McDonald's Russia: A Jewel in the McDonald's Emerging Market Operations?
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Case Details:
Case Code : BSTR366
Case Length : 34 Pages
Period : 1990-2010
Pub Date : 2010
Teaching Note :Not Available
Organization : McDonald's Corporation
Industry : Fast Food
Countries : Russia
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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McDonald's was a huge success in Russia right from the first day of its operations. Thousands of customers queued up for hours to experience it. The restaurant served over 30,000 customers on the opening day. By 1993, the company started making profits in Russia and did not look back after that...
Overcoming Challenges
Analysts felt that the biggest challenge before McDonald's Russia was dealing with the ministries. They felt that these regulators adhered to rigid regulations in doling out supplies.
"When we need more sand or gravel for building and go to the department in charge, they say,
'Sorry, you're not in my five-year plan'," said Cohon...
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Outlook
With more than two-third of Russia's fast food business, McDonald's was a dominant player. In 2009, Russia was again one of the markets that spurred the company's growth as it was McDonald's fastest-growing market in Europe in terms of restaurant openings...
Exhibits
Exhibit I: Growth of McDonald's Corporation
Exhibit II: Financial Summary of McDonald's Corporation (2004-2008)
Exhibit III: List of Countries Where McDonald's Was Operational, As of 2008
Exhibit IV: A Brief Note on Russia's Economy in the Early 2000s
Exhibit V: Market Share of Fast Food Retailers in Russia between 2003-2006
Exhibit VI: A Brief Note on the Fast Food Market in Russia: 2006-2008
Exhibit VII: Leading Fast Food Chains in Russia
Exhibit VIII: McDonald's Comparable Sales in November 2008 and 2007
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