Charting My Course: Personal Growth Insights from Ray Kroc's McDonald’s story.

(Rotten Tomatoes, 2017)

My passion for the business side of things deepened during my teenage years, Over time I started to research movies about founders like Jobs (2013) which captured Steve Jobs innovative rise with Apple. Another movie caught my interest of and I will be sharing my thoughts and key learnings taken from it. "The Founder," the story of Ray Kroc and the establishment of the McDonald's corporation offers valuable insights into the challenges and triumphs of business expansion.

Proceeding on the lessons learned from the movie, One pivotal scene in the movie showcases Kroc's determination to expand the business, an objective he pitched when he met with the McDonald's brothers, who initially started the restaurant. However, Richard "Dick" McDonald expresses concerns about maintaining quality control if the business were to expand. From my perspective, Dick's fears are justified considering the past failed attempts to replicate operational models in other locations.

Despite these concerns, it is important to recognise that business expansion requires a balance between caution and ambition. While Dick's fears are valid, it is equally important to consider the potential benefits and opportunities that come with expansion. In the case of McDonald's, Ray Kroc appears to be the individual who can successfully bring the vision to fruition. The movie portrays the McDonald's brothers as lacking knowledge on how to scale up the business, which reinforces the need for someone like Kroc to step in and drive the expansion.

Ray Kroc's approach to overcoming obstacles was ruthless and, at times, unethical. His strategy for expansion utilised franchising, an idea he obtained from financial expert Harry Sonneborn. Kroc's tactic involves purchasing plots of land and then leasing them exclusively to franchisees. This not only provides upfront revenue but also gives Kroc greater control and oversight over the franchisees. While Kroc's methods may be questionable, they ultimately contribute to the success and growth of the McDonald's corporation.  You can see these at a glance below.

First McDonald’s store at Illinois (Brittanica, 2024)

Objective 

Expand McDonald’s nationwide

Ray's had one major objective and it was to scale the business nationwide. He did not just want scale alone but quality control across locations to foster brand image consistency.

Obstacles

• Inappropriate franchisees When Ray began his franchisee model, He had a problem with partners who did not regard the company's brand image. Locations were left unkempt and service delivery rendered poor amongst others.
  

• High cost of electricity because of ice-cream When Ray began his franchisee model, He had a problem with partners who did not regard the company's brand image. Locations look unkempt and service delivery was poor.
  

• Tough conversations and disagreements with his partners There were so many problems between the McDonald's brothers who were the initial business owners and Ray. It appeared that Ray wanted to scale the business but the McDonald brothers wanted to play it safe not taking risks. This was frustrating Ray as He also was losing a lot of money trying to set the business up on a larger scale
  

• Financial problems and divorce. With financial problems and debt accruing. Ray went through emotional turmoil as he was on the brink of losing his company.
  

Strategy  

Franchising model

Tactics    

• Franchise leasing What fascinated me the most was Ray Kroc's ability to transition his focus from selling hamburger franchises to empowering franchise owners through real estate development, offering a comprehensive turn-key business solution. This shift in mindset underscores the importance of control. As highlighted by Harry Sonneborn, portrayed by B.J. Novak in 'The Founder', "You are not in the burger business; you are in the real estate business." Control, in this context, involved Kroc and McDonald's corporation dictating the location, appearance, operations, and maintenance of new restaurants. Franchise owners would then cover start-up costs, monthly rent, and a percentage of monthly sales. This system enabled Kroc to maintain meticulous oversight and control over every aspect of the brand experience.
  

• Adapting to Emergent Trends and Consumer Preferences Whilst scaling Ray Kroc made sure the business employed a localised approach, particularly in their menu and eating habits. To speed up the delivery process on milkshakes. Ray found a milkshake solution that could increase efficiency and maximise profitability across the board. He introduced milkshakes into the burger menu and this resulted in a landslide increase.
  

The movie highlights the importance of Kroc's determination and willingness to take risks in order to achieve his objective of expansion. From this, I learned a valuable lesson about persistence and the struggles faced by talented individuals who lack it. Kroc's relentless pursuit of his goals serves as a reminder that success often requires unwavering dedication.

Additionally, the movie showcases McDonald's innovative operational model, which revolutionised the fast-food industry by providing quick service and creating an uncontested market space. McDonald's success story taught me the importance of persistence, innovation, and focusing on a specific niche. By continually pushing the boundaries and staying ahead of industry trends, businesses can carve out their own blue ocean strategy, a strategy that redefines market boundaries.

These are the key things I took as learning from Ray Kroc for my personal career plans.

OBJECTIVES

Become a prominent influencer in the digital design industry by sharing insightful perspectives on creative thinking that blends nostalgic historical eras with contemporary trends in digital design.

OBSTACLE	STRATEGY	TACTIC
Staying abreast of rapidly evolving technologies and design trends. Effectively conveying complex ideas and concepts to a wide audience requires strong communication skills, both written and verbal Developing a deep understanding of both historical design movements and current digital design trends requires extensive research, education, and experience.	Content Creation: Produce high-quality content such as articles, blog posts, videos, and social media posts that showcase my insights and expertise in merging historical and modern design elements. Innovation: Experiment with new techniques, tools, and approaches to digital design that integrate historical aesthetics with modern technology. Collaboration: Collaborate with other designers, historians, and industry experts to gain new perspectives and reach wider audiences. Consistency: Maintain a regular posting schedule and consistently engage with your audience	Blog posts: Write in-depth blog posts that explore the impact of the nostalgic era on contemporary design, including case studies and practical advice for designers. Social Media Content: Share visually engaging content on platforms like Instagram and TikTok, showcase design examples and talk about the creative process behind blending nostalgia with a modern design backdrop. Podcast: Create a podcast series where you interview industry experts and discuss topics related to nostalgic design influences and contemporary trends. Webinars/Workshops: Conduct webinars and workshops that focus on specific aspects of integrating nostalgia into contemporary design, to provide attendees with practical insights and strategies. Guest Contributions: Contribute guest posts or interviews to popular design publications and websites, share your expertise and expand my reach to a wider audience.

To truly differentiate myself in the digital design sector, I will focus on developing cutting-edge digital projects and ventures. By staying ahead of the curve and implementing innovative design solutions, I aim to position myself as a thought leader in the industry. This will not only attract new clients but also showcase my ability to deliver practical and impactful design solutions.

In conclusion, the movie "The Founder" offers valuable lessons in persistence, innovation, and business expansion. While it is important to acknowledge the concerns and challenges that come with expansion, it is equally vital to recognise the potential benefits and opportunities. By drawing inspiration from Kroc's determination and McDonald's success story, I am determined to make my mark in the digital design sector by pursuing a blue ocean strategy. By offering valuable insights, staying updated on industry trends, expanding my network, and developing cutting-edge projects, I aim to lead the way in the industry and carve out a unique position for myself.

BIBLIOGRAPHY

Kim, W.C. and Mauborgne, R. (2015). Blue ocean strategy : how to create uncontested market space and make the competition irrelevant. [online] Boston, Massachuetts: Harvard Bus Review Press. Available at: https://go.exlibris.link/mXqBq9T1 [Accessed 18 Feb. 2024].

The Founder (2016) Directed by John Lee Hancock. Available at: Netflix (13 April 2024) Bubble Enterprises. (2019). Franchise Story: The McDonald’s story of ‘The Founder’. [online] Available at: https://bubbleenterprises.co.uk/general-management/case-study-no1-the-mcdonalds-story-of-the-founder/#:~:text=Kroc%20had%20to%20deal%20with. [Accessed 8 April 2024]