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Copyright © The Lighthouse Group By: Jeroen Ketting, Managing Director of Lighthouse Russia BV DOING BUSINESS IN RUSSIA 16 May, 2013
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Copyright © The Lighthouse Group
By: Jeroen Ketting, Managing Director of Lighthouse Russia BV
DOING BUSINESS IN RUSSIA
16 May, 2013
THELIGHTHOUSEGROUP.RUTHELIGHTHOUSEGROUP.RU
THE SPEAKER
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Jeroen Ketting
1. Living and working in Russia for 19 years.
2. Owner and managing director of the consultancy firm Lighthouse, active on the Russian market since 1999.
3. Leading expert in doing business in Russia in various media and conferences.
THELIGHTHOUSEGROUP.RU
• WHAT IS RUSSIA?
• OPPORTUNITIES
•DOING BUSINESS IN RUSSIA
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CONTENT
THELIGHTHOUSEGROUP.RUTHELIGHTHOUSEGROUP.RU
Умом Россию не понять, One cannot understand Russia by reason,Аршином общим не измерить: One cannot measure her by a common measure:У ней особенная стать – She has a special kind of grace –В Россию можно только верить.One can only believe in Russia.
Фёдор Тютчев, 1886 Fyodor Tyutchev, 1886
WHAT IS RUSSIA?
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THELIGHTHOUSEGROUP.RUTHELIGHTHOUSEGROUP.RU
OR IS THIS RUSSIA?
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IS THIS RUSSIA?
THELIGHTHOUSEGROUP.RUTHELIGHTHOUSEGROUP.RU
No smoking
No walking on ice
No smoking indoors!
Fine 1000 Rubles.
No swimming
UNIQUE RUSSIA
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THELIGHTHOUSEGROUP.RUTHELIGHTHOUSEGROUP.RU
Cold ↔ Hot
Grey ↔ Colorful
Erudite ↔ Superficial
Boundless ↔ Limited
RUSSIA, the land of EXTREMES
Us ↔ Them
Beauty ↔ Ugliness
Chivalry ↔ Condescension
Strength ↔ Weakness
Wealth ↔ Poverty
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RUSSIATHE
LAND OFEXTREMES
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RUSSIA IN DEPTH
RUSSIA EUROPE
Trust and personal relationships Formal relations
Informal networks (Micro Cosmos) Formal (official) networks
Responsibility for close ones only Responsibility for society
Separating business and personal Same values in business and personal
Testing the rules Abiding the rules
External appearance Substance
Vertical authority Consensus
Practical approach Formalistic approach
Short term (fatalistic) vision Long term vision
Single focus thinking Holistic thinking
Quantity & capacity Quality & efficiency
Pride and power Modesty
THELIGHTHOUSEGROUP.RU
1 • WHY RUSSIA?
2 • BE AWARE
3•DOING BUSINESS IN RUSSIA
4 •DOs & DON’Ts
DOING BUSINESS IN RUSSIA
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WHY RUSSIA?
OPPORTUNITIES DOING BUSINESS
1. Risk of recession?
2. Understand the hurdles
3. Take the right steps with the right approach
4. DO and DO NOT
1. Growing private consumption
2. Sophistication of consumer spending
3. Large growth potential in the entire value chain
4. Expansion of e-business and services
5. Large Customs Union market
THELIGHTHOUSEGROUP.RU
Kostroma, Russia
BE AWARE
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DOING BUSINESS IN RUSSIA REQUIRES:
1. Continuous attention.2. Twice the time to manage.3. A personal hands-on approach.4. More investment of time, money and effort.5. A medium- to long-term strategy.6. Attention to the language barrier.
Doing business in Russia is like driving a car
DOING BUSINESS IN RUSSIA
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THELIGHTHOUSEGROUP.RUTHELIGHTHOUSEGROUP.RU
DOs
1. Enjoy Russia!
2. Understand where you are.
3. Commit (time, money, presence).
4. Prepare.
5. Gain some knowledge of the Russian language and culture.
6. Use local partners and advisors.
7. Be entrepreneurial, flexible and patient!
8. Trust but check. Never assume.
9. Stay in control and keep the initiative!
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THELIGHTHOUSEGROUP.RUTHELIGHTHOUSEGROUP.RU
DON’Ts
DON’T:
1. Be afraid of Russia.
2. Underestimate the market or your Russian business partner.
3. Stick to your own perspective.
4. Think that Russia is Europe.
5. Think that Russia is cheap.
6. Think you know what is going on.
7. Let yourself in with corruption.
8. Judge on the basis of first impression.
9. Forget you are a foreigner.
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1. Never loose your cool.2. Build and guard your authority/image
carefully.3. Understand your own position.4. Keep the initiative.5. Maintain your added value.6. Don’t show any weakness.7. Separation of business and personal.8. Show loyalty but don’t let yourself be used.9. Be present.
PSYCHOLOGY IN BUSINESS
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NEGOTIATIONS
1. Win-Lose vs. Win-Win
2. Negotiating from a position of power
3. Short term objectives
4. Psychology and emotions
5. Intent vs. written agreement
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NEGOTIATIONS
1. can be imposing
2. think, speak and act fast!
Russian businessmen
Only the smartest and toughest have succeeded!
THELIGHTHOUSEGROUP.RUTHELIGHTHOUSEGROUP.RU
CONCLUSION
Think and act fast
Be creativeDon’t be surprised
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CONCLUSION
Understanding and respecting Russia is the
key to success!
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Phone: +7 (495) 980 09 77
Fax: +7 (495) 502 92 86
Website: www.thelighthousegroup.ru
Address: Mytnaya Ulitsa 3, office 41, Moscow, Russia, 119049
Email: [email protected]
