In the movie "The Founder" Ray Kroc is an entrepreneur looking for business opportunities. Right at the beginning he is showing persistency by going to many different companies and asking them to use his milkshake maker, with rejection after rejection. We also see examples of persistency throughout the movie "Tucker: The Man and His Dream". Persistency is so important in entrepreneurship. Ray is very persistent and eventually finds the McDonald brothers. He partners with them and comes up with the idea of franchising. Franchising was one of the main aspects of this movie. Franchising can be very profitable as long as you do it correctly and carefully. That is something Ray lacked in this film. Franchising can actually be very difficult and there are many aspects to it that I have never noticed until after watching this movie. One of them being how difficult it is to enforce standards at many different locations when you aren't physically there at all of them. That was a big conflict the brothers and Ray had to face. Trying to find people to run each franchise that would keep the restaurant in line and stick to the original design was difficult for them. Something that stuck out to me, that we had also learned about in class, was they they were using division of labor at each of their locations. In the film, Mac points out each worker and what each of them are assigned to do. He points to one and says "whose job is to grill those all-beef beauties to perfection" (14:29). This division helped keep things in order. We read about the division of labor in class, as well. In "The Seen, The Unseen and The Unrealized" Bylund says "We saw how this is more effective in production because each person gets to focus on a specific kind of production, which is exactly what Adam Smith suggested" (Bylund 52). I believe the division of labor helped keep each McDonald's location in better shape than they could have been, had they not used that production method. Franchising has many effects on society and I think most of them are beneficial. When a company franchises they are spreading their company to more locations in the world. It is smart to make what is being produced available to many more consumers because many will value what is being produced, which will result in higher profits. A big affect society has on the franchising aspect of entrepreneurship is how much the producer ends up making. It is the entrepreneurs job to make an educated guess of how much they think the consumers will value it and how much they think they, the producers, will make out of it. Ray made the mistake of not planning ahead before he started paying for all of this new franchising. Towards the end of the movie Ray starts to notice many bills coming in that he cannot afford to pay. When he goes in to speak about it, a man, Harry, overhears him and speaks with him afterwards. Harry tells Ray that he has eaten at one of his McDonald's and he loves it. He tells him that something must not be right if he is having any financial struggles. "If you're not making money hand over fist, somethings terribly wrong" (1:18:32). We see more examples of why it is important to know what you're getting yourself into and know if you are going to be able to cover it in Professor Bylund's book. He writes about how Adele, the women selling apples, is making the right decisions that will result in her making a profit. Ray did not make sure that what he was doing was going to make more than what he had to pay for it, so in-turn he was losing money. Society loved what he was doing but because he got so caught up in giving them so much of what they wanted, he got lost in the expenses of what he was producing for the consumers. That is such an important aspect of entrepreneurship that every entrepreneur needs to understand.
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