The Big Business Definition in US History: A Radical Transformation

The late 19th century witnessed a significant shift in the structure and operation of American businesses. Prior to this period, merchants, wholesalers, and manufacturers tended to specialize in a single operation. However, as the economy grew, businesses began to integrate vertically and horizontally, leading to the emergence of large corporations.

One of the key features of big business was its vertical integration. This meant that companies brought together various phases of production under one roof, reducing reliance on external suppliers and increasing control over the manufacturing process. General Electric, for example, had plants across multiple locations, allowing it to produce a wide range of products.

The late 19th century also saw the rise of horizontal integration. This involved companies expanding their reach by acquiring or merging with other businesses in the same industry. This led to the creation of giant corporations that dominated entire industries.

Another significant change was the development of formal administrative structures within corporations. As businesses grew larger, they needed more complex systems to manage their operations effectively. This led to the creation of departments such as purchasing and accounting, which were responsible for overseeing specific aspects of the business.

The rise of big business also gave birth to a new middle class – white-collar employees who worked for corporations rather than being self-employed or working in small family businesses. These employees were typically educated and trained in specialized skills, such as management and accounting.

The managerial revolution played a crucial role in the development of big business. As companies grew larger, they needed professionals with expertise in areas such as finance, marketing, and production to manage their operations. This led to the creation of new job titles, including CEO, CFO, and COO, which are still prominent today.

In addition to these changes, big business was characterized by its large size and capitalization. Companies like Rockefeller's Standard Oil Company were worth hundreds of millions of dollars, while others, such as textile factories, represented significant investments in infrastructure and technology.

The rise of big business had far-reaching consequences for American society and the economy. It led to increased productivity, efficiency, and innovation, but also created new challenges, such as inequality, environmental degradation, and social unrest. Despite these challenges, the corporate revolution remains a defining feature of modern American capitalism.

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