The Use of Horizontal and Vertical Integration by Carnegie in the Industrialization Period

Satisfactory Essays
The use of horizontal and vertical integration by Carnegie in the industrialization period
Throughout history many people used unfair ways to improve their lives over others. In the late 18th century and early 19th century the use of vertical integration became more popular and used by large business owners. Vertical integration is when a company attempts to own all parts of the business by owning every piece that goes into the product being created. One large business owner who was a robber baron and particularly used vertical integration was Andrew Carnegie. He used these tactics as a way to improve his business and wealth. Under the table deals, allowed businessmen’s company’s to flourish, resulting in them becoming wealthy,
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The use of vertical integration by Carnegie was taking business away from other industries who needed citizens and companies to purchase their product. Carnegie became more popular and people started to buy his steel over others which had a negative effect on society as a whole while only improving his earnings and taking from other industries. Along with using vertical integration negatively, Carnegie was a robber baron. A robber baron is a business owner who tends to use ruthful tactics to gain more wealth. Carnegie Steel and many other business enterprises had people working for them in harsh conditions that were unsafe and unsanitary. Along with getting low pay, the workers were also forced to work 7 days a week for unbelievable hours. Carnegie’s factories were unsanitary, poorly ventilated and the employees were underpaid and overworked in unsafe environments. Overall, Carnegie abused his power of wealth to overrule his employees and used vertical integration to take from other industries, but without doing so he would not be as successful as he was. If Carnegie wanted to be a successful business leader, he would have to do whatever it took to improve his company without breaking the law. In the late 18th century and early 19th century, there were no laws on how workers should be treated, wage laws or how sanitary factories must be showing that Carnegie was not the only business owner treating his employees as he did.
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