...Standard Oil Abstract In this paper I discuss Antitrust laws were created to preserve and promote free competition between companies. These laws were developed over the years and encourage corporations to have lower pricing and produce better products for consumers. Without laws, businesses could merge to create monopolies or engage in exclusive contracts that can increase market prices. Standard Oil was investigated due to the nature of how they gained a monopoly in the oil business. They controlled 90% of the oil refined in the United States due to their collusion between the individual companies under the corporate shell (“The dismantling,” 2004). Their market power was so high that they sold more oil overseas than the U.S. Among their tactics, they undercut prices temporarily to force their competitors to either sell to Standard Oil or close their business. They purchased the equipment needed to make oil barrels so that their competitors could not get their oil to their customers. They used thugs and threats of violence against those that refused to bend to their demands. And finally, their attitude and lack of cooperation towards the government intervention alongside the widespread disgust and revulsion by the public led Standard Oil to be charged under the Sherman Anti-Trust Act (Kopel & Bast., 2001). Some of the pecuniary and nonpecuniary costs included closing of businesses, monopoly pricing of oil and the refined products, higher unemployment...
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...power discussed in this chapter, I think that economic, cultural, and political power of Standard Oil has led to major changes in society. On page 79 the book states, “Rockefeller Company was capitalized at $70 million and produced 90% of the nation’s refining output.” This boosted the American economy and eventually cars came along and this fueled the auto industry. The power of Standard Oil enhanced living standards in America and made living more efficient. No the power was not exercised in keeping with the social contract to Rockefeller’s era. Rockefeller used unethical methods in running his business. The book states multiple examples of Rockefeller being unethical in his business practices. “The intelligence gathering network paid competitor’s employees to pass information to Standard Oil,” as stated in the book. Rockefeller did this for his own personal gain and self-interest. 2. “Business power is the force behind an act by a company, industry, or sector,” as stated in the book. Rockefeller prevented his competitors from getting into the oil market which lead to Rockefeller controlling the market. The book says, “its basic origin is a grant of authority from society to convert resources efficiently into needed goals and services.” Rockefeller did convert his resources and did what he needed to reach his goals, but he did this with an unethical approach. I would say Standard Oil illustrates the dominance theory. The company was more focused on their own assets and self-interests...
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...John D. Rockefeller and the Standard Oil Trust – Stakeholder Analyses There were many stakeholders in the Standard Oil Trust case: John D. Rockefeller himself – the largest and most influential shareholder of Standard Oil, his bank lenders who he borrowed from to help expand his refineries, his employees – particularly his inner circle of managers and high-level committees that helped him control business operations in the several different companies within the trust, the railroads, their consumers, their competitors, the US government, and even the media – such as Ida Tarbell. Rockefeller’s influence was by far the most substantial to Standard Oil’s success. He was the founder and largest shareholder of the company and his fundamental ideas for the company from the beginning, to produce at low-cost and high-volume, driving out all competition, are what allowed Standard to grow into such a powerful force in the market. He benefited from the profits Standard Oil brought in enormously but at the price of public hatred – which worried him throughout his life. Next, Rockefeller’s bank lenders who invested in his business venture to expand his refinery in the 1860’s. Like any investor, they are hoping to see a return on their investment. Their desire was for Rockefeller’s business to succeed. I’m sure they must have asked Rockefeller “what makes you think you can emerge above all other refiners in the region struggling to make a profit?” Had they not invested in his business, his...
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...As monopolies ravaged the American economy, the American public demanded a response from the federal government. Starting with President Roosevelt, the regulation of trusts and monopolies increased and continued with later presidents. This new stance was adequate in dealing with monopolies. Muckrackers such as Ida Tarbell exposed countless trusts, one of them being the Standard Oil Company. In “The History of the Standard Oil Company”, Tarbell quotes Mr. Rockefeller as saying “This scheme is bound to work. It means an absolute control by us of the oil business. There is no chance for anyone outside.” By completely controlling the oil business, the core principle of American democracy was being violated, which didn't take the government long...
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...monopolistic control of the oil industry for a long time, he was also vilified by many people. Even so, he revolutionized industrialization in America and dramatically changed the oil industry with many inventions and process improvements. His monopoly was so powerful and dominant that the government made laws specifically targeting his company, which still impact how our nation operates today. His monopoly dominated American industries and was constantly expanding, which is why he was responsible for 95% of oil distribution in...
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...Ark. Revenue: $469.2 billion Profit: $16.9 billion 2013 rank: 1 Wal-Mart and ExxonMobil have traded the top spot back and forth several times, but the world’s largest retailer comes out on top this time despite a year rife with controversy: It faces accusation that its Mexican subsidiary bribed government officials in order to expand locations there, and the probe has since expanded to Brazil, India, and China. Nevertheless, the retailer operates a multinational empire, with 10,800 stores operating in 26 nations besides the US, and employing some 2.2 million employers, making it the largest private employer in the world. 2) ExxonMobil, is an American multinational oil and gas corporation headquartered in Irving, Texas, United States. It is a direct descendant of John D. Rockefeller's Standard Oil company, and was formed on November 30, 1999, by the merger of Exxon...
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...December 2013 Executive Summary ExxonMobil is an American multinational oil and gas corporation that is headquartered in Irving, Texas. On November 30, 1999, Exxon and Mobil merged to become ExxonMobil. ExxonMobil is the largest publicly traded petroleum and petrochemical enterprise in the world (www.exxonmobil.com). The main activities of ExxonMobil are exploration, production, transportation and sale of crude oil and natural gas as well as the manufacture, transportation and sale of petroleum products (www.corporatewatch.org). This analysis will discuss the history of ExxonMobil. The analysis will identify the market structure and production decisions of the company. It will attempt to determine consumer demand. Through the findings of consumer demand the analysis will also attempt to determine the behavior and pricing strategies of ExxonMobil. It will also provide an explanation of management decisions. And, an explanation of management approaches to opportunities along with threats from macroeconomic expectations and implications. The analysis will also identify ExxonMobil’s competitors. Some common examples of competition are; Royal Dutch Shell, BP, and Chevron. The analysis will further discuss how the decisions of each individual company may affect similar companies in the industry. HISTORY ExxonMobil is the biggest and most profitable of the Western “supermajor” oil companies (ExxonMobil: Oozing Success). In 1999, when Exxon and Mobil merged to...
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...* Intro * A strategic planning initiative for the organization selected for the Week 2 assignment ExxonMobil, an American multinational oil and gas corporation; whose headquarters is in Irving, Texas which is North of Dallas in the United States of America. It is the descendant of John D. Rockefeller’s Standard Oil Company, and was established on November 30, 1999, when Exxon and Mobil merged together. As one of the largest oil and gas corporations to date, with a daily production of $3.921 million BOE, in 2008 ExxonMobil was 3% of world production, which serves as less than their competition. The company’s strategic thinking is simple. Keeping the promise of being the premier petroleum and petrochemical company in the world, they must commit to providing superior financial and operating results while standing by the company’s ethical standards of business conduct. By doing so, the organization shall create the foundation in those commitments to serve those they interact with. The strategic planning, which should align with the company’s overall vision which is to become the center of excellence for all key water related technologies, especially to those closest to the petroleum and municipal sectors. Next step, deliver the business strategy which shows how the organization proves their superior excellence within daily operations, cash flow, and creating long-term shareholder value. By continuously applying this business strategy, ExxonMobil centers the company...
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...from 32 percent to 14 percent, Germany rose from 13 percent to 16 percent, France dropped from 10 percent to 6 percent, Russia rose from 4 percent to 6 percent, Japan rose from 0 percent to 1 percent, and the rest of the world rose from 17 percent to 21 percent (Chandler, 4). Capital intensive, mass production industries that rose during the 2nd half of the 19th century distinguished American business from economic institutions in other cultures and set the foundations of what is now known as the American corporation. Standard Oil An industry that was a pioneer in changing the early business landscape was the petroleum sector. In 1859, the first successful commercial drilling of oil occurred at what is known as Drake’s Well in Titusville, Pennsylvania. The drilling of this well is known as the beginning of the modern oil industry. The aftermath of the Drake’s Well drilling exhibited a high level of entry in the oil industry and increased production. Crude Oil production rose from 2000 barrels in 1859 to 4,800,000 in 1869 and 5,250,000...
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...John D. Rockefeller was the leading controller of the oil industry in the “Turn of the Century”, who started and ran a company, called the Standard Oil Company. He was known as a generous, and philanthropic business person, but it was because of his perseverance and ability to work hard that oil tycoon John D. Rockefeller was a successful businessman. Rockefeller himself said, “I do not think that there is any other quality so essential to success of any kind as the quality of perseverance. It overcomes almost everything, even nature.” Even as a teenager, Rockefeller was interested and involved in the world of business. At age 16, he was employed at Hewitt & Tuttle, and though he began his work with a salary of only $3.57 every week, his...
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...ExxonMobil Case Study ExxonMobil Corporation, the parent of Esso, Mobil and ExxonMobil companies, offers a wide range of products and services. The corporation provides a full product cycle, starting with geological exploration of John D. Rockefeller and ending with delivering oil-related products to corporate and individual consumers. The three principal markets Exxon Mobil Corporation serves are fuels, lubricants and specialties, and petrochemicals. With regard to the corporation’s fuel products and services, it delivers them using the business-to-business model across three key segments, Industrial and Wholesale, Aviation, and Marine. Exxon’s main business is discovering, producing, and selling oil and natural gas all over the world. By association with the Standard Oil Trust, in 1890 Congress passed the Sherman Antitrust Act to outlaw its monopoly. This Act allowed Exxon to merge in 1972 with Mobil to form Exxon Mobil. The story of ExxonMobil illustrates the importance of interactions between one large cooperation, governments, and society. Exxon Mobil as a current cooperation has transcended from a miniature pawn in Rockefeller’s industry into one of the top suppliers in the worlds industry of oil. Although Rockefeller’s influence is buried in the passage of time, ExxonMobil’s actions remain consistent with his nature except for his philanthropy. The emphasis on cost control, efficiency, centralized organization, and suppression of competitors still occurs but to a certain...
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...between virtue and success? Rockefeller had great motive he saw the demand for oil and build a company and fortune around it. He managed his business well and really put an emphasis on efficiency and responsibility but was ruthless and unfair to competitors getting huge discounts on shipping and other mediums he drove out his competition so he was very unethical in that sense. I think Rockefeller was a good businessman but reading about him showed how you don’t have to have virtue to be a success you can be ruthless and underhanded and still ascertain your wealth. 2. How did the environment of the Standard change in the early 1900s? What deep historical forces are implicated in these changes? The Sherman anti-trust law came about, the source of all American antimonopoly laws and by 1890 standard oil controlled about 88% of the oil industry so they were immediately targeted by 1904 they controlled 91%. The Sherman Antitrust laws finally came into effect and the company was broken up in 1911 3. What were the impacts of the oil trade on society in major dimensions of the business environment, that is, economic, cultural, technological, natural, governmental, legal, and internal? It really changed the business environment because it brought up issues of fair business practices and company’s having a monopoly over an industry. It did help our economy in some senses it was so efficient it lowered oil prices due to its unfair shipping rates and virtually having no competition. It...
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...estadounidense. Sus actividades se extienden por más de 40 países de todo el mundo e incluyen, entre otras, la explotación, elaboración y comercialización de productos petroleros y gas natural, así como la fabricación de productos químicos, plásticos y fertilizantes. * Historia: Exxon Mobil surgió de la fusión de las herederas de la Standard Oil perteneciente a John D. Rockefeller, creada en 1870. Para 1939 esta empresa es la más grande el mundo, y solamente tiene como rival a la SHELL que extrae petróleo de México. Exxon Mobil Corporation se formó en 1999 gracias a la fusión de dos grandes compañías petroleras, Exxon y Mobil. En 1998, Exxon y Mobil firmaron en EE.UU. un acuerdo por U$73,7 billones para fusionarse y formar una nueva empresa llamada Exxon Mobil Corporation, la empresa más grande del planeta. Tras las correspondientes aprobaciones accionarias, la fusión se completó el 30 de noviembre de 1999. La fusión de Exxon y Mobil fue única en la historia de Estados Unidos, ya que reunió las dos mayores empresas del conglomerado Standard Oil de John D. Rockefeller; la Standard Oil Company de Nueva Jersey (Exxon) y la Standard Oil Company de Nueva York ( Mobil), que habían sido separadas forzosamente por orden del Gobierno norteamericano casi 100 años antes. Como resultado de la fusión, se llevó a cabo la más grande fusión empresarial en la historia de EE.UU. En el año 2005 el precio de las acciones de Exxon Mobil aumentó superando a General Electric, como la corporación...
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...Exxon Mobil is the largest U.S. Company in the world and it participates in three very profitable industries: Mining/Crude-Oil industry, Petroleum Refining, and Chemicals. Exxon Mobil is a multinational oil and gas corporation. They have evolved over the past 125 years as a regional marketer of kerosene in the U.S. to the largest publicly traded petroleum and petrochemical enterprise in the world. Today Exxon Mobil operates in most of the world's countries and is best known by their familiar brand names: Exxon, Esso and Mobil. They make the products that drive modern transportation, power cities, lubricate industry and provide petrochemical building blocks that lead to thousands of consumer goods. Exxon Mobil was founded by John Rockefeller and his associates in 1870 originally named standard oil company. By 1882 Standard Oil Company was renamed Standard Oil Company of New Jersey (Jersey Standard) and the Standard Oil Company of New York (Socony). Standard Oil broke up into 34 unrelated companies after a U.S. Supreme Court ruling, including Jersey Standard, Socony, and Vacuum Oil. After 100 years in business the company went through yet another name change to Mobil Oil Corporation. In 1972 Jersey Standard becomes Exxon Corporation. In November 30, 1999, Exxon and Mobil join together to become Exxon Mobil Corporation. The merger increased their ability to be a more effective global competitor in the volatile economy and in an industry that is very competitive. In 2005 both Exxon...
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... The wealth and power of the United States can be accounted for through some of the bigger names of the late 1800’s and 1900’s. Big businesses came from big names during this time. While the more popular view is to see big businesses as negative, these figures saw business as a chance to grow and took advantage of this and the wealth that came along with it. Andrew Carnegie, known for his roll in dominating the steel industry. Philip Danforth Armour, known for adding to the industrialization of the meat-packing industry. Jay Gould, who was an american railroad finance is one of the less liked wealthy men in the book. John D. Rockefeller is a perfect example of wealth from horizontal integration through gaining the majority of the oil supply. One of the more popular names is Andrew Carnegie. Known as the “captain of industry” and “the richest man in the world,” started from nothing and worked his way up in life. He began his life as a poor immigrant from Scotland and eventually grew from being a messenger, to the secretary for the superintendent of the Pennsylvania Railroad’s. His employment under the superintendent allowed him to learn how business works and eventually step into the roll of superintendent himself. Being smart with his new earned money, Carnegie invested in the steel business. After leaving the railroad business, Carnegie started up his own business in steel, the Carnegie Steel Company. His company reinvented the way to get things done, Carnegie...
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