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RUSSIAN BUSINESS CULTURE

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Gone are the times when you could be screwed up at any corner, nowadays ... NOT TO BE MISTAKEN - TO BE ATTENTIVE IN ANY COUNTRY ... – PowerPoint PPT presentation

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Title: RUSSIAN BUSINESS CULTURE


1
RUSSIAN BUSINESS CULTURE
2
NEW FEATURES
  • Gone are the times when you could be screwed up
    at any corner, nowadays businesses strive for
    long-term reputation and loyal customers.
  • NOT TO BE MISTAKEN - TO BE ATTENTIVE IN ANY
    COUNTRY
  • RUSSIAN BUSINESS CULTURE INFLUENCED BY
    DIVERSIFIED CULTURE AND THE DESIRE TO STUDY

3
Russian culture - key concepts and values
  • Collectivism
  • Egalitarianism
  • Dusha (soul)

4
Working in Russia
  • Working practices in Russia - stereotype
  • The Russians attitude to time means that a few
    minutes delay on their part is of little
    importance. However, they will expect you to be
    punctual.
  • Faxes and emails are the best way to communicate
    in Russia, as the post can often be unreliable.
    It is customary before making a trip to Russia to
    inform the prospective company of your intended
    business proposals and objectives.
  • Paperwork and putting pen to paper is an
    essential part of all working practices in
    Russia. In general, they have little faith in
    unsigned documents.

5
Making appointments
  • Persistence and patience are essential. Once your
    appointment is scheduled, do everything you can
    to avoid cancellation.
  • Don't schedule your trip to Russia near the end
    of July or during the month of August- this is
    the time of year many people take their
    vacations.
  • The Russian day begins early, but it can be
    difficult to foresee when all other daily
    activities will begin and end. Schedules are
    constantly subject to change, often at the last
    minute.
  • Allow plenty of time for each appointment.
  • Business day is usually 900 am to 600 pm Monday
    through Friday and some Saturday mornings.

6
BUSINESS DRESS CODE
  • Old Russian proverb--one meet you depending on
    how you're dressed and say good bye depending on
    how wise you seem to be
  • Russian businesspeople pay a lot of attention to
    how they are dressed. Russian people in general
    probably spend more money from their family
    budget on clothing then any other nation in the
    world.

7
Conversation
  • Visitors should try to speak in a calm, moderate,
    tone of voice at all times.
  • Your Russian colleagues will be delighted if you
    make the effort to speak even a few sentences of
    their language.
  • Russians are sometimes very careful about what
    they say, speaking metaphorically, symbolically,
    and perhaps even cryptically.
  • Bringing up the subject of Russian culture and
    history is appreciated.
  • Compliments - with caution, they may cause a
    feeling of misplaced obligation. (admiring a
    decorative object, your hosts may insist that you
    take it).

8
Structure and hierarchy in Russian companies
  • The hierarchical structure in Russian business
    practices means that the decision makers higher
    up have authority over their subordinates.
    However, the nature of the collective good often
    encourages a flexible and democratic work ethos.
  • Showing respect for seniority and recognizing the
    hierarchical structure is vital for establishing
    and maintaining strong business relationships.

9
Working relationships in Russia
  • Personal and informal contact is a central part
    in doing business in Russia.
  • Physical contact during business meetings (a
    simple hand on the arm or even embracing) is a
    positive sign. The notion of social space is
    close in Russia.
  • In situations of conflict - to avoid taking an
    official stance and remember that Russians are
    'people orientated' and will respond to a more
    personal approach.

10
First Name or Title?
  • Very intimate friends or relations - refer to one
    another by the first name.
  • Ensure that you learn the titles of everyone you
    plan to encounter
  • Russians have three names the first name is a
    given name, the last name is the father's family
    name, the middle name is a version of the
    father's first name.

11
GIFTS
  • Russians take pleasure in giving and receiving
    gifts . Russians spend a lot of money on gifts .
  • Gifts for children are usually opened in private,
    gifts for adults are generally opened in the
    presence of others.
  • Gifts are expected for social events, especially
    as thank-yous
  • Bringing a bouquet of flowers for women.

12
  • Business practices in Russia
  • Business cards are essential. If possible, ensure
    that one side is printed in Russian and one side
    in English.
  • Presentations should be straightforward and
    comprehensible.
  • Although many principal concerns are discussed in
    an informal environment final negotiations will
    be conducted in the office.
  • Generally, when beginning a meeting, the head of
    the organization will open the discussion and
    introductions should then be made in order of
    importance.

13
GENDER ASPECTS
  • Women usually do not hold high positions in the
    Russian Business culture.
  • There are more women in business education then
    in business.
  • Foreign businesswomen sometimes face adversity
    from the male-dominated Russian business culture.

14
MEALS AND BUSINESS ETIQUETTE
  • The business breakfast is not a part of Russian
    business culture.
  • Business dining is getting more and more popular
    -is generally taken as a time for sealing a
    deal.
  • The center seats are reserved for the most senior
    officials.
  • Begin eating only after somebody says a toast.
    Toasting is a very important part of dining.
  • Russians use the continental style of holding
    utensils. If you're unsure of which utensil to
    use, start from the outside.

15
SOME GENERAL FEATURES
  • The handshake is common.
  • Eye contact is very important, must be maintained
    as long as the individual is addressing you.
  • Smoking in public places is still a common
    occurrence, although some restrictions are slowly
    imposed.
  • Wearing your coat and/or winter boots in
    theatres, office buildings, universities or
    similar public spaces is considered unacceptable.

16
ATTITUDE TOWARDS FOREIGN PARTNERS
  • The first meeting is usually just a formality-a
    time to assess the credibility of you and your
    company.
  • Russians can sometimes place a great deal of
    confidence in your professional competence and
    experience very high expectations and demands.
  • Russian business people are open-minded to new
    ideas, especially from western business culture
  • Russian negotiators could make minor concessions
    and ask for major ones in return.

17
Russian business etiquette (Do's and Don'ts)

18
D O s
  • DO shake hands firmly when greeting and leaving
    your partners and make direct eye contact.
  • DO partake in small talk that involves talk of
    family and personal matters, before dealing with
    business.
  • DO make a gift that symbolizes the stature of
    your company, preferably an item characteristic
    of your local area or one that displays the
    company logo.
  • Knock before entering an office
  • Close the door behind you, when leaving an office
  • Supply beverages and snacks during business
    meetings
  • Go out and have a drink with your counterparts,
    it is a good way to break the ice.
  • Bring small gifts for the children of a home you
    visit

19
Don'ts
  • DON'T be afraid to show some emotion, the
    Russians won't!
  • DON'T as the Russian proverb states 'hurry to
    reply', but 'hurry to listen'.
  • DON'T praise or reward anyone in public as it may
    be viewed with suspicion or cause envy and
    jealousy. Remember the collective rules over the
    individual.
  • Wear lavish clothing or jewelry.
  • Use a restaurant as a place for doing
    business--it's for celebration

20
Doing business in Russia? YES, but neither
simple, nor easy
  • Fierce competition to gain control over rich
    resources
  • Selection of the Russian partner (especially in
    the region)
  • Normally long-term projects worthy of development
  • Building trust with Russian staff is critical
  • Special marketing strategy

21
Russian Culture Quiz - true or false
  1. It is considered good luck to shake hands over
    the threshold of the doorstep.
  2. When taking flowers as a gift you must only take
    an odd number.
  3. If you leave something behind in Russia it means
    you're coming back.
  4. In business negotiations Russians view compromise
    as a sign of weakness.
  5. In Russia, the 'OK' symbol with the thumb and
    forefinger touching in a circle means 'everything
    is fine'.

22
Answers
  • False. It is considered bad luck to shake hands
    over a threshold and should be done either inside
    or outside.
  • True. Even numbers of flowers are only given at
    funerals and are a sign of bad luck.
  • True. A Russian superstition that is still
    present today.
  • True.
  • False. The Western sign for 'OK' is considered
    rude in Russia.
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