The power of the standard oil had many changes in the society. First, when John started the investment, the oil industry was still young in the United States, thus, the few companies which engaged in the oil trade were dominant in the region (Chernow, 2007). When Standard oil came to existence, the industry got on its toes as it imposed a great challenge to the pioneers. John adopted very efficient strategies which enabled him to beat their competitors to emerge the biggest oil company in the region of all the time. This was a great challenge to the society as other traders were challenged to put more effort in order to sustain their existence in the industry which was being taken over by the Standard Oil. The outcome of the intense competition among the companies saw a great drop in the oil prices which was benefited the entire society who is the primary consumers. Additionally, in the effort to ensure that there are minimal expenditures in the companies, John acquired forests and made his own wooden gallons, made railroads, built pipelines and tankers to cut the expenses. In doing this, the company saved much money that was used in the expansion of their plants, thus creating more and more employment opportunities for the members of the society.
In Rockefeller’s era, the power was exercised without keeping with the social contract. Amid complaints raise by their competitors and critics, he encouraged his workforce to focus on their work and leave let the end product tell it all. This means that was not concerned about what the society thinks of his approach in the industry, his focus was to attain his business goals and dominate the oil industry (Steiner & Steiner, 1994). Additionally, he adopted a strategy that was aimed at cutting the cost of production while boosting the profits. This was made possible by cutting ties with middle-men relaying them with the crude oil suppliers and started going for it for themselves. This was made possible by the purchase and building of the pipeline, tankers and railroads. By so doing, the power exercise left out the society in his ventures.
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The standard oil story supports the pluralist theory of business power (Granitz, & Klein, 1996). Looking at the aggression in which the company enters the market and its dealings throughout the period it operated before the breakup, the company intended to dominate the oil industry by all means and which was majorly made possible by its outstanding management whose ideas propelled its mission to a success (Bringhurst, 1979). Their activities attracted critics from their competitors who didn’t like their aggression and feared the risk taking as exhibited by the standard oil company.
I ascribe to the pluralist power theory.in my opinion, the pluralist theory would work best for any company if the strategies and priorities are well planned and placed. In the case of standard oil, the absence of the laws that would limit its aggression favoured their activities positively and helped them triumph over the other companies (Nevins, 1953). It is wise to identify and carefully utilize an opportunity which favours your activities with the aim of achieving your mission, as long as it doesn’t go on the wrong side of the law. The standard oil story has changed my perspective on pluralist power theory, which I considered unfair and indecent citing other similar business, but I have realized that with a mission, one should focus on the ways of improving their standards and operating tactics to beat their competitors and dominate the field when time, resources and opportunities are on your side.
References
Bringhurst, B. (1979). Antitrust and the oil monopoly: the Standard Oil cases, 1890-1911 (No. 8). Westport, Conn.: Greenwood Press.
Chernow, R. (2007). Titan: The Life of John D. Rockefeller, Sr. Vintage.
Granitz, E., & Klein, B. (1996). Monopolization by" Raising Rivals' Costs": The Standard Oil Case. The Journal of Law and Economics, 39(1), 1-47.
Nevins, A. (1953). Study in Power: John D. Rockefeller: Industrialist and Philanthropist (Vol. 2). Scribner.
Steiner, G. A., & Steiner, J. (1994). Business, government and society (p. 185). New York.
