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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"We are not afraid of competition. The market is still in the making and one who takes right decisions at the right time will be the leader. We did it 20 years ago... When we saw the first queues that were lining up to our first restaurant in Moscow every day and night all year round, our success was predetermined and all we had to do was to develop as fast as possible."

- Khamzat Khasbulatov , McDonald's Corporation, president for Russia and Eastern Europe, in December 2009.

"Of the 118 countries where McDonald's Corp. does business, none can boast more activity than Russia. On average, each location serves about 850,000 diners annually -- more than twice the store traffic in McDonald's other markets. That has presented the world's largest restaurant chain with an unusual dilemma. Russia, with its burgeoning middle-class and consumer appetites for all things American, is a jewel in the McDonald's system."

- The Wall Street Journal, October 16, 2007.

Introduction

The year 2008 was considered a landmark year for the world's largest fast food chain, McDonald's Corporation (McDonald's).

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1] Maria Kiselyova and Maria Plis, "McDonald's to Target Stay-at-home Russians," www.reuters.com, December 17, 2009.
2] Khamzat Khasbulatov was one of the four managers for the first outlet of McDonald's in Russia. He was named to McDonald's top Russia position in 1999 and later took on the responsibility for the company's Eastern European restaurants.
3] Janet Adamy, "As Burgers Boom in Russia, McDonald's Touts Discipline," http://online.wsj.com, October 16, 2007.


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