There are more and more foreign businesses investing in Russia every day. The amount of disposable income has increased for residents of the major metropolitan areas of Moscow and St Petersburg. Retail and leisure companies from Europe and the US are looking to enter or expand and there's a good deal of interest from the money men of the Middle East and Asia. The fast-growing food and wine market demonstrates the extent of Russia’s economic boom. More opportunities are available every day in Russia for other countries to invest in. There is a huge untapped area of wealth available to be reaped. The food sector has only made more profit as time progresses.
The Russian food industry consists of more than 25,000 enterprises employing 1.5 million people. Food sales amount to approximately US$70 billion and this value is growing rapidly, reflecting burgeoning household incomes. Contributing 11-12 per cent of gross national manufacture, the food sector is Russia’s fourth largest industry. The locals are welcoming and will be the first to warn of the difficulties and to recognize the opportunities too. The sheer size of the country, the differences between the provinces, the wide variations in the level of development, and the hundreds of major towns strung out across 2,000 miles from Smolensk to Vladivostok and from the frozen north to the Georgian border - this is a country with centuries of history but practically no experience of the modern world.
The rules of engagement are pretty clear. You need a local partner - ideally a quoted company with a commitment to transparency and high accounting standards. You bring international property expertise they bring understanding of the market and contacts with the authorities. The big cities are abuzz with projects but there are many opportunities opening up elsewhere. The key is to make sure that the partner genuinely does have the understanding and contacts for the particular area involved.
McDonalds has seen a very good return on it’s investment in Russia. The amount of people who visit their locations on a daily basis is mind boggling. McDonald's now operates 103 restaurants in Moscow, Moscow Region, St. Petersburg, Nizhny Novgorod, Yaroslavl, Samara, and Kazan. Not only does McDonald's in Russia serve more than 200,000 customers every day, but, since opening on January 31, 1990, McDonald's has served more than 300 million customers and more than 66 million Big Mac sandwiches.
During the twentieth century, China developed the strongest economy throughout the world. The mass population of the Chinese people helped in the production in goods which in tailed helped China’s economy grow. Russia was not far behind China after the Industrial revolution, Russia needed a plan if they were going to catch up to China. China was relying on the exporting of goods and long term goals for profit. Russia focused on Five-Year Plans, “the form of economy worked for communism, consistently appealing to the intellectuals of developing countries in Asia” (Paul Craig Roberts 2). The Industrial Revolution had helped the growth of both China and Russia’s economy throughout the Twentieth
The ice-cream space in Russia can be visualized in context of three strategic groups namely –
Transnistria is still dependent on Russia both for the improvement of education as well as for the flow of new textbooks. However, concerning the medical infrastructure, this de facto state has to count on the help of others, but predominantly the aid of Russia is of key importance for them (Blakkisrud and Kolstø, 2013). The purchase of companies in Transnistria by Russia is seen as an investment from the economic and geopolitical point of view. The most effective and advantageous of all the factories owned by Russia in Transnistria is the Moldovan Steel Plant (Chamberlain-Creanga and Allin, 2010). Russia is also the main market for Transnistrian exports (Blakkisrud and Kolstø, 2013). The position of Russia in Transnistria enables the de facto state to run smoothly (Cantir and Kennedy,
Why Russia did not develop a more Vigorous Commercial Economy as a Part of its Imitation of Western Patterns.
Russia, the world’s largest nation, borders European and Asian countries as well as the Pacific Asian countries as well as the Pacific and Arctic oceans. Russia’s population density is 8.4 people per square kilometer, making it one of the most limited populated countries in the world. Nevertheless, Russia is one of the minority countries where a lot people are moving from cities to rural area, because of traditions and charms of living in nature. People in Russia are moving to villages trying to escape from the changeable and chaotic urban life. In addition, Russia is a highly urbanized country, which 74% of the population is urban.
Russia, spanning 11 time zones and serving as home to about 150 million people, possesses tremendous natural and human resources. Demand today for imported consumer goods, capital equipment, and services remains remarkably strong, with imports representing an unusually large percentage of the national market. Despite outstanding long-term market potential, Russia continues to be an extremely difficult country in which to do business.
From just one restaurant in San Bernadino, California, run by two brothers, McDonald’s has grown to become the best known and most popular fast food restaurant chain in the world.
Russia is the largest country in the world in terms of area and the world’s ninth most populous nation with 143 million people. Due to its large area the country is situated in 4 different climate zones and has vast natural resources. Russia also has a unique geographic position with the 14 border countries, bounded by 3 out of 4 world oceans, facilitating the build of international and domestic supply chains. Russia is one of the most technologically advanced economies in the world with a very big and well-educated work force and one of the largest consumer markets. The Russian economy is commodity-driven and is the world’s largest producer of oil (12%), natural gas (18%) and nickel (20%).
McDonalds are most heavily located in North America, East Asia and Europe due to the fact that these continents have better economies; therefore they can afford the popular food chain restaurant. On the other hand, Africa and Central Asia do not have nearly as many McDonalds because their economies are weaker than North America, East Asia and Europe. Russia, being the largest country in the world in terms of landmass, only has 94 McDonalds’ while Brazil, which is not nearly the size of Russia, has 584 McDonalds’.
According to Royle (1999) McDonald’s is a very large multinational enterprise (MNE) and the largest food service operation in the world. Currently the company has 1.5 million workers with 23,500 stores in over 110 countries with the United Kingdom and Germany amongst the corporation’s six biggest markets, and over 12,000 restaurants in the United States. In 1974 the United Kingdom corporation was established and in 1971 the Germany corporation was established, currently the combined corporation has over 900 restaurants and close to 50,000 employees in each of these countries (Royle, 1999).
According to Dmitry Medvedev, former Russian president, the average Russian drinks 18 liters (equivalent to 38 pints) of strictly vodka each year. Vodka is Russia’s favored drink and has a strong Russian history. Although vodka has provided a large issue to the economy due to the abuse of the substance, there are many good outcomes from the production of it with respect to jobs and tax revenue. The Russian government has tired to enforce multiple different ways of curbing the vodka consumption from the citizens, but they do not last. Russia has a large distribution of vodka around the world and the income keeps many Russians employed. For Russia, vodka is an occupation, pleasure and a devil, and a way of life.
McDonald’s has the largest fast food market share in the world. As mentioned, it serves 68 million customers every day in 119 countries, allowing it to be the second largest outlet operator with more than 34,000 outlets.
He saw how much potential the restaurant has, so he bought it out and opened one of the first franchises. Within the first year of Ray Kroc buying it, there were one hundred and two locations all around the world. McDonalds currently is one of the largest fast food restaurants in the world and currently has served over sixty four million customers through one of their thirty two thousand sites. It has almost become a way of life for America. Though, McDonalds started off as a small business between two brothers, it grew into one of the largest restaurant franchises in the world and greatly affects our society and how we eat our food.
Even with Russia’s vast amount of land only, a small percentage can produce crops, as the rainfall is inconsistent and the northern tundra are not able to support growth. None the less fishing industry, livestock, and grain have been a staple for feeding the Russian people. Due to this family close, and extended have banded together to take care of each other on a larger scale. Another issue Russia faces is the rise of insurgency and could potentially destabilize the region, by Islamist. There is also the unrest and intervention in the Ukraine. Civil consideration
Overall, McDonalds are able to reach customers all around the globe and they market their products inexpensively. According to Naim (2001, p. 1) it is acknowledged that, “McDonald 's is a global brand, but we run our business in a fundamentally different way that ought to appeal to some critics of globalization. We are a decentralized entrepreneurial network of locally owned stores that is very flexible and adapts very well to local conditions. We offer an opportunity to entrepreneurs to run a local business with local people supplied by a local infrastructure. Each creates a lot of small businesses around