Ekaterina Buzulukova Objectives of the research

1. Ekaterina BuzulukovaObjectives of the research • To examine types of market entrance strategies • To show phases of relationship development process with new partners • To reveal crucial factors for relationship stability • To discover Russian market difficulties • To analyze the level of customers’ satisfaction after transaction

2. Research Results (1) to open independence Russian company which will buy products from Finnish associated company to organize subsidiary Market entrance strategies: Parent Finnish Company Finnish Company to buy functioning local production company Parent Finnish Company Russian Company Subsidiary Russian Company Russian Company Finnish (Russian) Company

3. Research Results (2) Phases of relationships development 1. Partner search 2. First meeting 3. Project draft 4. Price and details 5. Contract and future plan Mutual growth Growth of common operation Stabilization Decrease Separation

4. Phases additional information

5. Research Results (3) Stability drivers of the relationships Business relations turnover Interest in relationships Readiness to adapt Social bonds RelationshipsAtmosphere STABILITY Knowledge bonds Technical bonds Economic bonds Client firm turnover • Common factors: trust, honesty, willingness to conduct open dialog, readiness to adapt, great wish to work, activeness • Specific: professional knowledge level, continuously improvement process, personnel relationships, to be in schedule, give all needed information in time

6. Research Results (4) Managing personnel High Environment Uncertainty Russian market difficulties Russian Market Difficulties Construction norms, low regulations Accounting Partners Relations State institution Relations • Common: different construction norms, difficult and complicated process of project approval, difficulties in accurately planning costs and work time, long contract agreement, bureaucracy and bribes, often changes in legislation. • Specific: lowlaborproductivitylevel, personnelcontrolprocedures, hardfinancialreporting, manypaperworkforaccounting, generaldirectoradditionallowliabilities, additionalconstructionliability, difficultiesinlandlegalization, partnersdistrust, twistedlegislation, co-ordinationinutilityallocation, failuretocomplywithrules, tendency to lower prices from Russian partners, doublytenders, hardtosqueezeinexistingrelationshipsinconstruction, thefts.

7. Research Results (5) Analysis the level of customers’ satisfaction after transactionfor development long-term relationships • There are no any procedures to analyze customer’s satisfaction • Process of creating questionnaire or estimating the level of customer satisfactionis at the very beginning • Only two of investigated companies are trying to maintain relationships with former clients • Companies are ready to go to some concessions with clients, but not in price. • Principles of relationship marketing are used in subcontractors’ relationships with suppliers and are very weakly adjusted in strengthening and developing relationships with customers

8. Findings The only way to live in crises in Russia – to maintain and develop honesty reliable relationships with partners. If you want get quick and quality result you should agreed it features with general director Be aware of additional administrative and low general director responsibility includes criminal liability Peculiarities in Managing Russian personnel: strong control, clear rules for bonus system, because money is a main motivator, pushing strategy for personnel development. You need good informal relations with state institutions for approving project, land legislation, coordinating the allocation of utilities. Or your partner should has them. Partners distrust on the first steps – everything should be on the paper, and that leads to long time of contracts agreement Russian company will always try to lower prices Result of some tenders has known before the tender take place. It is needed guard on the building yard because of thefts Very hard to get into existing relationships in construction market Finnish companies believe to Russian partners, but Russian managers in Finnish companies are not. Recommendations is very important because new manager comes to company with his old partners, to be sure in results Need for systematic control on the Russian partner contract implementing. The best way to do it is to divide contract on small stages.

9. Conclusion and limitations We couldn’t find real finnish networks on the Russian market (assosiation Pietary Business club) the questions of creating, developing networks and their Russian peculiarities are excluded, also network advantageous No feedback from Customers We can’t measure customer satisfaction No real Russian construction market analyses