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Success Story of McDonald’s : your vision would be your future success


The ability to think about or plan the future with imagination or wisdom is vision.Great visionaries like Walt Disney emphasized “If you can dream it, you can do it.” A vision permits us to see beyond our present condition.Power of vision works through determination, commitment, and faith.

Predominant establisher of the McDonald’s Corporation – Ray Kroc’s vision was to build a restaurant system that would be famous for providing food of consistently high quality and uniform methods of preparation.Ultimately,the company had designed successive franchise model with a very clear vision,” In business for yourself,but not by yourself.” 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 themselves, 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.

History of McDonald’s was started  in 1937, Patrick McDonald opened “The Airdrome”, a food stand, on Huntington Drive (Route 66) near the Monrovia Airport in Monrovia, California[5] with Hot dogs being the first item sold. Then Hamburgers were ten cents, and all-you-can-drink orange juice was five cents.But real roots of McDonald’s Corporation was laid by two of his sons —Mac and Dick McDonald. In 1940, Maurice and Richard (“Mac” and “Dick”) moved the entire building 40 miles (64 km) east, to West 14th and 1398 North E Streets in San Bernardino, California. The restaurant was renamed “McDonald’s Bar-B-Que” and had twenty-five menu items, mostly barbecue. They  didn’t achieve real success until eight years later. By concentrating their efforts on keeping costs down, the brothers could maintain low prices for a consistently good product.They have turned the kitchen into a mechanized assembly line—with each step in the cooking process being stripped down to its essence and accomplished with minimum effort. They got rid of the carhops and indoor seating, replacing them with a system where customers would order directly through outdoor service windows.However,By 1954,they were McDonald’s only by name.But real success story was started when Ray Kroc, a spunky salesman from Illinois, entered in to the picture,he dreamt big.He pitched his franchise idea to the McDonald brothers without any hesitation to think big.A contract was drafted between Kroc and the McDonald brothers,to sell franchises.As per this legal draft with the McDonald brothers, Kroc was earning a paltry 1.9 percent of the gross revenues of all McDonald’s franchises and 25 percent of that went to the brothers. On April 15, 1955,Kroc had to build his own McDonald’s in fifty-fifty with a friend on a location at Des Plaines,Illinois.

In 1955, he founded McDonald’s System, Inc., a predecessor of the McDonald’s Corporation, and six years later bought the exclusive rights to the McDonald’s name. By 1958, McDonald’s had sold its 100 millionth hamburger.Kroc was also noted for aggressive business practices, compelling the McDonald brothers to leave the fast-food industry.Kroc became frustrated with the brothers’ desire to maintain only a small number of restaurants. In 1961, he purchased the company from the brothers for $2.7 million.On May 4, 1961, McDonald’s first filed for a U.S. trademark on the name “McDonald’s” with the description “Drive-In Restaurant Services”,which continues to be renewed through the end of December 2009.

In entire success story of McDonald’s I see two clear models of  visualization  and its perfect implementation over the period of time i.e. [1] Technological Visualization  Model [2] Managerial Visualization  Model . To the best of my knowledge and understanding proper execution of this two model can convert any vision in to the successive corporation.I will discuss these two models in detail in my forth coming blogs…

Ref :

  1. http://futureblind.com/2009/10/26/the-mcdonalds-success-story/
  2. https://en.wikipedia.org/wiki/McDonald%27s
  3. http://www.mcdonalds.com/us/en/our_story/our_history/the_ray_kroc_story.html
  4. http://79t2s2g2fdudz5l.zippykid.netdna-cdn.com/wp-content/uploads/2014/02/filepicker_nnDrKYvwRqqsq7523g8T_McDonalds.jpg
  5. https://en.wikipedia.org/wiki/Richard_and_Maurice_McDonald#cite_ref-forbes_4-1

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