Question

Which business model, famously employed by Andrew Carnegie, involves one business controlling all phases of a manufacturing process, from top to bottom?
Duopolization
Vertical integration
Monopolization
Horizontal Integration

Answer 1

Any ideas ?

Answer 2

Hm, not sure at all, but if I had to guess I'd probably say either Vertical/Horizontal Integration.

Answer 3

Carnegie became a tycoon because of shrewd business tactics. Rockefeller often bought other oil companies to eliminate competition. This is a process known as HORIZONTAL INTEGRATION. Carnegie also created a VERTICAL COMBINATION, an idea first implemented by GUSTAVUS SWIFT. He bought railroad companies and iron mines. If he owned the rails and the mines, he could reduce his costs and produce cheaper steel.

Carnegie was a good judge of talent. His assistant, HENRY CLAY FRICK, helped manage the CARNEGIE STEEL COMPANY on its way to success. Carnegie also wanted productive workers. He wanted them to feel that they had a vested interest in company prosperity so he initiated a profit-sharing plan.

All these tactics made the Carnegie Steel Company a multi-million dollar corporation. In 1901, he sold his interests to J.P. Morgan, who paid him 500 million dollars to create U.S. Steel.

Source: http://www.ushistory.org/us/36c.asp

Answer 4

So Horizontal Integration...

Answer 5

Hmm...let me ask a history expert over here.

@Joel_the_boss

Answer 6

Alright.

Answer 7

He's offline. :/

Answer 8

Darnit...

Answer 9

OHHHH, I misread it, it said Vertical COMBINATION, so you're right, it's D.

Answer 10

xD Haha, its alright. Thanks though!

Answer 11

;^)