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Russia Case Study

Cross-Cultural Management

Russia Case Study
Begin with the fact that the bid had been rigged. I as the owner of the company would not have had like to this kind of business being concluded underneath my nose. Yes, I may benefit but my loss after being investigated is much greater. With this being said, what was done is illegal in Russia. Seeing that this kind of practice is unethical, I would simply not accept the business regardless of being blacklisted from the country. The cost of being investigated by the FAS and charged with cartel and bid rigging is far worse than simply accepting the business, paying the 3%, and employing the purchasing manager.
The charges that could follow from accepting such business could potentially follow with imprisonment, fines up to $500,000, blacklist, and compensation to the other companies involved in the bid. The compensation can be request to be paid for by the interest of the capital until the full capital amount is reached. All of this more than likely will account for 20% of my gross profit income and then some more. (Law & Practice, 2015) Money coming in and out is fixable but a rebuild the reputation of a company could take years and money. Following up with all of this, I personally would fly over to Russia to oversee exactly what else in the operation of my company. Personally fire the purchasing the manager and rehire the next manager personally. I feel that these actions will help avoid any further complication to come out of the blue. As well as begin searching for other options to make up for the 20% income loss.
Although it may seem that the chance of the company being caught in a one – time thing; Why take the risk in starting a paper trail onto something that more than likely will occur. So in order to save my company from further harm, I’d begin to address the problem before it

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