Business In Russia Essay

2158 words - 9 pages

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 ...view middle of the document...

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. McDonald's in Russia employs more than 10,000 people in its restaurants, at McComplex, and in the central office. The McComplex, a massive factory opened during the financial crisis of the 90's to ensure both quality and quantity of supply, has also been invaluable to growth. The factory provides everything from patties to pies to even laundry facilities for uniforms. McDonald's is today the market leader achieved by the early, substantial, and continual investment by the parent company. Most brands rely on franchising, and thus have grown slower. However, because every new McDonald's restaurant creates approximately 100 new job opportunities for local citizens, this figure continues to grow.
10,000+ Russian citizens are employed by the Coca-Cola system, which is one of the country's largest foreign investors, with investment of more than $1.5 billion to date. More than 70 percent of the raw materials necessary to produce and market our beverages are supplied by Russian business partners. In 2007 unit case volume increased to 19%. The Coca-Cola Company's Eurasia Group comprises a total of 43 countries, spanning from Eastern Europe and Russia in the north, to the Middle East and India in the south. The Eurasia Group covers the largest territory within the Coca-Cola system, serving a total population of about 2.1 billion people. The Eurasia Group is also the fastest growing operating group within the Company. The Coca-Cola Eurasia Group offers consumers a wide variety of more than 81 brands, including sparkling beverages, juice and juice drinks, sports drinks, energy drinks, water and ready-to-drink teas and coffees.
Starbucks has begun opening locations in Russia after a long battle to enter the market. The company started its journey in 1997 and had many obstacles to face. One of which was an infringement case that began after their patent request expired due to not being used for over a period of 3 years and a Russian company claimed the name as their own. “The company will serve local favorites such as honey cake and cinnamon buns with custard filling to be sold alongside Starbucks' traditional blueberry muffins, and some sandwiches will include a popular Russian tomato bread,” said Cliff Burrows, Starbucks president for Europe, the Middle East and Africa.(Allison) The additions to the standard menu offering is in an effort to compete with local coffee restaurants. Kofe-House is one of the biggest coffee chains in Russia with...

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