Entrepreneurship of McDonald's Founder Raymond Kroc and Impact on Local and Global Economies

This report explores the entrepreneurship of McDonald's founder Raymond Kroc and the impact on local and global economies. It provides a brief history of the company and demonstrates the fundamental entrepreneurial skills and motives that led to the development of the business idea. The report also critically evaluates the impact of entrepreneurship on local and global economies through the lens of McDonald's. It highlights the importance of local management, employment opportunities, improving lifestyle, corporate social responsibility, and equality in diversity.

Entrepreneurship
McDonalds Founder
Raymond Kroc and a little
bit about McDonald
brothers

Table of Contents
INTRODUCTION.......................................................................................................................................1
MAIN BODY....................................................................................................................................1
Brief history of the founder/entrepreneur of chosen company and their fundamental
entrepreneurial skills and motives and the impact on developing their business idea..........1
Impact of entrepreneurship to local or global economies critically evaluating the impact of
chosen company.............................................................................................................................3
CONCLUSION...........................................................................................................................................4
REFERENCES............................................................................................................................................6

INTRODUCTION
Entrepreneurship is a very critical process which involves the ability and willingness of an
individual to take risks and uncertainties for organising, establishing and operating an enterprise
with the primary aim of generating profits, social welfare etc. Entrepreneurship is very important
for developing entrepreneurial activities within a state that provides opportunities for growth and
development of the overall economy (Love, 2020). In simple words, Entrepreneurship refers to
the ability and determination of an individual or group to plan, organize and operate an
enterprise by bearing its risks and uncertainties for getting advantage/profits in return. In the
books, entrepreneurship is defined as the utilisation of land, labour, finance, people and raw
materials for furnishing new products or services with handling all unfavourable conditions to
gain a certain margin of profits. There are many benefits of entrepreneurial activities within an
economy because it creates employment opportunities, social and community welfare, research
and development, technology advancement, improves the quality of lifestyle etc. The following
report will describe the entrepreneurship of McDonald's founder Ray Kroc and McDonald
brothers. It will provide a brief history of the company and will demonstrate various skills and
motives that were used by the entrepreneur for developing this business idea. In the end it will
discuss entrepreneurship to local or global economies by critically evaluating the impact of
McDonald's.
MAIN BODY
Brief history of the founder/entrepreneur of chosen company and their fundamental
entrepreneurial skills and motives and the impact on developing their business idea
McDonald's corporation is the world's largest chain of fast food restaurants that serves
approximately 68 million customers in more than 120 countries. McDonald Corporation is a fast
food restaurant, headquartered in the United States and was established in the year 1940.
During the initial years of its establishment it operated as a barbecue restaurant that was
operated by Maurice McDonald and Richard. In 1948 the business was recognised as a
hamburger stand that was based on the production line principle, when Ray Kroc joined the
company as a franchise agent in 1955. McDonald's since then is operated by an affiliate, a
franchise or a corporate business (McDonald’s Founder Ray Kroc leadership, 2020). The
revenues of the business come from the rent, royalties, escheats and fees provided by the
franchisees and the company operated restaurants throughout the world.
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Raymond A. Kroc was born in a working class family the year 1902 in Oak Park, Illinois and
was brought up in suburbs of Chicago. Kroc has experienced many things in his life and he
never stopped learning new things and developing his abilities. He worked at various positions
like an ambulance driver, piano player, salesman etc. in a very young age. During the country's
great depression, Kroc has developed his strong work ethics in a very young age of his life. He
learnt the importance of seizing opportunity and establishing relationships for gaining better
advantages for learning and development. Kroc was a constant learner who gathered insight
about the food service industry while selling the product to those in the industry and learning
new things on an everyday basis. He gained a lot of experience during a very young age and
progressed very swiftly that made him a very successful entrepreneur (Restaurant Finance
across America, 2021). There are many entrepreneurial skills and characteristics that were the
reasons for the success of Raymond Kroc that are elaborated below.
 Optimistic and confident: For being a successful entrepreneur a person must be
hopeful about their own plans and actions because it reduces the efforts for getting
success. Raymond Kroc was very optimistic and confident about his plans and actions
that made him a successful entrepreneur. Apart from being optimistic and confident he
was also very thoughtful and understanding because he thought about problem solving
and solutions for business risks.
 Visionary: Raymond Kroc is a very big name in the fast food industry across the globe
because he was a visionary person and has set his priorities straight forward. He was
very thoughtful about the processes and actions for achieving objectives of the
enterprise. He was a great leader who was eager to learn till his last day in the business
and he took McDonald's to a position where people love having it.
 Commitment: Vision and optimism can take people to very high positions but it is very
important that a person is always committed to be a successful entrepreneur (Khan,
2021). Ray Kroc was always committed with his words and work because he performed
every work of his life full heartedly with great enthusiasm. He was wise, smart, and
completely focused towards his work ethics that can be identified after his contributions
for helping the company even when he was retired from the post.
 Honesty and integrity: Kroc was a man of his word and that made him a person on
whom everyone trusted for his honesty and integrity. He was transparent with his actions
and had fully integrated towards his work. He was a little bit strict on the employees so
that good quality of work can be ensured and the morals of the business can be
maintained at higher levels.
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 Decision making abilities: The Sigma rule for being a good entrepreneur is good
decision making abilities of an individual (Singireddy, 2020). Kroc proved his Excellency
in the decision making process over the years of his employment at various places and
as the CEO of McDonald.
 Team building & team work: As a business leader of an entrepreneur it is very
important that a person should consist of team building and teamwork abilities for
developing a high level of performance. Kroc was having very good team building
abilities that helped McDonald's to grow and sustain their business across the global
level.
 Risk taking ability: One of the finite qualities that Ray Kroc had was his ability to take
risks. The first day when walked into the McDonald's door he worked out with risk in his
hand. He obtained a contract for creating the business towards very successful heights,
with the help of borrowed funds from the other people to conduct the business activities.
Impact of entrepreneurship to local or global economies critically evaluating the impact of
chosen company
The McDonald's has produced a very high impact on the global levels towards the welfare of
communities, improving lifestyle of people, corporate social responsibility and equality in
diversity etc. (Baker, 2021). Some of the impacts of Entrepreneurship of McDonald's to local
and global levels are elaborated below.
 Emphasizing on local management: Throughout the world, McDonald's employees
millions of people from the local areas and specifically manages them to be accepted by
the citizens of that country of state. McDonald emphasizes on the code of "thinking
global, acting local" theme of the company to enhance the well-being of communities
where the company exists. For instance the company decides to establish its joint
ventures with the entrepreneurs across various States for managing the fast food
restaurants and creating better job opportunities and work culture for the employees.
 Politically sensitive strategy: The Company has focused on avoiding the political risks
by involving the regulations and laws of the government. The major concern was to
comply with the cultural belief, practices, norms, traditions and laws of the country so
that the company can provide better opportunities for people from different backgrounds
and cultures. The company has focused on providing greater opportunities for
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developing economies by generating employment opportunities for the people on a large
scale.
 Employment opportunity: Foreign organisations are often seen as higher locals in their
companies especially at the managerial positions for improving positive relations with the
company employees from that area. The company provides opportunities to the people
from local areas to work at the managerial positions and it also helps the companies to
handle people more easily by the help of the local managers.
 Environment friendliness: The Company tries to be less harmful to the environment by
following the environmental regulations and laws (Puga, 2020). The company has been
condemned for not complying with environmental regulations and animal welfare laws.
But it is still try to focus on reducing their harmful impacts on the environment and
lowering pollution as much as possible.
 Corporate citizenship: In order to enhance the reputation of the business the
multinational companies try to give back to the community or society from where it takes
various resources and raw materials for continuing their activities. McDonald's has
provided Mani financial donations to the local organisations and has given growth
opportunities to the people by providing and employment and job opportunities.
 Pricing: McDonald's has focused on pricing its products effectively according to the
currency across the world and their target market. The company has priced their
products and services according to the currency value of the country and the purchasing
power of the customers so that maximum demand can be created and people do not
face the consequences of high price products. This creates a sense of belongingness
and trust among the customers for the organisation and enhances their overall welfare.
 Encourages equality in diversity: The Company operates across more than 100
countries and a diversity of people come to work at the organisation. The company
employs people from diversified backgrounds that show the efforts of the organisation to
bring harmony among the people from intercultural backgrounds. McDonald's believes in
developing and maintaining a diversified group of employees that could strengthen the
inter-cultural cross connections for improving the relations among the people.
CONCLUSION
It has been obtained from the above report that entrepreneurship is a very crucial process
for developing economic growth of a country or state. It has been identified from the above
report that an organisation can become very successful if its leaders are having good qualities
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and skills to become a successful entrepreneur. Moreover, it has been identified that there are
various entrepreneurial skills that a person must possess to become a successful entrepreneur.
These skills are optimism, confidence, continuous learning, vision, commitment, team work,
honesty, integrity, decision making and risk taking. Furthermore, it has identified various impacts
of entrepreneurship to local or global economies by critically evaluating the impacts of an
organisation across the local and global market. Finally, it has been obtained that the local
management, employment opportunities, improving the lifestyle, corporate social responsibility
etc. are various impacts of entrepreneurship that occur on the local and global economies.
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REFERENCES
Books and Journals
Baker, E., 2021. The Rise of Entrepreneurial Management Theory in the United States. Modern
Intellectual History, pp.1-25.
Khan, S., 2021. McDonald’s and Burger King: The Evolution of Franchising and Benefits of the
Burger Wars. SAGE Publications: SAGE Business Cases Originals.
Love, J. F., 2020. McDonald’s: Behind the arches. Bantam Books, Inc.
Puga, C., 2020. The Founder (2016). Film Matters, 11(1). pp.193-195.
Singireddy, M., 2020. Mcdonald's: Global Marketing. International Journal of Health and
Economic Development, 6(2). pp.16-27.
Online
McDonald’s Founder Ray Kroc leadership, 2020. [Online] Available through,
https://brandongaille.com/mcdonalds-founder-ray-krocs-leadership-style-and-traits/
Restaurant Finance Across America, 2021. [Online] Available through,
https://www.restfinance.com/Restaurant-Finance-Across-America/June-2017/Not-The-
Founder-But-A-Financial-Engineer/
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