Part II Planning and Working

Today, business in Europe, Asia, USA and other countries is under the influence of THE culture in the particular area, sometimes even by UNDER two or more different cultures in the same region. When culture and business are able to create a unit, you can expect that demand for such goods or services will be significant.

However, due to the same reason, most of the companies should take responsibilities to satisfy humans’ cultural expectation in order to gain income. For example, if you are going to open a French restaurant in Berlin, you should present French national food, decorations and spirit. In this restaurant, as an owner, you are responsible to present France as A country and French culture as its background. Moreover, such small business is a good illustration of how foreign culture integrates to the foreign market. Most of the foreign companies which export or import goods or services globally, are mostly interested in operating of information which consist of: locally welcome brands and logos, cultural references and disadvantages (Influence of culture on the international business, 2013)

In addition to this, international business is to understand that culture produces different results in capital growth, number of potential employees, production facilities and productivity, etc. Such, planning is highly important for business in Russia and for Russian companies, which are going international. There are some problems, which can be faced: nonverbal communication, stereotypes, perceptions, ethnocentrism, language barriers, morality and information in management system. So, in order to avoid some of these issues, international corporations create sub-companies which are operating on the foreign market, by using local employees, headquarters and some of the suppliers. For example, the biggest Russian gas and oil company ‘GazProm’ created three companies in Ukraine ‘GazProm sbut Ukraine’, ‘GazTranzit’ and ‘YzNIIGazprom’. There of these companies have their own local headquarters, budget, marketing and logistics department, and are responsible for transporting gas and oil on the territory of Ukraine to the other countries of Western Europe(Gazprom 2008)

Thus, the company in order to avoid cultural issues, which can appeare in Ukraine, creates such strategy. However, Russia and Ukraine are countries with common history, and similar cultures. Nevertheless, ‘Gazprom’ chooses global-matrix model of business, where local representatives are mostly independent, and present to the main office and buyers. The same example as, Procter & Gamble use Global-matrix structure where they divided their company into to sector of Beauty & Grooming, which is divided into four segments Global Beauty, Global Baby, Global Fabric & Home Care and Global Health & Grooming. And what is interesting, that each one of them has power to maintain their own production line, manufacture and connections with suppliers and retailers. Due to this fact, the company can exchange manger to other sector for knowledge and experience flow inside the company (P&G, 2006).

Despite this, foreign companies, which are interested in operation in Russia, should realize that Russian Federation is a post-soviet country, which implemented and modified foreign corporate structures and strategies in order to implement them outside the Russian.Such, strategy of importing ideas, of newly capitalistic state create opportunities for Russian companies to be competitive on the foreign market. Russian national culture is unique and interesting to explore. Mediated so complex and controversial Russian mentality and cultural environment of the country, makes foreign companies reckon with its own characteristics, demands and challenges. But practice shows that the majority of international companies are taking into account only just a few features of the national characteristics(Influence of culture on national business, 2010)

Russian Federation has specific issues and feathers in corporate culture, which are reflation of the national culture and structure. Dominant amount of Russian businessmen appreciate punctuality, and all business meetings are starting on time. In compression to this, Western European countries can offer 15 minuets delay for the candidate. “Under Communism there were no incentives for bureaucrats to perform well or to even be pleasant toward clients; this meant that the usual answer to any question was "No." This practice is still found in Russian society today, but "No" is usually not the final word on an issue. One has to bargain and be persistent to get what he or she wants” (EDiplomat, Russia 2014) Such way of negation is commonly used in Russia, and is modified depending on the context or situation.

Another vector, which can (be faced) face during the planning or negotiating among Russian and foreign business partners, is the way of treating business cards. Russian business meetings offer a possibility for exchange of business cards among present people. The ceremony of presenting and exchange of business cards should be treated respectfully and carefully, were both sides should examine gifts. Moreover, Japanese culture which has dominant influence on the business sector, also can demonstrate such ceremony where receiver of business card should read the card first, and only than hide it.

Thirdly, Russian culture and history have strong ties between each other. Starting form the time of czars and till leaders of communist party, we can observe that the places at the table have their meaning. For example, czar, leader of communist party were seating on one side of the table, while guests were taking seats on the opposite side. The same cultural and historical tradition came to the business world of Russian Federation. Representatives of the Russian government or company always take seats in the middle of one side of the table, where hierarchy goes from the right hand of the leader. (EDiplomat, Russia 2014)

Most of the Russian companies follow and demanding the business structure, where all topics or tasks should be presented by a team of specialists in a short but informative way. Such corporate structure takes its origins from the social culture of Russia. A special group should present all government, school, university tasks or decisions, which have been created in advance. Some Russian companies still follow the business structure where individuals should work only in teams or groups for efficient productivity and informative answers.

As a consequence, Russian culture integrates to the business area and creates special types of negation on Russian market or with their companies globally. “Russians usually negotiate technical issues very competently, directly and clearly but, being newcomers to capitalism, often do not fully understand Western business practices and objectives. You may have to explain the reasoning behind some of your demands” (EDiplomat, Russia 2014) Moreover, there are some indicators of corporate culture such as fact that phone calls are mostly ineffective in important decision-making process. Next, is that Russian culture created strong issues, that Russian representatives are not likely to admit their mistakes.

Conclusion

These theories and statements have been reliable and stable for a long period of time. Most of time forces, which are able to change the culture, are global and unique. Due to this fact, most of the corporations and firms, which oriented internationally should adapt their corporate culture to the culture of the country market they are entering. So, of the companies may us the way of FDI into the already existing companies of the market in order not to create extra completion or modify their corporate culture. In most cases, company, which goes international should modify its strategy, planning and negation system in order to fit the future market. Some regions such as Asia and Latin America are stronger in their national culture and differ from the European and American model, so companies prefer only to display their manufactures or suppliers there. To sum up all my words, national culture is a part of corporate culture of the organization or company by Hofstede. In addition to this, employees whichWHO work in organization are part of their own culture and organization culture, so when the company changes the location – local culture influences corporate culture, with future influence on humans.

Reference

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4. GazProm, 2008, A company website [online] Availebel at: Gazprom.com [Accessed 1 May 2014]

5. Hofstede, Geert, Gert Jan Hofstede and Michael Minkov.Cultures and Organizations: Software of the Mind, 3rd ed. New York: McGraw-Hill. 2010

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Influence of culture on the international business, 2013 [online] Availeble at: http://www.jobinmoscow.ru/text.php?link=747 [Accessed 3 May 2014]

7. P&G, 2006. A Company structure. [online]

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9. Ustinow, P. 2010, Quotes About Culture [online]. Avalible at: http://www.goodreads.com/quotes/tag/culture [Accessed 1 May 2014]

Date: 2016-01-14; view: 816