National Research University – Higher school of economics
Russian Business Context for Master Program 38.04.02 “Management”
Правительство Российской Федерации
Нижегородский филиал
Федерального государственного автономного образовательного
учреждения высшего профессионального образования
"Национальный исследовательский университет
"Высшая школа экономики"
Факультет менеджмента
Программа дисциплины
Особенности бизнеса в России
для направления 38.04.02 «Менеджмент», для магистерской программы
«Менеджмент» специализация «Global Business»
подготовки магистра
Автор программы:
Сахаров Александр Сергеевич, MBA, преподаватель, E-mail: sakharov.a@gmail.com
Одобрена на заседании кафедры общего и стратегического менеджмента «___»_______ 2014 г.
Зав. кафедрой А.Г. Городнов
Рекомендована секцией УМС «Менеджмент» «___»____________ 2014 г.
Председатель Ю.В.Кузнецова
Утверждена УМС НИУ ВШЭ – Нижний Новгород «___»_____________2014 г.
Председатель В.М. Бухаров
Нижний Новгород, 2014
Настоящая программа не может быть использована другими подразделениями университета и другими вузами без разрешения кафедры-разработчика программы.
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National Research University – Higher school of economics
Russian Business Context for Master Program 38.04.02 “Management”
Master program in Management
Fall semester 2014/15
Alexander Sakharov, MBA, teacher
Contact details:
Email: asakharov@hse.ru
Sakharov.a@gmail.com
Phone: +7 920 022 2233
Course information: 144 hours
Course assignments: essay
Midterm test
Final test
1. Course description
The course goal is to study main issues of doing business in Russia and to make students understand Russian business reality not only with theoretical, but also with practical knowledge. The course contains of the topics covering cultural, economical and political issues in Russia.
Russia is one of the biggest country in the world. It covers more than one eightth of
the inhabited land area. The GDP of the country is 2308,19 billions US dollars and is
still growing quite fast. Business is a special part of Russian economy. It is not the same
as in the west world. It has its own peculiarities which are important to be learnt before
starting doing business in Russia.
Basically the course consists of two parts: external analysis of Russian business context and internal analysis of Russian companies.
Doing business in Russia or with Russians can be quite tough if the one doesn't know
special rules and features. The course will not only provide students rules of thumb for
doing business in Russia, but also will try to get them into Russian business reality,
providing the tours in large foreign companies (to understand how to do business with
Russians) and local organizations (to understand how to do business in Russia). It is especially very important now – in the time of globalization and incredible growth of
Russian economy.
2. Sphere of application and normative references
The course program “Russian Business Context” establishes minimum requirements
for students’ competencies and determines the content and styles of training sessions.
It is intended for students accomplishing Master Program 38.04.02 “Management”
and majoring in “Global Business”.
This program is developed in accordance with:
NRU - HSE educational standards;
National Research University – Higher school of economics
Russian Business Context for Master Program 38.04.02 “Management”
Educational program and curriculum for Master's Degree 38.04.02 “Management”,
“Global Business” major
3. Course goals
The main aim of the course is the following:
 Students learn about peculiarities of Russian business as well as doing business in Russia and with Russian.
 Students learn how to understand Russian business reality with help of external factors such as economical and political issues.
 Students learn Russian cultural issues, which are quite important to achieve
the understanding of negotiations in Russia.
 Students learn how Russian companies work
After completing the course all the student should achieve the following goals:
 Cultural understanding of business aspects in Russia
 Understanding of negotiations, relations and competition in Russian business
 Acquisition of the necessary knowledge how to work with people from Russia, especially what motivates them and how to communicate.
 Practical understanding of Russian companies.
4. Student learning outcomes
As a result, students will acquire the following competencies:
- Full understanding of business organizing and business behaviour in Russia
- Main cross-cultural indicators understanding and ability to work in intercultural atmosphere
- Learn how to build a motivation system in Russian based company.
5. Course schedule.
№
Lectures
Topic
Hours
Seminars
Home work
Russia at a glance. An overview of the country.
1
An overview of the country. Brief history
of Russian business and entrepreneurship.
Political Russia. How politics influence
3
2
2
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National Research University – Higher school of economics
Russian Business Context for Master Program 38.04.02 “Management”
business.
Russian economy at a glance.
Forming a legal entity in Russia.
Types of entities. Customs regulations and
taxes in Russia.
2
3
2
2
2
2
16
16
Management models in Russia.
4
Cultural differences. Hofstede dimensions theory.
2
4
16
5
Communications and negotiations in Russia.
4
4
18
6
Leadership and motivation system in Russian companies. Corporate culture. Difference and
similarities between Russian corporate culture and West one.
2
2
16
7
Foreign entities adaptation in Russian market.
2
2
16
16
14
114
6. Assessment scheme
Type of
Form of asassessment sessment
Current
Essay - Individual project
Final
Exam
1
*
1year
2
3
Description
4
In the essay student should show his
understanding of the Russian business
culture and its relationship with foreign cultures. Essay will be based on
a case analysis.
Test
*
7. Grading procedure
The course consist of several assignments. They are very important for the final
grade. But please, keep in mind that the attendance and participation also play the
role.
Students are expected to attend all scheduled classes, examinations, class
presentations, simulations, exercises, field research visits, discussion groups, plant
visits, lectures, and special programs. Absences will be excused only in cases when a
student misses a class because of serious illness, serious illness of an immediate fam4
National Research University – Higher school of economics
Russian Business Context for Master Program 38.04.02 “Management”
ily member, or a death in the immediate family. Decisions on whether an absence
qualifies as an excused absence will be made by the campus dean. To be excused for
an absence, a student must submit a request to the dean's office along with any required documentation. If a campus dean approves a student's request to be excused
for an absence, the dean will notify all affected faculty. In cases of excused absences,
faculty members will be expected to offer make-up or substitute exercises or exams,
where feasible.
An absence for any reason except those qualifying for an excused absence will
be considered an unexcused absence. Students who miss more than 20% of scheduled classroom/activity hours because of unexcused absences (e.g., more than two
meetings of a 10-meeting course, or more than 4 meetings of a 20-meeting course)
will fail the course. Students who miss substantial portions of a course because of
excused absences will receive an incomplete grade for the course and will be required to make up missed work or re-take the course.
With the approval of the campus dean, individual Instructors may impose additional and/or stricter attendance requirements and penalties for tardiness or absence,
as they see appropriate for their courses. Students should carefully read course syllabi to be sure that they understand the particular expectations for attendance in each
course.
If a student misses a class or other required activity, it is his or her responsibility
to review, with classmates, the material covered, and to consult with the Instructor
prior to the next class meeting regarding any possible make-up requirements. In case
of illness or absence due to religious obligations, students must notify the Instructor(s) by email as soon they are aware of the time conflict. (Note: any make-up work
approved by the course Instructor must be completed either immediately before or
immediately after the class session missed. It is not acceptable to submit make-up
work after the course has ended and/or grades have been issued.)
Absences count as a zero for that day's class participation.
Classes begin promptly according to the published schedule. It is the responsibility of each student to be in class on time. Classroom attendance will be recorded.
To eliminate disruption, students are requested not to enter or leave the classroom
when class is in session. Furthermore, students are expected to attend all class sessions with their corresponding cohort and team. Switching cohorts to accommodate
class attendance is not allowed except in the presence of extenuating circumstances
and with the prior approval by the course Instructor and the Registrar’s Office.
Attending group meetings and participating in the assigned study teams are required components of the program and are considered an important part of the experiential learning process. Group member feedback evaluations may be administered
by individual Instructors to assess each team member’s participation and attendance
for group projects.
Maintaining the Learning Environment
Certain behaviours disrupt class, such as a student arriving late, a phone ringing,
a student leaving in the middle of class, etc. Instructors have the authority to decide
policies for their classroom regarding these and similar behaviours that may disrupt
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National Research University – Higher school of economics
Russian Business Context for Master Program 38.04.02 “Management”
the learning environment. All members of the class are expected to respect the learning environment and the instructor’s efforts to maintain it.
Participation
Students are expected to participate orally in class, and in online forums and discussions, in a critical and evaluative manner; to approach instructor and fellow students with respect and tolerance; and to actively engage in debate, while avoiding
derogatory or inflammatory comments on the cultures or attitudes of others in the
class.
The course grade consists of the following criterias:
30% of the grade – participation
30% - essay
40% - final test
In other words the formula of the final grade is:
Final grade = 0,3*Participation+0,3* + 0,3*essay+0,4*final test
Academic integrity.
Any work submitted by a student in this course for academic credit must be the
student's own work. If you present, as your own idea, any material copied, paraphrased, or extensively drawn upon, you are plagiarizing—unless you give full citations for your sources. Of course, you may make full use of ideas, arguments and information obtained from books etc. but you must make clear in a footnote whose
work you are drawing on. Failure to cite your sources will result in a failing grade for
that assignment. In cases of blatant and intentional misrepresentation, a student will
receive a failing grade for the course and may face disciplinary action before the
Dean and the Commitee (if necessary), which, in extreme cases, may result in dismissal from the University.
8. Course content.
Topic 1. Russia at a glance. An overview of the country.
General information about the country. Introduction to Russian culture, history of the
country. During the very first class students (especially international) should understand
what is Russia not only from general point of view (like history, geography), but also
from business point. During this class it is very important to keep conversation mode –
students should tell their thoughts about Russia, their concerns and their observations.
They also should present their questions about the course and also their expectations.
Topic 2. An overview of the country. Brief history of Russian business and entrepreneurship. Political Russia. How politics influence business.
A highly important class, because during this lecture students will be given main historical aspects of Russian business. Political situation will be also discussed during this
class. We will compare Russia and other countries in terms of political influence on
business. Usually this class opens a good and useful discussion among students. All the
pros and cons of political influence will be discussed.
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National Research University – Higher school of economics
Russian Business Context for Master Program 38.04.02 “Management”
Topic 3. Russian economy at a glance.
The third class will be dedicated to Russian economy. We will discuss economical history of the country. It is quite interesting also because of Soviet era. Was it good step
for Russian economy or not? How was economy recovering after USSR collapsed? And
does it feel now? We will also discuss the possible future of Russian economy and its
perspectives in terms of globalization and international unions.
Topic 4. Forming a legal entity in Russia. Types of entities. Customs regulations
and taxes in Russia.
Going deeper in the mix of Russian economy and law regulations, we will talk about
what kinds of entities exist in Russia. What are advantages and disadvantages of every
type? Corporate governance in Russia is also discussed during this class.
Topic 5. Cultural differences. Hofstede dimensions theory.
During this class we will talk about Russian culture and compare it to other countries
culture. As the class is international, the topic is usually good discussed as we can discuss real examples of the differences. How all these differences influence business? Is
the way of doing management in Italy or Austria or some other region differs from the
Russian one? How can Hofstede theory can be used to avoid culture clashes?
Topic 6. Communications and negotiations in Russia.
Because of Russian peculiarities it is very important to pay attention to communications
and negotiations in Russia. Do you know that in terms of communication Russians are
very close to European? And do you know that they're also close enough to Asians in
terms of negotiations? And do you know that Russians are absolutely different? One
class is not enough to cover this topic, so we wil dedicate two classes to it. During these
classes there will be business games.
Topic 7. Leadership and motivation system in Russian companies. Corporate culture. Difference and similarities between Russian corporate culture and West one.
How to motivate workers in Russia? Tough question that we will try to answer. Does
the corporate culture exist in Russian companies and will it work here? How to implement corporate culture without high pressure toward workers? We will try to answer all
these questions, using real examples.
Topic 8. Foreign entities adaptation in Russian market.
It is impossible just to reflect the same foreign entity in Russia. To make it succeed one
needs to change a lot in the organization. Adaptation process is quite difficult in Russia,
but using examples of hundreds of foreign companies successfully adapted in Russia
and using dozens of fails as well, we will try to understand, how to do it with less losses
for shareholders.
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National Research University – Higher school of economics
Russian Business Context for Master Program 38.04.02 “Management”
During all classes there will be practical hours, such as case discussions, guest speaker
sessions and company visits.
Expected guest speaker sessions: Evgeny Zakablukovsky (Intel), Vladimir Ivanov (deputy governor), Polina Bazhutova (Ikea), Mikhail Klimov (P&G)
Expected company visits: GAZ, PAZ, Sberbank, P&G Russia, Mera, Coca Cola Hellenic, Intel, Liebherr
9. Types of control
Current control:
Essay will be based on any case given during the course (see the list). The main essay goal is to check students understanding of intercultural communications between
Russian business and foreign companies. The topic of the essay (and the case name)
will be given right before the midterm control point. The case given will be discussed
on the day of deadline, so students can understand the case despite of their essay content. Students who won’t be able to submit an essay in time will be graded as zero for
this task.
Final control:
Test will consist of the main covered topics' questions. It will have as multiple
choice question as well open ended questions.
Cases and questions provided by instructor.
Ice-Fili, HBS
Short description:
Designed as an overview of all aspects of the strategy process: industry analysis, positioning, dynamics and sustainability, and scope issues of corporate strategy, including
vertical integration, horizontal diversification, and location issues. Ice-Fili is the largest
ice cream producer in Russia in 2002, but is facing strong competition from Nestle despite its success over other multinational competitors. Contains detailed exhibits, allowing deeper analyses.
Questions:
1. Analyze Porter five forces of the ice cream market in Russia.
2. How structurally attractive is the Russian ice cream market?
3. How well positioned is Ice-Fili relative to its key competitors?
4. What strategic options does Ice-Fili have? What strategy would you recommend
to Anatoly Shamanov? Be specific
2. Pierre Frankel in Moscow: unfreezing change, HBS
Short description:
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National Research University – Higher school of economics
Russian Business Context for Master Program 38.04.02 “Management”
A young and upcoming French executive in a global technology company is sent to
Moscow as deputy managing director to turn around the Russia subsidiary. He must report to the subsidiary's managing director (a large reason for the organization's underperformance) and to corporate. In his first three months, he took steps to prepare the organization for change. Yet the lack of more tangible actions and results leaves him open
to criticism from subsidiary employees and pressure from corporate executives. How
can the young executive unfreeze the situation and get movement?
Questions:
1. What obstacles does Frankel face, and how can he remove them?
2. Who should be in Frankel’s coalition? Who should be ignored or neutralized?
How?
3. What should Frankel do next?
3. TNK-BP Russia, Thunderbird school of global management
Short description:
In July 2008, BP was embroiled in a dispute with the Russian partner of its TNK-BP
joint venture. The partners had many areas of disagreement, including the level of capital investment, dividend payouts, international expansion, the number of expatriates,
and selection of the CEO. The joint venture also had problems with the Russian government over employee visas and exploration licenses. From BP's perspective, the joint
venture was an important part of its global oil and gas business. TNK-BP accounted for
nearly one-quarter of BP's oil production, and close to one-fifth of its reserves. How the
issues between the partners and with the government were resolved would have a lasting impact on BP and its presence in Russia. The resolution would also impact Russia's
overall reputation for attracting and supporting foreign investment.
Questions:
1. Why did BP create TNK-BP? Are the partners equally commited and motivated
to create a successful venture?
2. How has the JV performed? Has it met BP’s expectations? The Russian partners’
expectations?
3. Why has JV experienced so many problems and issues?
4. Does the Russian government have a specific agenda for the JV?
5. What are BP’s options? What would you recommend?
4. GAZ Group Russia: the Gazelle light commercial truck, Ivey Publishing
Short description:
In January 2013, the CEO of the Russian automotive company Gorky Automobile Plant
(GAZ) was pleased with the results of the recently implemented changes to the company's product-market strategy and the related organizational processes. He believed that
this series of radical changes could help GAZ further cement its domestic market leadership position and at the same time allow it to complete a dramatic turnaround that had
resulted in the company's most profitable year ever. He was now planning the launch of
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National Research University – Higher school of economics
Russian Business Context for Master Program 38.04.02 “Management”
the third generation all-new Gazelle Next light transport truck, which he believed would
take the company to a new level of competitiveness and revenue growth in Russia, and
even more importantly, in other emerging markets.
Questions:
1. What were the major challenges facing Bo Andersson when he assumed the CEO
role at GAZ Group Russia?
2. How did Bo Andersson transform GAZ?
3. What is the current GAZ business model? How do they create value for their customers?
4. GAZ operates in Russia and has had success in exporting to Cuba, Mongolia,
Eastern Europe, Northern Africa and Turkey. They are targeting several other
emerging markets for growth including Northern Africa, India, Southwest Asia,
Central Europe and Eastern Europe. Which capabilities will enable them to expand to their emerging market targets? What capability gaps do they have? Do
they need to address it to compete in other emerging markets? How might they do
this?
5. Emerging markets are known for institutional voids. Can GAZ identify opportunities to fill these voids? What are the market characteristics and institutional
voids that they can best exploit, given their current capabilities?
6. What advice would you give Bo Andersson about entry mode and timing of GAZ
expansion into emerging markets? Where should GAZ go next and why?
5. Lenta of Saint-Petersburg, Russia, Babson
Short description:
Lenta is a cash and carry retail business located in St. Petersburg, Russia. At the time of
the case, it was operating nine stores and generating over $500 million in gross sales.
The case is set at the end of 2005, after a very successful year. Lenta's founder and
CEO, Oleg Zherebtsov, is faced with a dilemma: Where does he take Lenta from here?
Questions:
1. Where does Oleg Zherebtsov lead Lenta? There’re actually several options:
 Slow down/ Stop growth. Consolidate Lenta’s position in St. Petersburg
market.
 Grow, but only in St.Petersburg.
 Grow, by entering the nearest cities surrounding St.Petersburg.
 Grow, and especially target the biggest and richest city in Russia, Moscow.
 Grow, and especially target large but underdeveloped cities in southern Russia and/or western Siberia.
For each choice students can figure out several options of pros and cons.
6. General Motors and AvtoVaz, Thunderbird school of global management
Short description:
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National Research University – Higher school of economics
Russian Business Context for Master Program 38.04.02 “Management”
General Motors (US) and Avto VAZ (Russia) are, in the spring of 2001, in the final
stages of forming a joint venture (JV) for the manufacture of a new automobile in Russia, the Chevy Niva. The car would be largely the result of Russian engineering and
construction with limited GM input and the GM Chevrolet badge. The JV, if completed,
would represent a $300 million combined investment by the parties and be a totally new
approach used by Western investors in penetrating emerging markets.
Questions:
1. Describe the common situation in automobile market in Russia. What are VAZ
and GM for the time?
2. Why do GM and AvtoVAZ need each other to build and market the Niva?
3. Why can’t VAZ build the new Niva on its own?
4. What industrial or institutional factors continue to make the Russian automobile
market so difficult to compete in?
5. How should the deal be structured? What needs to be resolved in order for the final agreement to be concluded by the two parties?
6. What are the implications for GM concerning the complex and confusing ownership structure of AvtoVAZ? Does this threaten the ability of the two parties to
successfully create a JV?
10.Literature
Course books:
 Doing business in Russia. Your roadmap to successful investments, KPMG,
2013
 Doing business in Russia 2013. Baker&McKenzie, 2013
 Doing business in the Russia Federation, EY, 2013
 Doing business in Russia, Deloitte, 2013
Additional reading:
 M.Terterov, Doing business with Russia. A guide to investment opportunities and business practice, GMB Publishing LTD, 2004
 Picturing Russia. New Haven Yale University Press, 2008
 Organization and development of Russian business, Palgrave McMillan,
2009
 R. Moran, Ph. Harris, S. Moran. Managing Cultural Differences. - Elsevier
Inc. (7th Edition). – 2011
 Geert Hofstede, Gert Jan Hofstede, Michael Minkov, Cultures and Organizations: Software of the Mind. 3rd Edition, McGraw-Hill USA, 2010
 Cases and articles provided by instructor:
o Ice-Fili, HBS
o Pierre Frankel in Moscow: unfreezing change, HBS
o TNK-BP Russia, Thunderbird school of global management
o GAZ Group Russia: the Gazelle light commercial truck, Ivey Publishing
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National Research University – Higher school of economics
Russian Business Context for Master Program 38.04.02 “Management”
o Lenta of Saint-Petersburg, Russia, Babson
o General Motors and AvtoVaz, Thunderbird school of global management
Автор программы
А.С. Сахаров
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