Subject category:
Strategy and General Management
Published in:
1996
Length: 8 pages
Data source: Published sources
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Abstract
McDonald''s in Russia is at a take-off phase of the international industry cycle, fitting very well into the global business portfolio, in the way the market for hamburgers is complementary to mature western cash-cow markets. The market environment in Russia is improving, but two major pre-conditions should be met before further investments: a more certain legal environment and a better developed banking system. Comparative analysis readily shows that the Yugopluralist model is well worth examining - its different regional, historical, ideological and cultural factors and the consequences they have on entrepreneurship may help make better predictions about, and/or for, the republics of the former USSR. (See ''The Yugopluralist Model'', Entrepreneurship, Innovation & Change, Volume 3, No. 2, June 1994, pp 177-180.) McDonald''s have a competitive advantage due to having worked through the system at an early stage - established contacts with local authorities and suppliers will show as advantageous in the long run. This case also shows that when operating in a turbulent market environment, it could be very wise to run a side business that protects from complete failure - i.e. real estate in McDonald''s case.
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Abstract
McDonald''s in Russia is at a take-off phase of the international industry cycle, fitting very well into the global business portfolio, in the way the market for hamburgers is complementary to mature western cash-cow markets. The market environment in Russia is improving, but two major pre-conditions should be met before further investments: a more certain legal environment and a better developed banking system. Comparative analysis readily shows that the Yugopluralist model is well worth examining - its different regional, historical, ideological and cultural factors and the consequences they have on entrepreneurship may help make better predictions about, and/or for, the republics of the former USSR. (See ''The Yugopluralist Model'', Entrepreneurship, Innovation & Change, Volume 3, No. 2, June 1994, pp 177-180.) McDonald''s have a competitive advantage due to having worked through the system at an early stage - established contacts with local authorities and suppliers will show as advantageous in the long run. This case also shows that when operating in a turbulent market environment, it could be very wise to run a side business that protects from complete failure - i.e. real estate in McDonald''s case.