...Country Analysis: Russia MBA Fall 2015 International Management in Sport and Entertainment Table of Contents Country Analysis: Russia 1 Introduction 1 Economic Environment 1 Political and Legal Environment 2 Culture 2 Conclusion 6 Country Analysis: Russia Introduction Russia is the world’s largest nation, covering 6,5 million square miles, with a population of 143 million people recorded in 2014. Russia borders European and Asian countries as well as the Pacific and Arctic oceans. In order to make a decision, concerning the market expansion of an organization into Russia, the economic environment as well as the political and legal environment will be analyzed with a focus on the cultural aspects. Economic Environment Russia is one of the BRICS countries (Brazil, Russia, India, China and South Africa), which are projected to be the fastest growing emerging economies, with a combined GDP of $16 trillion. With a GDP of $2.6 trillion, Russia is a leading exporter of natural gas and oil and is the fifth largest economy in the world. Services are the largest sector of the economy and accounts for 58 percent of the GDP. The most important segments in services include wholesale and retail trade, repair of motor vehicles, motorcycles and personal and household goods. This represents 17 percent of total GDP; public administration, health and education (12 percent); real estate (9 percent) and transport storage and communications (7 percent). Industry contributes...
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...Vlad Shtyrts Mr. Caruso H Mod Literature 1 May 2014 Analysis of corruption in Russia “They steal,” said Nikolai Karamzin, Russian poet, historian, and philosopher, to sum up Russia. His statement is quite accurate, because that is exactly what has been happening in Russia for the past half a millennia. Corruption is one of the main causes of all the problems in Russia. It has spread from the central government into the economy, education, health care, and national defense. Corruption directly impacts the lives of Russian citizens and the relationship with foreign nations. Russia is known to have a long history of corruption, every year it is becoming an increasing problem because it brings an overall instability to the country and affects all of its citizens. The money intended for the social systems is being routed into the pockets of rapacious politicians and criminals. What is corruption? According to the Oxford dictionary corruption is “dishonest or fraudulent conduct by those in power, typically involving bribery,” this is exactly what it means, but in Russia it is much more complex. There are many categories, types, and tier of corruption in Russia, each dealing with different aspects of the practice. Two main types exist, the grand and petty corruption. Grand corruption deals with the government branches, and has a greater monetary value. This type involves corruption in politics, lawmaking, and government contracts. Petty corruption is are the insignificant bribes...
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...As the CEO of a company that has to choose between making a $100 million investment in either Russia or Czech Republic the risk considerations have become critically important in choosing the best option. The risk considerations include evaluation of each nation’s political, economic and legal systems along with the cultural practices, education and skill levels and each countries stage of economic development. The political systems of a country shapes both the economic and legal systems (Hill, 45). These systems are interconnected and play a vital role in making a decision of which country to make an investment in. In evaluating the risks of making the investment in Russia, the most widely discussed risk that is found is the corruption in the country; this remains a major barrier success for businesses in the nation. There is a complex business environment in Russia along with known issues involving bribery. The corruption in the nation leads to a number of problems including non-transparent and inconsistent application of laws and regulations with the weak enforcement of laws and court decisions (Business Anti-Corruption Portal). This isn’t the only area where corruption is a problem in Russia, there is corruption in the area of licensing and permits with multiple inspections and red tape. Intentional and lengthy delays in the procedures for starting a business, getting required permits and licensing are additional risks along with the corruption. It does seem as though the...
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...oversee the smaller territories or districts and provide a central hospital and outpatient services. Hospitals and Providers • “Rural Health Post: They take care of minor injuries, do routine exam’s, and immunization they take care about 4,000 people” (Healthcare in Russia, 2012) • “Special Focus Polyclinics: This is a place where children under the age of 19 are treated” (Healthcare in Russia, 2012). • • “Health Centes: They have a range of physicians, nurses, pediatricians, a therapist and midwife or gynecologist. They are able to perform minor surgeries along with a range of primary care services. They cover larger rural areas of approximately 7,000 people” (Healthcare in Russia, 2012). “Urban Polyclinics: They provide services which are normally considered general practice. The door screening and treat chronic illnesses and on-going care. Depending on their size they may house 3-4 specialist from different fields of medicine” (Healthcare in Russia, 2012). Pharmacies • “The Russian Federation has an estimated 17,500 pharmacies of which 23% belong to regional governments, 60% to municipal authorities and 17% are privately owned”(Healthcare in Russia, 2012). • “Pharmaceutical are provided for inpatients by the...
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...[pic] ConocoPhillips – Final Report MBA 808 – Moscow May 1, 2008 Scott Legler Erin Osborn Greg Whitehorn Introduction The ConocoPhillips and LUKOIL joint venture provides great insight into doing business in Russia. The Russian economy continues to grow as companies domestically and internationally find success in an emerging market once filled with corruption and instability. Through an analysis of the ConocoPhillips and LUKOIL joint venture one can see the opportunities available for those companies who are able to enter this market. ConocoPhillips provides lessons learned and a six-step approach for a successful joint venture business in Russia. ConocoPhillips also provides insight into many of the challenges still facing those who desire to do business in Russia. They prove that with a will to confront and determination to overcome these challenges, business in Russia can prove to be quite profitable. Background ConocoPhillips ConocoPhillips is the third largest energy company in the U.S. Based on market capitalization; it is surpassed in size only by U.S. oil giants Exxon Mobile and Chevron. ConocoPhillips is headquartered in Houston, TX and employees over 32,000 people worldwide in forty countries. According to its website “ConocoPhillips is known worldwide for its technological expertise in reservoir management and exploration...
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...sanctions on the industry of the Russian Federation 6 The impact of sanctions Russia in the nearest future 7 Conclusion 9 Introduction The first sanctions against Russia were introduced on 6 March 2014, but they had a more symbolic and looked more like a friendly gesture from the West than on a real blow to the economy. The following steps restrictions for the Russian Federation have become much more significant and can cause serious damage to the Russian economy in the medium term. The effect of the sanctions were government officials, major banks, energy companies and the defense, in addition from European, American, Japanese, Canadian and Australian companies made a decision to limit the supply of technologies, weapons, minerals and other goods to the Russian market. According to analysts, in the current conditions on the results 2014 because of the sanctions, Russia will lose about 23 billion euros, or 1.5% of GDP, in 2015, almost 75%, which will further affect the economy and will account for almost 5% of GDP. It is important to note that in such conditions greatly slow down the inflow of foreign investment in Russia, 75% of them falling on the country's membership of the European Union. Main part The impact of sanctions on the financial sector Quicker just to positive and negative changes in the economy reacts financial sector. Since the beginning of the 2014 national currency in Russia fell by 17.5%. Exchange rate cash ruble against the U.S. dollar increased...
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...Russia Attractiveness Report Overview Russia is a country located in northern Eurasia bordering the Arctic Ocean between Europe and North Pacific Ocean. Neighboring countries include Azerbaijan, Belarus, China, Estonia, Finland, Georgia, Kazakhstan, North Korea, Latvia, Lithuania, Mongolia, Norway, Poland, and Ukraine. The geography is diverse and includes vast forests and tundra in Siberia and mountains along the southern borders. The government system is a federation. The chief of state is the President and the head of government is the Premier. Russia has transitioned from a centrally planned economy to a more market-based economy in which many state-controlled firms have been privatized and sectors of the economy are liberalized. Russia is a member of the Eurasian Economic Community (EAEC), Asian Pacific Economic Cooperation (APEC), and Black Sea Economic Cooperation (BSEC). With a population of 142 million people and a place within the top 10 economies of the world, Russia is, without a doubt, an emerging economic powerhouse. Since late 1999 and the beginning of high oil prices and the arrival of President Putin, the economic situation in Russia has stabilized and in many cases even flourished. On the back of revenues from oil and gas the economy has been given the chance to consolidate and diversify and Russia has climbed to become the EU’s third trading partner, with growth rates of around 6-7% over the last 10 years and Foreign Direct Investment per capita exceeding...
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...oversight is handled by the Association's Code of Ethics for Adjudicators in business conflicts. Facts about AAA adjudicators is feasible to the parties who have already filed a case. The AAA's guidlines and regulations cover adjudication across a wide diversity of businesses and case types. These guidelines and regulations design the steps in the settlement action and makes sure that all parties that are involved in a case are treated fairly and equitably. The Russian structure commendations international alliances to which Russia is a party as an imperative and absolute integral of Russian act. So, international alliance and meeting rules abound in the advent of a rivalry with private Russian act. For consideration to foreign adjudication Russia is also involved in the meeting on the appreciation and administration of Foreign Arbitral Awards of 1958 “New York Convention”, and also to the European meeting on Foreign Business Adjudication of 1961. Russia also belongs to many reciprocal alliances on the bilateral admission and imposition of arbitral endowment, for instances; with Sweden and Japan. Provincial alliances with other commonwealth of...
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...Cultural issues: Russia is not just a country of contrasts; it is a country of outright contradictions. A country where free-reign market capitalism in some sectors meets absolute state interference in others. A country where foreign direct investment is actively sought in some areas; whilst made virtually impossible in others. Half the population yearn for a more open, democratic society whilst the other half admires the autocratic approach of the current regime. Periods of fast, aggressive growth in GDP and individual earnings are followed by sharp recessions – often allied to the demand for, and price of, the petroleum products upon which the country is heavily dependent. Massive displays of conspicuous wealth and consumption are contrasted with the deprivation that can still be found in many second cities and rural areas. There are a lot of cultural issues that need to be factored into any business relationships you are engaged in or contemplating with Russia. The Russian approach to business is very heavily influenced by Russian cultural characteristics and the impact of the Soviet past. In fact, Russia ranks fairly high on the World Bank Group’s index of difficult places to do business. Before starting any business dealings with Russia or Russian companies, it is strongly advised that you do some serious research into the way in which business is executed in the country and gain a thorough understanding of Russian business culture and Russian business etiquette...
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...apparent when czarism began to falter in Russia. The Romanov dynasty had been in place for more than three hundred years, and at the start of the twentieth century, Czar Nicholas II oversaw the entire Russian Empire with the help of a privileged class known as the nobility. Soon after, Russia would engage in war, both foreign and domestic, civil unrest, and an overall societal self-implosion. Russia entered World War One as this imperial power that looked to superimpose its will on anyone and everyone who dared to get in the way; however, the outcome sent shockwaves throughout Eurasia and North America: Russia had lost the war. While some expected the peasantry to rally behind the czar, this loss simply exacerbated the peoples’ dissatisfaction with Nicholas II. Later, in February, the Russian Revolution began, starting with a revolt in Petrograd, and soon thereafter, Nicholas II abdicated the throne, indicating that there was soon to be a new regime in place. Revolutionary and lay-scholar Vladimir Lenin emerged as a dynamic leader along with the Bolsheviks, who would eventually win the Russian Civil War between himself and the Bolsheviks and the loose, informal group of capitalists and democracy supporters. After the revolution, the Communist Party of the Soviet Union quickly became the only legal political party. The governing of the country was to be done by local and regional democratically elected Soviet representatives and, in practice, its corresponding party group controlled...
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...Master of Business Administration Paper Title: Business in Global Arena Final Examination Presented by: Mohamed Mohamed Abd-ElMeguid MBA#: Intake Number #58 Course Title: Business in Global Arena Module: Core Courses Instructor: Dr. Hein Roelfsema Course Delivery Date: November 2010 Date of Submission: 14- November -2010 Table of Contents Question 1: 3 Economic Profile and market seeking/resource seeking recommendations 3 Psychic distance that Egyptian expatriate managers are likely to face 5 Question 3: 6 Part 1: 6 Part 2: 6 Question 5: 8 Hypothesis 1: 8 Hypothesis 2: 8 Question 1: Economic Profile and market seeking/resource seeking recommendations |Indicator |Kenya |Tanzania |Uganda | |GNI |$60.27 Billion |$52.05 Billion |$36.08 Billion | |GNI per capita in PPP dollars |$1,550 |$1,260 |$1,140 | |GDP |$1,600 |$1,400 |$1,200 | |GDP Growth Rate |2.6% |6% |5.3% | |HDI ...
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...James Lee MGT/448 February 14, 2013 Gerie Smrcina The Russian Ruble Crisis and Its Aftermath The country of Russia as a whole was in great turmoil as far as financial stability is concerned during the late 80’s and early 90’s. The government had made irresponsible decision that ultimately caused inflation throughout the country. Because of this businesses began to suffer as well as employees of these particular businesses. This forced the government to make changes from a legal and cultural standpoint which began with the government moving from a centralized planned economy (communist) to a market controlled economy ( Free price system). Because of these legal changes prices rose and inflation went through the roof. Financially this caused other problems due to the fact other countries/businesses were skeptical about doing business with Russia because of the instability of the ruble and the economy. Other ramifications were that during the communist era the prices were regulated because it was centrally controlled. Once the transition from moving to a market economy happened the prices were no longer regulated which caused them to rise dramatically. Russia was accustom to the communist structure and moving to a supply and demand economy was a cultural shock to Russia as noticed by the way the government handled the transition ( inflation/prices rose). Russia made another legal decision that created more problems because they did not want to raise taxes they decided to print...
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...The Constitution and Government Structure During 1992-93 Yeltsin had argued that the existing, heavily amended 1978 constitution of Russia was obsolete and self-contradictory and that Russia required a new constitution granting the president greater power. This assertion led to the submission and advocacy of rival constitutional drafts drawn up by the legislative and executive branches. The parliament's failure to endorse a compromise was an important factor in Yeltsin's dissolution of the body in September 1993. Yeltsin then used his presidential powers to form a sympathetic constitutional assembly, which quickly produced a draft constitution providing for a strong executive, and to shape the outcome of the December 1993 referendum on Russia's new basic law. The referendum vote resulted in approval by 58.4 percent of Russia's registered voters. The announced 54.8 percent turnout met the requirement that at least 50 percent of registered voters participate in the referendum. The 1993 constitution declares Russia a democratic, federative, law-based state with a republican form of government. State power is divided among the legislative, executive, and judicial branches. Diversity of ideologies and religions is sanctioned, and a state or compulsory ideology may not be adopted. The right to a multiparty political system is upheld. The content of laws must be made public before they take effect, and they must be formulated in accordance with international law and principles. Russian...
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...The concept state has been explained or received numerous definitions based on the understanding of some political scholars as well as the definition giving to it by any other academic discipline base on how they understand it. Their definitions seek to distinguish the concept state from nation and how it elaborate on its similarities and differences. According to Max Weber, a state is the organisation that maintains a monopoly of violence over a territory. Also, Dr. Bossman defines the state as a clearly defined area with its own government that exercises authority over its population. Moreover Patrick O’Neil, explains a state as an institution that seek to yield the majority of force within a territory, establishing order and deterring challenges from inside and out. Generally, a state may be defined as a geographically well-defined area with a boundary, territory and a government with power to exercise authority over its members called citizens. On the other hand, the word nation is defined from the Latin word natus which means birth. The word nation can also mean a group that a person is born into and have linkage [ethnos] or ethnicity. According to Thomas Magstadt and Peter Scihotten, the term nation refers to people who share a common value including any or all of following; geographical location, history, racial and ethnic characteristics, religion, language, culture and beliefs and common political ideas. According to Ernest Baker, a nation is a body...
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...the firm, and other related issues. Post your organization chart, including a description of operations and rationale. What are some of the major control issues to be considered? Your final product should be clear, detailed, and demonstrate mastery of organization structure and control systems. Scenario Assumptions An American fast-food chain plans its market entry in Russia. Country Profile – Major Concerns of a Market Entry in Russia Table 1 summarizes the main general, current opportunities and risks prevalent for doing business in Russia. Opportunities in Russia | Risks in Russia | - Russia has a population of 142.9 million. This offers a great growth potential of our customer base. (Ernst&Young, 2012) The population is broad-based, young and not picky (Wilson, 2004). | - The Russian labor market is highly segmented. Earning, income and educational inequalities are large. Additionally, the enforcement of labor standards is lax and collective bargaining is underdeveloped. (OECD, 2012) Therefore, we will need mechanisms to control their enforcement after the market entry. | - Russia is still experiencing an economic upward trend in terms of GDP of 22% from 2011 to 2012. (Ernst&Young, 2012) This indicates rising purchasing power in the country for our product and future growth potential for this purchasing power. | - Due to educational differences and decreasing unemployment the war for talent gets tougher as more and more companies compete for skilled...
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