THE GROWTH OF OSI INDUSTRIES A MULTINATIONAL COMPANY

OSI Industries is a meat processing organization based in Aurora, Illinois which services food and retail industries. It was founded at the beginning of the 1900s by Otto Kolschowsky, a German-immigrant who set up the business in Chicago, where most of the immigrants were coming to settle. It started as a small retail meat market and butcher shop aimed at serving people of German descent. After a decade of service, Otto expanded the business to become a wholesale market and even opened a spot in Maywood, Chicago. The business experienced growth over the next decade, leading to a rebranding to Otto & Sons in 1928.

After the second world war, demand increased in America as suburbs grew across the country, prompting OSI Industries to ally with another small organization, McDonald’s. McDonald’s was first opened in 1955 by Ray Croc, a franchise agent of Richard and Maurice McDonald, in Des Plaines, Illinois. He opened the restaurant after meeting with Arthur and Harry, Otto Kolschowsky’s sons, who would be the suppliers of fresh ground beef to the restaurant.

Kroc later bought out McDonald’s and became the company’s CEO. As McDonald’s experienced growth over the coming years, so did Otto & Sons as they continued supplying McDonald’s. The growth dictated that Otto &Sons would get creative to satisfy McDonald’s demand for ground beef. This prompted the introduction of Flash Freezing, using liquid nitrogen to quickly freeze the products, for them to be able to transport the cargo across the country while still fresh. In 1973, Otto & Sons created a facility dedicated to this and McDonald in Illinois. The aspects that didn’t involve McDonald were part of the Glenmark brand.Two years later, it was rebranded to the now OSI Industries.

The transition of the company also came with new leadership, which was family-based over the years. OSI Industries joined hands with Sheldon Lavin in 1975, who was an investment specialist for the organization in his previous years. He was brought to replace Arthur and Harry who were about to retire, becoming CEO in the early 1980s.

OSI Industries alongside McDonald’s broke into the international market after continuous growth over the years. They started with Germany in 1978 and moved to Spain in 1980 as a joint venture. The company is ranked at number 58 by Forbes as a private company with a net worth of $6.1 billion having ventures in Brazil, Mexico, Hungary, Poland, and Austria. OSI early manipulation of the market has been the main reason that the company has and will continue to grow.

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