1.Ray Kroc used innovation firstly because be came up with a new idea and a new design which nobody had come up with before hand This can be seen in the scene where he comes up with the entire franchise ideas and him convincing the brothers to buy into his idea.The innovation can be seen here by him coming up with his own idea his own brand new idea to help him make money. He also showed a lot of determination because he had tried other business ventures and failed which is the reason why they all kept on saying they remember his face at the banks where he had been trying to obtain his needed capital.
He was determined to see the restaurant grow and to see it become more than a shop that opens once a week,he had a vision and he never backed down from it, his determination and willingness to learn caused him to speak to the brothers and find their secret and eventually convince them to let him see his vision through.
He was also a hard worker he would clean after his restaurant and he was always constantly looking for ways to make it better even if that meant no rest. He worked long hours tirelessly to get the business off the ground and make it better even if that meant cleaning and picking up trash. In the end of the movie his hard work and determination came through for him when his vision came to pass and his restaurant was the leading restaurant with many breaches as he had said he wanted during the movie.2.The business principle in the opening scene is the principle of persistence which turned out to be a key factor in Rays life as his inventions were not taken seriously and despite all of the past and what people said previously he never gave up he never gave up because he also used the principal of creativity,not lowering your standards and always thinking big.Ray Kroc not giving up led to his success and all of his hard work persistence and determination paid off finally.3a.They had the problems of car waiters, drawing In unwanted clients, food took long to prepare,servers had to dodge cars while remembering orders,plates were getting stolen and broken,flies were drawn in by the lights. b.They solved the problem by having people come fetch their food and buy it,they got disposable packaging, they rebuilt the kitchen to make the food making faster and trained employees to make the food faster by using a fake kitchen,they allowed word of mouth to spread about collecting food at the window and more people started coming. They got more employees to make the food faster and work together.4.The term ambient refers to the immediate surroundings of something,the brothers started making the restaurant look more physically appealing and they started cleaning up around the restaurant because they understood that the immediate surroundings will determine how many customers come They also understood that they must establish the restaurant in a place where there are lots of surrounding areas where lots of people go and this will bring them foot traffic.They understood that their surroundings determined how much money they make and how many people co e to the restaurant .5.The basic concept is maintaining a standard whether that standard is speed or good food but it must be maintained throughout for you to get customer loyalty. The other concept is to have an organised kitchen like stations. Another basic concept is precision and watching over your business to make sure everything is perfect.6.The product or service was introduced according to the product life cycle it went through an introductory stage where sales weren’t very high, then the product went through the growth phase where the restaurant grew and people came to buy Mc Donalds and there were profits. There’s after they went through the decline stage because the system of delivering food to the car’s didn’t work anymore and the product started to shrink and the profits decreased more because people didn’t understand new methods being implemented which was the method of collection and customers switched to a different product which was part of the decline stage.The product went through the introductory stage again when they introduced the new method of collecting and people heard about it and word of mouth spread and they started coming to support and buys,then the growth stage occurred again when sales started picking up because customers loved to speed and the efficiency and the taste of the food.Sales picked up again when people had liked this new way them the matured and sales grew rapidly and all the brothers had to do Is maintain their creation so they are consistent and start thinking of way to improve services and competitive advantages.7.They had the problem of human resource,the problem where they needed many employees but did not have the financial means to pay these workers. Due to the problem that they were not getting enough money and sales were decreasing they couldn’t pay the employees, so therefore another issue was cash flow and financials when looking at the internal business environments of a business. The organizational culture of the business was also a bit off because waiters could not remember orders while dodging cars which meant they would get some orders wrong.8. In my opinion the customers came back because of word of mouth they had been told about the restaurant and had finally accepted the implementation of the collecting method. The customers came back because of what they had seen with the little boy getting his food from the window.9.Quality control means that you control your restaurant for quality in this context,this means that you ensure that there is a certain standard that is maintained or quality that is maintained. This may have been difficult for the brothers because they were perfectionists especially when it came to the fries,they wanted perfection and at that moment in time they were the only people who knew how to achieve that.They needed the chips to have a perfect texture as said in the movie when they said the chips are too crispy. Having that kind of quality control for other restaurants far away would have been hard for them because some people may not be believers of perfection and may let the standard drop meaning that the quality of the food isn’t the same.10.Kroc saw the arches of the M letters in gold and that’s how he knows what restaurant this is.He sees that the restaurant is closed and he does a lap around the building taking it in as he sees the Mc Donalds logo in gold.11a. The contract was seen as invalid because he never got the chance to read through it and full understand what was said he just signed without any knowledge and the brothers didn’t tell hi, what was in there and because there was a loop hole in the contract and they let him sign without ful, knowledge of what was stated and there were no witnesses to this and it was unfair because he was getting peanuts.b.The flaw in the contract was that they did not state that Kroc couldn’t cynics own business of real estate and lease out land to franchisees who wanted to buy so basically Kroc could do what he wanted because he now owned the land and had the power to distribute it and choose locations which means the brother couldn’t tell him what to do anymore but had to accept that he had power over them because he made more money and he not only had control outside the restaurant but inside as well12.Kroc created a competitive advantage by using powdered milkshakes which saved him a lot of money while his competitors spent a lot of money on something that tastes the same. A competitive advantage is having am advantage over your customer either because you are doing something they are not and saving money or time of because you offer something your competitors don’t offer. Kroc earned a competitive advantage by having sweets handed out at his restaurant which his competitors did not do and by also saving costs with the fridge for the ice cream for the milkshakes,he also had a competitive advantage by opening more days a weak than the original Mc Donalds.13.Ray Kroc went to go mortgage his house to get capital.He tried getting investors to invest by creating a business palm and presenting to other business people, he tried to go get a loan from the bank but they denied him because they didn’t take him seriously because of his previously failed inventions . He finally got the capital from mortgaging his house at the mortgage place without his wife knowing that he did so. To get the capital he also started his own property selling company where he sold or rented out land to those that wanted to buy into the franchise.14. Here he went to the site and picked up a handful this shows us that he knew what he was doing and he had a vision for the future. This scenes shows us just how this restaurant grew from just a handful of soil to a massive brand it shows us how it came from nothing and how Kroc did some of the stuff to put the restaurant together it shows us the hard work and sweat he put in once again.It also shows us how he constructed a brand from soil.15.He communicated with the brothers and the architecture people to make sure the right building was made with the right kitchen needed for fast food and he alsp communicated with his team to make sure that the restaurant running fine without his presence but just his instructions.16.The first stage of team work is forming this was when they signed the contact and agreed to be partners and they worked together on a task.The second stage which is storming is when people take leadership roles and the brothers did this because the product belonged to them they gave orders as the boss and assigned people to do this and that to complete the taskThe next stage is nothing where everyone settles into their roles and everyone works together this didn’t work well because Kroc didn’t take orders from his superiors which led to fighting then came performing where the team was not functioning well but was performing very well because standards were maintained by Kroc. Then came the the adjourning stage where the team broke up because Ray bought them out and he was the sole leader and he had to form new teams with new people.17.The growth strategy because there were many risks involved which were not balanced, these risks were taken by Ray and the strategy was meant for fast growth because he wanted to grow the franchise this strategy was extremely dangerous as it could have gone either way,either growth or failure. The strategy was meant for growth and fast growth at that.18.The ratio of income to expenses,the ratio that states that the income will be enough to cover their expenses and give them profit still at the end of the day .The business needs to make enough money to cover expenses and to also bring in profit so growth can occur within the business using the profits to improve the business and Implement new ways to save money and get a competitive advantage. With this ratio all fixed and non fixed expenses are added and viewed against the budget that was set previously and the income is also viewed to see if the business is dropping financially or not then a decision is made on whether or not there is enough cash to cover expenses.b.This was because they did not make enough money since the contract only offered Ray 1,4% of all profits made to the business and to solve this problem he decided to cut down on spending on the money for fridges for the ice cream and he decided to start using satchets for the milkshakes to cut down on spending on maintaining fridges and electricity. 19.This worked in his favour because it helped him think out of the box,if he had made enough money he would have settled and would not have thought of the rental selling company.He wouldn’t have made half of the money he makes with his property company and he wouldn’t habe gotten out of the hold of the brothers because they wouldn’t remained equal but this opportunity gave him power over the brother so he could buy them out and continue growing the brand because he would not have been able to with the brothers who were not innovative thinkers and money savers.20.He said he was the owner of the brand and he lied and took away the credit from the brothers and he made the contract go away by paying the brothers off which may be illegal .Taking credit off someone’s work is unethical but if they didn’t patent it then it is legal. Things that are unethical aren’t always illegal such as in this case.Ray Kroc buying out the brothers was not only unethical but illegal as well because a contract is meant to be respected and trusted if it is being destroyed then that is not fair on the other person because they signed that with trust that Ray would comply and that he would stick to the conditions which he didn’t which was also unethical because and ethical person sticks to their words and to the law.21.This did not work because he already had a vision and changing the name wouldn’t work Ray has wanted the name because he could Imagine it being a worshipped name worldwide because it is attractive to people and he can do so much with it and he can grow it cause the name works with the brand he is building and it is memorable to all. The name is limitless to Ray and he believes it can be whatever he wants it to be.22. He bought the brothers out with a million dollar cheque and he offered to give them royalties he also forced the brothers to change their Mc Donalds shop so they couldn’t use the logo and they had before for the restaurant so Ray had total control over everything.