Business & Society
Dec 21 2014
John D. Rockefeller and the Standard Oil Trust
1. In 1863 Rockefeller invested $4,000 in a Cleveland petroleum refinery; from there he devoted himself to the oil business. He had two principles he followed: avoid paying a profit to anyone and methodical cost cutting. He borrowed heavily from the banks and bought out his partners. This monopoly power allowed John to be a low-cost, high volume producer. “Standard Oil” suggested uniformly good quality. This power allowed John to become the huge success he was. (Pages 76 and 77).
2. As far as Rockefeller is concerned, there was no limit for business power. He was a businessman who was very aggressive, strong, and became a monopolist. The dominance theory played a huge role in this case because Rockefeller controlled and dominated the oil industry. Rockefeller’s dominating competitive philosophy prevailed throughout his life. (Page 79).
3. During the time Rockefeller lived, he never acted unethically. Laws and regulations were more lenient years ago. By today’s standards, Rockefeller would have acted unethically. He was such a powerful monopolist, it would not be allowed in today’s society. He was a devout Christian because his mother raised him that way while being a ruthless monopolist due to his father’s impact in his life. I think his positive religious beliefs made up for his ruthlessness in his mind. John was a walking contradiction because he had such…