Blog Posts

By Dr. Scott

In the immediate post World War 2 decades, the American economy and American society underwent significant growth and restructuring.  Numerous elements came together to ensure that American lifestyles would be radically altered.  World War II had ended, but a new, less tangible conflict had begun, namely the Cold War.  To combat the perceived threat of the Soviet Union and communism, Americans felt the need to ensure that capitalism, free markets, and consumer culture prospered.  Combined with this was a collective sigh of relief after nearly two decades of economic and military crises.  Americans, therefore, were all too willing to participate in the commercial and economic prosperity of the post war period.

Many new industries developed and improvements and advancements in others, such as the automobile industry, led to new cultural developments.  When the government sponsored a national highway system, a culture of mobility was born and numerous franchises developed to meet the needs of traveling Americans such as hotel chains and fast-food restaurants.  Many of these types of establishments did not survive the test of time for various reasons from poor service to shortsighted leadership, but one organization that originated during this period and continues to be successful is Ray Kroc’s McDonald’s.  

The Golden Arches of McDonald’s is one of the most recognizable symbols in modern culture.  Only corporate symbols like the Nike “Swoosh” and Mickey Mouse of Disney can compare with the trademark yellow porticos of McDonald’s. In fact, the Golden Arches can be found in nations throughout the globe and has even become a symbol of global economic, social, and political theory.

However, long before McDonald’s became an international franchise, Kroc solidified his hamburger chain as the preeminent chain in the fast-food nation.  Kroc entered the fast-food business, not as the original founder of hamburger restaurants, but as a milkshake machine salesman who happened upon the successful business establishment of two brothers, Dick and Mac McDonald.  The brothers had already begun franchising their business several years before Kroc became keenly interested in the business model and product of the McDonald brothers.   Originally though, Kroc partnered with the brothers with the idea that he could sell numerous milkshake machines to every new McDonald’s franchise since milkshakes were a popular item on the McDonald’s menu so that every store required numerous milkshake machines as well as replacement parts.  Disagreements over strategy and direction, however, soon tarnished the relationship between Kroc and the McDonald brothers and Kroc bought out the brothers in 1955. 

Kroc then went on to expand the McDonald’s corporation nationwide, quickly making it a household name and a key element of the consumer culture of the Cold War decades.  McDonald’s became a national symbol of an American way of life that included the power of American industry (automobiles), freedom and opportunity (a national highway system and the “open road”), and a mass culture based on the standardization of products and lifestyles, bolstered by a seemingly limitless selection of consumer options (“Would you like pickles and mustard with your hamburger, or just ketchup?”).  As Americans took to the road in their new V-8 engines, they found McDonald’s all along the way.  National marketing campaigns singled out children with cartoon and clown type characters like Ronald McDonald and the Hamburglar. 

The international success of the McDonald’s corporation is a testament to the leadership styles and capabilities of Ray Kroc.  He died in 1992, but by this time he had developed a global corporation based on the concept of standardized meals, quality service, and clean establishments.  Over the years, McDonald’s has proven more than capable of managing change and meeting new challenges.  For example, when Americans began eating healthier, McDonalds began a new line of products including salads and lower calorie meals.  Much of this change management success stems from Kroc himself who successfully steered the corporation through numerous changes such as the establishment of national franchises and then international growth.  Critics now point to the extreme influence of fast-food companies such as McDonald’s over the food industries throughout the globe, but during the Cold War, Ray Kroc and McDonald’s symbolized a nation that saw itself as united and prosperous.  Together with corporations like Coca-Cola and Disney, McDonald’s continues to be a national icon and an internationally recognized symbol of American culture.

In this edition of our Wednesday Leadership Blog, we focused on the Ray Kroc and McDonald’s.  Join us back here next week when we take a closer look at more leaders from history and discussions of leadership best practices.

Dr. Scott Eidson is the Executive Vice President of the Madison School of Professional Development and holds doctoral degrees in both history and business.  Dr. Scott had been studying, teaching, writing, applying, and thinking about leadership and leading others for some time now.