RAY CROC: AN ENTREPRENEUR.

SUBMITTED BY:

Divya Basan– 16010324322

Mehak Vijay Agarwal – 16010324343

Ohmkar Vishal - 16010324351

DIV: D CLASS: BBA.LLB

Symbiosis Law School, Hyderabad

Symbiosis International University, Pune

In

January, 2019

Under the guidance of:

Kishore Kumar
 CERTIFICATE

The Project entitled “RAY CROC: AN ENTREPRENEUR” submitted to the Symbiosis Law
School, Hyderabad for Fundamentals of entrepreneurship and Intrapreneurship as part of
internal assessment is based on my original work carried out under the guidance of Kishore
Kumar

From DECEMBER 2019 to APRIL 2019. The research work has not been submitted
elsewhere for award of any degree.

The material borrowed from other sources and incorporated in the thesis has been duly
acknowledged.

I understand that I myself could be held responsible and accountable for plagiarism, if any,
detected later on.

Signature of the candidates

DIVYA BASAN – 16010324322

MEHAK VIJAY AGARWAL – 16010324343

OHMKAR VISHAL - 16010324351

 INTRODUCTION
Raymond Albert "Ray" Kroc (October 5, 1902 – January 14, 1984) was an American
businessman. He joined the California company McDonald's in 1954, after the McDonald
brothers had franchised 6 locations out from their original 1940 operation in San Bernardino.

Setting the stage for national expansion with the help of Kroc, eventually leading to a global
franchise, making it the most successful fast food corporation in the world. Controversially,
Kroc would present himself as the founder of McDonald's during his later life. Kroc was
included in Time 100: The Most Important People of the Century, and amassed a fortune
during his lifetime. In 1955, Kroc opened the first McDonald's franchised under his
partnership with the McDonald brothers in Des Plaines, Illinois. During the 1960s, a wave of
new fast food chains appeared that copied McDonald's model, including Burger King, Burger
Chef, Arbys, KFC, and Hardee's.

Ray Kroc wanted to build a restaurant system that would be famous for providing food of
consistently high quality and uniform methods of preparation. He wanted to serve burgers,
fries and beverages that tasted just the same in Alaska as they did in Alabama.

To achieve this, he chose a unique path: persuading both franchisees and suppliers to buy
into his vision, working not for McDonald’s but for them, together with McDonald’s. He
promoted the slogan, “In business for yourself, but not by yourself.” His philosophy was
based on the simple principle of a 3-legged stool: one leg was McDonald’s franchisees; the
second, McDonald’s suppliers; and the third, McDonald’s employees. The stool was only
as strong as the three legs that formed its foundation.
Further in order to constitute a successful venture, it is imperative that the project is led by a
successful leader.
 LEADERSHIP STYLE OF RAY KROC

The line managers’ leadership behaviour reflects a task-oriented style for the crew members.
The commitment and positive attitude towards a given task are derived from the employees’
motivations and leader behaviour. According to the Path-Goal Theory, for tasks which are
characterized as repetitive, unchallenging, mundane and mechanical, the group members tend
to be unsatisfied and in need of affiliation and human. Therefore, the most suitable leader
behaviour for this type of environment is the supportive leadership that provides nurturance
and makes the work pleasant for subordinates.

FACTORS MOTIVATING AN ENTREPRENEUR

The most critical resource of an entity is its employees. They make sure that the involvement
of monetary, manufacturing and other companies can operate. In recent times, mangers are
aware that monetary remuneration is not the main source of motivation. There are several
forms of financial motives that exit related to employee’s contentment of needs, like
employee acknowledgment, involvement in the decision conducting procedures, individual
development and more.

1. McDonald is known to implement certain principles in regards to the performance of its

staff:
2. The organisation must detail out the various structures of motivation for different
departments.
3. The resources must have transparent and achievable objectives. The goals need to be
flexible: managers must have an objective for first half of the year.
4. The increase of compensation must be reasonable for every worker.

McDonalds is concerned with three major elements of motivational structure in their

jurisdiction. The above discussed elements are mentioned in motivational theory of Maslow.
Still, Maslow justifies that every requirement needs to meet one after one. Research study on
McDonalds, its structure, strategy proves that a coordinated achievement of staff’s
requirements will boost a staff’s performance.
Although McDonalds has tried to apply strategy in order to implement productivity in the
organisation. Still, considering the fact that McDonald operates in a complex environment it
can be observed that they face high turnover of staff mostly blaming the issue of staff
treatment and motivational factors. Hence, the researcher intends to carry out this research to
gauge the attitudes of the employees and the administration and to plan out factors which
would further motivate the employees on a larger scale or which would be kept on a flexible
scale where employee’s dynamic nature would be instantly met with motivational factors
portrayed by the managers.

LEADERSHIP STYLE OF RAY KROC

The line managers’ leadership behavior reflects a task-oriented style for the crew members.
The commitment and positive attitude towards a given task are derived from the employees’
motivations and leader behavior. According to the Path-Goal Theory, for tasks which are
characterized as repetitive, unchallenging, mundane and mechanical, the group members tend
to be unsatisfied and in need of affiliation and human. Therefore, the most suitable leader
behavior for this type of environment is the supportive leadership that provides nurturance
and makes the work pleasant for subordinates.

PROBLEMS FACED BY ENTREPRENEUR

1.  CASH FLOW MANAGEMENT

Cash flow is essential to small business survival, yet many entrepreneurs struggle to pay the
bills (let alone themselves) while they’re waiting for checks to arrive. Part of the problem
stems from delayed invoicing, which is common in the entrepreneurial world.

2.  HIRING EMPLOYEES

The hiring process can take several days of your time: reviewing resumes, sitting through
interviews, sifting through so many unqualified candidates to find the diamonds in the rough.
Then, you only hope you can offer an attractive package to get the best people on board and
retain them.

3.  TIME MANAGEMENT

Time management might be the biggest problem faced by entrepreneurs, who wear many
(and all) hats. proper management of time can help you accomplish so much more.
4.  DELEGATING TASKS
The need to delegate or outsource tasks, but at times it seems something gets messed up and
you have to redo it anyway.

5.  CHOOSING WHAT TO SELL

There is a variety of range available and sometimes it’s confusing as to what Products and
services to sell. You’re just unsure how to pick a niche.

6.  MARKETING STRATEGY

make use of various effective marketing strategies like market your products and services:
print, online, mobile, advertising, etc. focus on maximizing your return on investment with
efficient, targeted marketing that gets results.

7.  CAPITAL
Insufficient availability of capital can also be a barrier for the business growth, but one can
start up with the little amount of capital available which will then result in greater amount of
capital and success.

8.  STRAPPED BUDGET

At times even though cash flow is fine, it seems like the budget of the business does not
allow it to market the product to its full potential.

9.  BUSINESS GROWTH

After a certain point a business cannot afford to take any more amount of work at its current
structure which is a hindrance for the overall business growth.

10. SELF-DOUBT
An entrepreneur’s life is not enviable, at least in the beginning. It’s extremely easy to get
discouraged when something goes wrong or when you’re not growing as fast as you’d like.
Self-doubt creeps in, and you feel like giving up.

CHALLENGES AND SOULTIONS FACED BY RAY KROC

Setting up a successful business like Mc Donalds paved the way for various hurdles and
challenges. Some of these challenges during the initial stages of commencement of Mc
Donalds include;
1. CHOOSING THE WRONG FRANCHISEES AT THE START
Ray Kroc with the first few McDonald’s franchisees failed to follow the system. Eventually, t
the McDonald brothers ultimately regretted their choice in Kroc as master franchisee.

2. HAVING TOO SLIM A ROYALTY OR REVENUE STREAM

As master franchisee under a fairly unfavourable contract, Kroc has a very thin slice of the
profit pie. This was not enough to support his operations or to grow the business, a situation
that almost leads to its collapse. For a successful franchising to work, everyone has to have
enough of the revenue to be profitable, and while we usually think of franchisees in this
situation, franchisors and their masters also need enough to fund their own businesses,
provide the support to franchisees, and to expand the system and be successful.

3. NOT TAKING CONTROL AND COMMAND

The emphasis and importance of maintaining control to Kroc, who learns the lesson himself
when faced with his early franchisees refusing to follow the rules. He then alights on a
solution to both his problems – in becoming landlord to his franchisees, it provides him both
an additional revenue stream to the meagre royalty and a way to control the sites and
eliminate any troublesome franchisees.

4. STIFLING INNOVATION
The flipside to exerting control and uniformity is that the McDonald brothers were so rigid in
their application of their system that they refuse to accept any ideas for improvement – a
situation that ultimately forces Kroc to act and assert his power.

SUCCESSFUL TRAITS OF RAY KROC

Ray Kroc was extremely motivated and determined. He kept selling, selling, selling until he
found a yes and never took no for an answer. He constantly innovated. When he was told no
one way, he thought of another way to ask the same or a different question. Further, He liked
to surround himself with the right people.

Ray needed encouragement. He was driven and had vision. Thus some of his successful traits
can be summed up as:-

1) DO WHAT YOU LIKE

Successful business leaders live and breathe their work and industry. They don’t clock on
their regular 9-5 job is part of their life. If you love what you do, you’ll have the perseverance
you need to overcome the challenges that will inevitably come your way. You’ll be more
open to moments of inspiration that could transform your business and you will be more
willing to take risks. 

2) TAKING RISKS

 It’s well documented that successful entrepreneurs have taken risks to be where they are
today. But while some won’t hesitate to take a leap of faith, most of us struggle to take that
first step. Hence, doing tasks with due diligence, seeking advice and assessing the pros and
cons is an imperative step.

3) NOT AFRAID OF FAILURES

No business has a perfect track record and that’s okay, because often it’s the ideas that don’t
work that provide the best learnings that can steer down a more successful path. Hence,
perseverance is an imperative step towards success.

4) NEVER STOP LEARNING

Entrepreneurs are required to soak up as much information as they can and they are
constantly applying that knowledge to their businesses in order for their venture or idea to
remain relevant. Landscapes in every industry change, even more rapidly today as technology
continues to drive innovation. Thus, there is a need to constantly learn and plan the next
phase forr business. 

5) CHALLENGING THE NORM

Eentrepreneurs are born through challenging convention. Thus, if a new idea exists, it is
imperative to back yourself and challenge the norm and break the normal shackles.
 CONCLUSION

In a nutshell, a person needs to posses certain entrepreneurial traits such as independence and
self – confidence that makes him a successful entrepreneur. Specifically, the entrepreneur
traits are networked, open risk taker, observant, visionary, failure is an option, open culture,
outcome oriented, team oriented and proactive that must have in an excellent entrepreneur.
These entrepreneur traits are the main value that need to be learned, followed and applied by
each individual in order to become success due to these determines the success or failure of
corporate business development, which also determines whether the formation of core
competitiveness of enterprises. These entrepreneur traits can be classified as essential element
that differ the difference between the successful entrepreneur and the ordinary entrepreneur.

Nevertheless, successful entrepreneurs are the motive and catalyst of the economy in the
country. The countries cannot not reach the level of developed countries if there are no
successful entrepreneurs in the country because they are the backbone of the economic
development.