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John D. Rockefeller and Sam Walton
Transcript of John D. Rockefeller and Sam Walton
How they changed the business world
John D. Rockefeller
Rockefeller gains control in the oil industry
After 2 years Rockefeller became a senior partner in the firm, and Clark(Rockefeller's former partner) was bought out; Rockefeller and Andrews became Cleveland's largest refinery. In 1865 Rockefeller created a second firm(Standard Works) under his brother Williams name; and in 1866 a sales office was opened.
Stumbling blocks for Standard Oil
His Early Life
Both men discussed in the prezi were Captains of their industries and both men left galvanizing legacies, Although Sam Walton was a big businessman he chose to refrain from the cruel tactics that Rockefeller used to expand Standard Oil, Sam Walton also saw the need for new innovation in the retailing industry and used that to his advantage, in the process building the largest retailing franchise that the world has come to know as Walmart. Meanwhile John D Rockefeller saw the loopholes which he did often times exploit in order to make more money, but he also used his single-minded concentration to build the Standard Works oil firm, not to mention his huge philanthropic endeavors. In the end though, i feel that Rockefeller Had a bigger impact on society because when he began his philanthropy he ended up founding to esteemed centers of education, not to mention The hundreds of millions of dollars that he left behind in the form of Rockefeller foundation, because of these things Rockefeller has impacted our society more gallantly.
In this prezi I will discuss how John D. Rockefeller(standard oil) and Sam Walton(Walmart) grew up, and how they impacted the industries that they later worked in; both positively and negatively.
How Rockefeller grew up
On July 08, 1839 John D. Rockefeller was born in Rich Ford, New york ; his father owned farm property, and Rockefeller's mother was a strict woman whom was brought up by a christian family.
Rockefeller's first business
In 1853 Rockefeller moved to Cleveland, Ohio where he attended high school, and a commercial college; and at the age of sixteen Rockefeller got his first job as a clerk at a produce commission house. In1859 at the age of nineteen Rockefeller started his first business which was known as Clark and Rockefeller.
Rockefeller stays with business
During the firm's first year of trading Clark and Rockefeller made $450,000. It seemed that from the start Rockefeller was a genius when it came to organization and method, and during the civil war the firm prospered, but after the Pennsylvania oil strike and the building of a railroad to Cleveland a man named Samuel Adams helped the firm branch out into oil refining.
Standard Works soars
Rockefeller gained financial help from 2 new partners named S.V. Harkness and H.M. Flager who was able to secure favorable railroad freight rebates; with their help Rockefeller was able to survive the savage competition of the oil industry.
Standard Works soars(continued)
Standard Oil Works which was owned by Rockefeller's brother Flager, S.V. Harkness, and Andrews; had a capital of $1,000,000 and a return of 40%, a year after it was established, Standard Oil controlled 1/10 of American oil refining, but competition remained.
Rockefeller takes over the American oil refining industry
Rockefeller still hoped to impose order on the oil industry, so he decided to buy out most of the Cleveland refineries, he then proceeded to buy refineries in New York, Pittsburgh, and Philadelphia; by the year of 1879 he was refining 90% of all American oil.
Walmart's rise to power
Walton’s first outlet was only five miles from Bentonville, Walton also preferred that he not be in the spotlight, but instead that his stores occupy the spotlight, Walton also made sure that he took a direct role in administration in all of his stores at every level. Walton could often be found at a checkout, a loading dock, or at a rally for a new store opening; his business was often described as extremely well managed, Walmart was very inexpensive and appealed to lower class families.
His early life
In 1877 Pennsylvania Railroad created a refining company to try and break Rockefeller's control, but by 1883 Rockefeller controlled the pipeline industry,and Standard Oil was at it's peak, although Rockefeller could not out right buy all of a companies stock; he still found a way to make more money and in 1882 he created Americas first trust.
The first Trust
When the trust was created it had a capital of 70 million dollars and it was the worlds largest, and richest industrial organization, but during the 1880s Rockefeller began to change his business by going into the production of crude oil itself, in the process he moved business westward with more oil fields opening up.
The process of buying oil fields
Rockefeller was able to pioneer in this by buying oil land in Ohio before it was certain that crude oil was located there, he then employed the scientist Herman Frasch who had invented a process that allowed the fields to yield an enormous profit.
Expanding to New markets
Standard Oil also expanded it's marketing facilities and entered foreign markets in Europe, Asia, and Latin America, from 1885 a committee of management was created to control Standard Oil's enormous empire.
The Demise of Standard Oil
Public dislike of Rockefeller grew when muckraking journalists exposed harsh exposes about Rockefeller's cruel business practices, an example would be industrial espionage and bribery which Rockefeller often used, Standard Oil would be later investigated by the New York State Senate and by the U.S. House of Representatives in 1888. With the growing tide of reform being ushered in the Sherman Antitrust Act was created in 1890, Two years later the Ohio Supreme Court disproved Standard Oil's original trust agreement Rockefeller would soon formally disband the organization
The comeback of Standard Oil?
In 1899 Standard Oil was recreated legally as a "holding company;" but this merger was immediately stopped by the Supreme Court in 1911 which was long after Rockefeller had retired active control in 1897
Rockefeller the Iron tycoon
Probably Rockefeller's most famous excursion from the oil industry would be in 1893 when he helped develop the Mesabi iron ore range located in Minnesota, and by 1896 Rockefeller's solidified Iron mines onwed a great fleet of ore boats, and Rockefeller practically controlled Great Lakes shipping.
Rockefeller continues to make money
Rockefeller was now an iron ore tycoon in his own right and had the power to in a way dictate to the steel industry, but during the same year he made an alliance with Andrew Carnegie who was the steel king, the agreement was that Rockefeller would not enter steel making meanwhile Carnegie would not touch the transportation side of the buisness. In 1901 Rockefeller sold his ore holdings to a new merger created by Andrew Carnegie and J.P. Morgan U.S steel; in that year Rockefeller's fortune passed 200 million dollars.
Rockefeller The Philanthropist
Since his first employment as a clerk Rockefeller had always wanted to donate one-tenth of his earnings to charity, and his benefactors grew with his income, Rockefeller also gave his time to philanthropic causes.
The University of Chicago
At first Rockefeller depended on the Baptist Church for advice, so the church inquired for their own great university, so in 1892 the university of Chicago was opened under the presidency of William Rainey Harper.The university was Rockefeller’s first major philanthropic creation, and he gave the university over 80 million dollars during his lifetime.
in 1901 Rockefeller chartered the Rockefeller Institute of Medical Research (now Rockefeller University) in New York city.Among the institutes achievements was research on yellow fever, the discovery of serums to combat pneumonia, advances in experimental psychology, and polio in 1902 he established the General Education Board.
The Rockefeller Foundation
The total of Rockefeller’s philanthropies was estimated to have been $550 million, although eventually the amounts involved became so huge (his fortune reached $900 million by 1913) that Rockefeller developed a staff of specialists to help him; because of this the Rockefeller Foundation was chartered in 1913, "to promote the well being of mankind throughout the world."
The Death Of John D. Rockefeller
Rockefeller’s personal life was fairly simple and meticulous, Rockefeller was a man of few possessions who who lived for his work, and his main talent was that he was an organizing genius, who had a drive for order, which he pursued with great single-mindedness and concentration.Rockefeller was absorbed by business and later by organized giving, but in both areas he imposed order, efficiency, and planning.Rockefeller died on May 23, 1937, in Ormond, Florida. His vast estate was divided among his heirs and his various philanthropic endeavors. His dedication to giving back made him one of the greatest humanitarians of the era.
On March 29, 1918 in Kingfisher, Oklahoma; a boy named Sam Walton was born.Sam Walton’s father was a banker,and Walton was a product of the great depression of the 1930s
Walton starts his career
Walton graduated from the University of Missouri in 1940. Walton married Helen Robson, and after graduation he had four children with her; Walton served 3 years as an Army intelligence officer during World War II. Walton started his business career with retailing at J.C. Penney company in Des Moines, Iowa, he was paid $85-per-month as a trainee during the period of 1938 to 1942.
After Walton’s army service in the year 1945 Walton used his savings and a $25,000 loan to buy a Ben Franklin store in Newport, Arkansas where his brother joined him in 1950. In 1950 Walton’s landlord failed to renew his lease so he moved to Bentonville, Arkansas which would later become Walmart headquarters.
Walton continues his business career
Walton joins the Ben Franklin Franchise and leaves
From the years 1945 through 1962 Walton operated Ben Franklin stores; and by 1962 Walton had 9 stores--Walton’s 5 & 10-- operated under the authorization of the Chicago-based Ben Franklin. In 1962 Walton would co-found Wal-mart;but prior to that Walton had decided that the future of retailing was in discount, not in dime stores, so he decided to study other major chains. Walton proposed his ideas to the Ben Franklin management, but after they showed no interest Walton, and his younger brother James opened their first Walmart outlet in Rogers, Arkansas.
Stores were often clustered around warehouses to permit one day deliveries, which was a very efficient strategy, and advertising costs were minimized, and early innovation was created to buy products directly from the manufacturers, instead of buy from wholesalers. In addition to all of this the company was dedicated to a "Buy American" program; because of this Walton was able to build his firm into the fastest growing , and the most influential force in the retailing industry.
Often times stores averaged annual growth rates of 35% for more than a decade, which was a rate that was more than 3 times that of the retailing industry in general; in fact an investor who spent $1,650 for 100 shares of stock in 1970, when the firm went public would have had $700,000 worth of stock at 1987 prices. In the process of all of this Walton was able to become one of the richest men in the world, with such early and phenomenal growth Walmart, only stood behind Sears and Kmart when it came to retail, and was constantly challenging them, in later years the firm would open a chain of warehouse stores-- Sam’s Wholesale Club-and the firm would also move into the hypermarket area, creating Walmart super centers.
The Marketing strategies of Walmart
By 1990 there were more than 1,000 stores and more than 150,000 employees in the franchise; Walton could be considered as the quintessence of modern retailing adapting to contemporary demographic trends, Walton built his empire not in the large urban areas of the North, South , East, and West, neither did Walton target the economically dominant regions of the first two-thirds of the 20th century, but instead he targeted the “heartland”(the South and Midwest the former once depressed and neglected areas of the nation). Walton’s strategy was not to take on the large chains of the of the urban centers, but instead his strategy was to compete with the local chains and individual merchants of smaller urban areas and rural surroundings; but when his stores did approach larger urban areas, his strategy was to go first to the perimeter of the urban area. In the 1980s that strategy changed, because of the extension of stores, to other areas of the nation; stores began to move towards the center of urban populations in order to build a truly national chain.
The legacy of Sam Walton
Sam Walton died April 5, 1992 in Little Rock, Kansas, at the age of 74; Walton had left behind a fortune that totaled $23 billion in Walmart stock alone, and five years after Walton’s in 1997 Walmart had grown to over 2,300 stores with annual revenues of $104.8 billion per year. By the end of 1999 the number of stores grew to 3,800 across the globe; and as of the budgetary year 2010 Walmart had $405 billion in worldwide sales and had 9,759 retail stores in 28 different countries with an employe force of 2.1 million strong.
Standard works logo: http://photobucket.com/images/standard%20oil%20logo/, John D Rockefeller: http://www.wanttoknow.nl/wp-content/uploads/John_D_Rockefeller.jpg, Walmart Logo: http://jewelersforveterans.org/walmart-will-hire-100000-military-veterans/walmart-logo/, Sam Walton: http://www.richeast.org/htwm/2003/kt/turk.html, Rockefeller University: http://himetop.wikidot.com/the-rockefeller-institute-for-medical-research, University of Chicago: http://www.virtourist.com/america/usa/chicago/33.htm