Implementation

Since Russia had the world’s largest gas reserves and second largest oil reserves and we know that economies of scale are one of the keys to success for appliance manufacturers.Also the JV market share increase for 0.9% in 2008 to 4.9% at the end of 2012 so we believe in the future Russia could have more stability.Furthermore, As one of our purposes which is entering into the international market so that we choose to stay in Russia and continue with exportation. However, this joint venture could raise the problem of differentiate culture and a complex organizational structure and so on. To implement this, we may have to make some adjustments.
Due to we have the cultural distance and after 4 years of operations, Mabe understand the culture which is weak legislative and enforcement regimes and the incidents of corruption and bribery at all levels of state bureaucracy. Also Mabe learned through the previous expansion that the importance of instilling the firm’s culture into the acquired firms.Thus, we should continue implementingon Mabe’s culture.
Russia had faced struggles on two fronts: a decreasing population and the deterioration of human capital.Also Russian managers have been found to be more oriented to the short term and to place little emphasis on competitive strategy, formal strategic planning or financial planning. Thus we may implement only few Russian senior employees in Mabe’s Russian JV. For the main junior employees we should focus our human resources on the new generations, due to the fact that candidates over that age were more likely to exhibit Soviet-era mentalities.
Due to the political interference in business, arbitrariness in the application of laws, complexity of the tax system.Thus, we may have to learn the economy, government and understand it and then have a good solution of how to have a better operate with the JV or