StudentShare solutions
Triangle menu

Multinational company from UK enters the Russian market - Case Study Example

Nobody downloaded yet

Extract of sample
Multinational company from UK enters the Russian market

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
Market implication - When new sectors are opened up and there is a huge increase in the demand for heavy vehicles and construction vehicles. The basic factor for the business development which is the demand for products is created.
Strategic implication - Entering into the markets in Russia can benefit the stakeholders of the company.
2. Local government role - A reform introduced by the president of Russia stipulates that the regional heads are to be appointed based on the key success factors such as economic growth of the region, social stability and political loyalty. Hence, there is a competition among various regions to attract investment. The regions are creating Investment Promotional Agencies. Many Russian regions maintain websites in other languages and participate in international exhibitions to welcome investors.
Market implication - these moves by the government shows that the Russian government is committed to boost foreign investment.
Strategic implication - This will help in a more favorable climate and the business community can expect more reforms in the coming future which will be helpful in establishing business in the country.

3. Political stability - Russia is a former super power, trying very hard to maintain its global dominance. The economy is in the transition and there are a number of pitfalls in the administration. Foreign companies often complain that there are numerous administrative procedures and bureaucratic hurdles to start business, but the country has a stable political climate and the commitment to reform process has been confirmed strongly by the government measures.
Strategic implication: though there is a politically stable climate, it is necessary to note that because of the war climate with Georgia, foreign investors were concerned and the stock markets were affected. Hence, the company has to keep in mind the political factors that may lead to economic downturns as stated here.
4. Government procedures: Often it is annoying for the international investors about the need for ...Show more

Summary

For centuries, the business community has always been in the pursuit for new opportunities. In the coming years identifying new avenues for business will be a major factor in the survival and growth of an organization. When companies adopt a globalised strategy, it becomes very important to evaluate the external trends and events that influence the business environment…
Author : njohnson
Multinational company from UK enters the Russian market essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the case study on your topic
"Multinational company from UK enters the Russian market"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Nintendo: Reviving a Company, Transforming a Market
The company has tried to incorporate a few innovative and up graded technology in Wii so that it remains quite different from its competitors. Therefore, the success of the company is due to its strategies of designing innovative products with affordable prices.
2 pages (500 words) Case Study
Coca-Cola Company on the International Market
MNC, global, transnational, international, near-sourcing, and near-shoring are the different terminologies that are used to describe international business. The Coca-Cola Company is an example of companies that have a well-defined niche internationally. This essay will therefore analyse international business in relation to the Coca-Cola Company.
3 pages (750 words) Case Study
Enterprise Rent-A-Car A Market-Driven Company
Enterprise Rent-A-Car is a firm which started with the main aim of leasing cars to its potential customers. As it is the aim of any firm, the firm aspire to make benefits that enables it to remain relevant in the market. The case study given is more about situation analysis of the company, how it is striving to achieve its aim through its relationship to both the internal environment and external environment.
3 pages (750 words) Case Study
Evaluating UK Cigarette Market
There are three very large companies and several smaller Tobacco companies marketing cigarettes in the UK and a continuous research is essential for their marketing efforts.1 The process must follow a method but it has to be flexible enough to serve its purpose.
3 pages (750 words) Case Study
Nintendo Reviving a Company Transforming a Market
Nintendo considers hardcore gamers and teenage gamers. Nintendo spends a lot of time in hardcore gamers and earns plenty from the hardcore gamers. Nintendo focuses more on games that are enjoyable to play instead of
2 pages (500 words) Case Study
BP Russian Case Analysis
ivate investors have found it worth to invest in this market to take advantage of the growing demand of energy not only in Russia but also across the world. BP has formed a number of business alliance in a strategy aimed at increasing its investment potential and increase
6 pages (1500 words) Case Study
Multinational company
In order to understand theoretical importance of the problem, concept of cultural dimensions is used and Hofstede’s cultural dimension model is employed to compare cultural orientation of
12 pages (3000 words) Research Paper
Success of Russian Multinational Corporations
Most SOE had a network of subsidiaries in many parts of the Soviet Union referred to as union enterprises owing to the operation by the Soviet Ministry of Central Planning (Filippov, 6). Suppliers and customers were chosen by the government; therefore, MNCs located in Moscow easily exported to these Soviet Republics before the split.
1 pages (250 words) Essay
Multinational
This shows that he had a small perception of the Asians community comparing them to ants. When he enters the office, all the workers are
2 pages (500 words) Case Study
The growth of McDonald's company in the European market
he Strengths, Weaknesses, Opportunities, and Technological (SWOT) analyses, McDonald’s has focused on re-evaluation to tackle the PESTLE aspects that could be a hindrance if not properly addressed. Competition has been extensive with the company finding it difficult to attain
2 pages (500 words) Case Study
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Click to create a comment