...Conditions in Russia and Their Effect . . . . Kouznetsov and Jones CONDITIONS IN RUSSIA AND THEIR EFFECTS ON ENTRY MODE DECISIONS OF MULTINATIONAL MANUFACTURING ENTERPRISES: A QUALITATIVE STUDY IDENTIFYING ISSUES FOR FURTHER RESEARCH IN THE AREA OF COUNTRY CONDITIONS AND THEIR IMPACT ON ENTRY MODE ALEX KOUZNETSOV, Melbourne Institute of Technology ASHELEY JONES, Melbourne Institute of Technology This study examines entry modes employed by foreign multinational manufacturing enterprises (MMEs) when entering Russia. This exploratory study focuses on country-specific conditions associated with the chosen entry mode - an important component in the consideration of overall entry strategy. Information from field studies representing 18 manufacturers – 10 directly manufacturing in Russia and 8 selling their products in Russia via representative/sales offices – was obtained by means of personal interviews with senior management in Moscow and constituted the primary qualitative data. Research questions are posed for further examination of conditions in Russia and the effects of such conditions on the entry mode decisions of MMEs. The study finds economic conditions to be the only important determinant of entry modes for large multinational manufacturing companies investing in Russia with other country factors playing no role in their choices. INTRODUCTION With the expansion of global business activity, the ability to analyze the key characteristics of potential...
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...Apple Inc. Intercultural Communication Analysis in Marketing Strategies Rong Zhang & Jia Tong Professor Patty Goodman CMN 2002 - Intercultural Communication Aug 5, 2012 In the United States, the legendary stories are never-ending. Typically, people cannot deny that Apple Inc., which designs and sells consumer electronics and personal computers, is one of the most shining and valuable companies in the world. Since 1998, Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings (Goodson, 2011). The products’ revolutions which Apple did not only get Apple become one of the top admired companies but also make the world quite different. Recently, Fortune Magazine pointed out that Apple saw an 81 percent annual increase in iPhone sales, a 334 percent jump in iPad sales, and a stock price that climbed some 75 percent (Gamet, 2012). Why is Apple so successful? The main factors are the excellent products, the effective marketing strategies especially the advertisement strategy, and the attractive corporate culture. Furthermore, how Apple applies their marketing strategies in different countries including Brazil and Russia will be mentioned particularly in the following paper. Competitive Products For a retail company, products are always the core competence. Apple has varieties of amazing products such as iPod, iPad...
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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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...a new product. Expansion of sales and marketing capability to enter Russia. Acquisition of a competitor in China * Rank the above four business and the two decisions covered in class (manufacturing capacity for existing product and new product R&D) from least risky to most risky. Answers: 1) Risk assessment for manufacturing capacity for a new product Exogenous Risk * Competitor introduces similar product before you * New product is not well accepted by customers * Similar but more cost effective products available in market. * Endogenous Risk * Lack of experience to manufacture new product * Whether marketing team is capable of selling the new product and make profits * Technical Difficulty in large scale manufacturing of the product 2) R&D project to develop second-generation product Exogenous risk * Cost, Availability & compatibility of suitable raw materials * Other companies doing similar R&D but more cost effective * First generation of the drug is still preferred. Endogenous Risk * Technical failures * Budget to steep for R&D * Ability to market and sell new product * New product vs existing or similar product competition * 3) Expansion of sales and marketing capability to enter Russia. Exogenous Risk * Product acceptability * Similar products and their market share and sales. * Political Stability in Russia * Availability and cost of Raw Material ...
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...Marketing 716-103 Macro Environmental Analysis Assignment: 1 To: Prof. Brian Press By: Nadeem Shaikh (300768229) 2/09/2015 Introduction: In this project, we have disclosed the overall plan for the company Herculean which is a new Canadian company which manufactures soft-shell jackets under the brand name of “Herculean”. This company has its different product lines. For 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...
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...Study Submitted By: Dhia Karajih Hessa Ahli Issam Abbassi Sameera Al Buraiki Ted and Harry’s Ice Cream Factory 2 Q1: Do you think Ted & Harry’s Russia was a success? There are different views about what makes a business successful. Typically success should be judged by the ability of the business to meet its objectives. The success of businesses can then be judged in terms of their ability to meet important targets (objectives) and creating a cycle of stakeholder satisfaction. Accordingly, we should measure the success of Ted and Harry’s Russia against the objectives Ted and Harry have set when they decided to branch out in Russia and see whether it was met. The idea of promoting peace was the main objective, and from this standpoint, we can say that Ted & Harry Russia was successful in its business experience in Russia. In the first place, Ted & Harry's motivation was sourced from their social responsibility and not just to make profit for the business, although it is an important element of the organization's existence in the market. Moreover, the goal of the organization in branching out in Russia was based on the idea that “International Peace Could Be Promoted Through Cooperative Business Ventures” Ted and Harry believed after their first visit to Russia. Considering those two criteria, Ted & Harry’s Russia was successful in supporting its social responsibility and it successfully concreted a relationship with the Russian local partners. Although there were a lot...
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...knowledges on wine industry in Russian, which contributes to the brand equity. For example, Tariko was a representative from Martini & Rossi before, and he actually seize the opportunity created by the supply/demand gap at that time, which made him became an exclusive imported in Russia at that time. Two years later, his company had established itself as Russia’s leading importer of upmarket alcoholic drinks, which it helped raise his brand awareness. Moreover, Tariko also developed strong and commanding merchandising skills and relationships with the trade to enhance its marketing strategy on brand equity. For instance, Tariko worked with international advertising experts and brand identity agencies to conduct a survey on the essence of the brand, so that the brand equity could be conveyed to the consumers at last. In result, several methods that meetings with notable Russian and literary personalities, extensive travel throughout Russia, customer focus groups and numerous brand essence and positioning briefs were born to enhance the brand equity in short. After that, Tariko’s brand was able to enjoy rapid success in Russia because the consistency of Tariko’s mission and his company’s marketing strategy. To produce world-class quality vodka while retaining the unmistakably Russian identity was Tariko’s mission, and his company executed this goal by distinguishing two categories of consumers accurately to target the right customer segments, working on the product formula to...
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...As a Marketing manager, you are a fully dedicated business leader, shaping the future of one of our many Google products. Whether you're on a consumer product (like Gmail, Search, Maps, Chrome, Android) or a business product (AdWords, AdSense, DoubleClick, Analytics), you take part in a complete marketing experience as you lead every facet of the product's journey. From determining positioning, naming, competitive analysis, feature prioritization and external communications, you help shape the voice of the product and help it grow a loyal consumer base. This means you work with a cross-functional team across sales, corporate communications, legal, webmasters, product development, engineering and more. In this role, you'll be involved with product marketing strategy from beginning to end. As Head of B2C Marketing, you will play a pivotal role in pursuit for our overall success in Russia. You will determine Russia specific consumer strategy most relevant to local realities, and you will define what tactics and tools will lead execution of the strategy, what particular products and services to focus on and what messages to communicate to the audience. You will lead a team of highly professional product marketing and communication managers motivated to move the dial in Russia. Responsibilities Define and lead the marketing strategy for consumers (brand and product strategy). Communicate and advocate strategy in front of senior management, working closely with Marketing Managers...
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...Advertisement/Promotion……………………………………………….16 Competition……………………………………………………………..17 Legal Implementation Appendix References EXECUTIVE SUMMARY Invacare Home Heath Equipment and Supply is a promising venture to take into consideration for the St. Petersburg, Russia area. It will provide high-quality health equipment and service to its customers. Invacare will provide a wide array of equipment such as wheelchairs (manual and battery powered), beds (basic-electrically operated beds), respiratory equipment (oxygen, nebulizers), bedside commodes, walkers, and canes. After analyzing the demographics and opportunities in the St. Petersburg areas, it was determined that there is a need for a local healthcare provider. St. Petersburg, through much research, has been determined to be in need of better healthcare accessories. The handicaps of St. Petersburg seem to be overlooked and not giving accessibility to most local venders. By strategically placing Invacare in St. Petersburg, the healthcare and handicap concerns may be eliminated. This venture has great potential, can be profitable, and offer a better lifestyle for the disabled in St. Petersburg and the surrounding areas. Many areas have been researched and provided information throughout this marketing plan in order to help make the most informed decision when pondering...
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...Gas Producers -Russia -Canada (Sands) -Iran*** -Norway -Algeria -Indonesia -Saudi Arabia -Turkmenistan -Malaysia Production: Top Natural Gas Producers -Russia -Canada (Sands) -Iran*** -Norway -Algeria -Indonesia -Saudi Arabia -Turkmenistan -Malaysia Production: Top Oil Producers * Saudi Arabia * Russia*** * U.A.E * Canada * Venezuela * Kuwait * Nigeria * Mexico * China * Iran Production: Top Oil Producers * Saudi Arabia * Russia*** * U.A.E * Canada * Venezuela * Kuwait * Nigeria * Mexico * China * Iran Oil (*** top producer) Natural Gas (*** top producer) OPEC: Organization of the Petroleum Exporting Countries- aim in the oil and gas industry is to shift the bargaining power from the large oil companies to the producing countries Member Countries: Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, Venezula OPEC: Organization of the Petroleum Exporting Countries- aim in the oil and gas industry is to shift the bargaining power from the large oil companies to the producing countries Member Countries: Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, Venezula Preference Major Competitors IOC’s (Integrated Oil Companies)- companies that are vertically integrated from exploration to refining, marketing, and retail. ...
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...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 to 28% in 2006 [04.]. These figures suggest that the future for WBD dairy lies with strategic customers, such as major supermarkets. Globalisation With an increase in globalisation, continued growth in GDP (5% per annum), a decrease in unemployment...
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...for International Marketing Course T1-2011-2012 Background Russian Standard vodka, known as Russia’s number one premium vodka brand, was founded by Roustam Tariko and initially launched in 1998. Four years later the sales of this authentic Russian premium vodka surpassed all imported premium vodkas, achieving the number one position in the premium segment with a 27% market share in its domestic market. Brand Identity The first truly premium Russian vodka that “Embraced the past…and inspired progress”. Company’s Objective Equals to the founder (Tariko)’s vision: to make Russian Standard vodka the number one Russian vodka in the world. Assessment of the Current Market Success factors: 1. An evocative brand name. 2. Unmatched product quality. 3. Production Origin. 4. Distinctive premium packaging. 5. Strong distribution networks, commanding merchandising skills. 6. Premium pricing policy. 7. Smart promotional on-premise and off-premise strategy. 8. Strong financial support from brother company—Russian Standard Bank. Failure: Inaccurate domestic advertising compaign—conceived by its consumers as inconsistent with brand image. Issue Encouraged by its rapid success at home as well as driven by the vision of its founder, Tariko wondered whether Russian Standard vodka should be launched in the US market, the biggest premium vodka market in the world in 2000. Business Strategy in European Markets Did no or minimal adaptation to the product or marketing mix. And this European...
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...1. Introduction Russia holds the world’s largest reserves of natural gas, the second largest coal reserves, and the eighth largest crude oil reserves. Russia recent years has become the world’s top gas exporter, mainly to Europe. At the time of fast growing electricity demand, when consumption significantly rise with development of new technologies, gas as a source of electricity become more and more important issue. Topic will discuss natural gas industry in Russia and Russian Company Gazprom. Gazprom is a peculiar corporate giant in gas industry. It is most internationally oriented company in Russia. 2. The role of geography Sitting astride the Eurasian landmass and occupying a territory of 17,098.2 thousand square kilometers, and spanning 11 time zones from Kaliningrad in the west to Kamchatka in the east, Russia is the largest state in the world in terms of territorial extent. Its northern shores wash against the Artic Ocean, while the southern resort region of Krasnodar enjoys a Mediterranean climate. Today Russia’s population is 142.2 million, and the average population density is 8.3 persons per square kilometers (1). However, this hides considerable regional variation: the average population density in the Central Federal District, which includes Moscow, is 57.7 persons per square kilometer, while in the Far Eastern Federal District it is only 1.1 persons. The Central Federal District occupies 3.8 per cent of Russia’s territory and was home to 26.2 per...
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...1. Direction Vision Vision serves as the framework for Roadmap and guides every aspect of business by describing what the company needs to accomplish in order to continue achieving sustainable, quality growth. * People: Be a great place to work where people are inspired to be the best they can be. * Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. * Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value. * Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. * Profit: Maximize long-term return to shareowners while being mindful of overall responsibilities. * Productivity: Be a highly effective, lean and fast-moving organization. Mission Roadmap starts with mission, which is enduring. It declares purpose as a company and serves as the standard against which the company weighs actions and decisions. * To refresh the world... * To inspire moments of optimism and happiness... * To create value and make a difference. Goal Coca-Cola has zeroed in on the fact that storytelling has evolved from one-way to dynamic conversations in today’s hyper-connected world. With this in mind, it plans to create stories that add value and significance to people’s lives, and that get expressed through every possible connection. 2. Arenas Products Coca-Cola is a carbonated...
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...Table of Contents I- Introduction 2 II- Analysis 3 1- External Analysis 3 i) Porter’s 5 Force 3 ii) Key Success Factors 4 2- Internal Analysis 5 i) Value Chain Analysis 5 ii) Financial Analysis 6 III- Decision Opinions with Evaluation 6 IV- Recommendation and Implementation 8 1- Short Term Activities 8 2- Long Term Activities 9 V- Exhibits 10 i) Exhibit A: Financial Ratio Analysis and Calculations 10 ii) Exhibit B: Decision Matrix 11 Introduction First time winner of the “Product of the Year” category, Ice-Fili, is the top ice cream producer in Russia. Recently, the company is experiencing tough competition by Nestlé and regional ice cream producers. Ice-Fili’s current problem is its loss in market share due to their poor quality decision-making after Russia became an open-market in 1992. Nestlé took advantage of Ice-Fili’s low reaction adjustment and is taking over their market. What should be Ice-Fili’s next move? To offer proper advice, an external and internal analysis should be conducted to analyze their environment. Analysis EXTERNAL ANALYSIS An external analysis allows us to understand the ice cream industry. It includes analyzing Porter’s 5 forces and Ice-Fili’s key success factors in comparison to its competitors. Porter’s 5 Forces 1- Threat of New Entrants High The ice cream market is attractive due to its 15% to 20% profit margin and low initial capital investment. Ingredients are acquired at low cost because...
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