Russia – Comparative International Mangement

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Russia – Comparative International Mangement

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2. Russia Presentation in Comparative International Management 1st Semester 2005/2006 Prof. Dr. Antonio Robalo 29.11.2005
3. Team Ewa Augustyniak (Poland) Inga Astrauskaite (Lithuania) Peter Pavlic (Slovenia) Simon Borghardt (Germany)
4. Overview Introduction History Geography Curiosities Stereotypes Hofstede Behavior Business Negotiating Conclusion
5. Introduction 9000 km from East to West and 5000 from North to South Ural mountains divide
6. History of Russia Founded in the 12th century Emerged from over 200 years of Mogol domination
7. History of Russia Communist seized power soon after under Lenin and formed the USSR Rule of
8. History of Russia Russia struggles in its efforts to build a democratic political system and market
9. Geography Northern Asia (that part west of the Urals is included with Europe), bordering the Arctic
10. Geography Largest country in the world in terms of area (1.8 times the size of the
11. Curiosities in Russia Russians are impressed with size and number, and much that they do is
12. Stereotypes about Russia Way of life is very simple Russians love to eat rye bread with
13. Stereotypes about Russia Playing balalaika and drinking vodka is their only entertainment Teenagers are keen fans
14. „A typical Russian”
15. The World's Attitude Towards Russia: Friends and Foes
16. Dimensions of cultures How Hofstede evaluates Russia?
17. Index Scores of Russia
18. High Uncertainty Avoidance „Will it be any better?? No, it had already been better.” (Russian Finance
19. High Uncertainty Avoidance Low tolerance for uncertainty and ambiguity Rule-oriented society, which institutes a lot of
20. Large Power Distance “Subordinate should always look foolish and flimsy. In order not to shame with
21. Prevailing religions and philosophical systems stress hierarchy and stratification Prevailing political ideologies stress and practice power
22. Factors of Large Power Distance Geographical condition Small number of the social stratum Small number of
23. Low Individualism “My adress is not a house and the street. My adress is the USSR.”
24. Low Individualism Ideologies of equality prevail over ideologies of individual freedom Collective interests prevail over individual
25. Low Masculinity “How many divisions does the Pope lead? (Joseph Stalin, at Postdam conference) Results according
26. Low Masculinity Dominant values in society are caring for others and preservation People and warm relationships
27. Russia’s position in Gesteland classification Features of Russian culture: Relationship-oriented Formal Fluid-time , polychronic Expressive
28. General business rule "In Russia daily work conditions can be compared to a jungle where you
29. Behaviour Comrade!!! – Never!!! Connections, influences (gifts, money) Personal relations Women Scepticism, friends Be feminine Advantage
30. Business Shaking hands, hugs, kissing Formal & Conservative (Men, Women) Punctuality Business cards (Plenty!!!)
31. Informal Meetings Theater Casual dressing at home dinners (dacha) & gifts Small talk (English, Russian, current
32. Legal situation Fiscal obscurities Legal issues Difficult dealings with the Russian public authorities !!! Be careful
33. How to prepare to the negotiations? Financial situation must be examined Study the hierarchial structure of
34. How to select the appropriate negotiation team? Status of the team members of great importance Same
35. First meeting A formality Opportunity to get to know each other well and to outline the
36. Negotiation rules (1) Serious matter and should be treated accordingly Personal relationships are very important in
37. Write down all the results General impression is what counts the most Patience is crucial Direct
38. Specific negotiation tactics with Russian business partners (1) Find out who is who? Describe complex subjects
39. Specific negotiation tactics with Russian business partners (2) Use “white-black” method “lack of competencies” method should
40. Conclusion Many new things are happening politically, but "whatever happens, and whatever restructuring of the Soviet
41. References http://www.kn.sbc.com/wired/fil/pages/webstompoubr.html http://www.edc.samara.ru/~cn/russians.htm http://russia-in-us.com/Humor/rusamer.html http://www.mosnews.com/guide/stereotypes.shtml http://www.goehner.com/russinfo.htm http://waytorussia.net/WhatIsRussia/MythsAndTruth.html http://findarticles.com/p/articles/mi_qa3935/is_200110/ai_n8960443 http://www.waytorussia.net/WhatIsRussia/Intro.html http://bd.english.fom.ru/report/cat/societas/terrorism_criminality/ed044012 http://bd.english.fom.ru/report/cat/rossiya_i_stran_mira/mesto_v_mire/eof043902 http://bd.english.fom.ru/report/cat/rus_im/valuable/ed010123 http://www.tanika.com/stereotype.htm
42. References Sergey Frank “Doing business with the Bear”; Business Watch; January – February 2003 Sergey Frank
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Слайд 2

Russia
Presentation in Comparative
International Management
1st Semester 2005/2006
Prof. Dr. Antonio Robalo
29.11.2005

Слайд 3

Team
Ewa Augustyniak (Poland)
Inga Astrauskaite (Lithuania)
Peter Pavlic (Slovenia)
Simon Borghardt (Germany)

Слайд 4

Overview
Introduction
History
Geography
Curiosities
Stereotypes
Hofstede
Behavior
Business
Negotiating
Conclusion

Слайд 5

Introduction
9000 km from East to West and 5000 from North to

South
Ural mountains divide Russia into a European and Asian part
Population of about 143 million (3/4 live in the European part)
Moscow is the capital and the largest city
Russian is offical language but many others in component parts
President is Vladimir Putin

Слайд 6

History of Russia
Founded in the 12th century
Emerged from over 200 years

of Mogol domination
New Romanov Dynasty in the 17th century, policy of expansion from Siberia to the Pacific
Peter I: hegemony was extendet to the Baltic Sea; renamed the country Russian Empire
Defeats of the Russian Army in
World War I led to rioting and to
the overthrow in 1917 of the
imperial household

Слайд 7

History of Russia
Communist seized power soon after under Lenin and formed

the USSR
Rule of Stalin (1928-1953) strengthened Russian dominance of the Soviet Union under the costs of millions of lives
Gorbachev (1985-1991) introduced glasnost (openess) and perestroika (restructuring) in an attempt to modernize Communism
Initiatives released forces
that in 1991 splintered the
USSR into 15 independent
states

Слайд 8

History of Russia
Russia struggles in its efforts to build a democratic

political system and market economy to replace the strict social, economic and political controls of the Communist period
Progress on the economic front
Recentralization of powers under Putin and erosion of democratic institutions
Guerilla conflict still going on
between Russia and Chechnya

Слайд 9

Geography
Northern Asia (that part west of the Urals is included with

Europe), bordering the Arctic Ocean, between Europe and the North Pacific Ocean
Stretches across much of the north of the supercontinent of Eurasia
Great variety of landscapes and
climates
Most of the land consists of
large plains known as Siberia
Extensive coastline of
over 37,000 km

Слайд 10

Geography
Largest country in the world in terms of area (1.8 times

the size of the US); despite its size, much of the country lacks proper soils and climates (either too cold or too dry) for agriculture

Слайд 11

Curiosities in Russia
Russians are impressed with size and number, and much

that they do is on a grand scale
Things seldom go as planned with Russians. They often say, "In principle, it can be done," but in practice, it may be another matter
Russians admire Americans as people, and generally bear no harm toward them
Belief and pride in Russia as a great power with a special mission in the world
Mocow is even more expensive to do business than New York or Tokyo

Слайд 12

Stereotypes about Russia
Way of life is very simple
Russians love to eat

rye bread with herring and drink vodka
Fashion for fur coats and hats is at all times high
Cold winters are impossible to survive
University professors have to sell matryoshkas to foreigners, and former teachers work as security guards
Average salary is $150 per month
President Putin is still loved by all the nation

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Stereotypes about Russia
Playing balalaika and drinking vodka is their only entertainment
Teenagers

are keen fans of the band TaTu and dream of fleeing the country as soon as they are 18
Few dozen people who managed to make some money on the oil fields now live in exile
Russia will soon go
back to communism

Слайд 14

„A typical Russian”

Слайд 15

The World's Attitude Towards Russia: Friends and Foes

Слайд 16

Dimensions of cultures
How Hofstede evaluates
Russia?

Слайд 17

Index Scores of Russia

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High Uncertainty Avoidance
„Will it be any better??
No, it had already

been better.”
(Russian Finance Minister, asked by an investor about the economic future of Russia)
Results according to:
- Hofstede 95
Globe 98
Noumov 68

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High Uncertainty Avoidance
Low tolerance for uncertainty and ambiguity
Rule-oriented society, which institutes

a lot of laws, rules, regulations, and controls
Time is money
Emotional need to be busy
Suppresession of deviant ideas and behaviour, resistance to innovations
Motivation by security and esteem of belongingness
Belief in experts and specialization

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Large Power Distance

“Subordinate should always look foolish and flimsy.

In order not to shame with their wisdom the superior”
(Decree of Tsar Peter I)
Results according to:
- Hofstede 93
Globe 77
Noumov 40

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Prevailing religions and philosophical systems stress hierarchy and stratification
Prevailing political

ideologies stress and practice power struggle
Hierarchy in organizations reflects the existential inequality between higher- ups and lower-downs
Subordinates expect to be told what to do, superior unavailable
Powerful people try to look as impressive as possible
Centralization is popular

Large Power Distance

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Factors of Large Power Distance
Geographical condition
Small number of the social stratum

Small number of people with higher education
Lack of advanced technology
State politics

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Low Individualism
“My adress is not a house and the street.

My adress is the USSR.”
(Words in a famous Russian song)
Results according to:
- Hofstede 39
- Globe 36
- Noumov 41

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Low Individualism
Ideologies of equality prevail over ideologies of individual freedom
Collective interests

prevail over individual interests
Opinions are predetermined by group membership
Laws and rights differ by group
Press controlled by the state
Hiring and promotion decisions take
employees' ingroup into account
Dominant role of the state in the economic system

Слайд 25

Low Masculinity
“How many divisions does the Pope lead?
(Joseph Stalin, at Postdam

conference)
Results according to:
- Hofstede 36
Globe 47
Noumov 55

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Low Masculinity
Dominant values in society are caring for others and preservation
People

and warm relationships are important
Work in order to live
Stress on equality, solidarity and quality of work life
Managers use intuition and strive for consensus
Resolution of conflicts by compromise and negotiation.

Слайд 27

Russia’s position in Gesteland classification
Features of Russian culture:
Relationship-oriented
Formal
Fluid-time

, polychronic
Expressive

Слайд 28

General business rule

"In Russia daily work conditions can be compared to

a jungle where you really don't know what can fall on your head in the next minute."

Слайд 29

Behaviour
Comrade!!! – Never!!!
Connections, influences (gifts, money)
Personal relations
Women
Scepticism, friends
Be feminine
Advantage
Relaxing

(lunch, theater etc.)

Слайд 30

Business
Shaking hands, hugs, kissing
Formal & Conservative (Men, Women)
Punctuality
Business cards (Plenty!!!)

Слайд 31

Informal Meetings
Theater
Casual dressing at home dinners (dacha) & gifts
Small talk

(English, Russian, current events, music, art…)
Sauna

Слайд 32

Legal situation
Fiscal obscurities
Legal issues
Difficult dealings with the Russian public authorities
!!!

Be careful !!! some licences – especially for export are hard to obtain

Слайд 33

How to prepare to the negotiations?
Financial situation must be examined
Study the

hierarchial structure of the company
Mutual friends wanted
Professional interpreter necessary

Слайд 34

How to select the appropriate negotiation team?
Status of the team members

of great importance
Same idea of every raised issue
Clear leader
Desired features of group members - patient, highly tolerant and resistant to provocations
“uniform front”
Business ethics essential

Слайд 35

First meeting
A formality
Opportunity to get to know each other well

and to outline the proposal at most
Calm and formal
Be self-confident, patient and simultaneously create the atmosphere of warmth

Слайд 36

Negotiation rules (1)
Serious matter and should be treated accordingly
Personal relationships

are very important in Russia
Visualisation
Make sure they understand what you are offering!
Problems with agreeing to compromises

Слайд 37

Write down all the results
General impression is what counts the most
Patience

is crucial
Direct talk is welcomed
Exclusivity
When a deal is struck is often sealed off with a glass of vodka – do not refuse☺

Negotiation rules (2)

Слайд 38

Specific negotiation tactics with Russian business partners (1)
Find out who is

who?
Describe complex subjects as clearly as possible
Be prepared for a long negotiation
Distinguish between your behaviour inside and outside the negotiations

Слайд 39

Specific negotiation tactics with Russian business partners (2)
Use “white-black” method
“lack

of competencies” method should not be applied
Even if you have strong arguments, do not overemphasise them

Слайд 40

Conclusion
Many new things are happening politically, but "whatever happens, and whatever

restructuring of the Soviet society, Russia is, and is going to remain a country very different from our own. We should not look for this difference to be overcome in any short space of time."
by George Kennan (American)

Слайд 41

References
http://www.kn.sbc.com/wired/fil/pages/webstompoubr.html http://www.edc.samara.ru/~cn/russians.htm http://russia-in-us.com/Humor/rusamer.html http://www.mosnews.com/guide/stereotypes.shtml http://www.goehner.com/russinfo.htm http://waytorussia.net/WhatIsRussia/MythsAndTruth.html http://findarticles.com/p/articles/mi_qa3935/is_200110/ai_n8960443 http://www.waytorussia.net/WhatIsRussia/Intro.html http://bd.english.fom.ru/report/cat/societas/terrorism_criminality/ed044012 http://bd.english.fom.ru/report/cat/rossiya_i_stran_mira/mesto_v_mire/eof043902 http://bd.english.fom.ru/report/cat/rus_im/valuable/ed010123 http://www.tanika.com/stereotype.htm

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References
Sergey Frank “Doing business with the Bear”; Business Watch; January –

February 2003
Sergey Frank “A market emerging from a country in turmoil: Good personal relationships are needed to survive Russian chaos”; Financial Times, Feb 19, 2001
Sergey Frank “Executives in from the cold: Many Russians from the state companies have kept old Habits” Financial Times; Mar 13, 2001
www.executiveplanet.com
www.bisnis.doc.gov
www.pawel.wojcik.com/rosja
www.worldbiz.com/russia.html
www.cyborlink.com/besite/russia.htm

Russia – Comparative International Mangement

Содержание

RussiaPresentation in Comparative International Management1st Semester 2005/2006Prof. Dr. Antonio Robalo29.11.2005

Team Ewa Augustyniak (Poland)Inga Astrauskaite (Lithuania)Peter Pavlic (Slovenia)Simon Borghardt (Germany)

OverviewIntroductionHistory GeographyCuriositiesStereotypesHofstedeBehavior BusinessNegotiatingConclusion

Introduction9000 km from East to West and 5000 from North to

History of RussiaFounded in the 12th centuryEmerged from over 200 years

History of RussiaCommunist seized power soon after under Lenin and formed

History of RussiaRussia struggles in its efforts to build a democratic

GeographyNorthern Asia (that part west of the Urals is included with

GeographyLargest country in the world in terms of area (1.8 times

Curiosities in RussiaRussians are impressed with size and number, and much

Stereotypes about RussiaWay of life is very simpleRussians love to eat

Stereotypes about RussiaPlaying balalaika and drinking vodka is their only entertainmentTeenagers

„A typical Russian”

The World's Attitude Towards Russia: Friends and Foes

Dimensions of cultures How Hofstede evaluates Russia?

Index Scores of Russia

High Uncertainty Avoidance„Will it be any better?? No, it had already

High Uncertainty AvoidanceLow tolerance for uncertainty and ambiguityRule-oriented society, which institutes

Large Power Distance “Subordinate should always look foolish and flimsy.

Prevailing religions and philosophical systems stress hierarchy and stratification Prevailing political

Factors of Large Power DistanceGeographical conditionSmall number of the social stratum

Low Individualism“My adress is not a house and the street.

Low Individualism Ideologies of equality prevail over ideologies of individual freedomCollective interests

Low Masculinity“How many divisions does the Pope lead?(Joseph Stalin, at Postdam

Low MasculinityDominant values in society are caring for others and preservationPeople

Russia’s position in Gesteland classification Features of Russian culture:Relationship-oriented Formal Fluid-time

General business rule "In Russia daily work conditions can be compared to

BehaviourComrade!!! – Never!!!Connections, influences (gifts, money)Personal relations WomenScepticism, friendsBe feminine AdvantageRelaxing

BusinessShaking hands, hugs, kissingFormal & Conservative (Men, Women)Punctuality Business cards (Plenty!!!)

Informal MeetingsTheaterCasual dressing at home dinners (dacha) & gifts Small talk

Legal situation Fiscal obscuritiesLegal issuesDifficult dealings with the Russian public authorities !!!

How to prepare to the negotiations? Financial situation must be examinedStudy the

How to select the appropriate negotiation team? Status of the team members

First meetingA formality Opportunity to get to know each other well

Negotiation rules (1)Serious matter and should be treated accordingly Personal relationships

Write down all the resultsGeneral impression is what counts the mostPatience

Specific negotiation tactics with Russian business partners (1)Find out who is

Specific negotiation tactics with Russian business partners (2)Use “white-black” method “lack

ConclusionMany new things are happening politically, but "whatever happens, and whatever

ReferencesSergey Frank “Doing business with the Bear”; Business Watch; January –

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