AP Success - AP US History: Carnegie Steel and Vertical Integration
The late 19th century was a time of rapid economic development that saw the rise of the Robber Barons.
As the U.S. entered a period of economic expansion following the Civil War, mass-produced steel became increasingly in demand. Railroads expanded westward, urban populations grew, necessitating the introduction of skyscrapers and thus more structurally resilient materials…
Carnegie Steel…became the dominant steel supplier in the U.S. through a vertically-integrated manufacturing process that consistently incorporated the latest technological innovation.
Steel is a commodity product, so successful business is built on low-cost production. Carnegie executed on its business model in two main ways. The first was owning raw material supply. The steel-making process requires three ingredients: iron ore, coal, and lime; and both iron ore and coal had to be refined before use in steel-making. Second, Carnegie was able to generate unparalleled scale via productivity gains and capacity expansion, creating pricing power…
“Carnegie Steel: Building a Modern America.” Harvard Business School, Digital Initiative, 2015.
Question 1
Briefly identify one reason why steel was important to the American economy described in the excerpt.
Question 2
Briefly identify one way industrialists like Andrew Carnegie could amass such great fortunes described in the excerpt.
Question 3
Briefly analyze one way in which the economic trends described in the excerpt affected the policies of President Theodore Roosevelt.
Teach with AI superpowers
Why teachers love Class Companion
Import assignments to get started in no time.
Create your own rubric to customize the AI feedback to your liking.
Overrule the AI feedback if a student disputes.