John D. Rockefeller's Dominance Theory: Standard Oil Company

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The dominance theory is one where an organization controls the wealth, and this creates strength for the company. Issues arise when because of the power the organization that the superiority becomes excessive (Steiner & Steiner, p.64). John D. Rockefeller's supremacy allowed Standard Oil to become the dominant oil company with all the control over the industry. Standard Oil abused their clout because of their size and influenced policies surrounding the sector. They were part of the power elite and respected by his contemporary business leaders such as William Vanderbilt. Vanderbilt, a railroad trailblazer, remarked that he was one of the smartest and most able men in business. Rockefeller negotiated a discounted railroad rate for Standard Oil and his competitor. The reduction in fares went back to Standard Oil (Priest, 2011). This bargaining is an …show more content…

Seven levels of power are addressed in our text and Stanard Oil most prevalently possessed the economic, political, and legal power to control the oil industry (Steiner & Steiner, p.60-61). Standard Oil could acquire the competition and force those who resisted into bankruptcy. This consolidation was a detriment to the economy, but at the same time, Standard Oil built facilities and employed individuals that benefited the economy. They were known for their political power as well and accused of political corruption. Many leaders at the time believed Standard Oil controlled the Pennsylvania legislature (Pratt, 2012). On the national political scene, they became a target for reform and even with the company broken up continued their market dominance. The legal aspects of Rockefeller’s actions forcing competitors out of business raised concern for the government and citizens. The Sherman Anti-Trust Act addressed these issues and attempted to level the playing

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