Business in RussiaBusiness in Russia
Lance EricksonLance EricksonAssistant DirectorAssistant Director
Center for Slavic and East European StudiesCenter for Slavic and East European Studies
Initial thoughtsInitial thoughts
What is the first thing that comes to mind when talking What is the first thing that comes to mind when talking about Russia?about Russia?
What are your first impressions of business practices in What are your first impressions of business practices in Russia?Russia?
Center for Slavic and East European Center for Slavic and East European StudiesStudies
US Department of Education funded Title VI NRCUS Department of Education funded Title VI NRC Provide support to all OSU students, faculty and Provide support to all OSU students, faculty and
programsprograms Support all Ohio universities, businesses, communitiesSupport all Ohio universities, businesses, communities
FLASFLAS OutreachOutreach SupportSupport
Center for Slavic and East European Center for Slavic and East European StudiesStudies
Oxley Hall 303Oxley Hall 303
Career Services Career Services Job search, internships in-country, recruiter visitsJob search, internships in-country, recruiter visits
Conferences, discussion groupsConferences, discussion groups
Cultural eventsCultural events
Language maintenance and supportLanguage maintenance and support Language tables, video library, lecturesLanguage tables, video library, lectures
Personal backgroundPersonal background
Russian and East European Institute, Indiana University Russian and East European Institute, Indiana University (2005 - 2007) ~ top ranked program in US(2005 - 2007) ~ top ranked program in US
BA, Political Science, Russian & East European Studies, BA, Political Science, Russian & East European Studies, University of IllinoisUniversity of Illinois
MA, Russian, East European and Eurasian Studies, MA, Russian, East European and Eurasian Studies, University of TexasUniversity of Texas
Languages studied: Spanish, French, German, Languages studied: Spanish, French, German, Portuguese, Italian, Russian, Swedish, Ukrainian, Portuguese, Italian, Russian, Swedish, Ukrainian, LithuanianLithuanian
Overseas work experienceOverseas work experience
Sidvim and the Chicago Center (1997 – 1999, 2001 – 2005)Sidvim and the Chicago Center (1997 – 1999, 2001 – 2005)
Lived in Moscow, Russia; Kyiv, Ukraine; and Vilnius, LithuaniaLived in Moscow, Russia; Kyiv, Ukraine; and Vilnius, Lithuania
Traveled for business to…Traveled for business to… Russia: St. Pete, Kaliningrad, Chelyabinsk, Nizhny Novgorod, Russia: St. Pete, Kaliningrad, Chelyabinsk, Nizhny Novgorod,
Ekaterinburg, Irkutsk, VladivostokEkaterinburg, Irkutsk, Vladivostok Ukraine: Lviv, Donetsk, Lugansk, Simferopol, YaltaUkraine: Lviv, Donetsk, Lugansk, Simferopol, Yalta Lithuania: Kaunas, Panevesys, Utena, KlaipedaLithuania: Kaunas, Panevesys, Utena, Klaipeda Latvia: RigaLatvia: Riga Estonia: TallinnEstonia: Tallinn Kazakhstan: Almaty, Astana, KaragandaKazakhstan: Almaty, Astana, Karaganda Austria, Belgium, France, Germany, and SwedenAustria, Belgium, France, Germany, and Sweden
Role within the companyRole within the company
Manager of Faculty and Supplier RelationsManager of Faculty and Supplier Relations Marketing Support ManagerMarketing Support Manager
Country Director – UkraineCountry Director – Ukraine Regional Marketing ManagerRegional Marketing Manager Regional Marketing and Sales ManagerRegional Marketing and Sales Manager Director – Ukraine and Baltic officesDirector – Ukraine and Baltic offices
Sidvim / Chicago CenterSidvim / Chicago Center
Private, Chicago-basedPrivate, Chicago-based Origins: Siemens India, Universal HealthcareOrigins: Siemens India, Universal Healthcare
Computers / Med TechComputers / Med Tech ConferencesConferences
University of Chicago, Loyola University, Northwestern University of Chicago, Loyola University, Northwestern University, University of Illinois at ChicagoUniversity, University of Illinois at Chicago
Market entryMarket entry
Dental market overviewDental market overview Private vs. state-runPrivate vs. state-run Cosmetic demandCosmetic demand Products availableProducts available
Educational contactsEducational contacts Training seminarsTraining seminars ConferencesConferences Educational toursEducational tours
Initial business planInitial business plan
StrategyStrategy CoursesCourses TreatmentTreatment Rented facilitiesRented facilities PricingPricing InventoryInventory StaffingStaffing
Problems Problems Establishing market Establishing market Providing follow upProviding follow up StaffingStaffing Breaking old habitsBreaking old habits
Clinical servicesClinical services
Higher profit marginHigher profit margin Client referralsClient referrals Time spent working vs. teachingTime spent working vs. teaching
Bringing in productBringing in product Success rate of difficult casesSuccess rate of difficult cases Need to establish clinic for continued growthNeed to establish clinic for continued growth
ConferencesConferences
InternationalInternational Need for new and expanded fieldsNeed for new and expanded fields Increase network of contactsIncrease network of contacts Promote opportunities to western vendorsPromote opportunities to western vendors
More competition on the marketMore competition on the market Pricing concernsPricing concerns
Investment in clinicInvestment in clinic
Build state-of-the-art clinicBuild state-of-the-art clinic Combine with sales offices and training facilityCombine with sales offices and training facility Materials purchased in US and shippedMaterials purchased in US and shipped Key locationKey location Set trend for private clinics in the marketSet trend for private clinics in the market
Expenses and debt rose significantlyExpenses and debt rose significantly Ever increasing competitionEver increasing competition
Crash...Crash...
Economy crashed in 1998Economy crashed in 1998
Business strugglesBusiness struggles Market emptiesMarket empties
State of the economyState of the economy Bank defaultsBank defaults Consumer marketConsumer market
Survival and ExpansionSurvival and Expansion
Stayed in marketStayed in market
Explored opportunities in UkraineExplored opportunities in Ukraine
Moved into Ukraine, Baltics and KazakhstanMoved into Ukraine, Baltics and Kazakhstan Moscow served entire regionMoscow served entire region Strain on resourcesStrain on resources
Conferences and GrowthConferences and Growth
Moscow Moscow EAOEAO Las VegasLas Vegas
Siberian TourSiberian Tour Logistical nightmareLogistical nightmare
Kazakh TourKazakh Tour
Headaches began…Headaches began…
Trouble in the officeTrouble in the office Differing objectivesDiffering objectives
Staff purgeStaff purge Client theftClient theft Start of gray marketStart of gray market
Renewed customer serviceRenewed customer service Client visits, visits, and more visitsClient visits, visits, and more visits New pricing structureNew pricing structure
Move to Ukraine / LithuaniaMove to Ukraine / Lithuania
Russia stabilizedRussia stabilized Young markets strugglingYoung markets struggling Key clientsKey clients Conference in YaltaConference in Yalta
Baltic market and EU entryBaltic market and EU entry
StrugglesStruggles
Market competitionMarket competition Pricing issuesPricing issues StockStock Moscow always as priorityMoscow always as priority Expansion to IndiaExpansion to India Changing regulationsChanging regulations Move to GrushevskovoMove to Grushevskovo
Corporate espionage and crimeCorporate espionage and crime Orange RevolutionOrange Revolution
Current situationCurrent situation
CCADCCAD Nobel Biocare RussiaNobel Biocare Russia RussiaRussia UkraineUkraine BalticsBaltics KazakhstanKazakhstan IndiaIndia
www.chicagocentre.comwww.chicagocentre.com www.nobelbiocare.comwww.nobelbiocare.com
Difficult business environmentDifficult business environment Office managementOffice management
Corruption and Blanket lawsCorruption and Blanket laws CustomsCustoms Computer softwareComputer software
RegistrationRegistration CompanyCompany EmployeeEmployee
Shift away from democracyShift away from democracy
History and insecurityHistory and insecurity Romanovs – Soviets – Yeltsin – Putin – Medvedev - ?Romanovs – Soviets – Yeltsin – Putin – Medvedev - ? Democracy vs. KleptocracyDemocracy vs. Kleptocracy WTOWTO
Life as an Expat in RussiaLife as an Expat in Russia
Living conditionsLiving conditions ExpensesExpenses TravelTravel Time differenceTime difference Vacation timeVacation time Tight-knit communityTight-knit community
Exciting political and business scenesExciting political and business scenes
Are business skills enough?Are business skills enough?
Importance of language skillsImportance of language skills Communication is keyCommunication is key Personal relationshipsPersonal relationships NetworkingNetworking
Importance of cultural knowledgeImportance of cultural knowledge Know your customersKnow your customers Understand the marketUnderstand the market History, politics, arts, literature…History, politics, arts, literature… Regions vs. MoscowRegions vs. Moscow Why so much corruption?Why so much corruption? Why so much red tape?Why so much red tape?
What can I do to prepare?What can I do to prepare?
EM course – amazing opportunity!EM course – amazing opportunity! Work with Experts you have available at Fisher and OSUWork with Experts you have available at Fisher and OSU Work closely with CIBER Work closely with CIBER Learn the languageLearn the language Spend time in-countrySpend time in-country Attend cultural events at OSUAttend cultural events at OSU Network with the local Russian communityNetwork with the local Russian community Study the cultureStudy the culture Learn the languageLearn the language Learn the language!Learn the language!
Questions?Questions?
Contact CSEES at any time!Contact CSEES at any time!
Lance EricksonLance [email protected]@osu.edu
Photos from CSEES, CIBER, CCAD, Nobel Biocare, and MicrosoftPhotos from CSEES, CIBER, CCAD, Nobel Biocare, and MicrosoftMap from CIAMap from CIA