Country risk analysis: Russia

Résumé du document

Russia is a nation which feels bitter because she wants to display all her potency, while she is perceived as poor, disruptive and corrupt at all levels. It is true that the contrasts are impressive. On the one hand, mass media shows us firms and of villages which seem abandoned and on the other hand, the new rich who spend thousand euros in vacationing. That's why there is a true incomprehension of the Russian model.

In marketing, we have to adapt our product, marketing mix, behavior or methods of negotiation to the country where we want to do business. In Russia it's not so easy because of this incomprehension. This country has a rich historical past, which has strong consequences on the way of life, negotiation techniques, the ethics, behaviour and so on... When you say to somebody, that you engage in business with Russians, it will evoke in your interlocutor both admiration and commiseration. Russia is perceived as a mysterious and disturbing country for the French and Europeans.

Extraits

[...] Formulas such as are are unnecessary. The best strategy is to appear very firm and dignified, while maintaining an air of warmth and approachability. When one of the parties to the meeting is a woman, a short handshake is sufficient. When introduced, we have to use title plus last name, not first name. Later we might move to using the first name plus patronymic, wait until our conterpart suggests it. Russian dress is very simple, a dark suit for men with a tie and white shirt, and the same for women, that is, a dark suit with a light colored shirt. [...]

[...] We can counter these tactics by staying calm. More often, our counterparts will simply try to out-wait us, exploiting our presumed impatience. We have to counter this with patience, patience and more patience. Paraverbal and nonverbal behavior Communication Of course, Russian is the official language. Many Russians have a good command of English, as it is often taught beginning in the third grade. Speaking or laughing loudly in public is considered rude, as Russians are generally reserved and somber. Russians are highly literate, and have almost a 100% literacy rate. [...]

[...] That's why there is a true incomprehension of the Russian model. In marketing, we have to adapt our product, marketing mix, behaviour or methods of negotiation to the country where we want to do business. In Russia it's not so easy because of this incomprehension. This country has a heavy historical past, which has strong consequences on the way of life, negotiation's techniques, the ethic, behaviour and so on . When you say to somebody, that you make business with Russians, it will create to your interlocutor some admiration and commiseration. [...]

[...] - When we sign a contract with Russian, this one has to be written. We have to be prepared to renegotiate some points with Russian, because, they often want to change some points in contracts. - A clause of arbitration (in a third country) has to be included in a contract signed with Russian, for resolving disputes. Most of the time, Sweden is chosen to be third country. Conclusion Because of its mitigated past, and in particular on account of its communist past, people have a lot of prejudices. [...]

[...] The best way to communicate with Russians is Faxes and emails It is customary before making a trip to Russia to inform the prospective company of your intended business proposals and objectives. II/ Business in Russia Business meetings and protocol in Russia We always have to be punctual when doing business in Russia. However, we can't take offense if our Russian counterpart is not. It is not unknown for Russian business people to turn up hours late. A good indication of how serious a meeting is taken is how punctual they are. [...]