University 7 Decisions. 8 Keys to negotiate in

University
of Nebraska Omaha

College
of Business Administration

6708
Pine Street, Omaha, NE 68106

 

12/12/2017

 

 

To whom it may concern:

The
attached report, explains why it is important to know Russia’s Cultural
Intelligence such as history, language, population, business etiquette dinning,
and business appearance? Having a knowledge of countries background is a big
key of success in Business.

 

In the following report, you will find
descriptions regarding:

 

·        
What
is Russia history all about?

·        
What
is a time zone and who are borders of Russia?

·        
How
many population are in Russia? And what are their religion?

·        
Business
etiquette?

·        
How
they negotiate?

·        
How
do they behave with foreigners?

·        
How
does Russians make decisions?

 

 

 

Thank you for taking your time to read my
report,

 

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
 

Executive
Summary

 

This research project describes Russia’s
historical development and its openness for foreign investments. Russia is a
country with enormous potential. Russia has an exciting potential for foreign
investors, due to its rapid economic development. The thesis of my paper is
exploring the patterns and problems of entrepreneurial development. It asks the
question: how have behavior, attitudes, values, impacts on the development of
entrepreneurship? The aim of this research project is to help by exploring how
entrepreneurs of small and medium sized enterprises should establish themselves
and survive the challenges of the Russian business environment; how
relationships with state officials and other business people impacts on their
position and the success of their business. It is very important to know the
laws and rules of the Russian society. Knowledge about a country is a key to
success in business.

 

 

 

 

                                                                                        

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Introduction:
Cultural Intelligence in Russia

 

Russian business
environment is very different from the United States, it is preferable to
conduct a thorough research of the formal and informal rules regulating
economic exchange. To do a business with a foreign country it’s important to
know country’s history, language preference, behavior, population size, communication,
meeting, decision making processes, tasks vs. relationships and key values.

 

It
is important to know Russia’s geography and history how it became Russia and
which countries it borders with in order to make business. According to Russia
Introduction, “Russia shares marine borders with Japan by the Sea of Okhotsk
and the U.S. state of Alaska across the Bering Strait. Russia is the largest
country in the world, covering more than one eighth of Earth’s occupied land
area. Spreading across the entirety of northern Asia and much of Eastern
Europe, Russia crosses eleven time zones and includes a wide range of environments
and landforms. From northwest to southeast, Russia shares land borders with
Norway, Finland, Estonia, Latvia, Lithuania and Poland (both with Kaliningrad
Oblast), Belarus, Ukraine, Georgia, Azerbaijan, Kazakhstan, China, Mongolia, and
North Korea.” It is important to know the borders which helps to make decisions
about business export and import to Russia and from Russia to USA.

 

Brief
History

Russia is known as a Russian Federations.
Its capital is Moscow. The name Russia is coming from “Rus people a group of
Varangians (possibly Swedish Vikings who founded the state of Rus). “However,
this appropriate name became more apparent in the later history, and the
country typically was called by its populations, as “Russian Land” or
“Land of Rus'”. “To differentiate this state from the other states
derived from it, it is symbolized as Kievan Rus’ by modern historiography.” It’s
essential to know that not everyone in Russia is Russian.

 

Ethnic
Origin

Russian
Federation consists of many nationalities. There are over 186 ethnic groups
which are considered as nationalities. Population of those groups very
substantially, from hundred million, such as Russians and Tatars, which make up
the first two largest groups, to under ten thousand in population for groups
like Samis and Kets. Those ethnic groups may speak different languages and
possess 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.

 

 

 

 

 

 

 

 

 

Religion

It
is valuable to know that Russia’s religion believes changed. As a foreigner, we
should respect their religions and practices. The Soviet Union was formally an
atheist country in the days of communism. Now, however, contribution in
religion is increasing, with many citizens committed Russian Orthodoxy, Islam, and
Judaism.

 

 “82% of Russians are believers. Orthodox 70%,
Muslims 10%, Catholics 1,

2%,
Buddhists 0,7%”. (2009)   Retrieved from http://fita.org/countries/russiaportal.html.

 

 

 

 

 

 

 

 

 

 

Language

Official
spoken language is Russian. In Business language English is more, and more
common over wide.  Executives usually
understand English better than they speak it. Be prepared to plan dialogs in
Russian. Knowledge of a language is key to do a business.

 

Population

Total population in Russia is 144.3 million
(World Bank). According to Russia Introduction, “Population of main cities including
suburbs: 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 as
a reliable source of work force as well as largest markets for doing business.

Business
Etiquette

Appearance

In
Russia Appearance in the International Business is very important. Businessmen
usually

wear
suits and ties which is darker. Businessmen do not take off their jackets in the
conferences, and they do not stand with hands in pockets, this is considered as
a rude. When at a family residence, it is proper to bring a gift, such as a
bottle of wine, dessert, or a bouquet of flowers. When shaking hands with
someone, be always sure to take off your gloves. When attending any formal
meetings such as the theatre, concert, it is appropriate to check your coat at
the front door of the establishment. Be sure to have plenty of business cards
with double sides of information. One side should be printed in English, the
other side in Russian.  Be alert and open
to taking a drink or having a toast, as refusing to do so is a serious gap of
etiquette.

 

Behavior

In
addition to appearance it’s key to know Russians’ behavior. As a foreigner, you
are expected to be on time to all business meetings. However, your Russian partner
may be late, as this may be an examination of your patience. Do not expect any excuse
from a late Russian, if your business meetings begin one or two hours
late.  This may also be an examination of
your patience. Social events are more relaxed. 
It is acceptable for foreigners to be 15 to 30 minutes late. Russians
value patience, but they are not punctual. Russians highly value patience. According
to Heinze, “As a foreigner, you should realize that “Final Offers”
are often not actually the end of the discussions, and that often the outcome
will be more beneficial if you can hold out.

 

There
is a Russian term meaning “connections” or “influences”. It is very
difficult to do business in  Russia
without help from a native. To help with doing Business in Russia, gifts are
often a clever idea” (2009). It is okay for Russians to accept gifts; they see
it as respect to them. Communication plays a key role in business in Russia. Knowing
how to be held discussions and giving out your point of view in a beneficial
way to businessmen in Russia is important in order to do business with them.
Knowledge and communication always helps in business, especially in interviews.

 

Communication

Russian
is the official language.  According to
Matt Priest, “Russians are generally reserved and somber, speaking loud is
considered as rude a behavior” (Priest, 1998-2012). Many Russians speak
English, as it is often taught at schools beginning in the third grade.
Russians have very high literacy rate. Good topics of conversations in Russia
include peace, the current changes taking place in Russia, and their current
economic situation. Russia is a country of cultural contradictions. Also, it is
not only a big country, the disruptions of the 1990s have created a very marked
generational gap. Generally, the older generations are marked by a trend towards traditionalism and have
a group mentality. The younger generations are much more energetic and
progressive, with a more individualist approach.

 

Russia
is a country that deliberates itself isolated from the rest of the world, enclosed
by neighbors who want to take advantage of it. This has created a stronghold
mentality – outsiders are not trusted. This contrasts with the extensive hospitality
normally shown to visitors. Russians are often very closed and formal in
public, but open, warm and informal in private. In communication, Russians tend
to be direct and do not avoid hostility. They can be extremely emotional and
yet reserved in the same meeting. According to Heinze, “knowledge of “high
culture” is valued, and the ability to talk about works of art and literature
is appreciated. Russians were traditionally very patient, and punctual
especially 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 generally
consider 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 patience
and all good qualities, to be sure to work with qualified right partner, who is
punctual and calm with business.

 

Meetings

Therefore,
if you have meetings with local representatives you will wait a long time, even
if you have an appointment: processes are slow. You should expect meetings to
take up more of your time than planned. Before a meeting you should re-confirm
by phone, both with the person and with his/her secretary. Russians prefer
direct contact to emails or letters – the postal service is unreliable, so make
sure you speak in person. It is worth to know who will be present in advance if
possible 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).

 

When
you are considered as an “honored guest,” it is very common to combine meetings
with food and drink. Russians can be very hospitable and are willing to
demonstrate their generosity. They are aware of their reputation for heavy
drinking and may use that to gain advantage. Ironically policies of communism
have bred a hierarchical structure in organizations in Russia. The boss is a
very powerful figure in Russia. Raises are rewarded not just financially but
with a bigger office, better car and other visible privileges. Team members are
expected to respond immediately to any request by their boss, regardless of any
other duties they may have to perform. It is also expected that those in
authority will be obvious in their exercise of power. Russian managers are
comfortable criticizing openly and making impulsive decisions. In the same way,
rewards and positive feedback given publicly. This can mean that the boss may
use a meeting as an opportunity to address an individual’s performance.

Personal
Behavior in Business and Social

Task
vs. Relationship

In
addition, for Russians relationship and task is considered important. In business
Russians are more comfortable with people they know well. However, business
relationships are measured by the success of a task, the connection may not
survive a awful experience or a disappointment. Loyalty is to a person rather
than an organization and you must re-establish a relationship each time your
contact moves on. When a team leader is promoted, it is common for him/her to
promote members of the old team as a reward for them support. Among younger
leaders and businesses, the balance is tending towards a greater focus on tasks,
and business relationships are increasingly transactional. When making
proposals it may be beneficial to demonstrate the ways this will improve a
person’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 to
consider 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
 

 

Decisions

Decisions
are 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

recommendation
up to the next level. Individuals may be invited to add to decisions, but these

are
not discussions. Disagreement with a higher person is very rarely expressed in
public. It is

not
uncommon for the senior person to be quite argumentative in a meeting if s/he
is not getting

their
own way. It is appropriate to ask for a break to reconsider your position
before continuing

the
meeting” (Heinze, 2014). In Russia, it’s common for bosses to get what they
want, it’s them

business
and they are the leaders of it, but if points are delivered with respect and
beneficial to

the
boss and businesses, they may check it and boss may change his/her decision.

 

Keys
to negotiate in Russia

Another
important aspect for doing business is Negotiation. It is very important to
know key of negotiation. There are some suggestion keys:

Be
punctual:

Russians
are very punctual they don’t like being late during the business meetings

Avoid
the informalities and the empty promises:

If
you can’t accomplish your task don’t say I can do it, because you will forever
lose the trust.

Get
ready to initial positions characterized by aggressiveness and distrust:

Russians
are by nature distrustful people. It is very common for Russians to become rude
or arrogant during the business meetings, if you respect them and keep your
word, it will be to your Identify the person who takes the decisions and
address him directly:

benefit.

Don’t
waste your time to negotiate with intermediate managers or eventually your
decision will be postponed.

 

Stereotypes

This
table 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

 

In
conclusion, for business personnel its important task to have a knowledge about
the country to make success with their businesses. Knowing more about country helps
to make stronger connections with business owners. While Russian regulations do
not make it quick, or easy to begin and maintain entrepreneurial risks, a
little advance knowledge of the issues facing entrepreneurial startups can go a
long a way to preventing problems later. Knowledge combined with cautiousness,
a rapidly growing economy and richness of opportunities confirms that many
entrepreneurial risks will be worth the effort.