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limited sales to ten Big Macs per customer in order to minimise the
scalping of hamburgers outside the restaurant.
5.
Given the prices and having to line up outside in the January
cold, why were sales so high? Savings rates in the former Soviet were
very high, primarily because of insufficient available goods and services
to purchase. There was thus a pent-up demand especially for any type of
Western product that could be bought for roubles. The store's location on
busy Pushkin Square was another advantage. Having the Moscow City
Council as a partner was certainly helpful. About this, Cohon said, "In
one way, doing business is easier in Russia. The state owns all the land,
so if you want a corner on their equivalent of Park Avenue, all the state
has to say is: here's the address."
What will be the future of McDonald's in historically planned
economies? The managing director of McDonald's Development Corp.
said, "We'll do one store, one country at a time, and plans will be made as
we grow and develop. After observing the success of Pizza Hut's
restaurant in China, McDonald's has since opened a 500-seat restaurant in
Shenzhen, China, near Hong Kong. McDonald's knew that the cost for a
meal there in relation to customers' incomes would be even higher than in
Moscow; however, Pizza Hut had served to capacity even though one of
its pizzas cost about two weeks' salary for the average worker.
The ability to expand by franchising might be limited.
McDonald's movements into Hungary, Yugoslavia, the former Soviet
Union, and China have all been through its direct ownership in joint
ventures. The president of McDonald’s international division explained
two franchising problems: The first is that franchisers look for individuals
with entrepreneurial track records, and in these countries, it’s hard to find
that; the second is that it is difficult to find people who can afford to buy
a franchise.
Exercises
1.Explain the meaning:
round-trip journey; to deviate from; to comply with smb.’s needs; to
undertake the approach; under the supervision; to be capable of; to be
accustomed to; expansion; help wanted ad; for the long haul; pent-up
demand; direct ownership; franchise.
2.Find in the text English equivalents for the following words and
phrases and use them in the sentences of your own
communicating. This is hard to fake. If you don't genuinely enjoy
interacting with people, it'll be hard to manage them well.
You must have a wide range of personal contacts within your
organization. You need relationships — not necessarily personal
friendships -~ with a fair number of people, including your own
employees. You must encourage these people to tell you what's going on
(good or bad) and give you feedback about what people are thinking
about the company and your role in it.
6. Develop your people to do their jobs better than you can.
Transfer your skills to them.
This is an exciting goal but it can be threatening to a manager
who worries that he's training his replacement If you're concerned, ask
your boss: "If I develop somebody who can do my job super well, does
the company have some other challenge for me or not?"
Many smart managers like to see their employees increase their
responsibilities because it frees the managers to tackle new or undone
tasks.
7. Build morale. Make it clear there's plenty of good will to go
around and that it's not just you as some hotshot manager who's going to
look good if things go well.
Give people a sense of the importance of what they're working on
— its importance to the company its importance to customers.
When you achieve great results, everybody involved should share
in the credit and feel good about it.
8. Take on projects yourself. You need to do more than com-
municate.
The last thing people want is a boss who just doles out stuff.
From tune to time prove you can be hands-on by taking on one of the less
attractive tasks and using it as an: example of how your employees
should meet challenges.
9. Don't make the same decision twice. Spend the time and
thought to make a solid decision the first time so that yon don't revisit the
issue unnecessarily. If you're too willing to reopen issues, it interferes not
only with your execution but also with your motivation to make a
decision in the first place.
People hate indecisive leadership so you have to make choices.
However that doesn't mean you have to decide everything the
moment it comes to your attention. Nor that you can't ever reconsider a
decision."
10. Let people know whom to please. Maybe it's you, maybe it's
your boss and maybe it's somebody who works for you. You're in trouble
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