chapter 17 Flashcards
What action did businesses take allowing them to still profit?
Industrialization lowered prices through large scale manufacturing SO producers developed new technologies and business tactics
What new concept did Railroad Companies create?
a management revolution that created a hierarchy of responsibilities, compartmentalized operations by function, and improved accounting
How did the United States become an Industrial Power/
taking vast natural resources in North America, including minerals, lumber, and raw material from the West.
Describe the shift in power/electricity in the 1890s-1900.
Due to steam and electricity growing, water-dependent industries began to use COAL instead
Kerosene was used instead of whale oil.
Wood was used to produce light & heat,
American factories and urban homes converted to electric power.
Who and what did Gustavus Swift do?
Create the assembly line to improve productivity & create a new enterprise.
This enterprise was vertically integrated and could handle ALL functions of an industry
Used predatory pricing to absorb competitors and attain market control.
Who and what did John D. Rockefeller do?
Took advantage of the oil shortage and the discovery of oil in PA during the Civil War (to develop his business)
Rockefeller developed ‘Rockefeller’s Standard Oil of Ohio’ and used vertical integration (for production and sales) and horizontal integration (for national distribution).
What did Rockefeller do in 1882
Create the TRUST
= Rockefeller could manage a number of different firms as a single entity.
Other companies (in linseed oil, sugar, and salt) followed
What happened in the U.S by 1900?
America’s largest one hundred companies controlled 1/3 of the nation’s productive capacity by 1900
Companies spend over $90 million per year on advertising space in magazines –> thus transforming press into a mass-market industry.
Describe the impact of Swift, Rockefeller, and Carnegie
They were criticized during economic downturns
Were applauded during periods of prosperity
Why was consumerism encouraged?
improved products became cheaper
railroads transported manufactured goods + fresh produce to national chain stores
Who was John Wanamaker
created the department store
= megastores that enticed customers with advertising and low prices
What did Montgomery, Ward, and Sears do?
built mail-order empires with money-back guarantee
What is “white collar vs blue collar”
White Collar = those who had high-positions and would work for someone else.
Blue Collar = those who would physically work on the shop floor.
What was a new concept in major corporations after the introduction of white and blue collars?
Middle Managers
- supervised departments that handled SPECIFIC activities (purchasing, accounting, etc..)
How did corporations create new systems to sell their products?
Established national distribution networks.
Traveling Salesman would be trained in the art of “hard sell”
- introduced merchants to new products
- offered incentives
- suggested sales displays
used scripts that had conversations to use with customers
Describe the role of women in the corporate office?
Employers began to assign secretarial work to women and by the twentieth century, 77% of all stenographers and typists were female.
By 1920 –> women held half of all low-level office jobs
This was something completely new for white, working-class women as they would often spend time at home, tending to children, taking in laundry, boarders, and piecework.
Women began to stray away from domestic work.