...MABE: Learning to Be a Multinational Strategic Management 75-498 Section 1 Professor T. Mao By group 10: Daniel Sgro 103442079 Elizabeth Oduwole 104078842 Mohammad Rafi Siddique 103606130 Si Shen 103552129 Table of Contents 1. Problem Identification…………………………………………………..…2 a. Key Issue……..………………………………………………………………...…2 2. Situation Analysis………………………………………………………..…2 b. External Analysis……...…………………………………………………………2 i. PESTEL………….……………………………………………………...….……2 ii. Industry………….………………………………………………………….……3 iii. Porter’s 5 Forces…..……….……………………………………………………3 iv. Diamond Model……………………………………………………………….…4 v. 1-2-3 Model………………………………………………………………………4 vi. CAGE Framework…………………………………………………………....…5 c. Internal Analysis………………...…………………………………….…………5 vii. VRINE……………….………………………………………………..…………5 viii. Value Chain…………..…………………………………………………………6 ix. Financial………………..……………………………………………..…………6 3. Alternatives & Recommendation…………………………………….……7 d. Alternatives………..………………………………………………………..……….……7 e. Recommendation………...…………………………………………...….…….………....7 f. Implementation………………………………………...………………………………...8 g. Contingency Planning……………………………………………………………………8 4. Appendices………………………………………………………….………9 h. Appendix A: VRINE Table…………………………………………………......……….9 i. Appendix B: Decision Matrix…………………………………………....…….…..……9 j. Appendix...
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...1946 Introduction Over the past decade, Russia has witnessed year after year of significant growth in terms of its GDP. The vast majority of this growth can be attributed to Russia’s most valuable natural resource, Crude Oil. Overall, the oil industry accounts for a staggering 25% of Russia’s total GDP, as well as totaling 40% of all exports leaving its borders (Poussenkova, 2010). Lukoil, Russia’s largest oil company came about in 1991, when the then state owned oil monopoly was dismantled (Firlej, 2009). Today Lukoil accounts for roughly 19% of all oil production in Russia with profits reaching $108 Billion in 2008. Despite tremendous success in recent times for Russian oil exports, the state now looks to offset the risks associated with both heavily fluctuating oil prices as well as its enormous dependence upon oil exports for the well being of the nation. Because of this, companies such as Lukoil are now engaging in foreign investment to reduce the effects of fluctuating oil prices, political uncertainty as well as other risks related with their position (Firlej, 2009). This paper will discuss various aspects of Russia’s position as an oil exporter as well as various risks that may be faced in the near future. Theories of Trade When talking about Russia’s global position as an oil exporter, it is best to use various trade theories to help explain the situation. Firstly, it must be pointed out that the current situation for Russian oil exports is that of a competitive...
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...Chechen conflict is a long running one and still poses a problem in the contemporary context. Current situation is the outcome of historical events, which I am going to examine briefly. - Conflict starts even from the 19th century, when Russian Empire annexed the areas of the North Caucasus by force. We can somehow call it "COLONIZATION ". - Then during the WW2 Chechen and Ingush units were accused for collaboration with German Nazi, and as a result Stalin deported more than half a million of people to Siberia and Kazakhstan in 1944. - Chechen conflict as a struggle for independence started in the 1980s with the beginning of "perestroika". On 6th September in 1991 there was a revolution in Chechnya and Dudaev captured the power. With the help of fake elections he became a president and claimed about Chechen's independence. From 1991 to 1994, thousands of people of non-Chechen ethnicity left the republic amidst reports of violence and discrimination against the non-Chechen population. Situation there became very unstable and even dangerous. When Russia invaded Chechnya, a bloody war ensued. Intending to crash separatist forces, this was Yeltsin’s first major confrontation. However, the supposed awesome Russian military strength inherited from the Soviet Union, turned into a disaster. Grozny was devastated. About 80 000 people died, mostly Chechen civilians, and in 1996, Russia withdrew defeated. Dudaev was killed in 1995. - In mid-November 1996, Yeltsin and Maskhadov...
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...instance, Safety jackets, winter jackets and so on and is seeking to expand its arm in the international market. And it has its eye on Russian market. There are various factors, which is taken into consideration by the company while choosing an international market. Since, Russia has 60 percent of middle class and lower wellness people who are also called working class for whom affordable safety jackets are mandatory. On the top of that, the Russian winter is considered as the most severe winters in the world where people needs high quality of winter jackets to stay warm during winters. This company has propensity to manufacture these kinds of high quality and long life sustaining jackets which is more convenient for the Russian market. Country Analysis: 1. Russian Trade & Economic situation: Facts: Because of high prices charged by Russia for the main exports like oil & gas primarily, the country had maintained the stability in macroeconomic by growing the real GDP by 40% followed with cutting down the annual average inflation rate by 6.5%. The public expenditure has also been brought under control. Due to the 1998 crisis, Russian government learnt how to overcome from this kind of situation. For instance, high revenues of oil has been taken in the four years of budget surplus, the currency exchange value loose during 1998 has been recovered to its 50 % of the value and still appreciating in real terms. Financial stabilization and the growth had led to the...
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...Example from Intranet: This report outlines medium term (3 – 5 years) strategic recommendations for the business strategy for Field Packaging East Kilbride (FPEK). These recommendations are based upon a comprehensive strategic analysis of FPEK’s current and likely future situation. The recommendations aim to enhance FPEK’s existing competencies. This will add value to the both the company and its customers. Thus enabling FPEK to develop and sustain competitive advantage in the highly competitive branded products market segment of the packaging industry, in which it operates. 2 Environmental Analysis (700 words) 2.1 Transactional Environment Social Despite a projected decline in population of 10 million by 2010 [01.], Russia is seeing a rise of the middle class, which has now reached 4 million adults and children [02.]. This segment has a taste for westernised affluence, so is demanding higher quality, premium, healthy products and increased convenience from the retail sector. There is a strong need for organisations to address this demand by supplying more innovative products of higher quality to the market (such as premium-range yogurts and healthy snacks). Market It is estimated that the grocery market in Russia will reach $186 Billion USD by 2010 which will be good for WBD’s future in the dairy market [02.]. In urban centres especially, there is a shift towards food being sold in supermarkets so that by 2010, 45% of it will be sold there as compared...
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...follow. Therefore, understanding the pattern of past revolutions can help us anticipate events in current revolutions, more specifically the final stages of the process now taking place in Russia and China. One word of caution, however: these are likely trends, not absolute certainties. Outside events (e.g., a major war) and other historical forces unique to Russia and China respectively, could divert events in a very different direction from what is indicated here. Still, this pattern generally holds up and should serve as a guide in how we deal with nations still undergoing this process. That being said, following is a comparison of the French Revolution, which after 82 years finally reached a stable democratic form of government by 1871, and the Russian Revolution, which after 92 years is presumably in its final stage of evolution toward democracy. Forces leading to revolution Both countries shared three elements that helped lead to war: 1) Both regimes were burdened by heavy debts incurred from wars. In France’s case, this was the debt incurred by its support of the American Revolution. For Russia, this was the even higher cost in lives and money suffered during the first three years of World War I....
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... Table of content 1 Introduction...................................................................................................... 2 2 The Federative Republic of Brazil .................................................................... 3 2.1 General information on the Federative Republic of Brazil....................... 3 2.2 Brazil’s connection with the European Union.......................................... 4 2.3 Brazil’s financial situation........................................................................ 5 2.4 Brazil’s imports and exports.................................................................... 6 2.5 Brazil’s leading companies ..................................................................... 9 3 The Russian Federation................................................................................. 10 3.1 General information on the Russian Federation ................................... 10 3.2 Russia’s connection with the European Union...................................... 11 3.3 Russia’s financial situation.................................................................... 12 3.4 Russia’s imports and exports................................................................ 13 3.5 Russia’s leading companies ................................................................. 14 3.6 Conclusion ............................................................................................ 16 4 The Republic of India...
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...Foreign Policy In the 20 years since the fall of communism, Russia has seen tumultuous times. In a relatively short period of time, a former world superpower has suffered through dramatic changes – some positive, and some painful. The 1980s ultimately brought about the fall of communist U.S.S.R, the 1990s showed the world the phoenix-like rise of democracy from the ashes of communism, and the 2000s have now shown us the rise of autocracy, or “sovereign democracy” , wrapped in a Russian flag. The Russian state that enters into this new decade is an entirely different state than that of its communist, or even democratic, predecessors. Such quick, drastic changes and Western inexperience in dealing with Russia’s new form of democracy has left Western governments sometimes scrambling to find a proper response to the actions of a Russia which they do not understand. The foreign policy and resulting actions of 21st century Russia are often misinterpreted by Western powers as those of a belligerent and sometimes antagonistic state. Western media also often does not understand and does not accurately convey Russia’s foreign policy goals to the public, sometimes deciding to demonize Russia and capitalize on the fact that much of the Western populace sees little distinction between the actions of modern Russia and those of the Soviet Union. Miscalculated Western foreign policy leads to nearly the same situation inside of Russia, where an antagonistic West can only serve to help Russia’s...
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...The Russian financial crisis occurred on August 17, 1998, exacerbated by the global recession caused by the Asian financial crisis in 1997. Russia was highly dependent on exports of raw materials, with petroleum, natural gas, metals and timber accounting for more than 80% of its exports. With the drop in global demand, prices of those commodities began to decline. This resulted in an impact on its foreign exchange reserves since Russia had a fixed exchange rate regime during this period of time, where the ruble was only allowed to move within a narrow band. With the speculative attacks caused by the Asian financial crisis along with the decline in global demand, the Central Bank of Russia stepped in to defend the ruble in the markets. Russia was also experiencing fiscal deficits and declining productivity in its economy. Foreign capital was initially attracted to the Russian market due to the high interest rates, which was then used to provide internal loans in the country. The Gosudarstvennoe Kratkosrochnoe Obyazatelstvo (GKO) bond interest rates soared to 150% in an effort to prop up the currency and to stop capital flight. Internally, debt on wages continued to grow and financing for major big budget items were impacted as debt grew. The Chechnya War from several years earlier further compounded these problems. Russia also suffered from a political crisis where the entire government was fired in 1998, causing for investor confidence to be further eroded. ...
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...along with a growing Naftogaz deficit make fiscal adjustment more challenging. Ukraine government has allowed a free floating exchange rate resulting in a 50% devaluation of the currency (figure 4). Import gas prices are high and energy efficiency of the national industries is poor. The balance of payments pressure remains high due to large external debt refinancing needs, low FDI and limited access to external financing. This means that challenges are ahead of Ukraine with deteriorating relations with Russia, a weak banking sector, low FX reserves, large debt repayments needs (for the next 2 years) together with constrained domestic consumption altogether pose risks and affect prospects for recovery. Positive factors for Ukraine are as follows: (i) the strong external support for Ukraine ($27bn in the next 2 years), (ii) authorities are motivated to reform, (iii) trade relations with EU have improved and (iv) the economy has a high long-term potential. To overcome current recession Ukraine has to: (i) stick to the floating exchange rate, (ii) stabilize public finances, (iii) improve country competitiveness and (iv) develop new export markets. Besides this, the “ease of doing business” with Ukraine has to...
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...Implications of the Ukrainian Crisis for Trade Relationships of the EU with Russia Economic Policies of the European Union Gartnar Marko | 19486522 | Marmai Martina | 19131311 | Mladenović Kosta | 19821606 | Executive Summary The aim of this research assignment is to provide an assessment of the effects on trade relationships between the EU and Russia stemming from the so-called “Ukrainian crisis.” The term points at the Russian military intervention in Ukraine, and the public response that this event generated. In particular, the analysis will regard the repercussions on Euro-Russian trade due to the Council’s diplomatic reply to the violent annexation of the Crimean peninsula by the Russian Federation. Since March 16th, when - with the unconditional support of Russia - the referendum for the independence of Crimea took place, the events in Ukraine escalated, giving rise to a number of restrictive provisions which, increasing in scope and gravity, aimed on one side to discourage military intervention by Russia, while on the other punished illegal misappropriation of Ukrainian public property. Such sanctions may not have played an important role, were it not for the current shaky state of the Russian economy. Nevertheless, that of sanctions is a two-sided sword, and the European Union, barely stepping on the road to recovery, can’t exactly afford being too picky when it comes to deciding who to do business with. The high level of interconnectedness and dependence...
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...Adapted from Kurt Lewin’s Model Unfreeze Stability Undesired Situation Unfreezing/ Change Refreeze Stability Desired Situation Chaos Unpredictability No control Confusing Loss-Attachment In the unfreezing phase, the change agent unfreezes forces that maintain the status quo to reveal the drawbacks of the present situation. Thus, people become discontented and aware of a need to change. Unfreezing is necessary because before any change can occur, people must believe the change is needed. Any change process is faced with a certain level of resistance. In the movement phase, the change agent identifies, plans, and implements appropriate strategies, ensuring that driving forces (forces supporting change) exceed restraining forces (forces resisting change). This is the last phase, during which the change agent assists in stabilizing the system change so it becomes integrated into the status quo. If refreezing is incomplete, the change will be ineffective and the pre-change behaviors will be resumed. Pierre Frankel’s background Studied Economics and business management at a reputed European University Started career in Switzerland with a Consulting Major in Finance and moved to IT Joined H-IT a worldwide provider of technology and services 2003- 2006 – Executive Assistant - Global Field Operation 2006 – VP Business Operations- Reporting to President EMEA How it started ? Russian subsidiary was underperforming with unmet revenue targets...
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...------------------------------------------------- IKEA Entering Russia Case Presentation Summary BMKT507 – Principles of International Marketing Seminar Tutor: Dr Nathan Subramanian By James Whelan, Emmanouil Siontas, Marta Okonska, Ligia Moreno Soares & Henning Meyer March 2012 Westminster Business School I. General Overview * Leading home furnishing company with more than 200 stores in 32 countries and a total of 84,000 employees. * Entered Russia in 1991 - first store did not open until 2000. * Move to Russia seen as a long-term investments by IKEA’s management * All stores are fully owned ventures by IKEA II. IKEA’s entry strategy in Russia – Adaption or Standardisation? * The company made the Russian consumer buy its products as a necessity * Long-term vision gave the flexibility required from IKEA to “invent” a market gap that was to be filled by them. * Adapted to the market they entered, something that would make the company limit the distance from the pulse of the Russian reality. III. How did IKEA change its market entry strategy to enter an emerging market? * No special market research was carried out before setting up the first store – Market research in emerging markets only gives a snapshot of the current market situation; Market and consumer behaviour as well as market structures can change rapidly in emerging markets * Since IKEA considered Russia a long-term investment, relatively high losses in...
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...organization of the war effort - lack of food, proper medical care, decent housing and clothing). Morison agrees with this view, further suggesting that the regime was “branded as incompetent and unworthy” because of how badly the war was going. This in itself would suggest war had a major significance on Russian government as the people were beginning to become unsatisfied with the current regime through its attitude towards the war, and thus would be more likely at this point to push for a new regime that they believed would be more suitable for the Russian people. Furthermore, military defeats at Port Arthur highlighted the weaknesses of the army to the common people, and when Russia was apparently losing the war the people held the government accountable for the massive defeat. This suggestion is supported by Hughes, in that he argues that the war “frustrated many patriotic Russians who were appalled by their countries humiliation”. Russia had previously taken out a large loan from France, that they were seen to be wasting on a losing war. This, paired with the existing socio-economic situation in Russia seemed to make the idea of a change within government more appealing- it was obvious that the Russian people were unhappy with the...
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...Title: JOURNEY TO SAKHALIN: ROYAL DUTCH/SHELL IN RUSSIA (A) CASE STUDY REPORT Contents Page 1. Executive Summary……………………………………………………………….…………………..3 2. Introduction…………………………………………………………………………….………..……….3 3. Analysis…………………………………………………………………………………..…………….……3 3.1 Foreign Direct Investment…………………..…………………………………….……………...3 3.2. Sakhalin………..……………………………………………………………………………………….…..4 3.3. Production-Sharing Agreement……………………………………………………………..….4 3.4. Approvals-TOEC…………………………………………………………………………………..…….5 3.5. NGO’s and the Environment………………………………………………………………..…...5 3.6. SEIC’s strategic moves……………………………………………………………………..………..6 4. Recommendations……………………………………………………………………………..……..7 1. Executive Summary: In the following report the case study titled “Journey to Sakhalin: Royal Dutch/Shell in Russia” will be examined. A summary of the main issues that SEIC came across with, is analyzed including issues with the PSA and the political usage of Sakhalin II project, as means to an end. Other issues including late approvals, TOEC acquisition and nongovernmental organizations’ influence to potential buyers and lenders are also mentioned. Conclusively a recommendations section is created for the future of Sakhalin II project, that emphasizes on the PSA matter and the TOEC acquisition. 2. Introduction In the period of 1997-1999 Russia faced a great economic decline with a massive fall in GDP...
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