The high school grades of Tom Monaghan, who was born in 1937, were so low that he graduated at the bottom of his class. The local university turned down his application, but he managed to enter the University of Michigan. A few weeks later, he dropped out because he lacked money for school fees. In 1960, Monaghan agreed to buy a pizza store with his brother, who gave up a year later.
For the first year, Monaghan worked all the time but hardly made any money. He soon found himself deep in debt. He began making the business simpler, selling only three sizes of pizza, instead of five. This change helped Monaghan make a profit, which allowed him to expand his three stores under a new name, Domino’s.
However, during the following years Monaghan experienced a series of setbacks. In 1967, a fire destroyed his store in Ypsilanti, Michigan, which served as the company’s offices. Most of the damage was not covered by insurance. In an effort to recover his losses, Monaghan continued to expand his franchise, but was unable to keep up with the growth. Without Monaghan’s guidance, many of the new stores closed down. By 1970, Monaghan was $1.5 million in debt and facing lawsuits from nearly 150 debtors. In the following financial settlement, Monaghan lost 51 percent of his company to the bank.
But Monaghan concentrated on building the 49 percent of the business he still owned. Slowly, he began to work his way out of his financial difficulties. He defended himself in court since he could not afford a lawyer. He sold his furniture and his car. In about a year, he managed to pay off all his debts.
These hard times taught him a valuable lesson in how to run a business. By 1978, two hundred Domino’s stores had opened. Five years later, the number of stores was over a thousand; by 1989, the chain had more than five thousand stores. The company had more than six thousand pizza delivery stores when Monaghan sold it for $1 billion in 1998.
What seemed to be the reason why the local university turned down Monaghan’s application? (No more than 10 words)
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How did Monaghan expand his three stores under a new name, Domino’s according to the second paragraph? (No more than 15 words)
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What does the underlined word “setbacks” mean in the third paragraph? (Only one word)
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How did Monaghan finally succeed after he lost 51 percent of his company?
(No more than 15 words)
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What do you think of Monaghan? Give your reasons. (No more than 20 words)
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