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MBA700 Strategic Management Categorical Imperative Southern New Hampshire University

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Southern New Hampshire University

MBA700 Strategic Management Categorical Imperative Southern New Hampshire University

1. What would an act utilitarian say about Kroc’s actions as a businessman? A rule utilitarian?
According to act utilitarian, Kroc’s action as a businessman is morally right in the movie called The Founder. It is undeniable that the McDonald’s wouldn’t have arisen without the McDonald brothers but bear in mind that without Kroc, there wouldn’t havebeen any golden arches that grace throughout the world. Act utilitarian says that whenan action produces a positive impact towards a great number of people, then it is known to be morallyright. In this movie, it can be clearly seen when Kroc turns the McDonald as afranchise business, he gave space to many employees that got benefited with the expansion. Maybe we might think that somehow rather these people would be working in other places if there is no McDonalds, but they might as well just work as lesser jobs or being unemployed. Forexample, Leonard Rosenblatt who was just a seller of Catholic bible turned up hislife to be a partner in McDonalds by the help of Kroc and gains more profit than selling a bible.Fred Turner who was just working as the burger flipper at McDonald became one of theheads of McDonald’s.
Besides that, in this movie, Kroc had promised McDonald brothers to give 1% royalty, but he played a smart move by not giving them the profit but bought the brothers for $2.7million. In this case, we might think that it is unfair but we also need toknow that the brothers somehow rather got benefited by getting that $2.4 million because even if they would have prolonged their small restaurant McDonald without Kroc’s presence in it, they wouldn’t have achieved this amount or it might as well take a long time to achieve it.
On the other hand, according to rule utilitarian; the actions of Krocas businessman is unethical. In rule utilitarian, the morality of an action solelydepends upon the rightness of rules which allows to achieve the goodness. In this movie, it has been clearly stated when Kroc cheated the McDonald brothers as he promised to give the 1% royaltyto them at the closing table. Maybe he would have bought them for $2.4million but they weresupposed to gain more profits than that because 1% per year would be equal to $100 million. As per rule utilitarian, we should follow the rules, but Kroc broke the rules by lying them that he would give them the royalty.
Besides that, the fast food that was developed as a franchise business might be achieving a good profit, but it gives a negative impact towards the people all around theworld who eats it. This is because McDonalds considered to be an unhealthy food whichincreases the rate of obesity and creates other health problems. This shows the selfishnessof Kroc to only make profits on the business rather than giving importance to their customer’s health.
Add onto it, he left his wife for another woman who he fell in loveduring the meet up of one of his franchisees. The woman he felt in love was his franchisee’swife, but it is unethical as both of them are married and it is against the rules of correctness.He left his wife who was supportive of him since day one but he neglected her just for his ambitious to be rich.


MBA700 Strategic Management Categorical Imperative Southern New Hampshire University

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