Doing Business in Russia Assignment Example | Topics and Well Written Essays - 2500 words

Doing Business in Russia - Assignment Example Not since the days of Peter the Great has Russia seen such limitless potential for businesses seeking to gain opportunities; however, this is not to say that entering Russian markets is an easy, or that success is a foregone conclusion. Being able to properly discuss doing business in Russia first requires an understanding of the Russian business environment, which is one that is highly unique given the massive political, social, and economic changes the nation has undergone as a result of the shift away from Communism. Especially in the cities of the nation, there has emerged a significant population of consumers who are eager to experience products from other parts of the world. This is made especially relevant due to the fact that the nation has likewise undergone an economic resurgence and a cultural renaissance. All of these factors have made Russia more attractive to potential investors who appear to be impressed by what is taking place within Russia itself. This is not to say, however, that carte blanche business involvement in Russia is a possibility for every company wishing to do so. Rather, there are important concepts for companies to understand before getting involved in Russia (Bergman, et al, nd).: Collectivism- Dating back to the days when Russian peasants gathered together for the purposes of farming and producing goods together, collectivism still exists in Russia to a large extent, creating a sort of group mindset for consumers, posing a particular challenge for businesses entering the Russian business sector. Egalitarianism- What is meant by egalitarianism in this context is yet another concept dating back to the communist days of Russia, when the removal of inequality was endorsed in favor of an equal distribution of all that society had to offer, which usually leads to traditional Russian business negotiations being considered as a group effort, with all sharing in the benefits of the particular business operations. Dusha- This is a somewhat mysterious force within Russian society, referring to the collective spirit and belief sets of the Russian people. However, for anyone doing business in Russia, a fundamental understanding of this concept is extremely critical. It must also be understood that, as a note of caution, there were previous attempts to open up Russian borders to outside business interests, which was essentially thwarted by the inability of the government under Mikhail Gorbachev to remedy issues of business productivity, product availability, personnel and marketing (Owen, 1995) although admittedly, these problems most likely occurred because this Russian business effort was an internal, homegrown effort which did not make a lot of sense given the inherent lack of business acumen of the level that a recently opened economy like that of Russia would demand. A Rising Opportunity: Russia's Oil Market When thinking of the most readily available and productive oil fields in the world, images of the riches and potential of the Middle East typically come to mind; however, what many fail to realize is the past of Russia's oil industry, as well as its fascinatingly lucrative potential for the future. Following suit of other Russian businesses over the years, the Russian oil industry has risen to impressive heights