Please, McDonald’s, Babaiban, Walmart. Enterprise development history.

Survival with Broken Arms and the Development of McDonald's

McDonald's is the world-famous king of the fast food industry. Its chain stores are located in various countries around the world, and its annual revenue is as high as more than 20 billion U.S. dollars. How did such a huge enterprise develop?

When it comes to the history of McDonald’s, we have to mention the two brothers, Mike and Dick, who first started this business. However, they really turned McDonald’s into But it was Crocker who flourished his career. Before meeting Crocker, brothers Mike and Dick lacked foresight and did not know the value of the three words "McDonald's". In addition, they did not understand the business management at all, so the McDonald's they ran was always in recession.

One day in 1954, Crocker and the McBrothers formally reached an agency chain agreement, and Crocker officially obtained the right to develop the McDonald's restaurant chain.

On one day in March 1955, McDonald's Corporation was established as JE. Crocker took full advantage of his previous experience and began to create a unique chain operation. In just 10 years, McDonald's has grown rapidly. But the company also faced a bigger problem, which was how to develop rapidly in a highly competitive environment, which had become a top priority at the time. At this time, with the rapid development of the company's chain stores, the Mike brothers' hindering effect on the company's development became increasingly obvious. On the one hand, the Mack brothers are conservative and short-sighted. On the other hand, according to the contract, the Mack brothers take away 0.5% of the chain's operating income every year. This makes McDonald's development seriously lack of funds and unable to grow rapidly. At this critical moment, brothers Mike and Dick offered to sell their shares, which undoubtedly made matters worse. However, after hard work, Crowe and his colleagues finally managed to raise a loan of US$2.7 million in exchange for the entire operating rights of McDonald's. Although it seemed to cost a lot at the time, from today's perspective, the decision made at that time was well worth it. Because if we had not taken over all the rights from the Mack Brothers at that time, based on the current annual sales of the entire company of nearly 30 billion US dollars, we would have to pay US$150 million in rights fees to the Mack Brothers every year. This will cause greater losses to McDonald's today, not to mention that without the decision-making at that time, McDonald's would not be as large as it is today. It is precisely because of Crocker's forward vision and courage to survive with a broken arm that the McDonald's kingdom is today.

All in all, McDonald's finally gained freedom and independence after paying a heavy price, and the price of US$2.7 million finally brought McDonald's take-off.

Management Implications

In nature, there are many animals with the instinct to survive if their arms are broken, such as geckos, lizards, etc. Although a broken arm is painful, it is much more cost-effective than losing a life. Moreover, sometimes broken things may grow back, but once a life is lost, it cannot be regained. Many people understand this truth, but making such a decision requires a lot of courage. The reason why McDonald's was able to take off was precisely because Crocker had the courage to survive with a broken arm at that time. Making decisions at critical moments requires courage and courage. Only by giving up can you achieve success

++++ ++++++++++++++++++++++++++++++++

Yabaohan: The Sunken Aircraft Carrier

Kazuo Wada, the 68-year-old founder of Yaohan Group, has become a legendary figure by taking the world by storm with his autobiography "Yaohan - From Zero to Billions". He was originally a small owner of several Yaohan grocery stores in Shizuoka Prefecture, Japan. He inherited the fruit and vegetable store run by his parents and wrote a typical story of "Axin"-style hard work. In the late 1960s, when large supermarkets emerged in Japan, he found another way to expand overseas because he was unable to compete. The predecessor of Yaohan first registered a private limited company in Hong Kong in October 1973. In 1984, Wada Kazuo made a big move into Hong Kong and opened 9 Yaohan department stores. In addition, a department store in Macau developed 10 branches. In just a few years, he built a department store kingdom. By May 1990, he moved Yaohan's headquarters to Hong Kong with HK$1.15 billion in capital, demonstrating his determination to take root in Hong Kong. In 1993, when Hong Kong's economy was in a period of adjustment, he saw the market potential of mainland China, moved Yaohan's headquarters to Shanghai, and built three department stores in Sha Tau Kok, Shanghai, and Beijing.

In just a few decades, it has developed into a well-known department store group, and its hard-working spirit cannot but impress people. Relying on the Wada family's extraordinary courage and debt management methods, Yaohan quickly owned 71 chain stores in Japan and 27 branches overseas. Its development speed is indeed beyond the reach of its peers. This approach of daring to directly raise funds from the capital market and quickly develop chain stores to occupy the market was once praised by the Japanese financial circles. From 1990 to 1994 alone, Yaohan*** issued convertible bonds worth approximately 50 billion yen (approximately 3.5 billion yuan). In recent years, Yaohan's aggressive entry into the Chinese market has attracted even more attention. In addition to moving the group headquarters to Shanghai and solemnly announcing the establishment of 1,000 supermarkets in China, they also established the first large-scale Sino-foreign joint venture retail business in China. At this time, many businesses in China felt a lot of pressure. Although Yaohan is bankrupt, an eagle with broken wings is still an eagle. Some of our listed companies only aim to raise "loans that do not need to be repaid" and are too lazy to make progress. Therefore, it is necessary to "request" from their decades of continuous expansion and growth and learn the spirit of self-improvement and indomitable progress. .

++++++++++++++++++++++++++++++++++++

The historical development of Wal-Mart

Just like the first store, today's Wal-Mart is still driven by three basic beliefs. Although Mr. Sam has left us, his ideas and philosophy will always lead us to success. The reason why Wal-Mart is successful today is that it has never been complacent about the company's status quo. Wal-Mart is a forward-looking company that values ??its past and is good at learning from its past, but it will not stand still. The following chronology reflects the development of Wal-Mart.

1960s

In 1962, Sam Walton founded the company and opened the first Wal-Mart department store in Rogers City, Arkansas.

Wal-Mart Department Store Co., Ltd. was established on October 31, 1969.

1970s

In 1970, the company's headquarters and first distribution center were established in Bentonville, Arkansas.

In 1972, Wal-Mart's stock was approved to be listed on the New York Stock Exchange.

In 1975, Sam Walton introduced the famous "Wal-Mart Cheer" inspired by Korean workers.

1980s

In 1983, the first Sam's Club opened in Midwest City, Oklahoma.

In 1984, Sam Walton fulfilled his promise to his employees and the company's pre-tax profit reached 8%. He danced hula on Wall Street.

In 1984, David Glass became president of the company.

In 1987, Wal-Mart's satellite network was completed and was the largest private satellite system in the United States.

In 1988, David Glass became the company's CEO.

In 1988, the first Wal-Mart shopping mall opened in Washington, Missouri.

1990s

In 1990, Wal-Mart became the largest retailer in the United States.

In 1991, Wal-Mart opened its store in Mexico City, and Wal-Mart began to enter overseas markets.

On March 17, 1992, Mr. Sam Walton received the Medal of Freedom from US President George Bush.

On April 5, 1992, Mr. Sam Walton passed away.

On April 7, 1992, S. Robertson Walton became chairman of the company's board of directors.

In 1992, Wal-Mart entered Puerto Rico.

In 1993, Wal-Mart International was established, and Bobby Martin became president and CEO of the international department.

In December 1993, weekly sales reached US$1 billion for the first time.

In 1994, 122 Woolco stores were acquired in Canada.

In 1995, it entered Argentina and Brazil.

In 1996, it entered China through the establishment of a joint venture.

In 1997, it became the largest private employer in the United States.

In 1997, it had 680,000 employees in the United States and 115,000 employees outside the United States.

In 1997, Wal-Mart stock became a Dow Jones Industrial Average stock.

In 1997, Wal-Mart's annual sales exceeded US$100 billion for the first time, reaching US$105 billion.

In 1998, it acquired 21 Wertkauf stores and entered Germany.

In 1998, community stores were introduced for the first time and three community stores were opened in Arkansas.

In 1998, annual charitable donations exceeded US$100 million, reaching US$102 million.

In 1998, it entered South Korea through the establishment of a joint venture.

In 1999, the total number of employees reached 1.14 million, making it the world's largest private employer.

In 1999, it acquired the ASDA Group of Companies (with 229 stores) and entered the UK.

In the 2000s

In 2000, it was ranked among the "World's Largest" by Fortune magazine. Ranked 5th among "Respected Companies".

In 2000, Scott Li became president and CEO of Wal-Mart.

In 2001, it ranked No. 3 among "Fortune" magazine's "America's Most Admired Companies."

In 2001, single-day sales hit a record, reaching $1.25 billion on the day after Thanksgiving.

In 2002, it topped the list of the Fortune Global 500 and ranked first among the most respected companies in the United States.

In 2003, it once again ranked first among the most respected companies in the United States selected by Fortune magazine.