SWOT of Russia's first McDondal
McDonald ----marketing environment
1. PEEST analysis (Macro environment )
Political
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
Economical
In 1990s, the economy was collapsing due to the disorder in the Soviet Union
The currency was not convertible because there was hyperinflation
Ecological
Low temperature weather
Social
Different value (western value)
Eating-out culture is not popular in Russia
No one know about McDonald
Technological
Machine to make cheese?
2. Micro Environment
Consumer
30,000 customers on its opening day
Competitor
No competitor in fast food area
1st fast food restaurant in Russia
Leading role in the world’s fast food industry
Intermediary
McDonald is the retailer of Coca-Cola
Supplier
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The Soviet agricultural system was outdated and highly inefficient.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?
Stakeholder
Profit distribution:
Soviet government—51%
McDonald—49%
3. Outsourcing?
McDonald outsources its product to McComplex (McDonald's unique food processing and distribution centre)
SWOT analysis
Strength
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.
Weakness
Zero awareness in Russia, no brand power—no one knows McDonald?
Opportunity
1st fast food
1. PEEST analysis (Macro environment )
Political
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
Economical
In 1990s, the economy was collapsing due to the disorder in the Soviet Union
The currency was not convertible because there was hyperinflation
Ecological
Low temperature weather
Social
Different value (western value)
Eating-out culture is not popular in Russia
No one know about McDonald
Technological
Machine to make cheese?
2. Micro Environment
Consumer
30,000 customers on its opening day
Competitor
No competitor in fast food area
1st fast food restaurant in Russia
Leading role in the world’s fast food industry
Intermediary
McDonald is the retailer of Coca-Cola
Supplier
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?
Stakeholder
Profit distribution:
Soviet government—51%
McDonald—49%
3. Outsourcing?
McDonald outsources its product to McComplex (McDonald's unique food processing and distribution centre)
SWOT analysis
Strength
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.
Weakness
Zero awareness in Russia, no brand power—no one knows McDonald?
Opportunity
1st fast food