Friday, August 22, 2014
One position a company does not want to be in is a political pawn. That is where McDonald's is in Russia. There is nothing the company can do as long as Putin plays tit for tat with America. There is no communication that can make the situation better. The company has to wait until one side or the other blinks and backs off. It is likely this gamesmanship will continue in countries with powerful political centers that don't respect the rule of law. Companies have to be prepared to lose their businesses at a moment's notice. It is a risky situation and corporations might choose not to invest in unstable nations. Meanwhile, competitors can enter and solidify brand positioning. Neither McDonald's nor any other corporation deserves this kind of treatment, but who said governments are fair?