The Founder Movie

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ACTIVITY 1. ANALYZING “THE FOUNDER MOVIE”.

Members: José Miranda, Mariana Perez, Victor Rozo and Victoria Ramirez.

1. What do you believe were the main factors that contributed to McDonald's
initial success, as portrayed in the movie?

The movie emphasizes the importance of the McDonald brothers' operational


efficiency, which revolutionized the fast-food industry with a focus on a limited
menu and optimized processes to provide fast and consistent service. This
approach was crucial for the chain's initial success. Additionally, McDonald's
ability to innovate and adapt to market trends, such as introducing new
products like the Egg McMuffin, was vital for its growth and acceptance by
consumers.
The film highlights the franchise business model as a key factor in McDonald's
early success, enabling rapid expansion without significant capital investments
and reaching a broader audience, thus achieving McDonald's initial success.

2. What business strategies did Ray Kroc implement to differentiate


McDonald's from its competitors and establish it as a leader in the fast-
food industry?

Ray Kroc implemented revolutionary and innovative business strategies that


differentiated McDonald's from its competitors and established it as a leader in
the fast-food industry, such as his focus on expansion through franchising, his
emphasis on product consistency and quality, his operational efficiencies to
differentiate himself and his development of a business model focused on
speed and convenience for customers, and his quest to always maintain
McDonald's family focus.
3. What is your opinion on Ray Kroc's business ethics, especially in relation
to his dealings with the McDonald brothers and other franchisees?

Ray Kroc's business ethics have sparked debate due to his aggressive
approach in expanding McDonald's. While he is credited with taking the brand
to a global scale, his relationship with the McDonald brothers and other
franchisees has been questioned. Kroc took the original concept from the
brothers and turned it into a mega-franchise, but he is criticized for displacing
them and not adequately recognizing their contribution. Additionally, it's been
noted that he imposed unfavorable contracts on franchisees, leaving them in
challenging financial situations. His commercial legacy is complex and varies
depending on each individual's interpretation.

4. What lessons can we draw from the movie in terms of business


leadership and strategic decision-making?

"The Founder" provides a deep insight into the world of business leadership
through the story of Ray Kroc. Several key lessons are highlighted, such as the
importance of having a clear vision and tireless determination to achieve
business success. Kroc demonstrated exceptional ability to adapt and
innovate, recognizing the potential of the McDonald brothers' fast-food
restaurant system and taking it to a global scale.

Furthermore, the movie underscores the importance of maintaining ethical


business relationships. The way Kroc treated the McDonald brothers and other
franchisees raises questions about loyalty and fair treatment in business
relationships. It also emphasizes the significance of strategic decision-making,
as Kroc's decisions to rapidly expand the chain and focus on standardization
are clear examples of strategies that can drive business growth.

In summary, "The Founder" offers a range of valuable lessons on business


leadership, innovation, ethical business relationships, and strategic decision-
making, all of which are crucial for long-term business success.

5. How do you think McDonald's and Ray Kroc's story reflects the
challenges and opportunities that companies face today?

The history of McDonald's and Ray Kroc reflects challenges such as the limited
business vision of the McDonald brothers compared to Kroc's expansion
ambition, the need to adapt to market trends, and the challenges in protecting
intellectual property. On the other hand, it presents opportunities in scalable
business models through franchises, the power of building recognizable brands
and effective marketing strategies, as well as the importance of innovation and
adaptation to maintain competitiveness. These lessons remain relevant for
companies today.

6. What aspects of the movie were most surprising or revealing to you in


terms of how the McDonald's empire was built?
We find it amazing how the McDonald brothers developed the original concept
of the fast food restaurant and how Ray Kroc capitalized on that vision to build
a global empire despite the challenges he faced along the way, to see how the
processes and operational strategies that helped lead to McDonald's success
were developed from the various processes and strategies they implemented
in their business and the adversities they faced along the way, the people
involved in the process of their success such as the partners and how they
were able to get their input, how the McDonald's company was not considered
part of the food network business in the beginning, and how the McDonald's
business was not considered part of the global food network.

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