Final answer:
Andrew Carnegie pioneered the system of vertical integration in the steel industry, where he controlled every aspect of production to cut costs and increase efficiency, leading to the dominance of his Carnegie Steel Company.
Step-by-step explanation:
The system of business organization pioneered by Andrew Carnegie, which sought to control every aspect of the production process, is known as vertical integration. Carnegie utilized this system to dominate the steel industry by directly owning all facets of production including mines, foundries, and railroads. This approach allowed him to cut costs, increase efficiency, and outcompete other producers. Carnegie's strategy played a pivotal role in the rise of big business during the Industrial Revolution in the United States. By owning the entire supply chain, from raw materials to transportation, Carnegie's Carnegie Steel Company could produce steel more cheaply and efficiently, eventually leading to its dominance in the steel market.