2. “The two most important
requirements for major
success,” said Ray
Kroc, “are: first, being in the
right place at the right
time, and second, doing
something about it.”
3. In 1954, that is exactly where Kroc found himself. After years of struggling through different
trades, Kroc had finally stumbled upon what he saw as the next big thing in America. In
one of the greatest success stories of our time, Kroc took a small but successful California-
based hamburger restaurant and expanded it into what is today a worldwide chain with
almost 500,000 employees, $20 billion in revenue, and a logo that has come to be more
globally recognizable than the Christian cross.
4. “Well, what about me?”
The day after he first met the McDonald brothers, Kroc pitched them his idea; he thought
their successful little chain of eight restaurants could be a successful nationwide chain.
When the brothers asked who would manage the expansion, Kroc was ready with his reply:
“Well, what about me?”
5. Kroc became the owner of McDonald’s
Six years later, Kroc would buy
out the McDonald brothers for
$2.7 million, but more
importantly, he would gain
complete control over the
business. “The McDonald
brothers were simply not on
my wavelength at all,” said
Kroc. “I was obsessed with the
idea of making McDonald's
the biggest and the best. They
were content with what they
had; they didn't want to be
bothered with more risks and
more demands.”
6. The company continued to expand rapidly
In 1965, McDonald’s went public; 300,000 shares were initially sold at $22.50 each, later jumping
to $49. Kroc had made $3 million on the sale. But, Kroc wanted more and embarked on an
ambitious campaign for foreign markets. First, the U.K., then Europe, Kroc began to erect Golden
Arches in almost every continent.
7. That is the legacy that he leaves behind him.
In 1974, Kroc stepped down as CEO of the company he single-handedly grew into a global
empire, but remained on as Chairman, and later, Senior Chairman of McDonald’s Corporation.
He died of heart failure in 1984 at the age of 81, just ten months shy of McDonald’s selling its 50
billionth hamburger.
8. Lesson 1 : Take Your Business Seriously
Time Magazine dubbed Kroc one of the world’s most influential builders and titans of industry
because he did just that – he built a small business into a billion dollar enterprise and, he did
it by focusing on the details and caring more about his business than anyone else.
9. “I didn’t invent the hamburger,” said Kroc. “I just took it more
seriously than anyone else...We take the hamburger business
more seriously than anyone else.”
10. Lesson 2 : Perfection was what I wanted in McDonald's
From the layout of the store, to the cleanliness of the parking lot, to the number of
pickle slices on a patty, Kroc ensured that a McDonald’s in Delaware would provide
the exact same quality service as one in Nevada.
11. “Perfection is very difficult to achieve, and perfection was what I wanted
in McDonald's,” he said. “Everything else was secondary for me.”
12. Lesson 3 : Kroc was an astute and shrewd entrepreneur who was
all business.
After the McDonald brothers refused to sell Kroc their very first store – the Big M – Kroc
opened up a McDonald’s right across the street and drove them out of business.
13. “If any of my competitors were drowning, I'd stick a hose in their mouth and turn on
the water,” he said. “It is ridiculous to call this an industry. This is not. This is rat eat
rat, dog eat dog. I'll kill 'em, and I'm going to kill 'em before they kill me. You're talking
about the American way – of survival of the fittest.”
14. Lesson 4 : Treat employees with respect
A strong proponent of teamwork, Kroc understood that his growing company could only
continue its meteoric rise up if it had the support and the dedication of its workers behind it.
In order to ensure staff loyalty and motivate his employees, Kroc did his best to guarantee
that they were treated with respect and were able to operate on an equal playing field.
16. Lesson 5 : Deliver better service with a smile
The majority of McDonald’s employees would love showing up to work every day
and would deliver better service with a smile, which was a crucial component of
Kroc’s strategy.
17. “McDonald's is a people business, and that smile on that counter
girl's face when she takes your order is a vital part of our image,”
said Kroc.
18. Lesson 6 : Be willing to be the risk taker
Kroc strove to constantly improve his company and retain his place at the forefront of the
industry by taking advantage of new opportunities. Even when there was big risk
involved, Kroc stared the gamble in the face and rolled the dice.
19. “If you’re not a risk taker, you should get the hell out of business,”
20. Lesson 7 : Sense the possibilities with a dream
Kroc didn’t invent the hamburger; he simply had a dream about what he could do with that
burger and where he could take it with the right business model. From the very first day he
met the McDonald brothers and witnessed their small operation and successful use of the
Multi-mixer, Kroc could sense the possibilities.
21. “When I saw it working that day in 1954, I felt like some latter-day Newton who’d just
had an Idaho potato caromed off his skull,” Kroc said. “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.”
22. Lesson 8 : Like to bet big
Nothing about Kroc’s business strategy was small. From his talk to his deals to his expansion
plan, Kroc liked to bet big. And, it was in betting big that his payoffs were even bigger.
23. “I don't believe in saturation,” said Kroc. “We're thinking and
talking worldwide.”
24. Lesson 9 : Strive to always be better
Growing his business was a continual process for Kroc, one which involved much risk
and reward. But, it was only in striving to always be better and take advantage of
new opportunities that Kroc became the legendary success that he did.
25. “When you’re green, you’re growing,” said Kroc. “When you’re ripe, you
rot.” To fellow entrepreneurs, Kroc posed this question: “Are you green and
growing or ripe and rotting?”
26. Lesson 10 : Kroc was not immune to disappointment
Despite all his hard work, Kroc
was not always a lucky man.
From his early days in starting up
McDonald’s to even after the
chain was a well-established
global presence, Kroc experienced
his fair share of failures. He was
not immune to disappointment;
what set Kroc apart from his
competitors, however, was how
he learned from his failures and
bounced back.
27. “Luck is a dividend
of sweat,” said
Kroc. “The more
you sweat, the
luckier you get.”
28. Lesson 11 : Connect with others
During World War I, Kroc met
a fellow young and ambitious
entrepreneur by the name of
Walt Disney. When Kroc first
began selling McDonald’s
franchises around the
country, he remembered
Disney and sent him a letter in
1954. Disneyland was still
under construction at the
time, but anticipation about its
prospects was great, and Kroc
sensed an opportunity.
29. “Dear Walt,” he began. “I feel somewhat presumptuous addressing you in this way. Yet
I am sure you would not want me to address you any other way…I have very recently
taken over the national franchise of the McDonald’s system. I would like to inquire if
there may be an opportunity for a McDonald’s in your Disneyland Development.”
30. Lesson 12 : Don’t work just for money.
With his keen sense of future trends, Kroc had a strong belief in himself and his vision. And,
he wasn’t doing it for the money.
31. “If you work just for money, you'll never make it, but if you love what you're
doing and you always put the customer first, success will be yours,” said
Kroc. “All money means to me is a pride in accomplishment.”
32. Lesson 13 : Develop an effective marketing plan
From focusing on the local context of his restaurants to fostering an image of a fun and friendly
atmosphere with the likes of Ronald McDonald, Kroc proved to be a marketing genius. Through
making community contributions, Kroc also established a corporate tradition of creating a
positive presence in society.
33. “We're not in the
hamburger business,”
said Kroc. “We're in
show business.”
34. Lesson 14 : Build tradition of giving back
Contributing to the local neighborhoods in which McDonald’s restaurants were located would
improve public attitudes towards the expanding chain. This tradition of giving back that Kroc
initiated so many years ago remains an integral part of the McDonald’s corporate philosophy.
35. “The definition of salesmanship is the gentle art of letting
the customer have it your way.”
36. Lesson 15 : Set the Highest of Standards
By setting the highest of standards for himself and ceaselessly pursuing his dreams,
Kroc would go down in history as one of the world’s most successful entrepreneurs.
37. “The quality of a leader is reflected in the standards they set for
themselves,”
38. Kroc attempted to describe what made his business the global empire it is today.
Indeed, it was not as simple as just providing tasty hamburgers and fries. Kroc was an
ambitious entrepreneur who embarked on a strategic plan of expansion that would cover
nearly every continent. Kroc not only created an immensely successful company, he also
built a global brand and revolutionized the American cultural landscape.
39. It’s easy to have
principles when
you're rich. The
important thing is
to have principles
when you're poor.
Thank You Very Much
Sompong Yusoontorn
