Chapter 4, The Owner/Operator Summary and Analysis

Corporate culture determines how mangers react to change. Some resist change, others embrace it. McDonald's appears to be the former, but in fact it is the latter. Kroc sets the tone with his own "trial-and-error" mentality. The author then discusses some of Kroc's early franchising efforts and his failures. He also learns from licensing experiences and failures for others. He sees, for instance, that if you fight maverick franchisees about price, then you start to fight about everything. He also realizes not to overextend himself.

The author also discusses a fight between Dick McDonald and Kroc about exclusivity of franchising rights, which Kroc is eventually able to win. Further, Kroc has difficulties securing investors for his Des Plaines McDonald's. Many of his franchisees come from his fellow golf club members. He avoids remote control partly...