INDIVIDUAL PORTFOLIO REPORT (IPR)

Individual Portfolio Report (IPR)





Presentation of a Business Problem1

Section A2

Identification of the IT Problem2

IT development Solution for the Companies3

Selection of the IT infrastructure4

Section B6

Possible Impact of IT Development Solution6

Section C7

The impact of the IT Development Solutions on the Fast Food Restaurants7

Conclusion10

References12

Individual Portfolio Report

Presentation of a Business Problem

The Individual Portfolio Report would cover the IT Development solutions related to a fast food company. The fast food restaurants that include McDonalds, Subway and KFC located in Moscow, which is the capital of Russia. Moscow's fast food offerings have come a long way since the historic 1990 opening of the McDonald's restaurant on Pushkin square. Though the perennial leader, McDonald's now shares the market with the likes of Rostik's-KFC, Sbarro, Subway, Carl's Jr., Wendy's, and Burger King. These American brands face active competition from a number of European chains, and some extremely successful Russian firms.

The German concept Grill master entered the market in 1994, and Kono Pizza, an Italian chain, opened its first franchise in Moscow in 2005 and is expanding quickly. Even more numerous were Stardogs stands, a franchised hotdog chain with Danish origins. Prior to a 2010 Moscow rule change, countless shawarma and rotisserie (kuri-grill) chicken stands and generic kiosks selling small pastries or other snack foods crowded metro station exits and lined the sidewalks, accounting for more fast food consumption than any one company. In addition to the rapidly expanding number of restaurants, marketing representatives report significant and steady year-on-year growth in sales by location (on average 20-30%, but as high 300%). Fast food stood out among other sectors in not only surviving the economic downturn of 2008, but improving during that period as consumers turned to these more “democratic” establishments when upscale restaurants became increasingly unaffordable. Therefore, all the issues and aspects related to the Individual Portfolio Report will be discussed in detail.

Section A

Identification of the IT Problem

Just as the development of export-oriented agricultural (and manufacturing) supply chains are often pursued as a national economic development strategy, the entry of multinational corporations (MNCs) dedicated to domestic sourcing can spur development through upgrading. Domestic sourcing requires that fast-food corporations work closely with producers and processors to develop a domestic supply base that conforms to global standards. Before McDonald's could open its first restaurant in Russia, they invested $45 million US to construct McComplex (their one-of-a-kind proprietary processing facility outside of Moscow), and devoted two years to establishing a local supply base. In order to expand domestic supply, they have also spurred the entry of numerous MNC food-processing firms (including Sadia (Brazil), Heinz (US) and Inalca (Italy)) and raised production standards among many of their Russian suppliers, some of which have grown to become leading firms in the sector (Belaya Dacha) (Busch, 2000, 283).

Despite the well-established body of work considering the costs and benefits of upgrading through export-oriented production for GVCs, less is known about the effects of participation in domestic chains led by global ...