How did J.D. Rockefeller become the wealthiest person in history?

Question1: How did J.D. Rockefeller become the wealthiest person in history?

Answer1: J.D. Rockefeller took birth in 1839 in upstate New York and John always hustled to learn and find out how he can provide the best deal to the people to get the most out of every money he got and helped his mother in many ways possible to earn money. John’s life changing event took place 1859, the first American oil well was discovered he found that it is the biggest opportunity for him to grab. He assembled a team of chemists and engineers and also got many partners and banks ready until 1836 when the government built a rail line connecting Pennsylvania oil fileds to Cleveland. He find out the uses of byproducts of refining petroleum and started selling the byporducts such as naphtha, paraffin wax. His refinery earned a worth of $70 but John found out that there were 26 refineries competing him and he acquired all of them except four of them and incoportated Standard Oil Of Ohio in 1870. He invited the other competitors in his company and offered them positions in his company and thus ruling the monopoly. It was tough task for him to encourage them but he started to erode the prices of petroleum by 80% to choke the competitors and by 1880 his strategy worked and he acquired refineries. John started to nrgotiotae rebates to big rail companies to use their trains and this feared many industrialists that this will result in monopolization in their industries as well. The legislations of Ohio created antitrust regulations to bring Rockefeller down but he was moving  one step ahead of them and came with Standard Oil Trust in New jersy in 1882. This trust has stake of over 40 local companies and also opened his company’s headquarters in Broadway and owned 20000 wells and 4000 miles of pipelines. But when the Sherman Antitrust Act came into force his trust was broken up into 34 separate entities and John kept his share in those companies but the break up was profitable for him because the worth of Standard Oil was $1 trillion. Thus, it can be concluded that John Willian became the wealthiest person in history by using philanthropy as a tool to achieve success.

Question2: What does philanthropy mean and how is it applied to business?

Answer2: What does philanthropy mean and how is it applied to business?

Answer2: Philanthropy is an act of giving some amount of money as charity or donations to various social causes as way of strategies taken up by the companies or individuals to increase their reputation in the minds of customers, and giving them a competitive edge in the market (Smith, 2014). This new concept encouraged the corporates to invest in social causes by providing long term funds such as creating AIDS awareness and also to non profit organizations in way of assisting them advices in terms of managerial and technical knowledge (Smith, 2014). Philanthropy can be applied to business by forming strategic coalition between companies and non profit organizations which would help them to emerge as a partner in improving social causes thus enhancing their business (Smith, 2014). Through this way the companies can  make strategies which help them in the welfare of society by promoting social causes which would ultimately help them to generate profits in long run. The companies can also make some cash donations to local civic causes or through some operating support to the educational universities and institutions or in way of some national charities as all this will help the companies to inculcate goodwill among the customers, employees and the community as a whole (Porter & Kramer, 2002). The companies can also invest in improving the welfare of local people by providing them education as it will help them in their competitiveness and will provide them economic welfare as well.

Question3: What does Michael Porter mean by Strategic Philanthropy?

Answer3: By the term strategic philanthropy, Michael Porter mean the business should apply philanthropy in such a way that it is provides both social and economic benefits to the company and overall enhancing the goodwill of the company amongs its stakeholders and customers (Porter & Kramer, 2002). The company’s economic and economic goals are interconnected as the productivity of the company through its men, material and resources ensures its competitiveness (Porter & Kramer, 2002). The company can make donations in form of educational welfare of the local people which can act as an asset for the company in future, providing donations for social causes also creates a sense of belonging in the minds of the employees as well and they can also think of donating some part of their wage in social causes (Porter & Kramer, 2002). The company can also make efforts to prevent the environment because it will not benfut the society but also the company as well as because less pollution will help in the adequate use of resources and generating good quality products (Porter & Kramer, 2002). Thus the company make efforts in strategic philanthropy which provodes both the social and economic bemfits to the company and the society as a whole.

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