Ann Nolan

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OSI Group and McDonalds Successful Business Relationship

The success of most businesses is built on the uniqueness of their product, it’s a way of conducting business i.e the quality of their services, the loyalty of their clients and most importantly, it’s relations and affiliations with other businesses. These factors create a cushion for the business to fall back on whenever the business just a barrier. Businesses that have created and maintained a loyal network or affiliations are still running successfully even when others failed during recessions. OSI Group McDonalds are such kind of business. During it’s over a century of food processing and services, the OSI Group McDonalds have created long-lasting relationships and loyal client base with other food service industries like with the McDanolds.

The history of OSI Group McDonalds.

The OSI food processing industry was founded by a German immigrant, Otto Kolschowsky in the early 1900s. Before it became one of the world’s largest meat processing industry, the OSI industry was a small family-run meat market in Chicago, Illinois. At that time, German immigrants made up a quarter of Chicago’s population. The city was an ideal place to start a business since it was a breeding ground for industries and a gateway for immigrants who were on their way to establish farms on the western plains.

Due to the quality of services the business and Otto Kolschowsky provided, within a decade of existence, OSI Group McDonalds had expanded its services and grew into a wholesale business which led to the industry moving its operations to Maywood, another suburb in Chicago. Almost half a decade later, Ray Kroc opened the first of what would become one of the world’s largest food chain, the MacDonalds, in Des Plaines, Illinois. Before he opened the Des Plaines restaurant, Ray Kroc had gotten into an agreement with the Otto and Son’s representatives, Arthur and Harry, to be the first suppliers of ground beef. Just like that, a lasting business relationship was established.
As the McDonald’s franchise grew so did the relationship between the two. They were symbiotically joined. Supplying the McDonald’s the ever-growing number restaurants with meat products has become the OSI’s primary task.

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