Rockefeller’s Case Study

1. With reference to the level and spheres of corporate power discussed in the chapter, how did the power of standard oil changes society? Was this power exercised in keeping with social contract of Rockefeller’s era?

Standard Oil had an impact on the society in all levels and each created a positive change in the society. Standard oil had a tremendous impact in the way people lived their lives. For instance, Standard Oil product changed the society by offering the people inexpensive, reliable light and stayed up. Standard Oil product improved the standard of living in the society and this automatically gave Standard Oil the hedge over his competitors and dominance over the people of the society. Furthermore, standard oil stimulated industrial and economic growth that created several job in American.

Political Power:   Rockefeller had political power due to the huge charitable contributions, donation to churches and organizations.

Technological Power: Standard Oil had technological power because its ability to refine the oil into a standardized the product that was different from other oil producing companies.
Environmental Power:   Standard Oil achieved that through the refining process and making clean oil without polluting the environment.
Economical Power: Rockefeller had the power to influence the railroads to offer Standard oil discounts and rebates.

2. How does the story of Standard Oil illustrate the limit of business power? Does it better illustrate the dominance theory or the pluralist theory discussed in the chapter?

The story best illustrates the dominance theory.   The limits of business power are immeasurable. Rockefeller used his business power to dominate the industry. Because of his wealth he had a massive influence on his rivals forcing them to sell their businesses.   Also, Rockefeller’s business power gave him hedge over his competitors because he could influence the railroads to work to his...