In August 1998, George Cohon, founder and senior chairman of McDonald’s Russia, facing an economic emergency. Russia is in the midst of a severe currency crisis – the ruble fell in value, creating massive inflation and widespread economic disorder. The traffic in the 26 restaurants has plummeted, and Cohon struggling to figure out how to lure consumers back to McDonalds. Cohon discussed two questions: whether to raise prices, and whether to add affordable items such Cabba … Read more »

In August 1998, George Cohon, founder and senior chairman of McDonald’s Russia, facing an economic emergency. Russia is in the midst of a severe currency crisis – the ruble fell in value, creating massive inflation and widespread economic disorder. The traffic in the 26 restaurants has plummeted, and Cohon struggling to figure out how to lure consumers back to McDonalds. Cohon discussed two questions: whether to raise prices, and whether favorable items, such as cabbage soup, add the menu
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Youngme moon,
Kerry Herman
Source: Harvard Business School
23 pages.
Publication Date: Oct 21, 2002. Prod #: 503020-PDF-ENG
McDonald’s Russia: Managing a crisis HBR case solution

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