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Locating Service Operations

Many of the issues manufacturing companies have to address when expanding their operations internationally also must be addressed by service operations. (See the OM in Practice on Toys" 5{" Us in Japan.) For example, when McDonald opened its first restaurant in Moscow, the lack of an existing institutional infrastructure to support its operation required that it build a central commissary. This commissary prepared everything for the retail outlet. from hamburger patties to rolls and french fries: In addition, the Russian farmers had to be shown how to grow vegetables such as potatoes and lettuce that would meet McDonald's high-quality product specifications. In contrast. the opening of a McDonald's in the United States or Western Europe would only require a call to established. local suppliers.