Russian business culture

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It is my study about Russian Business Culture.common working practices in Russia,Making Appointment,Business Dress Code
Conversation, Structure and hierarchy in Russian business culture
Working relation Ship in Russia, Business Practices in Russia, gender Aspects, Meals and Business Etiquettes
Finally we’ll discuss what are Do’s and Don’ts in Russian business.

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  • At 17,075,400 square kilometres (6,592,800 sq mi), Russia is by far the largest country in the world , covering more than a ninth of the Earth 's land area. Russia is also the ninth most populous nation in the world with 142 million people.
  • Persistence and patience are essential. Once your appointment is scheduled, do everything you can to avoid cancellation. Don't schedule your trip to Russia near the end of July or during the month of August- this is the time of year many people take their vacations. The Russian day begins early, but it can be difficult to foresee when all other daily activities will begin and end. Schedules are constantly subject to change, often at the last minute. Allow plenty of time for each appointment. Business day is usually 9:00 am to 6:00 pm Monday through Friday and some Saturday mornings.
  • Old Russian proverb--“one meet you depending on how you're dressed and say good bye depending on how wise you seem to be” Russian businesspeople pay a lot of attention to how they are dressed. Russian people in general probably spend more money from their family budget on clothing then any other nation in the world.
  • Conversation Visitors should try to speak in a calm, moderate, tone of voice at all times. Your Russian colleagues will be delighted if you make the effort to speak even a few sentences of their language. Russians are sometimes very careful about what they say, speaking metaphorically, symbolically, and perhaps even cryptically. Bringing up the subject of Russian culture and history is appreciated. Compliments - with caution, they may cause a feeling of misplaced obligation. (admiring a decorative object, your hosts may insist that you take it).
  • Structure and hierarchy in Russian companies The hierarchical structure in Russian business practices means that the decision makers higher up have authority over their subordinates. However, the nature of the collective good often encourages a flexible and democratic work ethos. Showing respect for seniority and recognizing the hierarchical structure is vital for establishing and maintaining strong business relationships.
  • Personal and informal contact is a central part in doing business in Russia. Physical contact during business meetings ( a simple hand on the arm or even embracing) is a positive sign. The notion of social space is close in Russia. In situations of conflict - to avoid taking an official stance and remember that Russians are 'people orientated' and will respond to a more personal approach .
  • GIFTS Russians take pleasure in giving and receiving gifts . Russians spend a lot of money on gifts . Gifts for children are usually opened in private, gifts for adults are generally opened in the presence of others. Gifts are expected for social events, especially as “thank-yous” Bringing a bouquet of flowers for women.
  • Business practices in Russia Business cards are essential. If possible, ensure that one side is printed in Russian and one side in English. Presentations should be straightforward and comprehensible. Although many principal concerns are discussed in an informal environment final negotiations will be conducted in the office. Generally, when beginning a meeting, the head of the organization will open the discussion and introductions should then be made in order of importance.
  • Women usually do not hold high positions in the Russian Business culture. There are more women in business education then in business. Foreign businesswomen sometimes face adversity from the male-dominated Russian business culture.
  • MEALS AND BUSINESS ETIQUETTE The business breakfast is not a part of Russian business culture. Business dining is getting more and more popular -is generally taken as a time for “sealing” a deal. The center seats are reserved for the most senior officials. Begin eating only after somebody says a toast. Toasting is a very important part of dining. Russians use the continental style of holding utensils. If you're unsure of which utensil to use, start from the outside.
  • SOME GENERAL FEATURES The handshake is common. Eye contact is very important, must be maintained as long as the individual is addressing you. Smoking in public places is still a common occurrence, although some restrictions are slowly imposed. Wearing your coat and/or winter boots in theatres, office buildings, universities or similar public spaces is considered unacceptable.
  • The first meeting is usually just a formality-a time to assess the credibility of you and your company. Russians can sometimes place a great deal of confidence in your professional competence and experience; very high expectations and demands. Russian business people are open-minded to new ideas, especially from western business culture Russian negotiators could make minor concessions and ask for major ones in return
  • Russian business culture

    1. 1. RUSSIAN BUSINESS CULTURE
    2. 2. <ul><li>Area total: 17,075,200 sq km, 1.8 times the size of US </li></ul><ul><li>Population: 141,702,094 (July 2008 est.) Ethnic Groups: Russian 81.5%, Tatar 3.8%, Ukrainian 2%, others 12.7%. </li></ul><ul><li>Government type: federation </li></ul><ul><li>GDP: purchasing power parity - $2.088 trillion (2007 est.) </li></ul><ul><li>GDP composition: agriculture: 7%; industry: 37%; services: 56% (2007 est.) </li></ul><ul><li>GDP growth rate: 8.1% (2007) </li></ul><ul><li>GDP - per capita (PPP): $14,700 (2007 est.) US – approx. $45,000 </li></ul><ul><li>Russian rubles per US dollar – 23.65 (2008, june), 25.659 (2007), 28.284 (2005), 30.692 (2003) </li></ul><ul><li>Energy Superpower </li></ul>Navigating Russian Business Culture
    3. 3. Navigating Russian Business Culture
    4. 4. Navigating Russian Business Culture
    5. 5. <ul><li>Before 1991 Russia was a communist centrally planned economy </li></ul><ul><li>In December 1991, the Soviet Union ceased to exist, and the Russian Federation was born, communism “abolished” </li></ul><ul><li>1992- 1999: radical market reform under Boris Yeltsin, state assets privatized, foreign trade opened up, economy tanked </li></ul><ul><li>2000-2008: oil boom and ruble devaluation of 1998 fuel economic recovery; President Vladimir Putin, 55, leads “stabilization” effort, renationalizes some companies, takes away some freedoms </li></ul><ul><li>March 2008 – now: Putin’s protégé Dmitri Medvedev, 42, is elected president, Putin becomes prime minister </li></ul>Navigating Russian Business Culture
    6. 6. Navigating Russian Business Culture
    7. 7. Navigating Russian Business Culture
    8. 8. <ul><li>Moscow – financial capital </li></ul><ul><li>St. Petersburg – transportation and industrial hub </li></ul><ul><li>Sochi – 2012 Olympics, $15-20B of federal investment </li></ul><ul><li>Western Siberia – oil, gas, timber </li></ul><ul><li>Southern Siberia – metals, timber, construction, infrastructure </li></ul><ul><li>Far East – timber, oil, pipelines, fishing – Japan, China around the corner </li></ul>Navigating Russian Business Culture
    9. 9. <ul><li>With strong ruble, foreign exchange reserves of $500 billion (US less than $100B) and National Reserve Fund of $125B Russia feels much more confident on the global economic arena. In his recent speech President Medvedev said that the United States has overestimated its ability to regulate the world economy </li></ul><ul><li>Russia, which is becoming a world center of economic influence, is ready to correct the situation. For now, the idea will be implemented as a “world financial center” in Moscow, and Russia’s specific proposals for the world will be delivered by the president at the G8 summit in Japan. </li></ul>
    10. 10. Collectivism
    11. 12. Dusha (soul)
    12. 15. Paperwork and putting pen to paper
    13. 21. First Name or Title? <ul><li>Very intimate friends or relations - refer to one another by the first name. </li></ul><ul><li>Ensure that you learn the titles of everyone you plan to encounter </li></ul><ul><li>Russians have three names: the first name is a given name, the last name is the father's family name, the middle name is a version of the father's first name. </li></ul>
    14. 30. <ul><li>DO shake hands firmly when greeting and leaving your partners and make direct eye contact. </li></ul><ul><li>DO partake in small talk that involves talk of family and personal matters, before dealing with business. </li></ul><ul><li>DO make a gift that symbolizes the stature of your company, preferably an item characteristic of your local area or one that displays the company logo. </li></ul><ul><li>Knock before entering an office </li></ul><ul><li>Close the door behind you, when leaving an office </li></ul><ul><li>Supply beverages and snacks during business meetings </li></ul><ul><li>Go out and have a drink with your counterparts, it is a good way to break the ice. </li></ul><ul><li>Bring small gifts for the children of a home you visit </li></ul>
    15. 31. <ul><li>DON'T be afraid to show some emotion, the Russians won't! </li></ul><ul><li>DON'T as the Russian proverb states 'hurry to reply', but 'hurry to listen'. </li></ul><ul><li>DON'T praise or reward anyone in public as it may be viewed with suspicion or cause envy and jealousy. Remember the collective rules over the individual. </li></ul><ul><li>Wear lavish clothing or jewelry. </li></ul><ul><li>Use a restaurant as a place for doing business--it's for celebration </li></ul>
    16. 32. <ul><li>Fierce competition to gain control over rich resources </li></ul><ul><li>Selection of the Russian partner (especially in the region) </li></ul><ul><li>Normally long-term projects worthy of development </li></ul><ul><li>Building trust with Russian staff is critical </li></ul><ul><li>Special marketing strategy </li></ul>
    17. 33. <ul><li>It is considered good luck to shake hands over the threshold of the doorstep. </li></ul><ul><li>When taking flowers as a gift you must only take an odd number. </li></ul><ul><li>If you leave something behind in Russia it means you're coming back. </li></ul><ul><li>In business negotiations Russians view compromise as a sign of weakness. </li></ul><ul><li>In Russia, the 'OK' symbol with the thumb and forefinger touching in a circle means 'everything is fine'. </li></ul>
    18. 34. <ul><li>False. It is considered bad luck to shake hands over a threshold and should be done either inside or outside. </li></ul><ul><li>True. Even numbers of flowers are only given at funerals and are a sign of bad luck. </li></ul><ul><li>True. A Russian superstition that is still present today. </li></ul><ul><li>True. </li></ul><ul><li>False. The Western sign for 'OK' is considered rude in Russia. </li></ul>

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