A focus on Russia in terms of managerial practices versus France

Résumé du document

Russia represents a good economic potential, investors and firms that are more and more attracted by the country as well as hydrocarbons, which are the first factor of export of the country. For both exports and imports; economic, social political and business relationships between France and Russia are tightening.

This study will show us why is it necessary to study national culture a managerial practices in Russia as other countries would be more likely to negotiate and build relationships with this country. (Part 1)

In order to build a good relationship, we will study the differences between a French management and a Russian management. What are the differences in behavior? What are the rules to respect when you want to work a Russian firm? Are there rules to respect? (Part 2) Then, we will give examples and views of European models. (Part 3) Eventually, we will see how a Russian firm behaves by the example of Gazprom. (Part 4)

Extraits

[...] In a first part, we will thus focus on the economic factors that induce the tightening of relations with this country. Despite a violent financial crisis in 1998, Russia has been coming back since 2000. With a growth rate of 64% in 2005 and cleaned up accounts, more and more foreign investors are attracted, fact which promises a growing importance of Russia in the business world. Seven years after the financial crisis that had left the country in a black hole, Russia is coming back in the scene. [...]

[...] The boost of the hydrocarbons exports have made the rouble assessed though slowing down the European investments. Change rate of Euros in Roubles France and Russia : a second hand partner. France is the 9th Russian partner. However, French exports have increased by in 2004 and by in 2005 and reached a 3,36 billion euros volume and a market share last year. The commercial deficit of France has raised a gap of 12% ( billion euros) mainly due to raw material's price surge. [...]

[...] Once again, image and secrecy, typical characteristics of Russian businesses and behaviors, have been illustrated by this company. Conclusion The economy of Russia becomes better and better. In consequence, foreigners are attracted with this country to make business. To know the managerial practices in Russia is also very important. For instance, building a strong network, to have good relations network, to be receptive to conviviality or to be patient are the key to succeed in business in Russia. Gazprom, the biggest company shows us how a big firm can be directed. [...]

[...] All the more, in Russia, there is a notion of service, extended to the business world, which we do not have in Europe. Consequently, building a strong network is really possible, since you show honesty and seriousness. Let us consider Geert Hofstede's scheme to classify the different aspects of Russian business culture: - High power distance: hierarchy is very strong in Russia and obviously there still exist big inequalities of power and wealth, inside the society and inside the firm. [...]

[...] The beginnings of the company can be traced back to 1989, when Mikhail Gorbachev created Gazprom as the entity responsible for gas production, distribution, and sales. After the break up of the Soviet Union, in 1992, Gazprom began to be privatized. In the late 90s the company underwent a period of scandals, during which it owed taxes to the government and had allegedly some illegal transactions going on. Once Putin came into presidency, he began to reform the management of the company. [...]