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They trained farmers in the former Soviet Union to harvest and pack
produce without bruising it. Yet McDonald's had to import some
supplies: mustard from Canada, tomato paste from Portugal, apples from
Bulgaria, and packaging material and sesame seeds from several
locations.
3.
McDonald's built a $40 million food-processing centre about 45
minutes away from the first restaurant. The centre is capable of making 1
million buns per week and uses 23, 400 gallons of milk, 127, 740 cheese
slices, 17, 715 gallons of sauce, and more than 5200 gallons of pickles
per week. Since distribution is as much a cause of shortages as
production, McDonald's carries supplies in its own trucks. Because
McDonald's is concentrating on long-term development, adequate
supplies are critical. People in the former USSR are accustomed in
waiting in long lines, even though there is no assurance that there will be
anything left to buy after the wait. Adequate supplies are, therefore, a
way for McDonald's to differentiate itself.
A major hindrance for foreign investors in the former Soviet
Union is the shortage of hard currency. McDonald's was not successful at
negotiating the conversion of its rouble profits, but it did not expect to
repatriate its earnings and investment quickly. Since the joint venture
agreement is for 20 restaurants, most of the profits for many years will
have to be reinvested to finance the expansion. Nevertheless, McDonald's
has done several things to increase convertibility possibilities and to
minimise its hard-currency expenditures. To begin with, many of the
furnishings were brought in from Yugoslavia so that some already
blocked dinars could be used as part of its investment. However, the
subsequent weakening of the rouble has resulted in fewer U.S. dollars
when converting its rouble profits. The Russian partner has arranged
barter transactions for imported supplies. The second restaurant to be
opened in Moscow will accept only hard currency, and this currency can
be used to convert rouble profits earned in other restaurants. The
processing centre exports apple pies to European countries and plans to
supply food to other restaurants and hotel facilities in Moscow, which
have foreign joint venture partners. These payments will be in hard
currencies as will be rentals in an office building McDonald's is planning
to construct.
4.
McDonald's placed one small help-wanted ad. and received
enough to he worthwhile and for which your basic skills quality you to
succeed. You should probably be cautious if a company that has a better
combination of capabilities is already ahead of you in the market.
Establish a timeline for completion. Make it realistic, not arbi-
trary, but don't let it be too long. When a project lasts more than a couple
of years it's pretty tough to maintain the freshness and responsiveness.
2. Keep the customer scenario dearly in mind. In good projects,
the people involved are always thinking about the customer. How will the
customer use your work? Why will it be better than what they had before,
or the way they worked before?
3. Let employees know the project is important. When everybody
understands that they are involved in an endeavor that matters, it builds
enthusiasm and a sense of teamwork. It helps people draw on the best of
what they have to offer and on the strengths of other good people.
4. Keep employees informed and involved. People working oh a
project should broadly understand its constraints. How quickly does it
need to get done? What are the financial limitations? It's natural for
different people to have different primary concerns because everybody
brings individual expertise to a project But there should be a common
sense of the progress that is being made and where the difficult areas are.
5. Meet across boundaries, In well-managed projects, meetings
frequenty involve people from different disciplines and even different
organizations within a company. It's easier to track the status of a project
if everybody's talking. Meetings needn't all be in-person, nor should they
be. Electronic mail makes it easy for managers to keep everybody in a.
project involved and to provide status reports that mix descriptive and
numeric information. Really good managers pick a metric, such as a
specific comparison to a competitive product, and really go overboard
updating their people on how the product under development measures
up.
One of the most important status reports is, the very last one.
People should get together, in person or otherwise, to conduct a post
mortem. This, practice helps the organization learn from its experiences.
6. Keep in touch with: the progress and morale of the crew.
Using e-mail makes it easy' to, survey people in a project. Do they think
they've got common goals? What's their outlook about the project? You
can also get indirect insight into how a team feels about a project by
monitoring the rate at which people transfer out. of it to other parts, of the
company; an exodus suggests trouble.
7. Share Bad news. When parts of a project aren't going well,
there must be a willingness to spread the information and get everybody
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