The late 19th century witnessed the rise of “big business” in various sectors of the economy. These large-scale enterprises employed management techniques to control and coordinate economic activities, leading to significant changes in the business landscape.
Key Facts
- Rise of Big Business: The late 19th century saw the emergence of “big business” in various sectors of the economy. Big business firms used management techniques to control economic activities.
- Railroads: Railroads were the first big businesses in the United States. As railroad companies expanded their operations, they realized the need to divide responsibilities among different managers and coordinate various functions of the company.
- Department Stores: Big city department stores became a form of big business during this period. They combined different retail operations in one organization and placed them together in one building. Department stores were principal features of downtown districts in every city.
- Mail Order Firms: Mail order firms like Sears, Roebuck also became big businesses, serving rural areas and small towns.
- Manufacturing Industries: The big business form of organization spread rapidly in manufacturing industries after 1870. Some manufacturing industries found advantages in having a single organization control raw materials, transportation, fabrication, and distribution.
- Standard Oil: By the end of the 19th century, Standard Oil, led by John D. Rockefeller, dominated the refining and distribution of petroleum products in the United States.
Railroads: Pioneering Big Business
Railroads were the first industries to adopt the big business model in the United States. As railroad companies expanded their operations, they realized the need to divide responsibilities among different managers and coordinate various functions of the company. This managerial approach allowed railroads to operate efficiently and effectively, setting the stage for the rise of big businesses in other industries.
Department Stores: Retail Revolution
Big city department stores emerged as a form of big business during this period. They combined different retail operations in one organization and placed them together in one building. Department stores became principal features of downtown districts in every city, offering a wide variety of goods and services under one roof.
Mail Order Firms: Reaching Rural Markets
Mail order firms like Sears, Roebuck also became big businesses, serving rural areas and small towns. These companies used catalogs to display their products and relied on the postal service to deliver goods to customers. Mail order firms brought urban conveniences to rural areas, transforming the shopping experience for many Americans.
Manufacturing Industries: Efficiency and Control
The big business form of organization spread rapidly in manufacturing industries after 1870. Some manufacturing industries found advantages in having a single organization control raw materials, transportation, fabrication, and distribution. This vertical integration allowed companies to streamline operations, reduce costs, and gain a competitive edge.
Standard Oil: Dominance in Petroleum
By the end of the 19th century, Standard Oil, led by John D. Rockefeller, dominated the refining and distribution of petroleum products in the United States. Standard Oil’s success was attributed to its efficient operations, aggressive marketing strategies, and control over various aspects of the petroleum industry.
Conclusion
The late 19th century witnessed a significant transformation in the business landscape with the rise of big businesses. These large-scale enterprises, characterized by centralized management and control, brought about efficiency, innovation, and a wide range of products and services. While big businesses contributed to economic growth and development, they also raised concerns about market dominance and the concentration of power in the hands of a few corporations.
References
- https://quizlet.com/88237382/us-his-industrialization-flash-cards/
- https://ehistory.osu.edu/exhibitions/1912/trusts/RiseBigBusiness
- https://www.loc.gov/classroom-materials/united-states-history-primary-source-timeline/rise-of-industrial-america-1876-1900/work-in-late-19th-century/
FAQs
What were the key factors that led to the rise of big businesses in the late 19th century?
The rise of big businesses was driven by several factors, including technological advancements, the expansion of railroads, the growth of urban centers, and the availability of capital.
Which industries were the first to adopt the big business model?
Railroads were the first industries to adopt the big business model, followed by manufacturing industries such as steel, oil, and meatpacking.
How did big businesses impact the economy and society?
Big businesses brought about increased efficiency, innovation, and a wide range of products and services. However, they also raised concerns about market dominance and the concentration of power in the hands of a few corporations.
What were some of the challenges faced by big businesses in the late 19th century?
Big businesses faced challenges such as labor unrest, government regulations, and economic downturns.
How did big businesses respond to these challenges?
Big businesses responded to these challenges by forming trusts and cartels to control prices and production, lobbying for favorable government policies, and implementing new management techniques to improve efficiency.
What were the consequences of the rise of big businesses?
The rise of big businesses led to increased economic growth and development, but also resulted in concerns about monopolies, unfair competition, and the erosion of traditional values.
What were some of the government policies implemented to address the concerns about big businesses?
Governments implemented policies such as antitrust laws and regulations to prevent monopolies and promote fair competition.
How did the transformation of big businesses in the late 19th century shape the modern economy?
The transformation of big businesses in the late 19th century laid the foundation for the modern economy, characterized by large-scale corporations, global markets, and advanced technologies.