OSI Group- Expansion In The Mid-20th Century
The growth of the OSI Group in the mid-20th century was influenced a lot by the development of the McDonald’s. When the restaurants’ franchise opened its first restaurant, it was in Illinois. It is the same area where Otto & Sons were operating. McDonald’s was in need of suppliers, and they hired the services of Otto &Sons, the predecessor of the OSI Group. They were to supply beef products to the restaurants. The McDonald’s picked up very fast, forcing Otto & Sons to look for better ways of supplying the products. The demand kept on growing over the years until it Otto & Sons became the biggest regional suppliers of products to the McDonald’s.
Otto & Sons faced some challenges as the demand went up. McDonald’s was opening restaurant in far-flung areas. To meet the supply to these regions, they had to find a way of preserving the products. The new challenges were on food production, storage, preservation, and transportation. Luckily, the nitrogen perseveration technology was introduced at the same time, and the company would be in a position to preserve their products for transportation to far locations. With the challenges that they were facing, they needed to increase their production activities and also facilitate efficient transportation to far-flung areas.
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Otto & Sons approached a bank seeking for funds. They wanted to build a production plant as well as meet the other needs. They went to a bank where they met Sheldon Lavin, the current CEO. Sheldon Lavin facilitated the funding. He would later join the company on the role of a managing partner. The company was growing fast, and it needed someone with expertise on financial matters to be at the top. Otto & Sons changed to OSI Group to facilitate its international growth.
OSI Group built the first production plant in Chicago and was meant for the supply needs for the McDonald’s. The company had been picked by the McDonald’s as one of the main four suppliers. They needed to meet the needs of their clients, and that is why they made every efforts to expand the business.
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