- Ray Kroc School Drop out Student
- Officially establishes the Mc Donalds corporation and Teach other corporations as well how to run the business.
- Apply the Principles of Mass Production in a service Industry
Ray Kroc Biography
Ray Kroc was born in 1902. It was the American entrepreneurship time where every American were trying to establish themselves as a business men.It was the age of William Durant and Henry Ford. It was the age of the great nation builders.
This Young boy believed in a life changing statement i.e. 'Opportunity only knocked once and took his chances as they came' .He started his job with Red cross and became the ambulance driver than he tried his hands in too many things finally settled down to be a salesman.His passion towards his career.he tried to knock the door of Earl prince who was the inventor of the five-spindle multiplexer.He agreed the earl to given him exclusive rights for the mixture and successfully sold it to all over the country for the next decade and a half
He liked to traveled all over the country,he realised that one of his largest customer was a california based restaurant owner Mcdonald Brothers.he further enquire and than he found many interesting facts regarding their business of hamburger and sandwiches. The owners were not interested in expanding the operation further and seemed content with present operations. In another display of salesmanship Ray Kroc convinced the brothers to make him their exclusive agent. In 1954 Ray Kroc opened his own McDonald's drive-in in Des Plaines, Illinois. He officially established the McDonald's Corporation.
Watch the Video of McDonald's History
It was not an easy time for Ray Kroc. He was suffering from diabetes and arthritis. His gall bladder and thyroid gland had already been surgically removed. But the desire to succeed burnt throughout his body. In a final act of refined salesmanship Ray Kroc managed to convince the brothers to sell the company to him. He asked them to name their price. The $2.7 million that Ray Kroc paid in 1961 for the McDonalds Corporation is considered to be one of the greatest acts of salesmanship of all time.
While running McDonalds he realized that a big chunk of the profits would come from the land on which the franchisees are established. In 1956 Ray Kroc set up the Franchise Realty Corporation, which bought land and leased it out to franchisees. Post 1961, Ray Kroc began recruiting franchisees at a feverish pace. The revenues that the company received from the franchisees made it easier for Kroc to raise capital in the financial markets. He utilized some of the money to create an enduring advertising campaign that centered on the company’s mascot – Ronald McDonald.
Once the domestic market was saturated with McDonald’s franchisees, Ray Kroc turned his attention overseas. It has opened outlets in more than sixty-five countries. McDonald’s tailor-made its offerings depending on the country in which it was operating. In order to make the chain's name more easily pronounceable for Japanese consumers, it was changed to Makudonaldo. In India and in the Middle East, pork is not served. In Ireland the promotions proclaimed, "Our name may be American, but we're all Irish."
Today most companies who operate in the service industry have pricked up something or the other from the McDonalds way of functioning. They have learnt that ray Kroc was right when said that, "The organization cannot trust the individual; the individual must trust the organization." Non-conformists did not find any place in his plans. Ray Kroc constantly harped on the need for minute labor specialization and definition of the company’s value proposition.
After handing over the operations to Fred Turner in 1968, Kroc began to take a macro view of the organization that he built from scratch. He continued to monitor business of the newer franchisees. His paranoia regarding the success of McDonalds was intact as ever. Whenever he traveled he insisted that his chauffer drive him to at least six franchisees for him to conduct surprise checks. In 1977, Ray Kroc became the Senior Chairman. McDonald's had sold 65 billion hamburgers by 1987, the year before it opened its ten thousandth store. McDonald's now opens about one-third of its new restaurants in foreign markets.
In 1974, Ray Kroc became a hero for reasons completely unrelated to business. He purchased the San Diego Padres baseball team and prevented them from moving to Washington, D.C. Ray Kroc passed away from old age in January 1984, at the age of eighty-one, just the ten months before McDonald's sold hamburger number fifty billion.
This Great man again prove "Winners Don't do Different things,they do things differently'.He just used and developed his skills to establish himself.Education was not a big issue for him