Carnegie Hall, New York, NY
Andrew Carnegie was one of the most richest business men of his time. His story is the most classic American story of going from rags to riches. But without the proper education, how did he become so rich? What were his tactics?
Vertical integration is control of the production process from raw materials to manufacturing and sale of the products.
Andrew Carnegie had full control of the entire process by using vertical integration. It allowed his company to lower costs since they did not have to pay other companies for resources anymore. By having full control, Carnegie was able to keep a close eye on every part of the production process to avoid errors.
A cartoon portraying Andrew Carnegie donating millions to education and public good.
Andrew Carnegie's philanthropy consisted of millions of dollars donations to libraries, public libraries and funds for workers, their families and other low-paid employees.
Carnegie believed that any man who left his fortune to his children was making really bad use of it. He thought that the money should be used for public purposes and to help the families of workers.
As competition increased and years passed, Carnegie grew more watchful of costs. He never let up on his watch for the first twenty-five years in the business. But this actually was one of his best tactics in the industry. By being careful he was able to avoid any downfalls and create great prices.
Carnegie was a great Captain of Industry. He was a smart businessman by using vertical integration to control the entire process and by keeping a watchful eye on costs and prices. Andrew Carnegie proved to also be a good person by donating hundreds of thousands for public use and education.