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 Ericksonerickson.107@osu.eduerickson.107@osu.edu

Photos from CSEES, CIBER, CCAD, Nobel Biocare, and MicrosoftPhotos from CSEES, CIBER, CCAD, Nobel Biocare, and MicrosoftMap from CIAMap from CIA