OSI Industries: the McDonald’s effect

OSI Industries is a leading company in the foods industry. It produces value-added food products to the people. It has been in the industry for a very long period. Its history goes back to 1909 when a German immigrant known as Otto Kolschoswsky started a butcher shop in Chicago. It later developed into a meat market. It recorded consistent growth, and that is how it managed to be among the top companies in the world. Today, this is a company that is worth about $6.1 billion and is expanding its operations to different parts of the globe. There is a dedication that this company is putting in making the company great.

Otto & Sons

Before OSI Industries adopted this name, it was known as Otto & Sons. After the expansion of the meat business in Chicago, Otto brought his two sons- Arthur and Harry to help with the management of the business. It is at this point that it adopted the name of Otto & Sons. Otto and his two sons did the initial phase of development of this company. The most significant deal that made Otto & Sons to sprout was a deal with the McDonald’s in the 1950s. This deal was key to the success of this company as we know it today. McDonald’s did very well in its initial expansion plans and Otto & Sons being one of the suppliers was forced to follow suit. As McDonald’s went international, they had to go international so that they could meet the demand from its chain restaurants.

The McDonald’s effect

After Otto & Sons landed a deal to supply meat products to McDonald’s, growth became rapid. The business plan of the McDonald’s was rolling out very fast, and Otto & Sons had to make sure that they could meet the demand. As a result of the increase in demand, they split their operations into two. One part was left as Otto & Sons and dedicated its operations to supplies to the McDonald’s while the other part was renamed and left to deal with supplies to other clients. Another impact of the deal was that OSI Industries was forced to construct its first production facility to deal with the supplies for the McDonald’s.

It is clear that the growth of McDonald’s impacted the growth of OSI Industries. This deal got the company started, and now it has developed into a leading food producer although it has created a network of many clients now.

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