SWOT of Russia's first McDondal

Topics: Russia, Soviet Union, Food Pages: 3 (414 words) Published: October 11, 2013
McDonald ----marketing environment
1. PEEST analysis (Macro environment )

Under Soviet Union’s government
It took 14 years of negotiation with 4 different Soviet leaders. Face new negotiation team every time and solve all problem all over again The Soviet government is shaking but standing


In 1990s, the economy was collapsing due to the disorder in the Soviet Union The currency was not convertible because there was hyperinflation


Low temperature weather


Different value (western value)
Eating-out culture is not popular in Russia
No one know about McDonald


Machine to make cheese?

2. Micro Environment

 30,000 customers on its opening day

No competitor in fast food area
1st fast food restaurant in Russia
Leading role in the world’s fast food industry

McDonald is the retailer of Coca-Cola

No private businesses which could supply the 300 ingredients needed by a McDonald’s outlet. The Soviet agricultural system was outdated and highly inefficient. Employee
Cheerful customer service -- Smiling, not usual in other Russian restaurant Training system?

Profit distribution:
Soviet government—51%

3. Outsourcing?
McDonald outsources its product to McComplex (McDonald's unique food processing and distribution centre)

SWOT analysis
World-leading fast food restaurant, strong reputation
Mature training system—train skills with cards & real-scene practice services and politeness Cheerful customer service—smiling, not usual in other Russian restaurant (western services provide a better consumer experience) Well-paid job—its salary is more than a doctor’s in Russia, attract 28,000 people to apply for 600 positions. Large space—700 seats outside & 200 inside.


Zero awareness in Russia, no brand power—no one knows McDonald? Opportunity

1st fast food restaurant...
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