Term Project Essay, Research Paper

1. The Moscow McDonald`s is not only the largest in the world, but also it is really truly

McDonald`s: McDonald`s menu, equipment, uniform, sweepstakes and, of course, fast service with smile. If you come at any McDonald`s in any part of the world, you are sure you will see the same.

McDonald`s has been extremely successful in Russia by having good cooperation with the Russians and by taking their interests seriously from the beginning. Today just four Canadian experts down from 60 decade ago are on hand to supervise 35, 000 Russian employee. Before the opening the restaurant received more than 27, 000 applications in response to a single help wanted advertisement. After screening the applications, McDonald`s employees were given an intensive training program. For instance, every store manager receives 2, 000 hours of training, including a 6-day course at Hamburger University in Chicago. It gave them an opportunity to move to the top and fully realize their abilities and skills, because the training programs were focused on the McDonald`s founding principles of offering a quality product at an affordable price in a clean and friendly environment. It was the pleasure to watch the grim, stony faces of new customers people who had been scowled at by officials and shopkeepers all their lives slowly break into a smile simply because one of crew members was smiling at them. It has also helped McDonald`s escape becoming a target for Russian rising anti-western backlash, at least so far. McDonald`s is an all-Russian operation. Anyone who looks at McDonald`s. they see it has not only Russian employees, but also it is selling Russian products. Of course, some products like a special kind of potatoes were importing to Russia. Over 75% of raw ingredients needed for McDonald`s Russian restaurants are purchased from more than 100 independent Russian and C. I. S. suppliers who follow McDonald`s strictly controlled quality standards in their food processing operations.

2. It took McDonald`s 12 years of solid negotiations- initiated by MRCL Senior

Chairman George A. Colon before an agreement was signed with the Food Service

Administration of the Moscow City Government City, back in 1988. It was hard to take 70 years of communism and think that overnight it was going to change. It was naive to think that all of a sudden free enterprise would come in and just all will be great. The so called cold war between Russia and USA at that moment lied to the creation of joint venture partnership of Russia and Canada with the investment of $50 million. It was a lot of obstacles for the McDonald`s Canada at that time. Profit was small at first, with a 50-50 split between the company and the Russian government. The business is conducted entirely in Russian rubles that are nearly worthless outside the country. Also there was bad communication in Russia. It was existed only one of international phone line. Because of the cold weather, bad road system and old equipment it was very difficult to centralize all the functions of the processing system. So McDonald`s has built an entirely independent Russian organization with its own farms to supply products and its own 100, 000-square-foot McComplex to handle 57 tons of food and supplies each day in a strictly controlled, state-of-the-art environment.

3. . Despite the collapse of the Soviet Union, two attempted coups, two wars in

Chechnya and a harrowing economic crash in 1998, McDonald`s has kept growing in Russia. Cohon commands 52 restaurants in 17 cities. The company has served 255 million customers and employs 6,000 Russians working out of a central processing and distribution center. McDonald has its own equipment, research people, effective and motivate work force. There is still a paucity of competition. Some Western fast food chains, such as Pizza Hut and Kentucky Fried Chicken, opened in Russia with great fanfare but later pulled out. McDonald`s customers praise the restaurant for keeping prices low despite the economic crisis. It is a great value for money. A Big Mac now costs about 30 rubles, equivalent to $1, 25. These themes help to illustrate McDonald`s basic corporate philosophy of Giving back to the community . The well-known red-shoed clown and special children s ambassador, Ronald McDonald, is active in charity work in Russia, helping to improve the quality of life of children with special needs. McDonald`s outstanding success in Russia is a tribute to Russian employees, suppliers and, of course, the customers.

The Colonel comes to Japan.

1. Now there are a lot of fast food restaurants in Japan, but the Kentucky Fried Chicken

is a famous fried chicken restaurant. It is a real mixed fast food restaurant with moderate technology and Japanese traditions. It has a real business success because the owners try to adapt the American restaurant to the Japanese style of life. The KFC s management hired American and Japanese advertisement firms both. The advertisement firms made smart marketing research by learning the psycho of Japanese people. Also the location of the new restaurant was in the old district with a lot of potential customers. At the first the owners wanted to make a prototype of American store bigger, with a lot of space. But it didn t work in Japan, so they shrink and make all more vertical. Also they advertise themselves by adapted menu to needs of Japanese people, for example, fishing chips and yogurt. The idea of hiring people in Japan is that employees are hiring for life and they belong forever. So the employees are not only the team, they become members of the family. They must respect and believe you. For more closed connection the management made a party for KFC s owners. Even the American representative of Kentucky Fried Chicken tried to connect to this closed society by learning Japanese for the meeting of the KFC s owners.

2. The broad social and even economic lessons to be learned from watching the

Japanese eat is that it can be a mistake to assume that modern Japan is rapidly becoming more like the U.S. While the Japanese may appear Western while eating Kentucky Fried Chicken, this remains a traditional culture whose interests are not necessarily in synch with America s. When you look at it, on the surface Japan is very Westernized, but Westernized in a Japanese way. Of course, the KFC in Japan has its KFC s equipment and uniform, even plastic statue depicting KFC founder Colonel Sanders. At the time , the Japanese menu at the KFC was not significantly different from the true American counterparts on the other side of the Pacific, although there were some Japanese peculiarities and the quantity is smaller. The most significant was the introduction last fall of yaki musubi (toasted riceballs) as a replacement for biscuits with their fried chicken. The training of employees was special in Japan: the customer is a God, so you must treat him accordingly, with respect. All of the successful business strategies mentioned above made KFC in Japan so successful.

3. Kentucky Fried Chicken Japan Ltd. has combined a popular mid-priced menu and

fast service with smile and attention in Japanese style. People might say the nutritional value of KFC’s products isn t what it should be. But traditional Japanese diet, plus Westernized foods like meat and milk, is a good combination. KFC also tried to maximum adaptation to the needs of Japanese trying to do business in an old-fashioned way. KFC got sympathy partnership and more power than another fast food restaurants, for example, Texas Fried Chicken. I know that KFC started promoting Colonel Sanders` poultry as a holiday meal in 1974. Last year, more than 2 million customers converged on KFC s Japan stores from December 23 to 25, meaning that more people enjoyed a Kentucky Fried Christmas than there are Christians in Japan.

Chef Special.

1. David S. has been working as entrepreneur for 16 years. He had all what need a

person to open a restaurant: experience, wish to work and one good idea. He was a chef of Tadich Grill and understood all process completely. He had enough brain to convince the investors to invest in his restaurant Garo s . He designed all in kitchen living all the time there. He was really optimistic and nice, but strict. For example, he was strict with the waiters. He told them if something would be wrong they would pay for the check. Despite that everybody likes him because of his powerful energy. He checked food and cooked himself. The owner pushed himself very hard. He was the one who came first and went home after midnight. His lawyer, one of his investors, was right when he said that investments were in him, not in restaurant.

2. The restaurant Garo`s was situated in the virgin location of modern San Francisco.

It could guarantee a lot of customers. It had an extensive food and full bar. The Garo`s menu consisted of 200 items. Its was rather cheap to eat at the Garo`s and the customer paid in average $15. Also the restaurant had a very elegant surrounding. The restaurant promised not only low price, but also a high volume of work.

3. If I was an operating manager, I will provide few moderation to improve a valuability of the restaurant. The restaurant will run a variety of family programs, such as birthday and private parties, kid activity days, and restaurant tours, two for one or ladies nights, in house catering. And of course, I will make seasonable menu or modify it. I will provide more money to different charitable organization for projects ranging from purchasing medical and transportation equipment to providing meals to those in need.