• Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
940
On Slideshare
0
From Embeds
0
Number of Embeds
1

Actions

Shares
Downloads
0
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. FROM RUSSIA WITH LOVE Business Environment research Andrew Finlay samson 19043773 http://www.youtube.com/watch?v=IdQ0deyebeI&feature=fvw
  • 2. Russia Moscow Yakutsk Vladivostok http://www.360cities.net/area/russia http://www.360cities.net/area/russia
  • 3.  
  • 4.  
  • 5.  
  • 6. Environmental Scan   2006 2007 2008 2009 2010 Tourism Receipts (US$ million) 7,628 9,607 11,944 13,501 15,007
  • 7. TOURISM & HOSPITALITY MARKET CHARACTERISTICS
    • In terms of seasonality the main vacation periods for Russians are over Christmas and the New Year.
    • As to tour operators and travel agencies, during Soviet era there were only 3 travel agencies in Russia all of which were stated‐owned. Today there are over 12,000 travel agencies and 5,000 tour operators, all of which are privately owned
    • The main sources of information for Russians when planning a trip are the Internet, word of mouth and travel agents
  • 8. Hotel industry Today – A Brief Overview
  • 9. HUMAN RESOURCES
    • It is often agreed that ,given the importance of the customer/employee interaction to the service encounter. Human resources management has a key role to play in securing high levels of service quality – Haynes and Fryer (2000).
    • Having Interviewed Russian and Foreign managers in Russian Joint venture firms , the study found out “Managerial knowledge and practices are contextually embedded and reflect attitudes, values and norms of the society where they have been developed and might therefore be limited in their applicability elsewhere.
  • 10. CURRENT ISSUES FACED BY HOTEL INDUSTRY IN RUSSIA
  • 11. HUMAN RESOURCES- SPECIFIC ISSUE FACED BY RUSSIA
    • "We may have a good hotels... but at times we are lacking the one thing that is most important - hospitality,”. "We need to smile more, lay beds and decorate rooms properly. Attention to detail is what we need." Alexander Radkov, deputy head of the Russian Federal Agency  @ WTM London 2010.
    • Thomas Noll, General Manager of Grand Hotel Europe in St.-Petersburg : “It has become a challenge to attract and retain non-management employees, due to the booming economy in most industries. Many new investments come into the city; all of them need employees and where better to find educated staff with foreign language knowledge than in a hotel?” 
    • “  Almost nobody thinks of hospitality as a career, most people are just in it for a short-term, to earn a living.”  Maria Bek, HR Director at Park Hyatt Ararat in Moscow
    • With Huge development of hotels in Moscow and other major cities it has become a huge challenge to source trained staff and even untrained staff to do the basic work in hotels - Kamel Chaieb,General Manager of Novotel Moscow City Centre
    • Russian working force have serious motivational issues and language barrier ,as they do not even speak proper Russian,since they come from the closest provinces such as Ukraine, Belarus, Moldova, Tajikistan, Uzbekistan, Kazakhstan
    • Immigration Policy of Russia is not Helping either,where it wants to restrict foreign work force
    • At the same time , international hotels, which do not want to go the typical route of many Russian enterprises who hire immigrant workers “unofficially”, are struggling because of the bureaucratic difficulties of quickly obtaining work permits for their line employees. 
  • 12. HOW IS RUSSIA OVERCOMING THE SITUATION
    • Trying to Relax its Immigration policies and recruit skilled workforce with great perks and salaries from various countries
    • Opening various hospitality schools emulating the Swiss model where it is part studies and part industrial experience
    • Having tie up with Russian school of economics to create a module in hospitality and offer the students on the Job learning experience
  • 13. INTERNATIONAL HOTELS IN RUSSIA
    • RADISSON
    • ACCOR
    • STAROWOOD
    • MARRIOTT
    • HYATT
    • KEMPINSKI
    • SWISSOTELS
    • HOLIDAY INN
  • 14. MARKET ENTRY OF INTERNATIONAL HOTELS IN CONTEXT TO THE ISSUES THEY FACE
    • Russian legal entity  in the form of a Limited Liability Company ( LLC ), a public or a private Joint Stock Company ( JSC ), or a  Partnership,Private joint stock company (PJSC) ( JOINT VENTURE IN HOSPITALITY TERMS ).
    • JVs, in Russia must deal with a weak infrastructure, an unstable environment, constantly changing legislation, corruption, and bureaucracy. 
    • The Pioneer in International Hospitality into Russia was Radisson Hotel of the carlson group with Joint venture of Mosintour , Sochi Municipal Authority, Russian Joint Stock Company GAZPROM .
    • Whit Bread which owns Costa Coffee opened its 1,000th outlet in Moscow on March 2008 , its first in Russia under a joint venture with Rosinter Restaurants that aims to launch 200 Russian Costas over the next five years.
  • 15. Why is Joint Venture Desirable?
    • FOR INTERNATIONAL PARTNERS
    • Russian partners can provide country-specific knowledge and valuable help in navigating through Russian bureaucracy.
    • Joint ventures often receive lower prices for services than wholly-owned foreign firms.
    • The risk of starting to do business in Russia can be shared between two or more firms.
    • Russian partners can often provide access to prime real estate.
    • It has an inexpensive and highly educated work force; the average Russian, in fact, has more education than the average American.
    • FOR RUSSIAN PARTNERS
    • Obtain needed starting capital;
    • Learn Western management practices;
    • Develop leading-edge technology; and
    • Gain assistance in marketing products in the West.
            • Fey (1995)
  • 16. ISSUES THAT MAY ARISE AND HOW TO WIN OVER THE SAME
    • Backward Integration : Since Russia has poor Infrastructure,the companies might have to start their own supply chain for procurement etc E.G (Mc.Donalds started their own farm for meat)
    • Horizontal flow of Information : Traditionally Russians are strong in vertical information flow rather than horizontal ,departments might communicate only through managers which leads to issues .
    • Developing Trust : It is of high importance for foreign enterprises to develop trust with their partners in Russia for smooth operations of their business.
    • Decide to Reinvest or Repatriate Profits.
    • How to win ?
    • Developing Communication : Having proper and continuous communication
    • Having both foreign and Russian Work force
    • Initial Research before selecting a partner.
  • 17. Conclusion
    • West has always thought in all aspects including management ,their way to be the right way.But understanding of culture and acting accordingly will only help in the success of both the firms involved in the business.
  • 18. REFERENCES
    • Russia needs to learn to smile . (2010). [online] . Last accessed 13 November 2010 at : http://www.bsr-russia.com/en/horeca.html
    • Russia Statistics .(2010).[online].Last accessed 10 November 2010 at : http://www.euromonitor.com/factfile.aspx?country=RU
    • VELLER,Tatiana (2007). Russian Hotels - New Industry, Old Problems.[online]. Last accessed 13 November 2010 at : http://www.4hoteliers.com/4hots_fshw.php?mwi=2400
    • Russian Statistics ,CIA World fact book (2010) .[online] . Last accessed 13 November 2010 at : https://www.cia.gov/library/publications/the-world-factbook/rankorder/2147rank.html?countryName=Russia&countryCode=rs&regionCode=cas&rank=1#rs
    • VELLER,Tatiana ,(2009).Is Russia still the investment community’s sweet heart .[online]. Last accessed 10 November 2010 at : http://www.hvs.com/article/4047/is-russia-still-the-investment-communitys-sweetheart/
    • Russian Travel News (2010).[online], Last accessed 10 November 2010 at : http://travel.einnews.com/russia/
    • KUSULVAN,Salih( 2003) ,Managing Employee Attitudes and Behaviors in the Tourism and Hospitality,NewYork,Nova publishing
    • List of International hotel opearators in Russia ,(2010). [online]. Last accessed 10 November 2010 at : http://all-hotels.ru/chains/index.en.html
    • Carlson Joint venture (1991).[online]. Last accessed 10 November 2010 at : http://www.thefreelibrary.com/MOSINTOUR+AND+CARLSON+HOSPITALITY+GROUP+ANNOUNCE+JOINT+VENTURE%3B...-a012653240
  • 19. Cont……
    • FEY.F.Carl, (1995),Success Strategies for Russian –foreign joint ventures ,[online]. Last accessed 10 November 2010 at : http://findarticles.com/p/articles/mi_m1038/is_n6_v38/ai_17743180/pg_3/?tag=content;col1
    • Legal forms to open business in Russia (2010).[online] Last accessed 10 November 2010 at : http://www.vfbs.ru/startup/table2.htm#21
  • 20. QUESTIONS ?
    • THANK YOU