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Russian Business Practices

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I made this in high school, probably 2008-ish.

I made this in high school, probably 2008-ish.

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  • very helpful thank you. Btw, how's Russian perception towards Western business partner and Asian business partner in general? Would like to know ;)
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Russian Business Practices Russian Business Practices Presentation Transcript

  • Russian Business Practices By: Cameron Schweikert
  • Flag of Russia
  • Map of Russia
  • Demographics of Russia
    • Population- 141,377,752
    • Birth Rate- 10.92 births/1,000 population (2007 est.)
    • Median Ages for the population are:
      • total: 38.2 years
      • male: 35 years
      • female: 41.3 years (2007 est.)
  • Educational Levels of Russia
    • Literacy Rate- Total Pop. is 99.4%
    • Males is 99.7% Females is 99.2%
    • http://en.wikipedia.org/wiki/List_of_universities_in_Russia
    • school accreditation is directly overseen by the Education Ministry of Russia
  •  
  • Total Literacy Rates
    • Russia- 99.4%
    • Germany- 99%
    • Australia- 99%
    • China- 90.9%
    • Mexico- 91%
    • United States- 99%
  • Business Traditions in Russia
    • Business is conducted in quite a professional manner
    • Polite to be on time, five minutes late is okay
    • If coming for a meeting or conference considered polite for company to give you guide to show you the city
  • Doing Business in Russia (chap005)
      • Build personal relationships with partners. When there are contract disputes, there is little protection for the aggrieved party because of the time and effort needed to legally enforce the agreement.
      • Use local consultants. Because the rules of business have changed so much in recent years, it pays to have a local Russian consultant working with the company.
      • Ethical behavior in the United States is not always the same as in Russia. For example, it is traditional in Russia to give gifts to those with whom one wants to transact business.
      • Be patient. In order to get something done in Russia, it often takes months of waiting.
  • Doing Business in Russia (chap005)
      • Russians like exclusive arrangements and often negotiate with just one firm at a time.
      • Russians like to do business face-to-face. So when they receive letters or faxes, they often put them on their desk but do not respond to them.
      • Keep financial information personal. Russians wait until they know their partner well enough to feel comfortable before sharing financial data.
      • Research the company. In dealing effectively with Russian partners, it is helpful to get information about this company, its management hierarchy, and how it typically does business.
  • Doing Business in Russia (chap005)
      • Stress mutual gain. The Western idea of “win–win” in negotiations also works well in Russia.
      • Clarify terminology. The language of business is just getting transplanted in Russia so double-check and make sure that the other party clearly understands the proposal, knows what is expected and when, and is agreeable to the deal.
      • Be careful about compromising or settling things too quickly because this is often seen as a sign of weakness.
      • Russians view contracts as binding only if they continue to be mutually beneficial, so continually show them the benefits associated with sticking to the deal.
  • U.S. Commercial Service Russia (not mine) Oil and Gas Economy:
    • Moscow awash with money; record oil/gas prices driving economy. Trickling down to regions.
    • Russia will continue to be major player in the global energy market:
        • World’s largest natural gas reserves.
        • Neck-in-neck with Saudi Arabia for oil production; 2 nd biggest oil exporter.
        • World’s 3 rd largest energy consumer.
  • Russian Laws
    • Fined $5- 30 U.S Dollars for not having visa
    • Stealing- $600 fine up to two years in prison
    • Drug Possession is illegal- punishment varies on amount
    • No relieving yourself on the street $3 fine
  • Russian Currency
    • The official Russian currency is Rubles ( rub`li ). One rouble ( o`din rubl ') consists of 100 kopeek (1 kopeika - od`na (one) ko`peika ). The exchange rate is 28 roubles to 1 US dollar, 35 Rubles to 1 Euro, and about 50 Rubles to 1 pound sterling.
  • Money Conversion Sites
    • http://www.xe.net/pca/ (pop-up converter)
    • http://www.xe.com/ucc/ (online version)
    • http://www.oanda.com
  • Appearance Expectations in Russia
    • wear suits dark ,well tailored good dress shoes.
    • don’t take off their jackets in negotiations.
    • no hands in pockets
    • Women dress rather conservatively, wear skirts
    • Women cover heads entering a Russian Orthodox Church
    • dinner in citizen’s home casual dress is appropriate
  • Business Expectations Behavior
    • Patience is key
    • Don’t expect late Russian to apologize it is probably a test of your patience
    • Some Russians will refuse to back down
    • Final offers not end of negotiations
    • Can usually get better deal if you hold out
    • YOU should always be on time
  • Greeting Expectations in Russia
    • Russians say “privet” in a informal situation then they kiss on the cheek
    • Russians say “zdravstvuyte” in formal situations then they shake hands
  • Conditions Affecting U.S. Exports to Russia
    • What Stimulates U.S. Exports to Russia
    • New unique technologies unknown in Russia
    • Similarity of climate and geographical conditions in Russia and the U.S.
    • High quality and reliability of products and good reputation of U.S. manufacturers
    • Lower price due to weak dollar
    • New projects in Russia with U.S. companies’ participation
    • What Hinders U.S. Exports to Russia
    • U.S. companies not well represented
    • Marketing and after-sale service required
    • U.S. focus on China, Afghanistan and Iraq distracts resources from other regions
    • Different metrics can be an issue
    • U.S. visa is difficult to obtain, expensive travel
    • Western Europe is close
    • Historical ties with European firms (plans use their technology/equipment)
    • Active European investment and government support (Germany largest investor)
    • Low purchasing power in Russia (Chinese/Indian, Korean manufacturers gain advantage)
    www.bisnis.doc.gov  www.bisnis-eurasia.org BISNIS Presentation
  • Russian Money ◄ Front 500 Rubles Back►
  • Russian Money
  • Religion of Russia
    • Russian Orthodox Church professed by about 75% of people there
  • Main Language
    • Russian but there is about 100 smaller minority languages spoken in different regions
  • Interesting Info
    • The legal age to purchase alcohol in Russia is 18
    • Lunch is the heaviest meal
    • That is salad, soup, second dish, compote, tea or coffee.
    • Eye Contact is important
    • Respect Authority
    • Dancing is O.K.
  • Source Page 1
    • http://en.wikipedia.org/wiki/List_of_universities_in_Russia
    • https://www.cia.gov/library/publications/the-world-factbook/geos/rs.html
    • http://en.wikipedia.org/wiki/Education_in_Russia
    • http://www.waytorussia.net/Practicalities/Traditions.html
    • http://www.cyborlink.com/besite/russia.htm
    • http://www.swyaa.org/Handbook/Russia.htm
  • Source Page 2 (PowerPoint's)
    • russian.arizona.edu/courses/business04/yegorov.ppt
    • www.cob.sjsu.edu/mckenna_m/chap005.ppt
    • www.buyusa.gov/greatlakes/presentationrussia.ppt
    • www.jyu.fi/economics/opiskelu/kurssimat/YJOCL78Inr
  • Source Page 3
    • http://atheism.about.com/library/world/KZ/bl_RussiaIndex.htm
    • http://www.ask.com
    • http://www.google.com