1.

Introduction

This assignment meant to develop learners’ ability to identity and analyze the
different roles played by managers in organizations. In this assignment, we will look at
four different management functions that Ray Kroc performed to make McDonald's a
global brand. To analyze this, we saw a movie called "The Founder" about the true story
of Ray Kroc, a travelling salesperson who franchised the two brothers' modern fast-food
restaurant, McDonald's, into the world's largest restaurant business. The film "The
Founder" was launched on December 16, 2016, directed by John Lee Hancock and written
by Robert Siegal.

Picture1: The Image of Ray Kroc

Ray Kroc was the surname of Raymond Albert Kroc, a well-known American
businessman. He was born on October 5, 1902 in Oak Park, Illinois, to Czech parents, and
died on January 14, 1984 in San Diego, California, at the age of 82. Ray Kroc's first two
spouses, Ethel Fleming (1922–1961) and Jane Dobbins Green (1963–1968), divorced him,
while his third wife, Joan Kroc, remained by his side until his death. Kroc began taking
piano lessons as a child and demonstrated his entrepreneurial instincts by founding a
lemonade stand and working at a soda fountain. He served in World War I as a Red Cross
ambulance driver by lying about his age was 15 years old. After the war, Kroc considered
a variety of occupations, including pianist, musical director, and real estate salesman.
Finally, as a salesperson for the Lily-Tulip Cup Company, he maintained a sense of stability
and rose to the position of Midwest sales manager. After that, Kroc started a business
relationship with Earl Prince, the founder of an ice cream shop who created a machine that
could make five batches of milkshakes simultaneously.

Kroc as a traveling salesman promoting milkshake mixers, he generally out and about
moving between various drive-in restaurants. So, he always experienced poor quality foods
and bad services. In 1954, Kroc arrived to a eatery in San Bernardino, California, founded
by the McDonald brothers, Richard "Dick" and Maurice "Mac," which supposedly needed
a number of his milk shake machines. Kroc became inspired by the complete concept of
drive-in restaurants, which focused on high-quality food with a easy menu (burgers, fries,
soft drinks, and shakes), as well as the efficiency of the business, which catered to
customers quickly in an assembly-line style. The brothers had tried franchising but failed
to control over the aspects which made their first restaurant successful. Thus, Kroc
proposed to fill in as their head of franchising with a strict agreement by the McDonald
brothers.

Ray Kroc founded McDonald's System, Inc. in 1955 and launched the company's
first new restaurant in Des Plaines, Illinois. While attempting to gain attention from the
rich financial backers to open franchises, however, confronted similar helpless
management ethics. As a result, Kroc chose to franchise with middle-class investors who
are eager to participate and follow the McDonald's equation. This idea was effective, and
more McDonald's franchises began to develop across the Midwest, with Ray Kroc referring
to himself as the company's founder. Regardless of his prosperity, he starts to experience
monetary challenges as his portion benefits is restricted because of his agreement and he
called to the bank as his home loan is past due. Following the counsel of financial expert
Harry J. Sonneborn, Kroc realises that the real benefit possibility is in leasing land to
franchisees, which will not only provide an income stream but also give Kroc control over
his franchisees and the McDonald siblings. Kroc starts to progressively oppose the
McDonald siblings and go around their power. He renames his company The McDonald's
Corporation and asks to be relieved from his restrictive contract. Sonneborn was
responsible for securing a $2.7 million loan that enable Kroc to buy the organization in
1961. The brothers agree to a $2.7 million payment in exchange for ownership of their San
Bernardino restaurant and a 1% yearly royalty, but Kroc refuses to include the royalty in
the settlement agreement. At last, Kroc put the McDonald brothers out of business and
purchased the rights to the McDonald's name and operating system.

From 1955 to 1968, Ray Kroc was president of McDonald's, and from 1968 to 1977,
he was executive of the board of directors. In 1977, he was moved to the position of senior
administrator, which he held for the rest of his time. McDonald's had 7,500 locations in
roughly 36 countries and was valued at $8 billion at the time he died of a cardiovascular
breakdown at Scripps Memorial Hospital in San Diego, California.