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From Rags to Riches No one could say that there was a greater self-made man than Andrew Carnegie.?He was born in Dunfermline, Scotland in 1835. In 1848, he and his parents emigrated to America, where he found a job as an ordinary factory worker in a bobbin factory. Shortly a er he became a messenger boy and progressed up the ranks of a telegraph company.?He later created the Carnegie Steel Company, which was later joined together with Federal Steel Company and several other small steel companies to create U.S. Steel.?A er making a fortune in the steel industry, he became a philanthropist. He built Carnegie Hall, Carnegie Mellon University, the Carnegie Institute of Washington, the Carnegie Museums of Pittsburgh, and many other foundations. He is o en regarded the second richest man in history a er John D. Rockefeller.?His net worth, in 2007 dollar value, amounted to $298 billion dollars. Andrew Carnegie had very humble beginnings. His father was a weaver, and his mother bound shoes for a living. He and his parents shared half of a large, ground oor apartment with
is room another poor family. served as kitchen, sleeping room and living room. A er a time, Andrew’s father began getting orders for heavy damask, and the family moved to a new larger apartment. Young Carnegie’s uncle read him stories of famous Scottish heroes like William Wallace, Rob Roy, and others which were a driving force in Andrew’s life. With the family on the verge of starvation, Carnegie’s father had to borrow money to bring his family to America. ey settled at Allegheny, PA. With only 13 years, young Andrew worked 12 hours a day, 6 days a week as a bobbin boy making $1.20 a week. In 1853 at the age of 18, he was hired as a secretary/ telegraph operator for the Pennsylvania Railway Company, increasing his e Railway pay to $4.00 week. Company was fundamental to his success because railways were among the rst big businesses to develop in the U.S. and the Pennsylvania A Railway Company was the largest. ere he learned about management and cost control from his supervisor, omas A. Scott. He also learned the basics of investing, which were actually insider trading deals between Scott and the rms that
the Railway Company did business with. At one point he even took $500 from his mother’s re nance on her $700 home to risk a trade with Scott which was later rewarded by receiving shares in the Woodru sleeping car company. By reinvesting his returns in railroad related industries, like iron, Andrew Carnegie slowly began to accumulate capital. n 1864, Andrew Carnegie invested $40,000 at Story Farm, Pennsylvania. In only one year this investment netted him a million dollar pro t in cash dividends plus oil well income from petroleum discovered on the property. Seeing the potential in steel, Carnegie invested further in iron and its subsidiaries. When the Civil War came to an end in 1865, Carnegie decided to leave the railway eld and concentrate solely on the steel industry. He developed the Keystone Bridge Company and Union Ironworks. A successful business man by the age of 30, Carnegie was 36 years old when he le the Railroad and Telegraph industry to concentrate on steel. He amassed the majority of his enormous fortune in the steel industry. Up to this time, steel production was very 7
costly. Carnegie used the Bessemer method, a newly developed technique which cut steel production costs in half. At this time, Carnegie was the largest manufacturer of pig iron, producing 2,000 tons per day. In 1901, Carnegie was 66 years old and preparing for retirement. He organized his subsidiary companies into a joint cooperative with the probable intention of transitioning to his humanitarian stage. John Pierpont Morgan, one of America’s most prominent bankers and deal makers, was highly impressed with Andrew Carnegie’s cost e ciency and ability to make a pro t, year in and year out. With the Carnegie buyout and other steel producing competitors, J.P. is Morgan created U.S. Steel. giant merger combined resources, thus avoiding duplication and unnecessary waste. A milestone in business deals; it was the rst company in the world to have $1 billion in capital assets. Carnegie sold his rm at a buyout price of 12 times the annual earnings of $480 million totaling $5,670,000,000, ($13.7 billion in 2011 dollars). Carnegie’s share of the purchase amounted to nearly $230,000,000 in 50-year gold treasury bonds netting 5% annually. Oddly, he did not want to see or touch these bonds, and they stayed in a safety vault in New Jersey awaiting their eventual disposal in the future. 8
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5 tips from the men who built america p.24
Cornellius Vanderbilt
p. 16
Monetization Research P.19
Andrew Carnegie
p.6
Hzow to decide if your busines dea is a total bust P.20
John D Rockefeller
p. 11
Mr. Henry Ford P.26
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Editor’s Letter ............................................................................................................................................................................. .............................................................................................................................................................................
Industrial Giants is a school project for edue cational and portfolio purposes only. magazine is composed of internet images , articles posted on the web and other resoruces that i dont reclaim as mine. Industrial giantswas created with Adobe programs such as Adobe Photoshop CS5 and In design CS5. the resolution of this publication is 150dpi. Industrial Giants is a publication based in the industrial era. When Monopolys werer a common practice among big companies. In tis article we portray some of the most succesfull business men in America during te industrial era. SOme of these are claimed to be the richest others the more inventive. Here are mini biographies and succesfull stories of Henry ford, omas Edison, John D Rockefeller, Andrew carnegie and among other important gures in the evolution of our e United States of America. great country, Juan Soto
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His Story
Shipping and railroad tycoon Cornelius Vanderbilt (1794-1877) was a self-made multi-millionaire who became one of the wealthiest Americans of the 19th century. As a boy, he worked with his father, who operated a boat that ferried cargo between Staten Island, New York, where they lived, and Manhattan. A er working as a steamship captain, Vanderbilt went into business for himself in the late 1820s, and eventually became one of the country’s largest steamship operators. In the process, the Commodore, as he was publicly nicknamed, gained a reputation for being ercely competitive and ruthless. In the 1860s, he shi ed his focus to the railroad industry, where he built another empire and helped make railroad transportation more e cient. When Vanderbilt died, he was worth more than $100 million. Unlike the Gilded Age titans who followed him, such as steel magnate Andrew Carnegie (1835-1919) and oil mogul John Rockefeller (1839-1937), Vanderbilt did not own grand homes or give away much of his vast wealth to charitable causes. In fact, the only substantial philanthropic donation he made was in 1873, toward the end of his life, when he gave $1 million to build and endow Vanderbilt University in Nashville, Tennessee. (In a nod to its founder’s nickname, the school’s athletic teams are called the Commodores.) e Vanderbilt mansions associated with the Gilded Age, including the Breakers in Newport, Rhode Island, and the Biltmore in Asheville, North Carolina, were built by Cornelius Vanderbilt’s descendants. ( e 250-room Biltmore estate, constructed in the late 19th century by one of Vanderbilt’s grandsons, is the largest privately owned home in the United States today.) Vanderbilt died at age 82 on January 4, 1877, at his Manhattan home, and was buried in the Moravian Cemetery in New Dorp, Staten Island. He le the bulk of his fortune, estimated at more than $100 million, to his son William (1821-85).
Using previously unreleased archives, Edward J. Renehan Jr. narrates the compelling life of Cornelius Vanderbilt: willful progenitor of modern American business. Vanderbilt made his initial fortune building ferry and cargo routes for sailing vessels. en he moved into steamboats and railroads. With the New York Central, Vanderbilt established the nation’s rst major integrated rail system, linking New York with Boston, Montreal, Chicago, and St. Louis. At the same time, he played a key role in establishing New York as the nancial center of the United States. When he died in 1877, Vanderbilt le a fortune that, in today’s dollars, would dwarf that of even Bill Gates. O Wall Street, Vanderbilt was a hard-drinking egotist and whoremonger devoid of manners or charity. He disinherited most of his numerous children and received an editorial rebuke from Mark Twain for his lack of public giving. Commodore sheds startling new light on many aspects of Vanderbilt’s business and private life including, most notably, the revelation that advanced stage syphilis marred his last years. is is the de nitive biography of a man whose in uence on American life and commerce towers over all who followed him. 17
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Opera has released its State of Mobile Advertising report for the second quarter of 2013 that reveals that Apple’s iPhone leads in terms of monetization and tra c. However the report also suggests that Android is closely following Apple thanks to Samsung. e report mentions that the iPhone generates 36.4 percent of revenue for advertisers compared to Android’s 27.8 percent share on Opera’s ad network, and 43.8 percent of all impressions are served on Apple devices that also include the iPad and iPod touch. It also mentions that Samsung in particular, dominates the An-
droid market with a 58.5 percent share making it a strong contender. Opera’s State of Mobile Advertising report is based on information sourced from the Opera Mobile Ad Platform and Opera Mobile Ad Exchange servers. Opera Mediaworks platform claims to support 13,000 sites and applications with 60 billion mobile ad impressions per month reaching 400 million customers. “Looking back a year ago when we launched the rst State of Mobile Advertising report, we have seen unprecedented growth in the investment in and value
of mobile advertising campaigns across devices and regions,” says Mahi de Silva, CEO, Opera Mediaworks. “While iOS still remains the leader, we are seeing new categories rise, new regions emerge and new technologies take shape. Opera Mediaworks’ total impression volume grew 43 percent year over year, and the increases will only get bigger as we approach the end of 2013.” In terms of share of ad impressions, both iPhone and Android platforms are slightly above the 30 percent mark. However, the iPhone is ahead in terms of monetization with a 36.4 percent share compared to Android phones that have a share of 27.76 percent, as per the report. 19
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!! HOW to DECIDE if your business!! !!
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verything seems to be in place: you had a great idea for a product or service and know there’s a large market for it based on research. Your prototype works and is ready for production. You have a business plan in hand a er getting advice from industry experts. You’ve even talked to investors and reached out to retail buyers. And you feel ready for what comes next, because you’ve built a team to support you. But for whatever reason, the pieces just aren’t coming together. Maybe you haven’t been able to raise enough money or retail buyers are lukewarm. What should you do? When your business plan isn’t working out, how do you know when to throw in the towel and move on? Every entrepreneur has had to make these kinds of tough decisions at one point or another,
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including myself -- many times. Here are four things you Holding tightly to an idea that should consider before isn’t working can prevent you walking away: from identifying something better.
1. Have you done everything in your power to get a purchase order? If you
know your product has a bene t consumers will pay for, you should try to do everything to get it in their hands. Limited sales can really help push a product through. Purchase orders can be used as leverage; they help get the ball rolling by saying, “Yes, there is interest here. I can prove it, because these people want to buy my idea.”
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!!!!! IDEA
is a total BUST!
When I developed a technology for a rotating label, I had a tough time nding a manufacturer that would produce it. But when I reached out to a major distributor of vitamins, they liked the idea and gave me a purchase order, which I then showed to manufacturers. ey were willing to manufacture my label because I had a purchase order.
2. Have you talked to enough investors, and really listened to what they are saying?
If there are problems they identify, x them. Exhaust all potential investors, including your family, friends, private equity rms, and even angel investors. Maybe you can get creative and start a Kickstarter campaign. Realize that there’s inherent risk in bringing on partners, and by all means, do not mortgage your house. When I started a guitar pick company, I didn’t have enough capital to get going, but I brought on three different partners who had di erent value, and we were able to launch.
3. Have you thought about licensing your idea? Before you throw in the towel, consider the bene ts of licensing. Whoever licenses your idea will have distribution, established shelf space and the ability to bring your product to market much more quickly. You might be able to divide up di erent channels of distribution in your agreement. For example, they’ll sell to big box retailers, while you manage small boutique and specialty stores. It’s helpful to think of a licensee as another business partner.
ink and Grow Rich is a 1937 motivational personal development and self-help book by Napoleon Hill [1] and inspired by a suggestion from Scottish-American businessman Andrew Carnegie. While the title implies that this book deals with how to get rich, the author explains that the philosophy taught in the book can be used to help people succeed in all lines of work and to do or be almost anything they want.[2] Jim Murray (sportswriter) wrote that ink and Grow Rich was credited for Ken Norton’s boxing upset of Muhammad Ali in 1973. e Reverend Charles Stanley writes, “I began to apply the principles of ( ink and Grow Rich) to my endeavors as a pastor, and I discovered they worked!” 21
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