John D Rockefeller Research Paper
American Business Culture John D. Rockefeller
29 / 09 / 2010
LECUONA, Beñat
John D. Rockefeller. “I never would have been able to tithe the first million dollars I ever made if I had not tithed my first salary, which was $1.50 per week.”
John Davison Rockefeller Rockefeller was the second of six children born in Richford, in a small farm in the west of New York. His father, William Avery Rockefeller was first a lumberman, then a traveling salesman. Eliza, a homemaker and devout Baptist, struggled to maintain a semblance of stability at home. Since he was young, John D. Rockefeller evidenced his talent for the finance. He sold colored and rare formed stones to his schoolmates; he saved his small income in a blue vase, his first …show more content…
Was the largest refinery in Cleveland, with a capacity of 500 barrels per day and earnings of $1 million per year, which would double the following year. Was able to negotiate with the rail preferential tariffs, and that discount was an essential weapon against the competitors. In 1870 he organized The Standard Oil Company along with his brother William, Andrews, Henry M. Flagler, S.V. Harkness, and others. It had a capital of $1 million. That ´s the story of the first million of John D. Rockefeller. Rockefeller was 57 years old in 1896 when he decided that others should take over the day-to-day leadership of Standard Oil. He now focused his efforts on philanthropy, giving away the bulk of his fortune in ways designed to do the most good as determined by careful study, experience and the help of expert advisers. (-The End-) Standard Oil became large and they create a cartel. In that way they can control prices. Rockefeller competing style was very aggressive and it´s one of the keys of his success. He continued with his self-reinforcing cycle. What means: Buy competing refineries Improving the efficiency of his operations, don´t forget that he was very good in cost management and reducing them. Press for discounts on oil shipments (relative efficiency) Undercutting his competitors Make secret deals, raising investments pools Standard Oil gradually almost completes the control of the oil refining and marketing in the EEUU. So, he controlled kerosene´s prices. Standard Oil was powerfull and controlled the market, so their prices. Standard Oil different practices: Underselling Differencial pricing Secret transportation Companies’ spionage Price wars Heavy-handed marketing tactics Cover room evasion, he tried to sheap the laws with his lawyers, money, power and influence. Those conditions were unfear, Standard oil did let oxygen to the competitors in the market. His empire included: 20,000 wells 4,000 miles of pipeline 5,000 tank cars
29 / 09 / 2010
LECUONA, Beñat
John D. Rockefeller. “I never would have been able to tithe the first million dollars I ever made if I had not tithed my first salary, which was $1.50 per week.”
John Davison Rockefeller Rockefeller was the second of six children born in Richford, in a small farm in the west of New York. His father, William Avery Rockefeller was first a lumberman, then a traveling salesman. Eliza, a homemaker and devout Baptist, struggled to maintain a semblance of stability at home. Since he was young, John D. Rockefeller evidenced his talent for the finance. He sold colored and rare formed stones to his schoolmates; he saved his small income in a blue vase, his first …show more content…
Was the largest refinery in Cleveland, with a capacity of 500 barrels per day and earnings of $1 million per year, which would double the following year. Was able to negotiate with the rail preferential tariffs, and that discount was an essential weapon against the competitors. In 1870 he organized The Standard Oil Company along with his brother William, Andrews, Henry M. Flagler, S.V. Harkness, and others. It had a capital of $1 million. That ´s the story of the first million of John D. Rockefeller. Rockefeller was 57 years old in 1896 when he decided that others should take over the day-to-day leadership of Standard Oil. He now focused his efforts on philanthropy, giving away the bulk of his fortune in ways designed to do the most good as determined by careful study, experience and the help of expert advisers. (-The End-) Standard Oil became large and they create a cartel. In that way they can control prices. Rockefeller competing style was very aggressive and it´s one of the keys of his success. He continued with his self-reinforcing cycle. What means: Buy competing refineries Improving the efficiency of his operations, don´t forget that he was very good in cost management and reducing them. Press for discounts on oil shipments (relative efficiency) Undercutting his competitors Make secret deals, raising investments pools Standard Oil gradually almost completes the control of the oil refining and marketing in the EEUU. So, he controlled kerosene´s prices. Standard Oil was powerfull and controlled the market, so their prices. Standard Oil different practices: Underselling Differencial pricing Secret transportation Companies’ spionage Price wars Heavy-handed marketing tactics Cover room evasion, he tried to sheap the laws with his lawyers, money, power and influence. Those conditions were unfear, Standard oil did let oxygen to the competitors in the market. His empire included: 20,000 wells 4,000 miles of pipeline 5,000 tank cars