"Make Men Work Together To Show Them That Beyond Their Differences and Geographical Boundaries There Lies A Common Interest." - Jean Monnet
"Make Men Work Together To Show Them That Beyond Their Differences and Geographical Boundaries There Lies A Common Interest." - Jean Monnet
“Make men work together to show them that beyond their differences and geographical
boundaries there lies a common interest.” – Jean Monnet
When all of these are combined, perhaps, we can say that the interest that the
world is in constant work right now is success.
The Founder is basically a film that narrates the real life story behind the
American fast food restaurant that we all know – McDonald’s. It is a simultaneous
portrayal of ambition, innovation, entrepreneurship, and persistence while being a
cautionary tale of greed, hypocrisy, non-respect agreements, and bad business ethics.
The film tells the true story of Ray Kroc, a salesman struggling to sell milkshake mixers
in Illinois, who turned McDonald brothers' innovative fast food eatery into the biggest
restaurant business in the world, with a combination of motivation and ruthlessness.
Values in the workplace are integrated set of stable and evaluative beliefs that
guide our preferences for outcomes or courses of action in different of situations. To
simply say, values tell us what we “ought” to do. It defines the right or wrong and good
or bad. We use the values in the workplace as a moral compass that directs our
motivation, decisions, and actions.
Ethics is the study of moral principles or values that determine whether actions
are right or wrong and outcomes are good or bad. Most ethical dilemmas involve conflict
between the needs of the part and of the whole, the individual versus the organization,
or the organization versus the society as a whole.
The story of Ray Kroc and the McDonald brothers is certainly a war on principles.
Both of them have their own sets of values rooted from the things they believe on. We
can agree that Ray Kroc and the McDonald brothers are very different people. But one
thing they do have in common is that they strive for the highest quality. McDonald
brothers ensure that every hamburger has two pickles and a precise shot of ketchup
and mustard. This is best illustrated in their conversation in the telephone where one of
the McDonald brothers told Ray that they have no interest in a milkshake that contains
no milk. Even though Ray Kroc insisted that they could save a bundle, they still disagree
to his idea. For them, a milk shake contains real milk and not a powdered one. The
McDonald brothers believe that quality must not be sacrificed for profit which is different
from what Mr. Kroc believes. In fact, consistent quality is what makes McDonald’s such
a global success.
Utilitarianism seeks the greatest good for the greatest number of people. It
focuses on the consequences of our actions, not on how we achieve those
consequences. Under this approach, a decision maker is expected to consider the
effect of each decision alternative on all parties and select the one that optimizes the
satisfaction of the greatest number of people. Should milkshakes shift from using real
milk to powdered milk benefiting the company but not the customers?
Next is the individual rights principle. This approach reflects the belief that
everyone has entitlements that let her or him act in a certain way. Right of free consent,
to privacy, of freedom of conscience, of free speech, of due process, and right life and
safety are some of the ethical concepts that moral decisions makers must highly
consider.
Self-enhancement is what Mr. Ray Kroc definitely aimed to pursue. From being a
milk shake mixer salesman, he devoted all of his energy just to be called “The Founder”
of McDonalds. Self enhancement is the things we do to promote and protect our
positive self-view. For Mr. Kroc, he desired to be a smart businessman driven by
tenacity and motivation. An innate human drive to promote or protect a positive self-
view. Self enhancement is most evident in situations that are common and important
just like doing business with other business-minded people. People with a positive self-
concept have a better personal adjustment and mental physical health because this is
where the probability of success mostly lies. If one defines himself with positive marks, it
must be physically visible and true.
The two dimensions of emotions are evaluation and activation. For instance,
fearful is a negative emotion that generates a high level of activation. When Ray Kroc
planted his desire in his heart to make McDonald his own, it is mixed with unknown of
whether it will be successful or not. The fear of the unknown made Ray Kroc more
determined to take action. “In his memoir he wrote that night in my motel room I did a
lot of heavy thinking about what I'd seen during the day visions of McDonald's
restaurants dotting crossroads all over the country paraded through my brain in each
store were eight multi mixers whirring away in paddling a steady flow of cash into my
pockets”.
The other emotional dimension shows than when the feeling is relaxed, it is a
pleasant emotion that has fairly low activation. Since McDonald brothers do not desire
to expand their business, they do not see it entering franchise. Since they are
contended with having a one small restaurant, they never dare take the advice of Mr.
Kroc on making it open to franchising. “Morris told him, see that big white house there
with the wide front porch that's our home and we love it. We sit out on the porch in the
evenings and watch the sunset and look down on our place. Here, it's peaceful we don't
need any more problems. We are in a position to enjoy life now and that's what we
intend to do. Richard said, it would be a lot of trouble”.
When people say to Mr. Ray Kroc that he is not the real and true founder of
McDonalds, he replies with principles of persistence, success, and hard work. A leader
can prove himself accountable if he keeps he is calm, in balanced mood, and stress-
free attitude. These qualities he can possess if he can his emotions under his control.
Hence emotional intelligence is an important trait for a successful leader. A leader and a
follower must both have self-awareness, self-regulation, motivation, empathy and social
skills. All these elements are essential traits of a well rounded person. Hence emotional
intelligence is of huge importance to leadership and in the workplace.
Motivation is the force within a person that affects his/her direction, intensity, and
persistence of voluntary behavior. Motivated individuals, whether at school, home, or
work, are willing to exert a particular level of effort (intensity), for a certain amount of
time (persistence), toward a particular goal (direction). The boldest statement of Mr. Ray
Kroc continues to inspire us to persevere in life no matter what our circumstances we
are in.
Rewarding people with money is one of the oldest and most widespread applied
performance practices but money means different things to different people. It can be a
symbol of achievement or success or status. For many, money serves as a reinforcer
and motivator. Since reward system is the basis of a job well done, money can be a
reflection of performance. However, money can also be the root of all evil which leads to
greediness because people tend to desire more and never become satisfied.
There is a reason why purpose matters to every organization: if it does not have
a definable purpose, it cannot measure progress towards it. Purpose dictates
appropriate measures and measures give manageability, the capacity to learn and
improve. The truth is simple and profound, but not the obvious. “There is a systematic
relationship between purpose (what we are here to do), measures (how we know how
we are doing) and method (how we do it)”. On its own, purpose is nothing more than an
aspiration. Measures and methods make purpose tangible and keep managers on the
straight and narrow. So what happens in most organization that has no overriding
purpose other than profit? They lose their customer focus, and ultimately, their
customers.
Aside from motivation, money is driving force why Mr. Kroc wanted to own the
McDonald brothers’ business. In his franchising idea, He sees its potential for growth
with commercial values when we narrated in his memoir “paraded through my brain in
each store were eight multi mixers whirring away in paddling a steady flow of cash into
my pockets”.
Mr. Kroc’s love for money and wealth allows him to do unfair business against
the McDonald brothers by breaching their agreement. Ray told the McDonald brothers
that the 1% royalty could not be in the document because of his negotiations with some
new investors can be interrupted. This was just his verbal commitment to them. They
shock hands on this. Ray quickly ran circles around them, set up a new store across the
road from the brothers and the brothers had to shut down. They never saw the 1%
royalty. While the McDonald brothers were more concerned about the quality of their
product and the customer experience, Ray was more concerned about making money
by growing the business exponentially.
If you do not stand on something, you will for anything. - Alexander Hamilton
In my own opinion, I found the telephone scene where one of the McDonald
brothers told Ray that they have no interest in a milkshake that contains no milk as the
most inspirational part of the film. I choose it because it definitely illustrates what kind of
people McDonald brothers are.
We know that there are many ways how businesses maximize their profit. One of
those techniques is reducing the cost of their product in order to produce more without
changing the selling price. However, changing your principles just to gain money is a
sign that a person does not have accountability and self conviction in his beliefs. A
business must have reason to exist beyond that of making money and maximizing
shareholder value.
I firmly believe that a person is trustworthy of big or small things if he sticks to his
principles in life especially when he faces a difficult circumstance that tests the core of
his personality. People who are volatile, fickle-minded, and indecisive are dangerous
people because there is a big possibility of betrayal. Even in our personal relationships,
we tend to choose people who are loyal to us. We desire to build solid relationships that
last. As we get older, we lose people who are not in the same page with us. Therefore,
people who act according to their principles are not a two-faced person who can be
trusted and reliable at all times.
Nothing in the world can take the place of good old persistence. Talent will not.
Nothing is more common that unsuccessful men with talent. Genius won’t.
Unrecognized genius is practically a cliché. Education won’t. The world is full of
educated fools. Persistence and determination alone are powerful. – Ray Kroc
Success is subjective. It is defined by us who want to experience it. We create
our own opportunities to grow. Whether success for us means living a simple or
luxurious life, it is acceptable. But then again, everything is permissible but not
everything is beneficial.
For Ray Kroc, the secret formula to success is Persistence. So what does
Persistence really mean? Persistence is the ability of one person to remain and
continue in a course of action in spite of difficulties and oppressions. One of the
distinguishing attributes of Mr. Ray Kroc is his ability to handle a challenge and make it
his opportunity. When people translate their desires into reality, they are often
rewarded. Opportunities become truly useful when we see in them creative ideas that
others would not see. Just like in the case of the Mr. Ray Kroc against McDonald
brothers. For him, anything that is actually created started as a creation of the mind.
When the mind begins to create, sky is the limit. It is important to dream big.
The first video entitled “The Founder: A fast food story” teaches us the reality in
doing business with other people. What I have learned in this short documentary is we
must use competition in a positive way. It is not acceptable to become wealthy by taking
advantage of the other people. Ray Kroc climbed the ladder of success by stepping on
McDonald brothers’ back. He became bigger by making people small. In real world,
healthy competition determines your emotional and mental capability to deal with other
people fairly. It will also motivate one to succeed without being obsessed in putting
others down. Personally, I find healthy competition everywhere good for our overall
health and condition as a person. Sometimes I imagine an academic institute without
grades. Students just do their best without the pressure from others. We learn according
to our pace. Progress is monitored depending on how much we will respond.
Being a young adult, life does not work that way. In life, I have learned to become
valuable in every place I go – school, home, community. We are in the stage where we
need to work harder, think smarter, produce better, and just get more. It is healthy when
it does not push people down. Instead, it pushes us to reach our limits and give more of
what inside us. It is humble to realize that we have so much to learn and there are
people who are better than us. This serves as a challenge to work equally hard or even
harder than the work they do. Happiness is felt when you improve on and surpasses
your former skills – not necessarily when you outclass other people; and never when
you step on their back to get you on top.
Rau Kroc struggled in selling milkshake mixer machines and in convincing the
McDonald brothers to allow the franchising of their restaurant. Even though he has
several franchises of the restaurants, He also struggled in running out cash especially
when the bank threatened to foreclose on his house mortgage. Fortunately, with the
help of CFO Harry J. Sonneborn, they found a way out. He came up with an idea to
solve their money problems by starting a new company to buy land and buildings and
sublease them to franchises that same year they launched the franchise Realty
Corporation. Harry’s idea worked and the business significantly increased its revenue.
They signed up more franchises and promoted the slogan “business for yourself but not
by yourself”. It was one of the secrets to their success. On the other hand, the main
struggle of the McDonald brothers is when Ray Kroc eventually owned the rights to the
business that they started. Their failure to put their agreement on paper to receive
royalty allows them to lose a lot of money because Ray Kroc never honored it.
Cause of Failure
I can say the root cause of failure for the McDonald brothers is their lack of vision
and wide perspective. Maybe Ray Kroc do not have the idea of the speedy process but
he had the idea to get bigger with franchises all over America, and to be the owner of
the lands in which all the new McDonalds were built. It is all about the small view vs. the
big view. We cannot deny that McDonald thriving now because of Ray Kroc’ big vision
and the determination to expand. Idea is not enough if you are not brave enough to
have a "view" of where it could lead you.
You are your own product. Be the best product that you can be.
While it is wise to learn from your experience, it is wiser to learn from the
experience of the wise.