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Business in Russia

Business in Russia. Lance Erickson Assistant Director Center for Slavic and East European Studies. Initial thoughts. What is the first thing that comes to mind when talking about Russia? What are your first impressions of business practices in Russia?.

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Business in Russia

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  1. Business in Russia Lance Erickson Assistant Director Center for Slavic and East European Studies

  2. Initial thoughts • What is the first thing that comes to mind when talking about Russia? • What are your first impressions of business practices in Russia?

  3. Center for Slavic and East European Studies • US Department of Education funded Title VI NRC • Provide support to all OSU students, faculty and programs • Support all Ohio universities, businesses, communities • FLAS • Outreach • Support

  4. Center for Slavic and East European Studies • Oxley Hall 303 • Career Services • Job search, internships in-country, recruiter visits • Conferences, discussion groups • Cultural events • Language maintenance and support • Language tables, video library, lectures

  5. Personal background • Russian and East European Institute, Indiana University (2005 - 2007) ~ top ranked program in US • BA, Political Science, Russian & East European Studies, University of Illinois • MA, Russian, East European and Eurasian Studies, University of Texas • Languages studied: Spanish, French, German, Portuguese, Italian, Russian, Swedish, Ukrainian, Lithuanian

  6. Overseas work experience • Sidvim and the Chicago Center (1997 – 1999, 2001 – 2005) • Lived in Moscow, Russia; Kyiv, Ukraine; and Vilnius, Lithuania • Traveled for business to… • Russia: St. Pete, Kaliningrad, Chelyabinsk, Nizhny Novgorod, Ekaterinburg, Irkutsk, Vladivostok • Ukraine: Lviv, Donetsk, Lugansk, Simferopol, Yalta • Lithuania: Kaunas, Panevesys, Utena, Klaipeda • Latvia: Riga • Estonia: Tallinn • Kazakhstan: Almaty, Astana, Karaganda • Austria, Belgium, France, Germany, and Sweden

  7. Role within the company • Manager of Faculty and Supplier Relations • Marketing Support Manager • Country Director – Ukraine • Regional Marketing Manager • Regional Marketing and Sales Manager • Director – Ukraine and Baltic offices

  8. Sidvim / Chicago Center • Private, Chicago-based • Origins: Siemens India, Universal Healthcare • Computers / Med Tech • Conferences • University of Chicago, Loyola University, Northwestern University, University of Illinois at Chicago

  9. Market entry • Dental market overview • Private vs. state-run • Cosmetic demand • Products available • Educational contacts • Training seminars • Conferences • Educational tours

  10. Initial business plan • Strategy • Courses • Treatment • Rented facilities • Pricing • Inventory • Staffing • Problems • Establishing market • Providing follow up • Staffing • Breaking old habits

  11. Clinical services • Higher profit margin • Client referrals • Time spent working vs. teaching • Bringing in product • Success rate of difficult cases • Need to establish clinic for continued growth

  12. Conferences • International • Need for new and expanded fields • Increase network of contacts • Promote opportunities to western vendors • More competition on the market • Pricing concerns

  13. Investment in clinic • Build state-of-the-art clinic • Combine with sales offices and training facility • Materials purchased in US and shipped • Key location • Set trend for private clinics in the market • Expenses and debt rose significantly • Ever increasing competition

  14. Crash... • Economy crashed in 1998 • Business struggles • Market empties • State of the economy • Bank defaults • Consumer market

  15. Survival and Expansion • Stayed in market • Explored opportunities in Ukraine • Moved into Ukraine, Baltics and Kazakhstan • Moscow served entire region • Strain on resources

  16. Conferences and Growth • Moscow • EAO • Las Vegas • Siberian Tour • Logistical nightmare • Kazakh Tour

  17. Headaches began… • Trouble in the office • Differing objectives • Staff purge • Client theft • Start of gray market • Renewed customer service • Client visits, visits, and more visits • New pricing structure

  18. Move to Ukraine / Lithuania • Russia stabilized • Young markets struggling • Key clients • Conference in Yalta • Baltic market and EU entry

  19. Struggles • Market competition • Pricing issues • Stock • Moscow always as priority • Expansion to India • Changing regulations • Move to Grushevskovo • Corporate espionage and crime • Orange Revolution

  20. Current situation • CCAD • Nobel Biocare Russia • Russia • Ukraine • Baltics • Kazakhstan • India • www.chicagocentre.com • www.nobelbiocare.com

  21. Difficult business environment • Office management • Corruption and Blanket laws • Customs • Computer software • Registration • Company • Employee • Shift away from democracy • History and insecurity • Romanovs – Soviets – Yeltsin – Putin – Medvedev - ? • Democracy vs. Kleptocracy • WTO

  22. Life as an Expat in Russia • Living conditions • Expenses • Travel • Time difference • Vacation time • Tight-knit community • Exciting political and business scenes

  23. Are business skills enough? • Importance of language skills • Communication is key • Personal relationships • Networking • Importance of cultural knowledge • Know your customers • Understand the market • History, politics, arts, literature… • Regions vs. Moscow • Why so much corruption? • Why so much red tape?

  24. What can I do to prepare? • EM course – amazing opportunity! • Work with Experts you have available at Fisher and OSU • Work closely with CIBER • Learn the language • Spend time in-country • Attend cultural events at OSU • Network with the local Russian community • Study the culture • Learn the language • Learn the language!

  25. Questions?Contact CSEES at any time!Lance Ericksonerickson.107@osu.eduPhotos from CSEES, CIBER, CCAD, Nobel Biocare, and MicrosoftMap from CIA

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