2. Disposition
• Sales Staff Structure
• The Russian Economy
• SWOT
• The Weighted Confrontation Matrix
• The 4 P’s
3. Sale staff structure
Power Strategy – Management has decided
(Remember experts)
Keep macro pyramid – strategic level in head office
Functional divided organization
• Sales staff handles sales
• In support of the company
Firm salary with commission
4. The Russian Economy
Russian Ruble in 2008?
• Financial crisis
• 600 billion from the Russian Central Bank
• Downward effect on the ruble
Russian stock market 2011?
• Worlds largest supplier of oil (up)
• Large political riot (down)
Developing their economy, looking to the west
5. SWOT
Strengths Weaknesses
Environmental company Supply chain needs changes
Well designed quality products Large costs
Strong international brand Decrease in profit
Focuses on close relations High selling prices
Acceptable equity
Product development
Broad promotion
Has tested the Russian market
Opportunities Threats
Design awards Still politically insecure country
Positive development in Russia VOLA rather unknown in Russia
Good educated sales staff Uncertain economy
Possibility of exchange earnings Experienced negotiators
Interest in VOLA Multiple competitors
Growth in the construction business Uncertain level of inflation
Low first year income
Excel
6. Weighted Confrontation Matrix
Defensive ratio 25,97 % 15.0%
offensive
10.0% 12.2% 13.0%
ratio
9.4%
5.0% 6.9% 6.8%
0.0% 0.0% 0.0% 0.0% 0.0%
0.0% 1.3%
-0.9% -2.3% -3.6% -1.3% -0.8% 0.0% 0.0% 0.0% 0.0%
-5.0%
Offensive ratio 53,82 % -10.0%
Design awards
exchange earnings
construction business
Interest in VOLA
Good educated sales
Positive development
Possibility of
Growth in the
-15.0%
• Interest for VOLA
in Russia
saff
• Construction in Russia
• Russian development
7. Weighted Confrontation Matrix
Vulnerability ratio 12,56 % 15.0%
10.0%
defensive ratio
9.9%
• Multiple competitors 5.0%
0.0% 2.8%
6.8%
3.6% 3.9%
0.0% 0.0% 0.0% 0.0%
1.3%
• Political unstable country
-3.1% -1.1% -2.3% -1.6% -3.9% -1.3% 0.0% 0.0% 0.0% 0.0%
-5.0%
-10.0%
insecure country
• Uncertain economy
Uncertain level of
Experienced
Low first year
unknown in Russia
competitors
Uncertain economy
negotiators
Still politically
Multiple
-15.0%
VOLA rather
income
inflation
Confrontation ratio 31,38 %
8. The 4 P’s
Product
• Product development
• Scandinavian
• More gold and glitter
• USP
Price
• Same price in Europe
• Money for quality
• Russian economy
9. The 4 P’s
Place
• Not all of Russia
• Supply chain
• Sales office
Promotion
• USP & ESP
• PR
• Showrooms
• Direct selling
• VOLA Academy
