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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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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Excerpts

Background Note

McDonald's was started in the late 1930s by Richard and Maurice McDonald in California, after they failed to make profits from running a movie theater. The brothers were inspired by a hot dog stand nearby, which always did brisk business even when other businesses were struggling under the effects of the Great Depression...

International Expansion

McDonald's began its international expansion in 1967 with its first restaurant outside the US coming up in Richmond B.C, Canada on June 1. In July 1971, McDonald's began operating in Tokyo, Japan, in a joint venture with a local partner Den Fujita...

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Entering Russia

McDonald's pre-entry plans for Russia started way back in 1976. Cohon, at the time of the Montreal Games in Canada, offered the services of the McDonald's company bus to some of the Olympic officials from the erstwhile Soviet Union. He took the officials to a local McDonald's restaurant and offered them some of its signature dishes...

Expansion in Russia

Right from the early 1990s, McDonald's started to invest in real estate ventures by acquiring various properties in Russia. As there was some difficulty in the conversion of the Russian ruble into any other currency, the company thought of using it for buying farmland and for building an office tower and distribution center in the country...

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