McDonald’s

Ray Kroc’s

Subject – Strategy Management

Prepared By :

Neha Patel Nikita Patel

Nimesh Patel

• Full Name :- Raymond Albert Kroc

• Born :- October 5th, 1902 at Oak Park, Illinois.

• Died :- January 14th, 1984

• He set up his first McDonald's in 1955 in Chicago

• He was impressed by the restaurant's limited menu, assembly line production methods, and cheap prices.

• Kroc suggested to the McDonalds that they franchise out their business through him.

When 1954, Ray Kroc was checking out a restaurant owned by two McDonald brothers, which was using several of his milkshake mixes.

“ The two most important requirements for major success,” said Ray Kroc, “are:

first, being in the right place at the right time, and

second, doing something about it.” 

• Take Your Business Seriously• Perfection • Astute and shrewd entrepreneur• Treat employees with respect• Deliver better service with a smile• Be willing to be the risk taker• Sense the possibilities with a dream• Like to bet big• Strive to always be better• Kroc was not immune to disappointment• Connect with others• Don’t work just for money• Develop an effective marketing plan• Build tradition of giving back• Set the Highest of Standards

Strategy Of Ray Kroc :-

1 : Take Your Business Seriously

Time Magazine dubbed Kroc one of the world’s most influential builders and titans of industry because he did just that – he built a small business into a billion dollar enterprise and, he did it by focusing on the details and caring more about his business than anyone else.

“I didn’t invent the hamburger,” said Kroc. “I just took it more seriously than anyone else...We take the hamburger business more seriously than anyone else.” 

2 : Perfection was what I wanted in McDonald'sFrom the layout of the store, to the cleanliness of the parking lot, to the number of pickle slices on a patty, Kroc ensured that a McDonald’s in Delaware would provide the exact same quality service as one in Nevada.

“Perfection is very difficult to achieve, and perfection was what I wanted in McDonald's,” he said. “Everything else was secondary for me.” 

3 : Kroc was an astute and shrewd entrepreneur who was all business.After the McDonald brothers refused to sell Kroc their very first store – the Big M – Kroc opened up a McDonald’s right across the street and drove them out of business.

“If any of my competitors were drowning, I'd stick a hose in their mouth and turn on the water,” he said. “It is ridiculous to call this an industry. This is not. This is rat eat rat, dog eat dog. I'll kill 'em, and I'm going to kill 'em before they kill me. You're talking about the American way – of survival of the fittest.”

4 : Treat employees with respectA strong proponent of teamwork, Kroc understood that his growing company could only continue its meteoric rise up if it had the support and the dedication of its workers behind it.

• In order to ensure staff loyalty and motivate his employees, Kroc did his best to guarantee that they were treated with respect and were able to operate on an equal playing field.

“None of us is as good as all of us,”

5 : Deliver better service with a smile

The majority of McDonald’s employees would love showing up to work every day and would deliver better service with a smile, which was a crucial component of Kroc’s strategy.

“McDonald's is a people business, and that smile on that counter girl's face when she takes your order is a vital part of our image,” said Kroc. 

6 : Be willing to be the risk takerKroc strove to constantly improve his company and retain his place at the forefront of the industry by taking advantage of new opportunities. Even when there was big risk involved, Kroc stared the gamble in the face and rolled the dice.

“If you’re not a risk taker, you should get the hell out of business,” 

7 : Sense the possibilities with a dreamKroc didn’t invent the hamburger; he simply had a dream about what he could do with that burger and where he could take it with the right business model.

From the very first day he met the McDonald brothers and witnessed their small operation and successful use of the Multi-mixer, Kroc could sense the possibilities.

“When I saw it working that day in 1954, I felt like some latter-day Newton who’d just had an Idaho potato caromed off his skull,” Kroc said. “That night in my motel room I did a lot of heavy thinking about what I would seen during the day. Visions of McDonald’s restaurants dotting cross roads all over the country paraded through my brain.”

8 : Like to bet bigNothing about Kroc’s business strategy was small. From his talk to his deals to his expansion plan, Kroc liked to bet big. And, it was in betting big that his pay offs were even bigger.

“I don't believe in saturation,” said Kroc. “We're thinking and talking worldwide.”

9 : Strive to always be betterGrowing his business was a continual process for Kroc, one which involved much risk and reward. But, it was only in striving to always be better and take advantage of new opportunities that Kroc became the legendary success that he did.

 “ When you’re green, you’re growing,” said Kroc. “ When you’re ripe, you rot.” To fellow entrepreneurs, Kroc posed this question : “Are you green and growing or ripe and rotting?”

10 : Kroc was not immune to disappointment

• Despite all his hard work, Kroc was not always a lucky man.

• From his early days in starting up McDonald’s to even after the chain was a well-established global presence, Kroc experienced his fair share of failures.

• He was not immune to disappointment; what set Kroc apart from his competitors, however, was how he learned from his failures and bounced back.

“Luck is a dividend of sweat,” said Kroc. “The more you sweat, the luckier you get.” 

11 : Connect with others

• During World War I, Kroc met a fellow young and ambitious entrepreneur by the name of Walt Disney.

• When Kroc first began selling McDonald’s franchises around the country, he remembered Disney and sent him a letter in 1954.

• Disneyland was still under construction at the time, but anticipation about its prospects was great, and Kroc sensed an opportunity.

“Dear Walt,” he began. “I feel some what presumptuous addressing you in this way. Yet I am sure you would not want me to address you any other way…I have very recently taken over the national franchise of the McDonald’s system. I would like to inquire if there may be an opportunity for a McDonald’s in your Disneyland Development.”

12 : Don’t work just for money.

With his keen sense of future trends, Kroc had a strong belief in himself and his vision. And, he wasn’t doing it for the money.

“If you work just for money, you'll never make it, but if you love what you're doing and you always put the customer first, success will be yours,” said Kroc. “All money means to me is a pride in accomplishment.”

13 : Develop an Effective marketing plan• From focusing on the local context of his restaurants to fostering an image of a fun and friendly atmosphere with the likes of Ronald McDonald, Kroc proved to be a marketing genius.

• Through making community contributions, Kroc also established a corporate tradition of creating a positive presence in society.

“We're not in the hamburger business,” said Kroc. “We're in show business.” 

14 : Build Tradition of giving back• Contributing to the local neighborhoods in which McDonald’s restaurants were located would improve public attitudes towards the expanding chain.

• This tradition of giving back that Kroc initiated so many years ago remains an integral part of the McDonald’s corporate philosophy.

“ The definition of salesmanship is the gentle art of letting the customer have it your way. ”

15 : Set the Highest of Standards

By setting the highest of standards for himself and ceaselessly pursuing his dreams, Kroc would go down in history as one of the world’s most successful entrepreneurs.

“ The Quality of a leader is reflected in the standards they set for themselves,” 

Kroc attempted to describe what made his business the global empire it is today. Indeed, it was not as simple as just providing tasty hamburgers and fries. Kroc was an ambitious entrepreneur who embarked on a strategic plan of expansion that would cover nearly every continent. Kroc not only created an immensely successful company, he also built a global brand and revolutionized the American cultural landscape.

Thank You

It’s easy to have principles when you're rich. The important thing is to have principles when you're poor.