A company's brand image and its strengths in the local market can be used to leverage its global strategy". When an organization like Volvo competes in the International market, it can use its power in the industry to its advantage because of its improved negotiating power among the suppliers, creditors, distributors and other stakeholder groups.
When a multinational company from UK enters the Russian market, the factors that have to be taken into account in the macro environment are discussed in this essay. PEST analysis which provides a comprehensive idea about the various environmental factors has to be used. Hence, this essay focuses on the different factors from the external environment that have to be evaluated in order to create a strategy for exploiting the Russian markets. Though the company is successful in the various countries, the factors that influence the business environment in specific to Russia have to be focused. Hence, this report is presented for the perusal of the Board of Directors.
1. Transition economy: Russia is changing dynamically in every aspect of operations. Because of the opening of the economy, there are a huge number of opportunities created. It can be noted that Russian economy is in a boom and the global recession has not had a very disturbing effect on the economic growth of the country.
Market implicatio ...Show more