Due to the misconception of the size and diversity of Russia, foreign companies tended to enter Moscow and Saint Petersburg first, the two most crowded markets in Russia. These two cities concentrated a large proportion of the population, whose consumption patterns and styles differed from those of the average Russian citizen, Cultural
Low trust of outsiders ( Inhibited Communications with foreign managers and undermind organizational innitiatives ) Heavily influence by the history . ( Cultural influence by Soviets and Zharist past: collectivism paternalism administration, fear of responsabillity and reliance of once own neighbors. Oriented in short therm, place little enfasis in competitive strategy and formal strategy planning. Young Russian professionals, with their high aspirations, acquired European style and anti-status quo spirit, collided against the more disciplined and submissive “older” Russians. In fact, Russians in their mid-thirties and forties tended to speak only Russian and had mostly been educated under a different mindset. Thus, when younger Russians led an organizational structure, they tended to be more selective when recruiting new talent.
That is, they felt more comfortable working among Russians like themselves, not Russians like their parentsIn the process of recruiting and selection, these younger Russians paid more attention to candidates’ family origins even when the candidates themselves were young and had a college degree. According to a common rule of thumb, if the potential hire came from a family of the intellectual elite — i.e., musicians, artists, scientists or academics — they would easily fit with the new generation, but if they came from a family of workers from the Soviet era, the potential of conflict still existed, notwithstanding the age or educational level of the candidate.
Rusia low unemployment rate acted to demotivate firmn loyalty ( Compensation did not mean everything.) EconomicRusia have no middle ground proportion of small and middle size enterprises in relation to big enterprises. This proportion is lower in Ruisia than in any other emerging market. Not truly modern Banks ( contries financial systems dominated by one bank) Rusians not invested at home ( loans difficult to acquire)
Morgage market non existent ( Only 3% of GDP lowest of any emerging markets) Net foreign direct investment of negative 9.5 billion in 2010. Decreasing population. Countries wealth represented by is human capital ( deterioration of human capital). Society characterize by high levels of education , but low levels of quality, health and knowledge. (as a result it have serious economic implication) What lessons has Mabel learned for future International expansions? Would another emerging market have been a better Choice than Russia?