Question #1
Ray Kroc was a struggling salesman who aspired to be successful. The difference between the McDonalds brothers and Ray Kroc was that Ray Kroc had ambition and wanted to see McDonalds in every state, both domestic and international. That is why he franchised the business, whereas the brothers lacked the drive or motivation to expand, preferring to stay local because they were more focused on running that one store the proper way while serving fresh fast food.
Question #2
Part (A) I believe the brothers made the right decision by selling out to Ray Kroc. Though the decision to give up their hard work, passion, love, and business was painful and difficult. I saw no other way because they didn’t have enough money to win the case against Ray, and Ray Kroc is responsible for what McDonald’s is today. He saw something bigger within the “McDonald” brand which is the name itself. He turned the small local burger joint into a recognizable and successful global franchises.
Part (B) The brothers get what they want, which is 2.7 million dollars and 1% of the company. Did Ray Kroc give the brothers a good deal? No, I believe they could have gotten more because it was their original idea for the “McDonald” business and they was cheated of.
Question #3
Local store franchisees profit from sales generated in the store by adding menu items as well as the name “McDonald” because customers are familiar with and trust the brand and employing the brothers’ strategy and technique.
Question #4
Ray Kroc made his money primarily through his association with McDonald’s and the rapid expansion of the franchise. After Harry persuaded him to not only lease but also buy the land and then lease it to local franchisees. He also generated money by from Real Estate Ventures, Innovative Marketing & Business Practices and Acquisitions & Diversification.
Question #5
This film was VERY emotional. My views after viewing this film give me mixed feelings. The film explores themes of ambition, entrepreneurship, and the complexities of business partnership.
Hey, I’m having some trouble with finding where to post an original post. If anything I hope this counts as I am working from an iPad.
1. What makes Ray Kroc and the brothers different from each other?
Based off of what was in the movie it seems as if Kroc was always more of a salesman compared to an individual that was family orientated. The brothers seem to misunderstand the purpose of running a business that needed to grow. Sadly, as the movie continues the brothers have separating ideas with running the original McDonald’s. Mac is the more optomistic brother about partnering with Ray while his brother attempts to warn him about starting a new venture. Ray had a general plan based off of his experience with failing in sales previously, but it’s clear that the brothers didn’t have any business experience and only a dream. In addition to their ideas, the McDonald brothers didn’t have any additional ambition or the energy to grow their business as much as Kroc.
2. Do you think the McDonald’s brothers did the right thing by selling out to Ray Kroc? Did Ray Kroc give the brothers a good deal?
As the movie depicts in the ending it seems like the brothers are completely getting manipulated into selling their business idea. I believe it’s quite clear that they didn’t fully leave with their dignity and only received that Kroc was willing to part with in the end. To sum things up, no, I don’t think the McDonald’s brothers were really doing “the right thing” by selling, but they had no other choice when it came to leaving with something.
3. How did the local store franchisees make money?
The local franchisees made money from the business itself as well as the reputation of the McDonald’s name. As they often hired young adults, offered a newer business structure for their customers to receive fast and tasty food items compared to their competitors.
4. How did Kroc make money? How was that different than the franchisees, running the local stores?
In the beginning of the movie, Kroc made money from the partnership contract with the brothers. Eventually, Kroc met a young man that convinced him to begin a real estate company to own the land the the McDonald’s locations were on. After owning the land, he changed specific rules that altered the business structure.
5. Does this film change your view of McDonald’s?
My view on McDonald’s isn’t completely changed, but I feel like i can get an all around perspective on how business owners can then become a founder instead. Watching the movie gave me a semi-accurate depiction on how a company can grow without the original creators of the idea. Sadly, many founders have been only the face and don’t always reap the benefits of selling the company.