Universityof Nebraska OmahaCollegeof Business Administration6708Pine Street, Omaha, NE 68106 12/12/2017 To whom it may concern:Theattached report, explains why it is important to know Russia’s CulturalIntelligence such as history, language, population, business etiquette dinning,and business appearance? Having a knowledge of countries background is a bigkey of success in Business.
In the following report, you will finddescriptions regarding: · Whatis Russia history all about? · Whatis a time zone and who are borders of Russia?· Howmany population are in Russia? And what are their religion?· Businessetiquette?· Howthey negotiate?· Howdo they behave with foreigners?· Howdoes Russians make decisions? Thank you for taking your time to read myreport, Sincerely,Shirin Sadullaeva Table of Contents Executive Summary. 3 Introduction: Cultural Intelligence in Russia. 4 Brief History.
4 Ethnic Origin. 4 Religion. 5 Language. 5 Population. 5 Business Etiquette. 6 Appearance. 6 Behavior.
6 Communication. 6 Meetings. 7 Personal Behavior in Business and Social 7 Task vs. Relationship.
7 Decisions. 8 Keys to negotiate in Russia. 9 Stereotypes. 9 Conclusion.
10 References. 11 ExecutiveSummary This research project describes Russia’shistorical development and its openness for foreign investments. Russia is acountry with enormous potential. Russia has an exciting potential for foreigninvestors, due to its rapid economic development.
The thesis of my paper isexploring the patterns and problems of entrepreneurial development. It asks thequestion: how have behavior, attitudes, values, impacts on the development ofentrepreneurship? The aim of this research project is to help by exploring howentrepreneurs of small and medium sized enterprises should establish themselvesand survive the challenges of the Russian business environment; howrelationships with state officials and other business people impacts on theirposition and the success of their business. It is very important to know thelaws and rules of the Russian society. Knowledge about a country is a key tosuccess in business. Introduction:Cultural Intelligence in Russia Russian businessenvironment is very different from the United States, it is preferable toconduct a thorough research of the formal and informal rules regulatingeconomic exchange. To do a business with a foreign country it’s important toknow country’s history, language preference, behavior, population size, communication,meeting, decision making processes, tasks vs. relationships and key values.
Itis important to know Russia’s geography and history how it became Russia andwhich countries it borders with in order to make business. According to RussiaIntroduction, “Russia shares marine borders with Japan by the Sea of Okhotskand the U.S. state of Alaska across the Bering Strait. Russia is the largestcountry in the world, covering more than one eighth of Earth’s occupied landarea. Spreading across the entirety of northern Asia and much of EasternEurope, Russia crosses eleven time zones and includes a wide range of environmentsand landforms. From northwest to southeast, Russia shares land borders withNorway, Finland, Estonia, Latvia, Lithuania and Poland (both with KaliningradOblast), Belarus, Ukraine, Georgia, Azerbaijan, Kazakhstan, China, Mongolia, andNorth Korea.” It is important to know the borders which helps to make decisionsabout business export and import to Russia and from Russia to USA.
BriefHistoryRussia is known as a Russian Federations.Its capital is Moscow. The name Russia is coming from “Rus people a group ofVarangians (possibly Swedish Vikings who founded the state of Rus). “However,this appropriate name became more apparent in the later history, and thecountry typically was called by its populations, as “Russian Land” or”Land of Rus'”.
“To differentiate this state from the other statesderived from it, it is symbolized as Kievan Rus’ by modern historiography.” It’sessential to know that not everyone in Russia is Russian. EthnicOriginRussianFederation consists of many nationalities. There are over 186 ethnic groupswhich are considered as nationalities. Population of those groups verysubstantially, from hundred million, such as Russians and Tatars, which make upthe first two largest groups, to under ten thousand in population for groupslike Samis and Kets. Those ethnic groups may speak different languages andpossess religious beliefs that differ from each other.
Russia’s Ethic origins includes: “Russians(81.6%), Tatars (3.8%), Ukrainians (3%), Chuvash’s (1.2 %), Bashkirs (0.9 %),others (9.5%)” (“Russia Introduction”, 2009).
Retrieved from http://fita.org/countries/russiaportal.html. ReligionItis valuable to know that Russia’s religion believes changed. As a foreigner, weshould respect their religions and practices. The Soviet Union was formally anatheist country in the days of communism. Now, however, contribution inreligion is increasing, with many citizens committed Russian Orthodoxy, Islam, andJudaism.
“82% of Russians are believers. Orthodox 70%,Muslims 10%, Catholics 1, 2%,Buddhists 0,7%”. (2009) Retrieved from http://fita.
org/countries/russiaportal.html. LanguageOfficialspoken language is Russian. In Business language English is more, and morecommon over wide. Executives usuallyunderstand English better than they speak it. Be prepared to plan dialogs inRussian. Knowledge of a language is key to do a business.
PopulationTotal population in Russia is 144.3 million(World Bank). According to Russia Introduction, “Population of main cities includingsuburbs: Moscow (14,800,000); St Petersburg (4,900,000); Nizhniy Novgorod(1,900,000); Samara (1,500,000); Novosibirsk (1,429,000); Ekaterinburg(1,389,000); Kazan (1,300,000); Volgograd (1,292,000).” These cities may serve asa reliable source of work force as well as largest markets for doing business.BusinessEtiquetteAppearanceInRussia Appearance in the International Business is very important. Businessmenusually wearsuits and ties which is darker. Businessmen do not take off their jackets in theconferences, and they do not stand with hands in pockets, this is considered asa rude. When at a family residence, it is proper to bring a gift, such as abottle of wine, dessert, or a bouquet of flowers.
When shaking hands withsomeone, be always sure to take off your gloves. When attending any formalmeetings such as the theatre, concert, it is appropriate to check your coat atthe front door of the establishment. Be sure to have plenty of business cardswith double sides of information. One side should be printed in English, theother side in Russian.
Be alert and opento taking a drink or having a toast, as refusing to do so is a serious gap ofetiquette. BehaviorInaddition to appearance it’s key to know Russians’ behavior. As a foreigner, youare expected to be on time to all business meetings. However, your Russian partnermay be late, as this may be an examination of your patience. Do not expect any excusefrom a late Russian, if your business meetings begin one or two hourslate.
This may also be an examination ofyour patience. Social events are more relaxed. It is acceptable for foreigners to be 15 to 30 minutes late. Russiansvalue patience, but they are not punctual.
Russians highly value patience. Accordingto Heinze, “As a foreigner, you should realize that “Final Offers”are often not actually the end of the discussions, and that often the outcomewill be more beneficial if you can hold out. Thereis a Russian term meaning “connections” or “influences”. It is verydifficult to do business in Russiawithout help from a native. To help with doing Business in Russia, gifts areoften a clever idea” (2009). It is okay for Russians to accept gifts; they seeit as respect to them. Communication plays a key role in business in Russia. Knowinghow to be held discussions and giving out your point of view in a beneficialway to businessmen in Russia is important in order to do business with them.
Knowledge and communication always helps in business, especially in interviews. CommunicationRussianis the official language. According toMatt Priest, “Russians are generally reserved and somber, speaking loud isconsidered as rude a behavior” (Priest, 1998-2012). Many Russians speakEnglish, as it is often taught at schools beginning in the third grade.Russians have very high literacy rate. Good topics of conversations in Russiainclude peace, the current changes taking place in Russia, and their currenteconomic situation. Russia is a country of cultural contradictions.
Also, it isnot only a big country, the disruptions of the 1990s have created a very markedgenerational gap. Generally, the older generations are marked by a trend towards traditionalism and havea group mentality. The younger generations are much more energetic andprogressive, with a more individualist approach. Russiais a country that deliberates itself isolated from the rest of the world, enclosedby neighbors who want to take advantage of it. This has created a strongholdmentality – outsiders are not trusted. This contrasts with the extensive hospitalitynormally shown to visitors. Russians are often very closed and formal inpublic, but open, warm and informal in private.
In communication, Russians tendto be direct and do not avoid hostility. They can be extremely emotional andyet reserved in the same meeting. According to Heinze, “knowledge of “highculture” is valued, and the ability to talk about works of art and literatureis appreciated. Russians were traditionally very patient, and punctualespecially when meeting foreigners. For a meeting, they expect punctuality:meetings will start on time but will continue until all points are covered”(Heinze, 2014). Russians generallyconsider themselves to be culturally rich in terms of literature. In Russia,they want to show their power over workers, they test the new worker’s patienceand all good qualities, to be sure to work with qualified right partner, who ispunctual and calm with business. MeetingsTherefore,if you have meetings with local representatives you will wait a long time, evenif you have an appointment: processes are slow.
You should expect meetings totake up more of your time than planned. Before a meeting you should re-confirmby phone, both with the person and with his/her secretary. Russians preferdirect contact to emails or letters – the postal service is unreliable, so makesure you speak in person. It is worth to know who will be present in advance ifpossible and confirming that your party contains people of corresponding status.This will increase the chances of you being able to influence the meeting(Heinze, 2014).
Whenyou are considered as an “honored guest,” it is very common to combine meetingswith food and drink. Russians can be very hospitable and are willing todemonstrate their generosity. They are aware of their reputation for heavydrinking and may use that to gain advantage.
Ironically policies of communismhave bred a hierarchical structure in organizations in Russia. The boss is avery powerful figure in Russia. Raises are rewarded not just financially butwith a bigger office, better car and other visible privileges. Team members areexpected to respond immediately to any request by their boss, regardless of anyother duties they may have to perform.
It is also expected that those inauthority will be obvious in their exercise of power. Russian managers arecomfortable criticizing openly and making impulsive decisions. In the same way,rewards and positive feedback given publicly. This can mean that the boss mayuse a meeting as an opportunity to address an individual’s performance.PersonalBehavior in Business and SocialTaskvs. RelationshipInaddition, for Russians relationship and task is considered important.
In businessRussians are more comfortable with people they know well. However, businessrelationships are measured by the success of a task, the connection may notsurvive a awful experience or a disappointment. Loyalty is to a person ratherthan an organization and you must re-establish a relationship each time yourcontact moves on. When a team leader is promoted, it is common for him/her topromote members of the old team as a reward for them support. Among youngerleaders and businesses, the balance is tending towards a greater focus on tasks,and business relationships are increasingly transactional.
When makingproposals it may be beneficial to demonstrate the ways this will improve aperson’s standing in their organization and how they will benefit individually.Following table provides insights on key values, organizational hierarchy,communication structure and decision-making process in Russian businesses toconsider while working and building relationships with them. Key Values Hierarchy and status · Emotional · Fatalistic · Pessimistic · Inward facing · Fortress mentality · Direct · Punctuality valued · New businesses and bureaucrats may keep you waiting longer · Business entertainment can be very long · Meetings continue to a decision · Steep hierarchy · Visible demonstrations of status · Power is emphasized and used Structure and Formality Decisions, discussions and disagreeing · Meetings are always formal · Structure of meetings is dependent on the host/senior person present · Communication is formal at meetings, even if less formal before and after · Use professional/academic titles and surname or name and patronymic · Decisions made by boss alone · Discussions done in private not at meetings · Disagreeing with the senior person is done in private if at all DecisionsDecisionsare usually made by Directors. The boss advises with heads of department,but will make the final decision alone.
Heinze says that, “Decision-making can therefore,take a long time as each “boss” at each stage will decide whether to pass the recommendationup to the next level. Individuals may be invited to add to decisions, but thesearenot discussions. Disagreement with a higher person is very rarely expressed inpublic. It is notuncommon for the senior person to be quite argumentative in a meeting if s/heis not getting theirown way. It is appropriate to ask for a break to reconsider your positionbefore continuing themeeting” (Heinze, 2014). In Russia, it’s common for bosses to get what theywant, it’s them businessand they are the leaders of it, but if points are delivered with respect andbeneficial to theboss and businesses, they may check it and boss may change his/her decision. Keysto negotiate in RussiaAnotherimportant aspect for doing business is Negotiation. It is very important toknow key of negotiation.
There are some suggestion keys:Bepunctual:Russiansare very punctual they don’t like being late during the business meetingsAvoidthe informalities and the empty promises:Ifyou can’t accomplish your task don’t say I can do it, because you will foreverlose the trust.Getready to initial positions characterized by aggressiveness and distrust:Russiansare by nature distrustful people. It is very common for Russians to become rudeor arrogant during the business meetings, if you respect them and keep yourword, it will be to your Identify the person who takes the decisions andaddress him directly:benefit.Don’twaste your time to negotiate with intermediate managers or eventually yourdecision will be postponed. StereotypesThistable shows Stereotypes of Russian’s view, as well as Americans view to Russia. American View on Russia: · Straight -faced/rude · Corrupt government and society · Unsafe · Everyone supports communism · They hate Americans · They love Vodka Russian View on America: · Extreme capitalists · Ignorant of all things non-America · Gun loving · Environmentally unfriendly · Arrogant/entitled · Always provide unwarranted, military intervention Conclusion Inconclusion, for business personnel its important task to have a knowledge aboutthe country to make success with their businesses. Knowing more about country helpsto make stronger connections with business owners.
While Russian regulations donot make it quick, or easy to begin and maintain entrepreneurial risks, alittle advance knowledge of the issues facing entrepreneurial startups can go along a way to preventing problems later. Knowledge combined with cautiousness,a rapidly growing economy and richness of opportunities confirms that manyentrepreneurial risks will be worth the effort.