Leadership of John D Rockeffeller Essay examples

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What makes John D. Rockefeller an effective leader?

In his decades of business, one of the key characteristics that propelled Rockefeller to success was his strong leadership abilities. It wasn't his status, nor his age that made Rockefeller a great leader. Instead, it was his influence. People around him wanted to follow him; they were inspired by him to do more than they ever thought they were capable of. It was his ability to create a strong sense of teamwork and his own energy and passion that drove his workers and thus his company.

We can say he was a leader according to the leadership framework: Be, Know, Do:
- he was a real professional who possessed good character traits (like competence and dignity of labour) and above
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That led the Standard Oil Company to the wealthy situation that we know.

How did Rockefeller lead his company?

Even if Rockefeller seemed to be very close to his employees and tended to show respect to them, his way to lead his company was totally different. Standard Oil employed a number of cutthroat business practices such as:

Monopolization — Rockefeller is remembered for buying up all of the components needed for the manufacture of oil barrels in order to prohibit his competitors from getting their product on the market.
He realized that by controlling the refining process, he was the master of the whole industry, and worked from that point on to a vertical concentration to the whole industry, taking over every stage of production, from extraction to retail, including transport, research, marketing and even the manufacture of barrels. At its peak, the Standard Oil owned not only all the infrastructures necessary to the making of refined oil, but also pipelines, cars, tankers, groceries. By this way, he managed to get the monopole of the oil market in almost the country.

Rate Wars — the giant Standard Oil was able to withstand short term losses by cutting the price of oil thanks to a huge economy of scales allowed by the size of the Rockefeller's company. Smaller competitors could not keep pace and either went out of business or sold out to Rockefeller

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