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to an agreement on virtually any major decision. Between the signing of
the joint venture agreement and the l990 inauguration much planning and
other work had to be completed. In actuality, most of the joint ventures in
the former Soviet Union never manage to become operative. When the
Moscow restaurant opened, an American legal specialist on joint ventures
in Moscow estimated that although about 1400 joint venture agreements
had been signed with Western firms since enactment of the 1987 law,
only about 50 were actually operating. He also reckoned that only about
100 others had a real prospect of reaching a successful implementation.
The procurement of supplies has proved to be a major hurdle for
foreign investors in the former USSR, and McDonald's experience was
no exception. For McDonald's the supply problem was created partly by
the rigid bureaucratic system, partly by shortages, and partly by the fact
that available supplies did not meet McDonald's standards. In spite of
having the Moscow City Council as the majority owner in the venture,
and in spite of having backing from some strong Kremlin ties, the venture
continually ran into negative responses, such as, "Sorry, you're not in my
five-year plan," when attempting to obtain such materials as sand or
gravel to build the restaurant
The company had to negotiate to assure that it would be allocated
in the central plan to have sufficient sugar and flour, which are both in
short supply or some products in sufficient supply, such as mustard.
There were regulations that prevented manufacturers from deviating from
present recipes in order to comply with McDonald's needs. For many
other supplies, local plants were required under strict allocation
regulations to sell all output to existing Soviet companies, leaving no
opportunity to produce extra products for McDonald's.
McDonald's buyers were sickened by the conditions in
slaughterhouses within the former USSR. Yet another problem was that
some supplies simply were not produced or consumed in the former
USSR, such as iceberg lettuce, pickling cucumbers, and the Russel
Burbank potatoes that are the secret behind McDonald's fries.
McDonald's had to scour the country for supplies, making
contracts, for example, for milk, cheddar cheese, and beef. In addition,
the company undertook several approaches to ensure ample supplies of
the quality it needs. The company brought in seed potatoes and pickling
cucumber seeds from the Netherlands to grow on a collective farm under
the supervision of a McDonald's hired agronomist from planting to
harvest. The company brought in bull semen to improve the quality of
cattle, taught the farmers how to raise leaner beef by castrating their
cattle a month later than usual and slaughtering them a month earlier.
engaged with it. Encountering problems is almost inevitable; failing to
recognize and deal with problems is not.
8. Make tradeoff decisions crisply. You want to minimize the
number of big changes during a project, but you don't want to be overly
rigid, either. It's vital to be able to adjust to developments in the
marketplace or to new goals suggested by customers. The trick is to make
the decision process: crisp, with tradeoffs explicitly agreed upon.
Too often, management doesn't really acknowledge .the need for
tradeoffs. In the software world, for example, if management says, "We
want this product to be feature rich and very small and get done
overnight," they're asking for everything with little appreciation of the
tradeoffs involved. Sometimes managers who make unrealistic demands
hound people when the demands aren't met. This undermines the project
by clouding the decision-making process. In contrast, when the need for
tradeoffs is acknowledged up front, decision-makers are free to search for
the cleverest combination of met and unmet goals.
9. Know when to give-up. Sometimes projects that seemed like a
good idea when started don't prove, to: be successful. Recognizing that
you should give up will be far easier if you've established crisp goals and
monitor your progress toward them. You don't want to give, up
prematurely or let down your customers, but you also have to recognize a
lost cause. Companies that appear to the outside world as if they are
doing well all the time owe their success in pan to a willingness to listen
intently to customers and change focus as the market shifts or as they
recognize where they can make a better contribution.
When you contemplate a risky project, or if you need to under-
take a risky project, try to hire people who will be useful elsewhere in
your organization. That way if the project doesn't succeed, you can move
most of the people to other productive roles.
10. Finally, breed a sense of healthy competitiveness,
Performance and satisfaction both rise when there is a competitive spirit
You don't need to go overboard on this, but a project's prospects for
success go up when the people involved are consciously trying to do
better than a competitor or a past practice.
Exercise
1Find in the text English equivalents for the following words and phrases
and use them in the sentences of your own:
побуждать; оценивать; соответствовать; бок о бок; частично
2 35
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