prices in exchange for promised large shipments. The public outcry against Rockefeller’s practices became so widespread, [FINISH]. Separate from the ethical questions that prompted the U.S. government to break up Standard Oil into several companies, Rockefeller’s technique of acquiring smaller companies to aggressively grow his own company was “a move that pioneered modern American capitalism” according to History.com (2010). History will see Rockefeller as a complex man, known for his discipline, ruthlessness, and generosity, who created turmoil in the oil industry through his seemingly unrestrained practices in capitalism.

Read More
975 Words | 4 Pages

Rockefeller knew that to become a successful businessman he would have to pay close attention to every detail. Rockefeller knew that locations were important, so he chose places closest to water and rail transportation. He also would send his men into the oil fields to buy oil instead of buying it from a middle man. Rockefeller was so obsessed with the efficiency of the company that his first major change in the company was to build their barrels and wagons for the oil. He also made sure that nothing was wasted and found a use for the by-products of the refining process.

Read More
1986 Words | 8 Pages

Rockefeller was the first man to manufacture oil and founded Standard Oil Company. With the development of oil which is an essential resource, came great responsibility and dominance. However,

Read More
159 Words | 1 Pages

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.

Read More
684 Words | 3 Pages

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.

Read More
459 Words | 2 Pages

Coming with a successful business is people trying to find faults in your greatness. Rockefeller was a Captain of Industry, he helped improve the inventions we already had by making oil more readily available. By doing this he made a fortune which made people believe that he was unable to be trusted, but all of these suspicions were incorrect, Rockefeller made his money honestly and helped our country thrive and become who we are today. Rockefeller had competition in the oil industry but,

Read More
1179 Words | 5 Pages

Rockefeller’s impact on the United States cause the U.S. government to create new laws and acts to prevent unfair business tactics and promote the idea of capitalism. During Rockefeller’s time in the oil industry he at one point controlled about 90% of U.S. pipelines and refineries. Statistics show that Rockefeller was very successful, however, he was not the most ethical businessman. He created the first monopoly by unethical practices such as colluding with railroads and using predatory pricing to rid himself of competition and take the idea of capitalism away from other aspiring oil businessmen. In Rockefeller’s mind, however, he was not being unfair he; was rather just using effective business techniques.

Read More

More about John Davison Rockefeller: The Founder Of The Standard Oil Company

Related Topics

Open Document