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Importance of leadership on business success
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Today, McDonald’s has become synonymous with American fast food, but it started with one man: Raymond Albert Kroc. Better known as Ray Kroc, he is regarded as one of the most successful and influential entrepreneurs in the twentieth century. In his autobiography Grinding It Out, Kroc carefully recounts the birth of his famous restaurant. Beginning with a crucial encounter with Dick and Mac McDonald, Kroc catalyzed the expansion of a small, unremarkable restaurant in San Bernardino, California into America’s most prominent fast food restaurant. With the success of McDonald’s, he propelled the American food and restaurant culture into a new era of reliable service while upholding the quintessential American values of perseverance and innovation. …show more content…
From his relatives, Kroc discovered the importance of cleanliness and passion (Kroc 14, 16). Kroc recalls how his grandmother meticulously “covered [the floor] with newspapers all week long” and once a week, “scrubbed [them] vigorously with steaming hot soapy water” (Kroc 14). Her obsession for cleaning would reflect Kroc’s policies for his franchisees, as unconditional cleanliness became a requirement (Kroc 80). Kroc’s fastidious attitude toward franchisees, and the cleanliness of their stores paralleled his grandmother’s endeavor for absolute perfection – even for him, “everything else was secondary” (Kroc 80). Kroc’s well-maintained stores attracted new customers and provided incentive for the return of established ones. Another quality that contributed to Kroc’s successful franchises was his deeply rooted sense of dedication born out of the “hours of disciplined practice” of piano his mother subjected him to (Kroc 16). With this strict regimen, she fostered in Kroc ideas of devotion, perseverance, and commitment that would be instrumental to his ability to overcome difficulties. In addition, Kroc imposed the same rigorous standards his mother held him to onto his franchisees (Kroc 80). Just as his mother demanded hours of practice, Kroc demanded hours of hard work in cleaning stores, training employees, and capturing the values McDonald’s promised …show more content…
Kroc marketed Lily Cups, a cheap paper alternative to ordinary glasses, and later, the Multimixer (Kroc 23, 55). A revolutionary product, the Multimixer could mix five milkshakes simultaneously (Kroc 55). During this time, Kroc gained valuable experience from working with new, upcoming businesses like Dairy Queen and A & W Root Beer (Kroc 63). He learned essential characteristics of a successful restaurant and the ability to differentiate mediocre restaurants from highly successful ones (Kroc 63). When he witnessed their efficient cooking system combined with a simple menu and an authentic name, Kroc immediately predicted the success of McDonald’s (see Fig. 1). Astonished, he confessed to the McDonald brothers, “I have never seen anything to equal the potential of the place of yours” (Kroc 11-12). Kroc understood the defining characteristics of a successful restaurant and believed that McDonald’s possessed them, so he obtained franchising rights to it and used compelling marketing techniques amassed through his career to expand (Kroc 72). In fact, his business partner’s wife, Aloyis Sonneborn commented on how persuasive Kroc could be; he was able to “make a hamburger sound as appealing as filet mignon” (Kroc 157). Kroc’s convincing demeanor, born out of persuading customers of the necessity of paper cups and Multimixers, sold a promise of a successful
Moore, L 1997, The Flight to Franchising, US News & World Report. June 10, pp. 78-81.
The Taco Bell and KFC “micro brand” known as ZAK Family Foods is successful for three important reasons: a concept of family, a passion for progress, and a dedication to social responsibility. These three elements have evolved organically from the brand’s very beginnings. In 1979, Jerry Zakaras, now CEO and Franchisee of ZAK Family Foods, began his journey to support his family as a Restaurant General Manager for a Pizza Hut in Plattsmouth, Nebraska. His cooperation with those working with him in the restaurant expressed itself in a way that was very familiar; it was the restaurant family. His value for family was what motivated him to explore the restaurant world, and it was what opened the doors to his business success.
In the movie McDonalds changes the market from lounging teenagers to families. Ray Kroc sees an opportunity to franchise the business, although they had tried franchising before and failed Ray Kroc convinced them to try again and he will be their franchising manager, the McDonalds brothers agreed and entered a contract with him to be their head of franchising, a move that pays off but not for everyone. Although McDonalds have shown that they are able to expand, one of the challenges they face in other countries is that their sales are weak, for example in Japan McDonalds are facing strong competition from Mos Burger. Another challenge McDonalds is facing is replacing humans with machinery.
The American life has been transformed by the fast food industry not just changing the American diet but also the culture, workplace, economy, and the landscape. “Today about half of the money used to buy food is spent at restaurants-mainly fast food restaurants.” (Schlosser) This could be due to the fact that about two-thirds of working women are mothers. The impact of fast food on the American culture is transparent when just looking at McDonald’s. McDonald’s has become the world’s most famous brand; the golden arches are more known than the Christian cross. “A survey of American schoolchildren found that 96 percent could identify Ronald McDonald.” (Schlosser) McDonald’s is responsible for 90 percent of new jobs in The United States. The landscape has changed due to the fast food ...
A lot of people think that Ray Kroc created McDonalds. I will tell you that this is not true; he started out as a milkshake mixer salesman. One day he got a huge order for eight milkshake mixers from a small restaurant in California, he was really curious why they needed so much. He went to investigate and found Dick and Mac McDonald with their small business. According to www.mcdonalds.com they said “Ray Kroc told the McDonalds brothers that they should spread their business all over the U.S., in 19...
While peddling about the country he came in contact with the super efficient McDonald's hamburger joint, which was started by Dick and Mac McDonald, who were brothers. He saw this place and optimistically envisioned many more opening up all over the country. He convinced the brothers to let him be their first franchisee. They agreed so in 1954 Ray opened up the first McDonalds franchise. A year later, Ray opened up the second McDonalds franchise in Des Plaines, Illinois. Only four years after the second restaurant's opening the one hundredth McDonalds was opened. In 1961 Ray Kroc bought the rights to the McDonalds franchise for a meager 2.7 million dollars. To pay this massive sum at the time he had to mortgage his house and take out numerous loans that would eventually cost him 14 million to pay back. After he bought the rights to the name and the company he forced Dick and Mac to remove their name from their original restaurant. But he went even further when he opened up a McDonalds restaurant a block down the road trying to put them out of business. Also that same year Hamburger University was opened.
Everyone has heard of McDonald’s, but where did this familiar name come from? When people think of American food, it is not uncommon for two golden arches to appear in their minds. This story began with two brothers Dick and Mac McDonald who owned and ran a small restaurant in San Bernardino, California during the 1940s. In 1954 a man named Ray Kroc came across these two brothers while selling multi-mixers and was impressed with the business they were running. The menu was compact, listing options for only a few burgers, fries and beverages, but the restaurant was effective in its operation. Ray Kroc pitched the idea of spreading McDonald’s restaurants across the United States and in 1955 he founded the McDonald’s Corporation. By 1960 he bought the exclusive rights to the name. Kroc was able to expand substantially on this small business so that by 1958 McDonald’s sold its 100 millionth hamburger. (“McDonald’s.com”)
‘McDonald’s Corporation’ launched, by a salesman called Ray Kroc, who gained exclusive US franchising rights from the
Although the McDonald's business was doing well, it wasn't until 1954 when Ray Kroc saw the operation that it started to develop into the McDonald's of today. Ray Kroc was a fifty-two year old milk-shake machine salesman at the time and decided to check out McDonalds due to their odd order of eight milk shake mixers for one restaurant. Most of Kroc's customers purchased only one milk shake mixer, and a max of two. Kroc was curious to see what kind of operation needed the capacity to churn so many milk shakes. What Kroc saw that day in 1954 when he pulled up to McDonald's was like nothing he had ever seen. Kroc is quoted as saying "This had to be the most amazing merchandising operation I'd ever seen." Although the McDonald brothers were content with their restaurant, Kroc saw the future and where this idea ...
Schultz, Howard, and Joanne Gordon. Onward: How Starbucks Fought for Its Life Without Losing Its Soul. New York: Rodale, 2011. N. pag. Print.
Vignali, C. (2001). McDonald’s: “think global, act local”--the marketing mix. British Food Journal, 103(2), pp.97--111.
Have you ever wondered how the business empire of McDonalds was started? With over ninety nine billion served, it was started in 1940 in San Bernardino, California. It was started off as just a Bar-B-Q that served just twenty items. Its first mascot was named “Speedee” They eventually realized that by setting up their kitchen like an assembly line that they could be much more productive and get their food done faster, with every employee doing a specified job; the restaurants production rate became much higher. A milkshake machine vendor came into their small restaurant one day, his name was Ray Kroc. He saw how much potential the restaurant has, so he bought it out and opened one of the first franchises. Within the first year of Ray Kroc buying it, there were one hundred and two locations all around the world. McDonalds currently is one of the largest fast food restaurants in the world and currently has served over sixty four million customers through one of their thirty two thousand sites. It has almost become a way of life for America. Though, McDonalds started off as a small business between two brothers, it grew into one of the largest restaurant franchises in the world and greatly affects our society and how we eat our food.
Another strength is Burger King’s franchise development having 90% of its restaurants franchised. The franchise concept allowed the company to grow with minimal capital expenditure and receive royalties and fees. Burger King went above and beyond and created a new model of its restaurant to attract mo...
In The McDonaldization of Society, George Ritzer discusses the ideas that made McDonalds so successful. It is these same aspects that control society now. Ranging from areas like healthcare and education to lawmaking and media, the idea of McDonaldization can apply to various institutions. It can also create new areas of society that rise as a result of McDonaldization.
McDonald’s has proven over time that the business practices they utilize work well and have led them to obtaining the title of the largest food retailer in the world. The founder of the company made a tactical decision in franchising the idea of providing fast food at a cheap price. Today, fast food has become a staple of not only American life but a viable food option all over the world. For McDonald’s a critical factor in them reaching the level of growth they currently experience has been franchising. It can be assured that McDonald’s will continue to grow through the usage of the franchising techniques as new food markets continue to develop all over the world.