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SMP10903
PRINCIPLES OF MANAGEMENT
Semester 1 Academic Session 2022/2023
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CASE ANALYSIS

Lecture Name:

N GROUP MEMBERS MATRICS NUMBER

O
1. TANG YUN WEI 221220831
2.
3.
4.
5. RAHMAT MU’AYYAD BIN YUHASRIL 221220786
Based on the film "The Founder (2016)", answer the following questions. Justify your
answers by referring to events/scenes from this film.

1. Describe Ray Kroc's personality and the traits of a successful leader.

Through watching the movie, The Founder 2016, Ray Kroc's first personality is having a
strong identity and high integrity. This is because he does not give up easily when he fails
and does not have enough funds in the process of starting his business. He is also trying to
find sufficient funds to continue expanding his business. For example, he has promised his
own house to the bank simply to get a loan from the bank. He is only determined to grow his
business in a big way and get a lot of profit.

2. How were the McDonald brothers compared to Ray Kroc regarding expanding the
business?

The McDonald brothers expanded their business by wanting to make a profit only and did not
care about the process, but Ray Kroc was not the same as them. Although Ray Kroc wants to
make a profit, he is very focused on the process. For example, Ray Kroc is very concerned
about the process of making the burger with what has been set must be carried out correctly
such as a burger must put two slices of cucumber and the burger must put two slices of
cucumber cannot be. Not only that, except for the focus on the process, Ray Kroc also takes
care of the image of his store such as the cleanliness of the store.

3. Discuss Ray's problems when he first tried franchising McDonald's in multiple

locations.
4. McDonald’s utilizes specialization and division of labour. Identify precisely where in
their production they incorporate these concepts.
5. Harry Sonneborn advised Ray Kroc to change the business model. Explain the problem
with the old business model and describe the new business model proposed by Harry.
6. "Speed is the name of the game". Describe this notion and explain how this was
achieved at McDonald's at that time.
7. Ray Kroc forced out the company's founders to completely control McDonald's. Was
his behaviour ethical? Explain why/why not.
8. Explain McDonald's distinctive competencies that make them unique compared to
others during that time.
9. Discuss organizational control by referring to and relating to McDonald's operations
in the film.
The systematic process through which managers regulate organizational activities to make
them consistent with the expectations established in plans, and to help them archieve all
predermined standards of performance. What organizational control I can see is:

Find what doesn’t work and fix it - The McDonald brothers noticed this at their last
business and thought they could fix it. They developed their'speedy service system' by
looking at how they might reduce the time it took to produce meals, switch from delivery on
plates to throwaway paper bags, have guests walk up rather than having serving workers visit
them in their cars, and so on. They also made certain that team members were treated with a
smile, and all of these measures drew the targeted clientele.

Get the systems right - Ray Kroc observed a fantastic system in the McDonald brothers. The
brothers had worked hard to ensure that the system was perfectly designed, down to the
temperature and duration of cooking fries (chips!) to ensure they were just right, ensuring that
each hamburger had exactly the right number of pickles, that every product looked the same
every time, and that stage of production was placed in the perfect location to ensure proper
worklflow. They were then obedient to the system and its constant development.

Choose business partners wisely - In the film, Kroc was desperate for a piece of the
McDonalds action and made a formal arrangement with the McDonald brothers. This was the
entire concept of the film, as the brothers refused to allow Kroc to modify systems and
processes. Kroc found the brothers to be inflexible and unadaptable to business opportunities.
Distrust grew between the brothers and their business partner, causing tension between the
brothers. Kroc bought out of the contract in 1961.
10. From the film, cite examples of some incidences/events of the clash between the
McDonald brothers and Ray Kroc. How could you have solved those issues as a savvy
Manager.

Handshake of the clown - Ray Kroc forced the McDonald brothers to enter into an
agreement solely on the basis of a handshake because he intended to break their promise to
give $2.7 million, ownership of the San Bernardino store, and one percent of the company's
profits. The McDonald brothers could not afford to turn down this offer because Ray Kroc
owned a portion of their franchise business. Ray Kroc put the McDonald brothers in a
position where they had no choice but to obey him. We must always act honestly, especially
in business. Any agreement must be honoured since every agreement is based on both parties'
good faith, 12 and if fraud happens within the organisation, we will be unable to achieve the
company's goals.

Quality and money - The McDonald brothers were more concerned about product quality
and consumer satisfaction. Ray was more interested with generating money by rapidly
expanding the firm. As a result, they had disputes, and their phone talks were brief.
Subordinates in an organisation must follow out their commands, which are typically
motivated by the company's aims. To avoid employee disagreements, management must
ensure that everyone follows the norms that have been set. All staff must be made aware of
and understand the objectives.

Breach of an agreement - Ray Kroc has violated the franchise agreement between the
McDonald brothers by bringing and introducing Inst-A-mix, which is instant milkshake
powder, into McDonald's; even the McDonald brothers will not agree on it, but they had to
because they do not have a written agreement; even though Dick claims they have a contract,
Ray will not back down, claiming that "contracts are meant to be broken," just like hearts. As
a wise manager, I will provide guidance and ensure that my employees do not replicate Ray
Kroc's method. They must act in good faith to comply with the agreement reached by both
sides. Furthermore, my employees cannot acquire Ray Kroc's arrogant demeanour.
 REFERENCE

1. https://en.wikipedia.org/wiki/The_Founder
2. https://www.imdb.com/title/tt4276820/
3. https://soap2dayhd.ru/home