Entrepreneurship - Greatest Entrepreneurs

Entrepreneurship - Greatest Entrepreneurs

1. Entrepreneurship & Venture Management. Greatest Entrepreneurs.

2. Agenda: 1- The founder. 2- How did the founder start? 3- Founder’s Business Module. 4- Why the founder is one of the greatest? 5- Company Vision in his time. 6- Financial Risk. 7- Operational Risk. 8- How did the founder deal with the risks? 9- The founder's most famous quotes as an Entrepreneur. 10- The references.

3. John D. Rockefell

4. The Founder: John D. Rockefeller. Name: John Davison Rockefeller Born: July 8, 1839, in Richford, New York, USA Died: May 23, 1937, in Ormond Beach, Florida. Notable Achievement: Founder of Standard Oil Company, which revolutionized the oil industry, and one of the richest men in history. Legacy: Recognized as the world's first billionaire and a prominent philanthropist.

5. How Did the Rockefeller Start? Early Life : Began as a Bookkeeper at 16, learning financial discipline and efficiency. Entrepreneurial Beginnings : At 20, partnered to start a produce commission business. Entry into Oil : Invested in a Cleveland refinery in 1863, during the early days of the U.S. oil boom. Title: Co-founded Standard Oil in 1870 with Henry Flagler and other partners.

6. Rockefeller’s Business Model. Vertical Integration : Controlled every aspect of oil production—drilling, refining, distribution, and sales. Efficiency : Focused on cost-cutting and operational efficiency, making oil affordable for consumers. Monopoly Power : Acquired competitors to dominate the market, eventually controlling 90% of U.S. refineries. Innovation : Pioneered the use of pipelines to transport oil, reducing reliance on railroads. Horizontal Integration : Acquired competing refineries to eliminate competition.

7. Why Rockefeller is One of the Greatest Entrepreneurs? Revolutionized the energy industry, creating a scalable business model. Transformed the oil industry into a global powerhouse. Introduced innovative business practices like trust structures. Built one of the first multinational corporations. Recognized the potential of economies of scale before it became a common strategy.

8. Company Vision During Rockefeller's Time. Mission : Make oil affordable and accessible worldwide. Vision: "Bring light to every home" through affordable kerosene. Long-term Focus : Dominate the industry while maintaining quality and efficiency. Global Reach : Aspired to make Standard Oil a worldwide leader in energy.

9. Rockefeller’s Busniess Risks.

10. How Did Rockefeller Deal with Risks? Diversification : Expanded into byproducts like kerosene and lubricants. Innovation : Invested in technology to improve refining and reduce costs. Strategic Partnerships : Collaborated with railroads and banks to stabilize operations. Legal Strategies : Used skilled lawyers to navigate antitrust challenges.

11. The 1911...Court Breakup of Standard Oil. The U.S. Supreme Court ruled in 1911 that Standard Oil violated antitrust laws, the company was broken into 34 smaller entities. Many of these have evolved into some of the largest and most influential companies in the energy sector today.

12. Rockefeller’s Quotes.

13. Andrew Carnegie

14. The Founder: Andrew Carnegie. Andrew Carnegie was a Scottish-American industrialist and philanthropist. Carnegie led the expansion of the American steel industry in the late 19th century and became one of the richest Americans in history. He became a leading philanthropist in the United States, Great Britain, and the British Empire.

15. Andrew Carnegie’s Journey. Born in Scotland : on November 25, 1835, in Dunfermline, Scotland. Immigrated to the U.S. : Carnegie's family moved to Pennsylvania, when he was a child, seeking better economic opportunities. Started in Business : He began working at a young age, starting as a bobbin boy in a cotton factory. Later, he worked in telegraphy and railroads. Steel Industry Success : Carnegie became a steel magnate, founding Carnegie Steel Company, which grew to dominate the U.S. steel industry. Vertical Integration : He revolutionized steel production by controlling all aspects of the business. Fortune : Carnegie sold his steel company to J.P. Morgan for $480 million in 1901, making him one of the wealthiest men in the world at the time. Philanthropy : In his later years, he gave away most of his fortune, funding the establishment of over 2,500 libraries, universities, and other charitable causes. Died : on August 11, 1919, leaving behind a lasting legacy of both business and philanthropy.

16. Andrew Carnegie’s Business Model. Vertical Integration : Carnegie controlled every stage of steel production, from mining iron ore to shipping finished products. This allowed him to reduce costs and increase efficiency. Focus on Innovation : He invested heavily in new technologies and processes (like the Bessemer process) to produce steel more efficiently and at a lower cost. Economies of Scale : Carnegie built large factories and expanded production capacity, lowering the cost per unit as output grew. Strategic Acquisitions : Carnegie acquired and consolidated smaller competitors and suppliers to control the market and secure raw materials. Market Control : By dominating the steel industry, Carnegie was able to set prices and control supply, creating a near-monopoly in the U.S. steel market. Philanthropy : Later in life, Carnegie used much of his fortune to fund libraries, educational institutions, and other charitable causes, which also helped improve his public image.

17. Why Andrew Carnegie ’ is One of the Greatest Entrepreneurs. Self-Made Success. Innovative Business Practices. Building a Steel Empire. Philanthropy and the "Gospel of Wealth“. Impact on Society. A Legacy of Empowerment.

18. Andrew Carnegie envisioned steel as the backbone of industrial progress. He sought to make steel affordable and accessible, driving infrastructure development and economic growth. His key strategies included: Technological Innovation: Investing in technologies like the Bessemer process to improve steel production efficiency and quality. Infrastructure Development: Using steel to build railroads, bridges, and skyscrapers, connecting the nation and modernizing cities. Economic Growth: Making steel a key driver of economic growth by enabling industries like construction, machinery, and transportation to flourish. Efficiency and Integration: Vertically integrating his business to optimize operations and reduce costs. Social Responsibility: Using his wealth to improve society through philanthropy and the "Gospel of Wealth" philosophy. Company Vision During Andrew Carnegie Time.

19. Andrew Carnegie’s Busniess Risks. Financial Risks: The steel industry required massive investments and involved significant financial risks, especially during the 19th century. Carnegie faced and navigated several financial challenges: Capital-Intensive Operations: Building steel plants, acquiring raw materials, and implementing new technologies required significant upfront investment. Economic Recessions and Depressions: Fluctuations in demand, especially during economic downturns, could lead to losses. Competition: Fierce competition from rivals like Rockefeller and smaller steel producers often resulted in price wars, pressuring profitability. Dependence on Debt Financing: To expand his business, Carnegie sometimes relied on loans, increasing financial risk. These challenges required careful financial management and strategic decision-making to ensure the long-term success of Carnegie's steel empire. Operational Risks: The steel industry’s day-to-day operations involved significant risks that could disrupt production and profitability: Labor Relations: The Homestead Strike (1892) was one of the most notable examples of labor unrest during Carnegie’s time. Workers demanded better wages and conditions, leading to violent clashes and tarnishing Carnegie’s public image. Technological Dependence: Carnegie’s reliance on the Bessemer process and other technologies posed risks if the innovations failed to perform as expected. Any delay in adopting newer technologies could also have made him uncompetitive. Supply Chain Risks: Carnegie needed consistent access to iron ore, coal, and transportation. Any disruption in the supply chain, like rail strikes or resource shortages, could halt production. Market Volatility: Steel prices fluctuated due to varying global demand, creating risks of overproduction or underpricing. Environmental Hazards: The steel production process generated significant pollution and waste, which could have caused operational slowdowns or legal liabilities even in his era.

20. 1. Managing Financial Risks Vertical Integration : Carnegie controlled the entire steel production process, reducing costs and eliminating supplier reliance. Reinvestment of Profits: He avoided debt by reinvesting profits, ensuring financial stability. Strategic Exit: Selling Carnegie Steel at its peak minimized future risks. 2. Addressing Labor Risks Technology as a Solution: Carnegie invested in technology to reduce labor dependency, though this increased worker tensions. Homestead Strike Lessons: The Homestead Strike highlighted the risks of poor labor relations, prompting Carnegie to focus on philanthropy and distance himself from day-to-day operations. 3. Managing Operational Risks Innovation: Carnegie's focus on innovation, like adopting the Bessemer process, kept him competitive. Geographic Diversification : Access to multiple raw material sources reduced supply chain vulnerabilities. Streamlined Production Processes: Efficient production minimized waste and optimized output. 4. Market Risks Pricing Strategy: Undercutting competitors secured large contracts and ensured steady demand. Diversified Client Base: Reducing reliance on any single industry protected against market downturns. 5. Reputation and Legacy Philanthropy to Mitigate Public Criticism: Carnegie's philanthropic endeavors improved his public image and mitigated criticism. Public Communication: Direct communication with the public helped shape a positive image. How Did Andrew Carnegie Deal With Risks?

21. Andrew Carnegie’s Quotes.

22. Thomas Edison

23. The Founder: Thomas Edison. Thomas Alva Edison (1847–1931) acquired a record number of 1,093 patents , He was the driving force behind such innovations as the phonograph , the incandescent light bulb , the alkaline battery and one of the earliest motion picture cameras . He also created the world’s first industrial research laboratory . Known as the “ Wizard of Menlo Park ,” for the New Jersey town where he did some of his best-known work, Edison had become one of the most famous men in the world by the time he was in his 30s. In addition to his talent for invention, Edison was also a successful manufacturer who was highly skilled at marketing his inventions—and himself—to the public.

24. How Did Thomas Edison the Start? Edison received little formal education, and left school in 1859 to begin his career as a telegraph operator in the 1860s, leveraging his interest in electrical engineering . By the 1870s, he had set up a small laboratory in Newark, New Jersey, where he conducted experiments and developed inventions. He earned his first patent at age 21 for an electric vote recorder but gained fame with his improvements to the telegraph and his invention of the phonograph in 1877.

25. Thomas Edison’s Business Model. Edison’s business model revolved around the concept of commercializing inventions :- He created innovations with direct market applications, ensuring profitability. He established research and development (R&D) facilities, most notably Menlo Park Laboratory , the first of its kind. Edison also developed integrated systems , such as the electric power distribution system, ensuring widespread adoption of his inventions. He founded companies, including Edison Electric Light Company (later merged to form GE), to monetize his creations, emphasizing partnerships with investors.

26. Why Thomas Edison’s is One of the Greatest Entrepreneurs? Edison is celebrated as one of the greatest inventors because: He held over 1,000 patents in his name, spanning diverse fields. He transformed inventions into viable businesses, setting the foundation for modern R&D and industrial innovation. His contributions to electricity, especially the electric light bulb , revolutionized daily life and industry. Edison’s perseverance—facing thousands of failed experiments—highlighted his resilience and innovative spirit.

27. Company Vision During Thomas Edison’s Time. Edison envisioned a future powered by electricity . His vision included: Bringing affordable electric light to homes and businesses. Establishing Centralized power generation and distribution systems, laying the groundwork for modern utilities. Encouraging Innovation and teamwork through collaborative research.

28. Thomas Edison’s Busniess Risks.

29. How Did Thomas Edison Deal With Risks? Partnerships : Edison secured funding and support from investors like J.P. Morgan and the Vanderbilt family. Adaptability : When initial designs failed, he iterated tirelessly to improve. Strategic acquisitions : He bought and integrated smaller companies to bolster his operations. Public demonstrations : To gain public trust, Edison showcased his inventions, such as illuminating parts of New York City.

30. Thomas Edison’s Quotes.

31. References: John D. Rockefeller: https://www.investopedia.com/articles/economics/08/jd-rockefeller.asp https://www.britannica.com/money/John-D-Rockefeller https://www.slideshare.net/slideshow/john-d-rockefeller/2166428 https://prezi.com/4mednqcqyqpl/john-d-rockefeller/ https://www.biography.com/business-leaders/john-d-rockefeller-jr https://en.wikipedia.org/wiki/The_History_of_the_Standard_Oil_Company https://www.investopedia.com/articles/economic

32. References: Andrew Carnegie: https://www.history.com/topics/19th-century/andrew-carnegie https://www.britannica.com/biography/Andrew-Carnegie https://www.biography.com/business-figure/andrew-carnegie https://stevebizblog.com/lessons-from-the-steel-baron-andrew-carnegie/ https://metamuu.com/archives/14374 https://www.untitledleader.com/lessons-in-leadership/andrew-carnegie-lessons-in-leadership/ https://d3.harvard.edu/platform-rctom/submission/carnegie-steel-building-a-modern-america/ https://www.pbs.org/wgbh/americanexperience/features/carnegie-steel-business/ https://www.ushistory.org/us/36c.asp

33. References: Thomas Edison: https://www.thomasedison.org https://www.history.com/topics/inventions/thomas-edison https://www.history.com/news/thomas-edison-inventions