ACKNOWLEDEGEMENT

First of all, Alhamdulillah, praise to Allah SWT for giving us opportunity to finally
complete our group assignment for Conflict Management and Negotiation Strategies (CSM554)
in a well health. With the spirit of teamwork among all the group mates, we managed to handle
this project without any serious problems. We hope this assignment can be guideline to
encourage our effort for becoming succeeded in this working field.

Next, we would like to thank to our family for their support in vary way and no matter
what we do. They also help us a lot of such as providing us with necessary financial to make
this assignment a success project. We are very thankful and grateful for having fully support
from our parents.

After that, we would like to express a special thanks to our lecturer, Madam Noor Dalila
Binti Musa. The support, supervision and opinion that she gave truly help us for the progression
and smoothness of this assignment.

Other than that, we would like to expend our deepest gratitude to all those who have
directly and indirectly guided us in making this assignment. In addition, to all especially our
classmates and team members have made valuable comment suggestion on this assignment
that gave us an inspiration to improve our assignment.

Finally yet importantly, we would like to thank to all group members, which are Nurrinna
binti Zubir, Nur Khairul Bariyyah binti Awang Razalli, Nur Aqila binti Shuib and Ummi Soleha
binti Mohd Lazim that had always been dedicated in giving efforts as well as co-operation to
complete this assignment

1|Page
SUMMARY
To fulfill the requirements in subject Conflict Management and Negotiation Strategies
(CSM554), we came out with this assignment to observe and collect information the movie “The
Founder” that tells us a history behind McDonald. This movie is a great movie than can
enhance our understanding about the subject and it increase our knowledge. Based on our
findings, we come out with introduction of the movie, detailed discussions on how Ray Kroc
resolves the issue with Mac and Dick McDonald, detailed discussion on selected chapters and
conclusion on our finding.

2|Page
INTRODUCTION TO THE MOVIE

This is a true story about Ray Kroc who works as salesperson sell five-spindle milkshake
makers for Prince Castle from Arlington Height, Illinos. Since he works as a salesperson, the
job required him to travel from one restaurant to another restaurant. At the beginning of this
movie showed that Ray Kroc trying to persuade his customer to buy the milkshake makers but
he got rejected by the owner of the restaurant. Therefore, he decided to have a lunch at the
restaurant.

The next day, he went to the other city, which is Chesterfield to sell his milkshake
makers, but once again, he could not sell any. Then, June the secretary of Prince Castle call
him that one of the restaurant from San Bernardino just order six mixers and Ray think they had
placed a wrong order. Ray immediately called the restaurant for confirmation about the order
but surprisingly, they actually want to order eight of the mixers. Ray curious about the
restaurant and he went to California to see the restaurant in person.

When he arrives at the restaurant, he is amazed because the restaurant very different
from the other restaurant that he has been. Firstly, he sees the restaurant is not a walk in
restaurant and the customers must queue up to place order at the restaurant window. Ray Kroc
decided to try the menu of the restaurant so he orders hamburger, French fries and Coca-Cola
for 35 cents. Secondly, he amazed because they only take a few minutes to prepare the food.
Thirdly, they do not need plates, spoon or even fork to eat because the hamburger is wrap in
the paper bag and just throw it all out after done eating.

While Ray is enjoying his hamburger, the owner of the restaurant who is Mac McDonald
come and approach him. Ray said it is the best hamburger he ever had in his life. Ray
introduce himself as the one of the person that sold the milkshake makers and Mac willingly to
give Ray a little tour through their kitchen. Mac introduce to Ray the “Speedee System” which
make the food preparation become quick and efficient. At the kitchen, Ray meet the one who
create the system that is the Mac brother, Dick.

3|Page
 Ray become interested to know the story behind this restaurant so he ask Mac and Dick
for a dinner. During the dinner, Mac and Dick tell Ray everything about the restaurant including
the “Speedee System” that they are using. After hearing all those interesting story form the
brother, Mac become excited and interested to join them. The next day, Ray come to the
restaurant to meet the McDonald brother. Ray expressing his idea to open a franchise
restaurant but they are not interested with Ray’s idea because they have tried to open a few
franchise before but it failed. After got rejected, Ray come home and share his wife about the
idea to franchise the Mc Donald restaurant and his wife also disagree with him. Although no
one want to listen to him, yet he did not give up so he meet the brothers again the next day. He
try to persuade them again with his special knowledge until they for accept it. Finally, the
brothers agree but with black and white contract. Ray started his step by searching a bank that
can loan him money for start-up the business but he need to put his house as leverage.

The next scene in the movie show that the construction of the franchise begin. Ray read
the letter from the brothers that they refuse to deal with Coca-Cola for sponsor menu boards
because it is beyond their core belief. Ray call them to explain what is actually happen and they
start to argue because Mac and Dick do not want their menu to become advertisement. Finally,
the first franchise is open by Ray which is located at Des Plaines. He makes sure all the
employee follows exactly the protocol that being designed and he impress with one of the
employee name Fred Turner. At home, Ray feel bad for his wife because neglecting her and
ask her to supper at the country club tomorrow night. At the country club, Ray talk about the
franchise restaurant to his friends and one of them agree to be a part of it by handling his
second franchise which is located at Schaumburg. Ray discover that the restaurant is not
working according to the plan because his friends are not good in handling a franchise
restaurant.

Ray went to the company that he works for and accidently meet Leonard Rosenblatt that
try to sell catholic bible to one of his staff. Ray gets an idea to open another franchise that is
located at Waukegan and be handle by Leonard and his wife. Ray is so impress with them by
working together. Then, Ray attend every event to promote and invite people to make business
with him and many of them agree to join him. He managed to open another four franchise
which are located at Dayton, Grand Rapids, Kenosha and Decatur. At the company office, Ray
figure out that he only receives 1.4 percent of the profit in a month and it already stated in the

4|Page
contract. Without wasting time, he calls Dick to renegotiate his deal by increase from l.4 to 3.5
or 4 percent but Dick refuse it and it makes Ray to hang up the phone before they finish talking.

The next scene in this movie show that Ray is having a dinner with Joan and Rollie.
During the dinner, Ray tell them about the problem he occurs due to electrical cost. Joan give
idea to use powdered milkshake that known as Instamix in order reduce the time taken to make
the milkshake plus no refrigeration necessary. Ray love the idea and ask for approval from Mac
and Dick to implement it at the restaurant in order to save the milkshake cost but they reject it.
But Ray still want to implement it even Mac and Dick did not approve. One day, Dick receives a
letter with a sample of Instamix packet and stated that the president of the McDonald
Corporation now is Raymond Kroc.

Mac is so angry to Ray and ask him to leave the company or Mac will sue him. Mac faint
after he heard that they not be able to win against Ray because he is the president and CEO of
a major corporation with landholdings in 17 states. Ray come to the hospital to visit Mac with a
blank cheque and he ask to buy the company. Mac and Dick asked for 2.7 million for each of
them after the taxes. At the end of this movie, Mac, Dick and Ray are in the meeting to settle a
conflict between them. The brother are lose to Ray so they have to give McDonald to Ray even
though they feel really sad and bad about it. Ray has make a promise to give them the royalties
through their handshake, however until today the brother receive nothing from Ray.

5|Page
DETAILED DISCUSSION ON HOW RAY KROC RESOLVES THE ISSUE WITH DICK AND
MAC MCDONALD

 The style that Ray Kroc use to resolve the issue

The negotiation style that we have found use by Ray Kroc is competing style.
Competing style is using win or lose approach and it kind of forcing the counterpart to agree
with him or her. Based on the movie, Ray Kroc is known as competitive person whereas he
always wants to win, very ambitious and has no interest in Mac and Dick’s goals. During his
first negotiation with McDonald’s brothers, Ray Kroc use his special knowledge and power to
persuade those brother with his brilliant ideas. We also identify that Ray Kroc kind of forcing the
brothers to agree with him. Hence, he managed to legal contract signed with the brothers and
Ray was able to lead the franchising effort of McDonald's in the Midwest. More conflict arises
when Ray keep argue with the brothers and he asked to re-negotiate the contract, the brothers
were unwilling to share the growing wealth with Ray, keeping him locked into a low profit
percentage agreement while he did all the franchising work with high risks involved. Moreover,
he found a way to make him powerful and can be fully controlled the business with the help by
Harry Sonneborn. At a legal meeting, Ray Kroc very shrewdly bought the business and the
rights to the McDonald's name from under the brothers for $2.7 million. He promises the
Brothers through a handshake deal, that they would receive 1.9% royalty on all McDonald's
proceeds. At the end of this movie, the Brothers never get royalties from him and they lose to
Ray Kroc.

 Advantages and disadvantages of competing style use by Ray Kroc

Based on the movie, we have identified the negotiation style use by Ray Kroc in resolves
issue with Mac and Dick McDonald which is competing style. Competing is a style in which
one's own needs are advocated over the needs of others. It relies on an aggressive style of
communication, low regard for future relationships, and the exercise of coercive power. Those
using a competitive style tend to seek control over a discussion, in both substance and ground
rules. They fear that loss of such control will result in solutions that fail to meet their needs.
Competing tends to result in responses that increase the level of threat and always be view as
negative, however it also has a few advantages.

6|Page
 The first advantage of competing style is it provide a quick resolution to a conflict.
Using competing style, we can see that the conflict can be settle in a short time. We discover
that if the conflict can be settle in quickly, it will prevent the conflict to become bigger and cause
more trouble in the future. Based on the movie, after Mac admitted to the hospital because of
his argument with Ray Kroc, Ray Kroc give him a check to settle a conflict between them. Even
though Mac and Dick feel very sad and reluctant to accept the offer but they know that they will
lose to Ray Kroc.

The second advantage of competing style is it increases self-esteem and draws

respect when firm resistance or actions were a response to an aggression or hostility.
Self- esteem are very important during the negotiation. If the negotiator have a high level of
self- esteem, he or she will become more confident in giving facts and persuade people to agree
with him. In this movie, we can see that Ray Kroc have a high level of self-esteem every time
he negotiate with Mac and Dick by how he come out with facts, ideas and power to control the
negotiation. Therefore, competing style will encourage the person self- esteem to face with the
negotiation.

Next, using competing style also can bring many disadvantages to both party during
negotiation. The first disadvantages that we learnt by using this style is it will negatively affect
your relationship with the opponent in the long run. Competing style can be recognize as
forcing and win or lose approach. The person who using this style do not have interest in the
other party’s goals because he or she only care about his and do not care about the relationship
at all. Based on this movie, we can see that the relationship between Ray Kroc and the brother
is not good since the beginning when Ray Kroc started to argue with them and refuse to listen to
them. Furthermore, there are few scenes in this movie show that Ray Kroc often mocking them
and calling downgrade Mac and Dick as a businessman who only focus on the local istead of
step out internationally. At the end of this movie showed that the relationship between them are
not end up well even though the conflict settled.

The next disadvantage in this style is it will encourage aggressions and anger occurs
towards each other. This style is usually use by the person who is aggressive and
argumentative. Using competing style during negotiation can make both party rise anger toward
each other due to the disagreement. According to the movie, Ray Kroc the main character that
use this style often seem to become aggressive towards the brothers. In the scene during the

7|Page
phone call he make with the brother, he rise up his voice when the brother rejected his ideas on
collaboration with Coca-Cola. There is also a few scene showed that Ray Kroc express his
anger and dissatisfaction by being rude. Furthermore, the brothers also feel angry towards him
when he makes many decisions without telling them first. Therefore, we can see that using this
style is not good especially when dealing with business because it will lead more to emotional
and feeling rather than being rational to settle the conflict with a mutual agreement.

8|Page
DETAILED DISCUSSIONS ON SELECTED FIVE TOPICS IN CONFLICT AND NEGOTIATION
STARTEGIES

In the subject of Conflict Management and Negotiation Strategies, our group decided to choose
5 chapter that are related in this The Founder movie. The chapter that we choose is from
Chapter 1 is Conflict, Chapter 2 is Negotiation and Its Components, Chapter 3 is Conflict and
Personality, Chapter 5 is Key Negotiating Temperament and Chapter 6 Communicating in
Negotiation.

CHAPTER 1: CONFLICT

In this chapter, conflict is defined as happen to individual group, society or even the
countries. It happen because of difference in opinion, idea, interest and needs. Based on the
movie, we can found that there is conflict between Ray Kroc with Dick and Mac after Ray Kroc
have been part of the McDonald. For example, in this movie, Ray Kroc was impressed by the
brother’s “Speedee System” of making the food and saw franchise opportunity. So, he make a
decision to be part of the McDonald. Therefoe, Ray Kroc agreed to sign a contract with Dick
and Mac after they are willing to accept Ray Kroc’s ideas. Based on the contract, everything
that related to business decision must go through the McDonald bothers. Ray expands the
McDonald’s restaurants through the franchises and creates a multi-billion dollar empire.
Through the expanded of the McDonald, Ray Kroc has breach of contract because he is doing
his business without go through the McDonald brother and make them very disagreeable with
Ray Kroc. Then, the conflict arise between them that they find themselves having
disagreements.

Furthermore, we have identified the type of conflict which is constructive conflict and
destructive conflict. Based on the movie, the type of conflict that happen between Ray Kroc with
Dick and Mac is constructive conflict which is positive competition. For example, Ray Kroc
has make well negotiated legal contracts with McDonald brothers, he was agree with the term
that has been stated in the contract but after he successfully expand the McDonald’s restaurant,
Ray Kroc has breach of the contract and add to competitive advantage. Truthfully, he is not
satisfied because he encounter financial difficulties as his share of franchise profits is limited
due to his contracts. The McDonald brothers declined to renegotiate the share and refuse all
the idea that Ray Kroc presented.

9|Page
In addition, he found a way to compete with McDonald brothers by leverages over his
franchisees and incorporates a new company, Franchise Realty Corporation. It is help by Harry
Sonneborn, a financial consultant, that help Ray Kroc attract new investor to his company. He
was successfully doing his business by providing powdered milkshakes to all franchisees.
Then, he named his company to the McDonald’s Corporation and putting the brothers out of
business.

Apart from that, we also identified the other style of conflict which is destructive
conflict. The element that has been found in destructive conflict is frustration. For example,
that we get from the movie is the idea of Ray Kroc always being opposed by the McDonald
brothers such as using powdered milk; tie up with Coca Cola, basement in store and
renegotiation on contract terms. Instead of giving up, Ray Kroc tolerate the frustration for the
time being, from he had lesser power then he found way and rules to make himself more
powerful than McDonald brothers. He also successfully controlled the business terms and
conditions.

Moreover, we also discover the stage of conflict which include 5 stage. The 5 stages
are stage 1 is inertia, stage 2 is identified, stage 3 conscious, stage 4 is demonstration or
manifestation and stage 5 is impact. The stage that we have identified in the movie is stage 3,
conscious. The meaning is the more negative action they take in order to let the others
collapse. In this movie, there is a scene whereas Dick and Mac are disagree with the way Ray
Kroc involved in the business. Ray Kroc found a way to compete with McDonald brothers by
leverages over his franchisees and incorporates a new company, Franchise Realty Corporation.
It is help by Harry Sonneborn, a financial consultant, that help Ray Kroc attract new investor to
his company. He is successfully doing his business by providing powdered milkshakes to all
franchisees. McDonald brothers has been aware of Ray Kroc’s successful in franchisees and
incorporated a new company. Ray Kroc has made a decision to buy original McDonald’s
restaurant from the brothers and intentionally put them out of the business. This decision has
send Mac into diabetic shock and been warded in the hospital. Ray visit him and offer them a
blank check to settle their conflict. Mac said to Dick that they could not beat or get rid of Ray
Kroc and had to agree sign contract with him.

10 | P a g e
CHAPTER 2: DEFINING NEGOTIATION AND ITS COMPONENTS

The negotiation is define as a process of solving an argument and conflict via talks and it
also can be defines as the process of negotiating to solve problem and seek mutual agreement.
Based on the movie, we have identified the negotiation between Ray Kroc with Dick and Mac. It
started when they first met in 1954, Dick and Mac McDonald requested six Prince Castle milk
shake machines for immediate delivery from Ray Kroc. He is known as salesperson selling
Prince Castle brand milkshake mixers. Ray Kroc met Dick and Mac, who were running a burger
operation in Southern America. Ray Kroc found McDonald is popular restaurant with fast
service, high-quality food, disposable packaging and a family-friendly atmosphere. He found an
opportunity to get involved and be part of the McDonald as franchisor. Hence, he suggest the
brothers to franchise the restaurant, but they were hesitate due to the past experience. Dick
and Mac told Ray Kroc that they have tried to franchise but they have failed. To solve of their
problem, Ray Kroc try to negotiate and eventually convince them that he can help them run the
business by letting him to be part of the McDonald as franchisor. After listen to what Ray Kroc
has explained, the brothers start thinking that Ray Kroc can help them and agree to have Ray
Kroc in their business. The brother have decided to make a legal contract to deal with Ray Kroc
and has state the franchising effort on the condition of the contract.

In chapter 2, we also focus on a sub topic under the chapter which is when you should
not to negotiate in the movie. The situation of choose not to negotiate is when the demand
are unethical. The meaning of it is do not negotiate if your counterpart asks for something you
cannot support because it’s illegal, unethical or morally appropriate. Based on the movie, After
Ray Kroc have been part of the McDonald and successfully run the franchisees. Despite his
success, Ray Kroc begin encounter financial difficulties as his share of franchise profits is
limited due to his contract. Ray asked to re-negotiate the contract, the brothers were unwilling
to share the growing wealth with Ray Kroc, keeping him locked into a low profit percentage
agreement while he did all the franchising work with high risks involved. Ray Kroc only earned
a mere 1.4% on every 115-cent hamburger sold. He became more competitive since he was
been part of the McDonald, he has successful expands the McDonald by franchisees and he
also came out with many ideas but his idea was rejected by Dick and Mac. Then, he asked the
brothers allow him to use of sponsorship but they refuse to allow him because they fear of
ruining the image of their restaurant. Ray Kroc make decision to breach of the contract since he
found themselves having disagreement. Moreover, he found a way to make him powerful and

11 | P a g e
be controlled the business with the help by Harry Sonneborn. He is financial expert that make
Ray Kroc realize that the real opportunity is still exist by gave Ray Kroc a new perspective that
Ray Kroc was not in the food service, he was in the real estate business. Harry showed him
another way of making money off deal with McDonald brothers on selling hamburgers and
franchisees. This new way involved creating a real estate company that would buy up the land
on which all McDonald’s would be located and putting the McDonald brother out of the
business.

Furthermore, other than when the demand are unethical, we also discover the situation
of when they act in bad faith. The meaning of it is stop the negotiation when your counterpart
show signs of acting in bad faith. If you cannot trust their negotiating, you cannot trust the
agreement. In this movie, the example of that situation is when Ray Kroc successfully be the
president and CEO of the McDonald’s Corporation and he want to buy the original restaurant in
San Bernardino from the brothers. The news of which sends Mac into diabetic shock and had
been hospitalized. Their controlling manner lead to Ray Kroc’s growing dissatisfaction toward
them. The brothers played the victim card well and seen Ray Kroc as the “fox in the ten house”
without taking their any responsibility for acting like saboteurs. They were shock and speechless
of what Ray Kroc want from them. They immediately want to stop negotiate with Ray Kroc
because they cannot trust the agreement. Hence, Ray Kroc has more powerful than them, he
has use his authority to make both of them followed what he has decided. The brothers finally
give up and follow Ray Kroc’s decision while their heart are not willing to do so. They agree to a
$2.7 million lump sum payment, ownership of their original restaurant in San Bernardino, and a
1% annual royalty, but when the time comes to finalize the agreement, Ray refuses to include
the royalty in the settlement and instead offers it as a handshake deal. At the end, McDonald
brothers were never get their business royalties, the amount that they did not receive which
could amount $100 million a year.

12 | P a g e
CHAPTER 3: CONFLICT AND PERSONALITY

Personality
Personality can be defined as dynamic, developing system of an individual’s unique emotional,
cognitive, and spiritual attributes.

Components of Personality that Affect Interaction in Negotiation.

1. Locus of control
Locus of control can be defined as the degree to which you take blame or responsibility
and a person believes he or she is the master of what happens to him or her. There are
two types locus of control that we have learn in this chapter which are external locus of
control and internal locus of control. Based on the movie, we figure out that both of
these local of control was use by the actor.
The first one is external locus of control. External locus of control can be defined
where the individual believes that his or her behavior is guided by fate, luck or other
external circumstances. Based on the movie, the external locus of control that we find in
the scene when Dick was bickering with Ray when Ray ask to increase his percent in
the company from 1.4 to 4 or 3.5 percent. Dick put the blame on Mac about what was
happen to them. This is because Mac is the one that offers a little tour in the kitchen to
Ray and he convince Dick to agree by doing the Franchise with Ray.
The second one is internal locus of control. Internal locus of control can be defined
where the individual believes that his or her behavior is guided by his or her personal
decisions and effort. Based on the movie, the internal locus of control that we find in the
scene where Ray put the blame on himself because he does not fully understand the
contract before put down the signature on it. Then, because of his action, he only
received 1.4 percent from the profit in a month and cannot afford to pay for the
refrigeration cost which causes him a lot of debt.

13 | P a g e
2. Type A
Type A personality can be defined as a temperament characterized which a person
tends to be impatient, workaholics, drive themselves with deadlines, extremely time-
conscious, incapable of relaxion, unhappy about the smallest of delays, insecure about
their status, aggressive, highly competitive and hostile. Based on this movie, we figure
out some behavior of the actors that lead to this type A personality.
The first actor that we figure out is Ray Kroc. Based on the movie, we can see that Ray
is someone that unhappy about the smallest delays. To illustrate, based on the scene
when Ray become angry to Mac and Dick when he finds out that the brothers did not to
give yet their approval to add basement and a furnace to his franchise plus he will break
the ground in two weeks. Besides that, Ray also someone that very impatient about
something. Based on the scene at the site construction, Ray heard that Mac and Dick
disagree to deal with Coca-Cola for sponsor menu boards, Ray immediately called them
to explain what is actually happen. During the phone call, they have argue and it makes
Ray impatient that makes him hang up the phone before Dick finish talking.
The second actors that we figure out are Mac and Dick. Based on the movie, we can
see Mac and Dick are insecure about their status. Based on the scene when they
received a letter that Ray calling his Des Plaines store is the McDonald number one.
Mac and Dick feel uneasy about the news because they are the real owner of McDonald
and Ray make the statement without their knowledge.

3. Acquired needs theory

Acquired needs theory was developed by David McClelland. The acquired needs theory
proposes that certain types of needs are required during an individual’s lifetime. There
are three needs that we learn in chapter 3 which are needs for achievement, needs for
power and needs for affiliation. Based on the movie, we figure out that all the theory
was use by the actor and actress.
The first one is needs for achievement. This need can be defined as the desire to
accomplish something difficult and the person who has high need for achievement tend
to focus on achievement and responsibility. Based on the movie, we can see the scene
on how Ray trying his best to spread the news about McDonald and went to several
event by looking for people that can be a part of McDonald’s family. Luckily, most of the
people want to join him and the result show that he success to open another franchise.

14 | P a g e
The second one is needs for power. This need can be defined as desire to influence or
control others, be responsible for others and have authority over others. Based on the
movie, we can see from the scene when Ray meet Harry Sonneborn and he convince
Ray to involve in estate business. Ray finally success in the estate business with help
from Harry by buying the land from each of the franchise and he become the President
of Franchise Realty Corporation. Since Ray has power and authority, he success in
controlling Mac and Dick.

The last one is needs for affiliation. This need can be defined as a harmonious
relationship with other people and the person who has a high need of affiliation tend to
focus on relationship and love. Based on the movie we can see how much Mac concern
towards his brothers. For an example, Mac know that is Dick’s dream to develop their
business and he try to convince Dick to accept the Ray’s idea to open a franchise.
Then, since customers is always priorities to them, Dick create a “Speedee System” that
makes food can be deliver within 30 seconds to their customers.

15 | P a g e
CHAPTER 5: KEY NEGOTIATING TEMPERAMENTS

In chapter 5, we choose the sub topic which are key areas of personality and key negotiating
temperaments. Temperament is biologically determined and can be identified form early
childhood Strelau (1987).

Key areas of personality

The first key areas of personality is our personal sources of energy which is consist of
extroversion and introversion. Extroversion is a person who is outgoing, love to interact with
other, always seek out of excitement and like to taking risk (Wilt & Revelle, 2008). Meanwhile,
introversion person is more interested in an internal environment, prefer listen than talking (Lu &
Hsiao, 2010). Based on this movie, we discover that the main character which Ray Kroc is an
extrovert. In this movie, Ray Kroc personality are very outgoing and always seek out of new
opportunities rather than sitting and doing nothing. We can see from the scene where Ray Kroc
discover about Mc Donald’s and he directly talk to the owner to be part of the Mc Donald’s.
Furthermore, he also very energetic and like to talk more than listen. This kind of personality of
Ray Kroc shown when he expresses his ideas to Mac and Dick about franchise. We also learnt
that Ray Kroc always refuse to listen to those brothers by hanging out the phone when they are
not finish talking yet and he always want to be the one that do the talking. Besides that, we also
learn that those two brother which are Mac and Dick is an introvert. We can see how they are
more reserved and less engaged in sociable situations. In their business, both of them prefer
just to be known among local rather than expand their business worldwide.

The second key areas of personality is the way we take in information which is
consists of sensing and intuiting. Sensing learners are practical, realistic and focus more on
external world while intuitive learners enjoy abstract thought, day dreaming and imagining the
future. In this movie, we believe that Ray Kroc intuitive learner based on the scene where he
drives around small town in America and he discovers some good ideas where he wants
McDonald’s to be recognize as a place where it represents America. He also planning to
expand McDonald’s to be bigger than it was. Ray Kroc also more interested in future
possibilities and it shows at the end of the movie when he told Dick that he is not interested in
stealing their ideas and come out with his own restaurant because he knows that it will fail. He

16 | P a g e
has been thinking for future that McDonald’s is special not because of the “Speedee System”
but the name itself.

The third key areas of personality is the way we process information which are
thinking and feeling. A person who possess thinking in process information are likely more firm
minded, uncaring, cool and calm. Meanwhile, a person who is a feeler is tenderhearted, prefer
harmony and more personal. In this movie, Ray Kroc can be categorized as a person who
possess thinking in process information because he is very firm minded during his negotiation
with Mac and Dick. In a mean time, we noticed that the character named Mac which is the
brother of Dick is a feeler. There are few scenes show that he always thinks positive regardless
how Ray’s behavior toward Dick. He is a person who prefer harmony when he convince to his
brother that Ray Kroc has no bad intention and he is just excited when he hang up during
talking with Dick.

The forth key areas of personality is the way we interact with outside world which are
judging and perceiving. Judger always plan their work and follow the plan. Judger also have a
strong opinions and make decisions too quickly while perceiver is flexible and spontaneous
person. Based on the movie, Ray Kroc has the characteristics as a judger which are he is very
scheduled and always plan his work. After he signed the contract with Mac and Dick, he plans
his next move very precisely and he managed at the end to become the founder of McDonald’s
successfully and kick Mac and Dick off the business.

Key Negotiating Temperaments

There are four key of negotiating temperaments which are harmonizer (pacifier),
controller (bull), pragmatist (street fighter) and action seeker (high roller). For this movie, we
only found one negotiating temperaments which is controller (bull) that is relatable with the
main character, Ray Kroc. Controller is combination of intuitive and judging whereby they have
organized plan, they see big picture and approach problem with broad perspective, they are
impatient for decision and resolution and they are firm. From this movie, we can see clearly that
Ray Kroc is a controller when he saw problem in Mac and Dick’s business when they try to
implement franchise and it fail. Therefore, Ray see a broad perspective and try to convince
those brother with his ideas. More than that, Ray Kroc is impatient when making a decision.
For example, he is impatient in waiting for approval from Mac and Dick to build his first

17 | P a g e
franchise. He argues with Dick and he refuse to listen to him by hanging up the phone while
Dick was talking that showing how impatient he is.

18 | P a g e
CHAPTER 6: COMMUNICATING IN NEGOTIATION

In the chapter 4 is about the communicating in negotiation, we choose the sub topic from this
chapter that is five process of communication and type of communication. The Founder movies
is related with this chapter. Communication is the effective transfer of intended meaning and it
is a two way process which included listener and speaker. According to Keyton (2011) define
the communication is the process to transfer any information and common understanding from
one person to another. However, DeVito (1986) explain that communication is the process or
act of transmitting the message from a sender to a receiver by a channel and with the
interference of noise. The message transmission is to convey meaning in order to bring about
change.

SOURCE ENCODING CHANNEL DECODING RECEIVER

FEEDBACK

Figure 1: Model of Communication Process

In the Figure 1 is show the model of communication process. The process start with source,
encoding, channel, decoding and receiver.

1. Source
The first process in communication is source which the sender that send the message or the
person who originates the message and the person or source is sends the messages to the
receiver. From this movie we can see that the sender in this process is Ray Kroc, there some
scene where he want to send a message to the two brothers which is Mac McDonald and Dick
McDonald. The message that he want to send is happen when Ray Kroc give an idea and
convey a suggestion to them about to make a franchise on their business which is want to
expand the McDonald to other locations. Ray Kroc also persuade the McDonald brothers about
his idea and want to make sure that they understand what he was convey and to make they will
accept the suggestion the he make.
19 | P a g e
 2. Encoding
Encoding is the structuring the message that will send complete to receiver and the receiver
also clearly understand the message. In this movies shows that Ray Kroc has the message that
he want to deliver to Mac and Dick which is about an idea to open a franchise. While Ray Kroc
say the word franchise to them, Mac and Dick are not understand and do not get what he try to
says. Then, Ray Kroc explain more to them about want to open franchise and he also use a
body gesture by using his hand and keep repeat many times the word “Franchise” to make sure
that Mac and Dick understand want he want to say.

3. Channel
Channel is the medium used to send the message which the carrier of the communication. The
channel or medium can be face-to-face meeting, telephone call, e-mail, videoconferencing or
written report. Our group are see that channel are using by Ray Kroc is face-to-face meeting to
transfer the message, it show that from the scene where Ray Kroc are prefer to discuss about
his idea by meet the McDonald brothers. After he introduced his ideas, they continue the
discussion at the McDonald brothers’ office room. It shows that all the discussion that happen
between them is by face-to-face meeting. The reason why Ray Kroc using face-to-face channel
is because he sees he can persuade Mac and Dick to accept his idea. Therefore, he need to
talk in front of them to make it easily to convince these two brothers.

4. Decoding
Decoding is the act of interpreting messages, receiver perceptions, and understand of the
message. As we can see in the movie, decoding happen when after Ray Kroc tell Mac and Dick
about his idea and they understand the message that he was delivered to them, but the reaction
from them is show that they are not interested because they already have a failure experience
to do the franchise. Then, Ray Kroc still not giving up and try to negotiate as well as persuade
them to agree with him. Lastly, after they listening and understand what he said, they agree the
idea from him to do franchise and sign the contract.

20 | P a g e
 5. Receiver
Receiver is the person who is receive the message and who attends to the source’s message.
The receiver in this movie is Mac and Dick, they get the message that Ray Kroc give and they
also respond the message. From the explanation that he gave, they finally understand the idea
from Ray Kroc. Mac and Dick respond to the message from Ray Kroc by agreeing the idea that
he has suggest.

The conclusion from this process that based on the movies is Ray Kroc are choose face-to-face
meeting to discuss with Mac and Dick. We can see that face-to-face meeting is the effective
communication when we want to persuade or negotiate someone. This is proof that in the
movie which is Ray Kroc are successfully persuade the McDonald brothers to agree with his
idea and all the negotiation process happen is by face-to-face meeting.

Next is about eight types of communication. In this communication are divided into two types
which is Traditional Communication and Contemporary Communication. According to this
movie, our group are see that traditional communication are more related. In the traditional
communication, there are four types which are listening face to face, speaking face to face,
writing on a paper, and nonverbal communication.

1. Listening face to face

In the movies, listening face to face occurs when Ray Kroc invites the McDonald brothers to
dinner, and he was listening how they successfully design the fast service with high quality
services from McDonald brothers. Other than that, we can see that there is a scene show
where the McDonald brothers discuss and they listening through face to face with Ray Kroc
when he negotiate them to open a franchise in other location.

2. Speaking face to face

Speaking face to face happen when Ray Kroc try to influence others people to collaborate with
him to open franchise. He meet many people to ask and persuade them to joining him to open
franchise and this occurs through speaking face to face. Besides that, we can see in the scene
where Ray Kroc feeling angry with their friends who is their partner that are not really care about
the restaurant. They make the restaurant chaos with the garbage is everywhere, wrong number
put the pickles in the burger and overcooked it, also have another store sells fried chicken. Ray

21 | P a g e
Kroc meet and scolded them for what they have done, this scene show that he was speaking
through face to face with them.

3. Writing on a paper
Our group also found the scene that show they are using paper to communicate which occurs
when Ray Kroc send a letter to McDonald brothers to inform them about he was open the three
new franchise and others information he want to inform to them. Ray Kroc also send a letter
that change the name of McDonald’s with The McDonald’s Corporation on letterhead as their
official company name.

4. Nonverbal communication
Based on the movie, nonverbal communication showed when Ray Kroc are have a dinner with
his wife which is Ethal, and he ask for a divorce without looking at his wife. Other nonverbal
communication happen when Mac are watching his brother talking with Ray Kroc on the phone,
he just show a body language when he ask what happen, feel surprised, show when he agree
with Dick and feel worried while Dick talk with Ray Kroc.

22 | P a g e
CONCLUSION

In conclusion, through the movies “The Founder” our group can summarize that is a true
event about how Ray Kroc successfully open McDonald’s franchise in 17 locations and become
a president of McDonald Corporation by get it from McDonald brothers. In this movies show the
persistence of Ray Kroc that really strive to make the McDonald’s become a world biggest
restaurant business. The way he make the McDonald’s become a famous restaurant is from
the intensity of him that don’t want to stop to expand the franchise to the other locations. We
can see that the conflict started when Ray Kroc want to make a changes without tell McDonald
brothers first and next he also renegotiate about the profit that he receive and persuade them to
get more profit from what he get. During he was expanding the franchise, Ray Kroc always
make a decision without get an approval from McDonald brothers and this cause the conflict
and relationship between them become more serious. When this happen, Ray Kroc have an
idea to buy McDonald’s restaurant from them.

After Ray Kroc succeed open franchise in many location, he brings a blank check to
McDonald brothers and ask to buy the company and they agree with a condition that they want
2.7 million each of them. After they agree, Ray Kroc get the McDonald’s and call itself as the
founder of the McDonald’s Corporation even though the original founder is the McDonald
brothers. In the end of this movie, Ray Kroc become the president of McDonald’s Corporation
and he also married with Joan Smith and appoint Fred Turner as a Senior Manager in
McDonald’s and Harry Sonneborn was the CEO of McDonald’s Corporation. Ray Kroc
successfully bring McDonald to become a world famous restaurant and we can see that in each
country have a McDonald’s restaurant.

Besides that, our group also found several moral value that we can learn from this movie
which is never giving up to achieve your dream. As we can see that Ray Kroc are fail in selling
milk shake machines and he still not give up at first failure but keep going on to find others
opportunities to be successful. Ray Kroc see that McDonald’s can make him success in
business and he also not giving up to persuade and convince McDonalds brothers to agree with
his idea to open a franchise. Next is persistence, we need to be persistence at whatever we
want to do. From what we have watch from the movies, Ray Kroc mentioned that the secret he
become successful is we need to be persistence. He is persistence in whatever he do, he also
seek any way that can make McDonald’s become famous. Even though the McDonald’s

23 | P a g e
brothers are always oppose his idea to make an improvement in McDonald’s but he keep on do
it as long as McDonald’s will be successful. Ray Kroc always believe that hard work and
unrelenting perseverance which lead him to become success. Other than that, we learnt to
become ingenious. We can see that Ray Kroc is someone that really clever in business. He is
so smart to find any opportunities to make McDonald’s success even have many obstacles from
McDonald’s brother and problem in bank loan. He know how to handle the problem and find
others way to solve his problem.

In addition, do not easily trust people especially the stranger as Mac and Dick that
easily trust Ray Kroc by telling him the secret of speedy in McDonald’s and bring him to their
kitchen. At first, they do not expect that Ray Kroc have bad intention and idea to make a
franchise on McDonald’s, and by giving him about their secret it make Ray Kroc are thinking
further to take over the McDonald’s from them. Lastly, we have learnt that courageous is
important in this movie. In running a business we need to be brave like Ray Kroc that are
bravely find and meet people to persuade them to joining him in opening the McDonald’s
franchise. He also do not feel ashamed to approach people and invite them to join him, as
example he approach Leonard Rosenblatt who is the Jewish to invite him to open a franchise.
Other than that, there’s a scene show that Ray Kroc meet many people and give a talk to
persuade them to be successful by be a partner with him on opening franchise at their locations.

In other words, from our opinion that The Founder is one amazing movies and give us
many lesson about relationship and in handling business. This movie also increase our
understanding and knowledge about our subject which is Conflict Management and Negotiation
Strategies and based on this movies it’s related to our subject that we can apply it to complete
our assignment. From this movies also we can know how the conflict situation and how to
negotiate people successfully. Ray Kroc claimed himself as the founder of McDonald’s
Corporation but through this movie our group can appraise and know who is the truly the
founder of McDonald’s.

24 | P a g e
REFERENCES

1. Keyton, J. (2011). Communication and organizational culture: A key to understanding

work experience. Thousand Oaks, CA: Sage.

2. DeVito, J. A. (1986). The communication handbook: A dictionary. New York: Harper &
Row.

3. NetMBA.com. (n.d.). Retrieved from

http://www.netmba.com/mgmt/ob/motivation/mcclelland/

4. Pamnani, H. (2017, January 25). 10 Business Lessons from Movie 'The Founder'.
Retrieved from https://www.entrepreneur.com/article/288156

5. Collin, R. (2017, February 16). The Founder review: Michael Keaton's McDonald's tale is
all bun; could use more meat. Retrieved from
https://www.telegraph.co.uk/films/0/founder-review-michael- keatons-mcdonalds-tale-
bun-could-use/

6. The Founder (2016). Retrieved from https://www.imdb.com/title/tt4276820/plotsummary

25 | P a g e
 7. Strelau, J., & Eysenck, H. J. (Eds.). (1987). Perspectives on individual differences.
Personality dimensions and arousal. New York, NY, US: Plenum Press

8. Wilt, J., & Revelle, W. (2009). Extraversion. New York, NY: Guilford Press.\

9. Lu, H.-P., & Hsiao, K.-L. (2010). The influence of extro/introversion on the intention to

pay for social networking sites. 47(2).

APPENDICES

26 | P a g e
27 | P a g e