The document discusses Ray Kroc and McDonald's. It defines entrepreneurs as individuals who own and operate businesses and assume risks to identify and meet needs. Successful entrepreneurs are creative, determined, and goal-oriented. The document also outlines advantages and disadvantages of entrepreneurship, types of businesses entrepreneurs can start, and how McDonald's grew through Ray Kroc's entrepreneurship.

1. Opening Activity Pick up a “Note Sheet” on the table Complete the section about your initial impression of McDonald’s Unit #3: Day 1

2. Ray Kroc – A “Fast Food” Genius Who is Ray Kroc? Owner of McDonald’s Didn’t reinvent fast food, just did it better Found a niche => store consistency An Entrepreneur An individual who runs a business Could have been the founder or bought it Unit #3: Day 1

3. Ray Kroc - A successful entrepreneur? Yes/no? How do you measure his success? What are some characteristics that Ray Kroc exhibited that made him a successful entrepreneur? Self-confident Determined Creative Goal-oriented Had a vision Able to act quickly Unit #3: Day 1

4. Define what an entrepreneur is and why do individuals become one? Identify traits of successful entrepreneurs? What are advantages & disadvantages of entrepreneurship? What are types of businesses that entrepreneurs can start/run? Today’s Questions? Unit #3: Business & Industry Analysis Unit #3: Day 1

5. Who is an Entrepreneur? One who owns and operates a business venture One who accepts all the risks One who tries to identify and meet a need for a product or service Examples? Bill Gates, Michael Dell, Phil Knight and Sam Walton Maybe mom or dad or another family member Unit #3: Day 1

6. Are there certain criteria to become an entrepreneur? No!!! Anyone can become one regardless of background or education Ray Kroc dropped out of college It involves taking a risk Entrepreneurs assume risk which makes them different from employees Entrepreneurs work for themselves whereas employees are people who work for someone else Unit #3: Day 1

7. Why become an entrepreneur? Change of lifestyle Chase personal dream Work for themselves Potential financial rewards Unit #3: Day 1

8. Advantages of Entrepreneurship Entrepreneurs are their own bosses Nobody tells an entrepreneur what to do – they control their own destinies Entrepreneurs can choose a business that interests them Many combine hobbies & interests with business Entrepreneurs can be creative Entrepreneurs can make lots of money Reap benefits of their hard work Can go public, be bought out/acquired by another company, or have high sales Unit #3: Day 1

9. Disadvantages of Entrepreneurship Entrepreneurship is risky Most businesses begin operations by borrowing money – takes time for businesses to be financially viable All businesses face the possibility of going out of business or losing money Entrepreneurs face uncertain and irregular incomes May make money one month and lose money the next Entrepreneurs work long hours Never really are finished with their jobs Receive no paid days off Entrepreneurs must make all decisions by themselves Unless they have partners, they must make all the decisions alone Unit #3: Day 1

10. Types of Businesses Entrepreneurs can Start/Run Manufacturing businesses Produce the products they sell E.g., General Motors, Timex watches, etc. Wholesale businesses Sell products to people other than the final customer E.g., Sysco food supplier Retail businesses Sell products directly to the people who consume them E.g., Target, Wal-Mart, Jewel, etc. Service businesses Sell services rather than products E.g., H&R Block tax preparation, Ritz Carlton hotel, etc. Unit #3: Day 1

11. McDonald’s Branching Activity Going to put you into 5 groups Need to tear off a white sheet of paper up front & a marker Draw a tree trunk similar to the one on the board & label it McDonald’s Your objective: Draw as many branches off the trunk that pertains to McDonald’s You will spend a couple minutes doing this & then will rotate to the next group’s Ultimately, your group will return to your initial drawing and see your fully blossomed McDonald’s tree Unit #3: Day 1

12. CNBC Video Going to watch: “Big Mac: Inside the McDonald’s Empire” Aired in the Summer of 2007 Gives you a perspective on current day operations As you are watching it, write down some reactions to the material presented on your note sheet Unit #3: Day 1

13. Today’s Question Wrap-Up Define what an entrepreneur is and why do individuals become one? Individuals who take the risk and go into business for themselves either to chase a dream or for the potential financial rewards Identify traits of successful entrepreneurs? Creative, aggressive, determined, goal-oriented What are advantages & disadvantages of entrepreneurship? Get to be your own boss, potential financial rewards Have to make all of the decisions, could fail & lose $$ Types of businesses entrepreneurs can start? Manufacturing, Wholesale, Retail and Service Unit #3: Day 1

14. Homework Type up a list of (1) Key Challenges and (2) Opportunities that you think McDonald’s faces Unit #3: Day 1

15. Today’s Questions? From Lesson 1.3 Identify Opportunities What are the advantages & disadvantages of entrepreneurship? What is a SWOT analysis? Unit #3: Day 1

16. Refresher Define what an entrepreneur is and why do individuals become one? Individuals who take the risk and go into business for themselves either to chase a dream or for the potential financial rewards Unit #3: Day 1

17. Identify Opportunities Pair up with a neighbor and share your business ideas Ideas? Why did you choose these? Hobby or interest in Financial opportunity Unmet need/want or could fulfill an existing one better So you have the idea, what’s next? Do research, networking, and perform analysis Unit #3: Day 1

18. Identify Opportunities Research, networking, analysis What looking for? Existing competition Is there demand for the product Necessary investment to start the business, labor requirements, etc. Potential sales and profits Sources of information Business trade magazines Government publications Organizations such as the Small Business Administration (SBA) and local Chambers of Commerce Talking to entrepreneurs & attending trade shows Zipskinny.com Perform analysis SWOT Unit #3: Day 1

19. SWOT Analysis Example Our mission is to be the world's premier consumer products company focused on convenience foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity. Unit #3: Day 1

20. SWOT Analysis Example How can Pepsi achieve this mission of growth? New products New distribution outlets/increase sales Acquisitions Pepsi did this acquiring Quaker Oats in 2000 for $14 billion By purchasing Quaker Oats, Pepsi got Gatorade but also oatmeal, cereal, etc. Let’s prepare a SWOT analysis that Pepsi might have done in evaluating this acquisition Unit #3: Day 1

21. SWOT Analysis Unit #3: Day 1 Strengths Weaknesses Threats Opportunities

22. SWOT Analysis Unit #3: Day 1 Strengths Gatorade #1 sports drink Increased revenue Get to be instant market leader Weaknesses Get products don’t need/want Expensive Threats Coke’s reaction Sponsorship conflicts FTC may block Opportunities Can piggy back on Pepsi’s existing distribution channels

23. SWOT Analysis: Wal-Mart International Expansion Example Unit #3: Day 1 Strengths Weaknesses Threats Opportunities

24. Today’s Questions Wrap-Up From Lesson 1.3 Identify Opportunities Identify traits of successful entrepreneurs? Creative, aggressive, determined, goal-oriented What are the advantages & disadvantages of entrepreneurship? Advantages Own boss, choose business that interests them, can be creative, and make lots of money Disadvantages Risky, have uncertain and irregular incomes, work long hours, and have to make all the decisions yourself What is a SWOT analysis? Quick analysis used to asses the viability of an idea/ opportunity Unit #3: Day 1

25. Homework None Unless you haven’t already read Chapter 1 Next class will start discussion on Chapter 3 Test on: Monday, 3/12 B day class Tuesday, 3/13 A day class Unit #3: Day 1