5. Read the article “How to do business in Russia” and fill in the numbered gaps (1-8) with the appropriate paragraph headings (a-h) from the list below.

1. Learn to live and manage in a crisis.

2. Stand firm on major goals and be flexible on details.

3. Build a strong organizational culture with visible foreign elements.

4. Cultivate relationships with government agencies at all levels.

5. Respect local rules, but play your own game.

6. Work to create an empowered organization, step-by-step.

7. Practice authoritative, not authoritarian, leadership.

8. Recognize that corruption is omnipresent in Russia and must be managed.

How To Do Business in Russia

By Carl Fey and Stanislav Shekshnia

Russia has much to attract foreign investors — a fast rate of growth in gross domestic product, a large population and a substantial expansion in purchasing power. But its unique and sometimes murky business environment has left Russia with a reputation as being a difficult place to set up shop.

How can international companies overcome the difficulties and reap the rewards of doing business in Russia?

Based on interviews with executives from 36 foreign companies operating in Russia, as well as our own business experience there, here are eight commandments aimed at helping Western companies prosper.

1:……………………………………………………………………………..

Russians value strong, highly involved leaders who gain authority and trust through competence. Effective leaders in Russia communicate a compelling vision, deliver superior results and share responsibility and success with followers. A hands-off management style, on the other hand, is often mistaken for weakness.

2: ……………………………………………………………………………..

Russians are drawn to work cultures where employees are respected, made to feel part of a team and encouraged to achieve their full potential because these weren’t traditional elements of Russian national work practices. Western companies should preserve and play up these qualities, even as their top management becomes more Russian. A strong organizational culture also helps guide employees’ actions.

3: ……………………………………………………………………………….

Convincing Russian employees to make decisions and show initiative is difficult because they weren’t encouraged to do so in the past. Creating an empowered organization should be a gradual process that begins with a promise not to punish employees for making honest mistakes.

4: ………………………………………………………………………………..

Don’t try to copy the business models of Russian partners or competitors because it is tough to beat them at their own game. The foreign companies that most often flourish in Russia are those that apply, with some local adaptations, the business models that have led to success elsewhere.

5: ………………………………………………………………………………...

In Russia’s changeable environment, some say planning is impossible. We say it is a necessity. Setting and sticking with long-term goals, while being flexible about the way those goals are pursued, helps guide employees through the sea of uncertainty.

6: ………………………………………………………………………………..

Russia is very predictable — something unexpected is sure to happen every day. Companies must be prepared not only to put out fires but to spot the opportunities that grow out of them. Firms can work to reduce surprises by implementing early-warning systems — such as additional checkpoints on long-range projects to spot delays at early stages.

7: …………………………………………………………………………..

Managing corruption is a necessity in Russia. To deal with it, companies can try several options. They can outsource to other companies activities that are prone to corruption. They can pre-empt corruption by proposing a deal that doesn’t violate the company’s ethical standards. One firm we know of offered complimentary products to officials in return for daily reports on the products’ performance, testing from which the company benefited. Companies also can wait to enter the business at a later stage, or they can pass on deals in which corruption can’t be avoided. Russians will test a company’s corruption strategy, so standing firm is key.

8: ……………………………………………………………………...

Getting to know people is important in Russia, where politicians and government agencies continue to have arbitrary power over business. Often attention, and not bribery, is what is most important. A company’s top executives should make regular visits to government officials, invite bureaucrats to visit and get involved in local welfare or training programs.

(Adapted from http://sloanreview.mit.edu/business-insight/articles/2007/5/4954/how-to-do-business-in-russia/)

6. Listen to the dialogue “Sending Business Packages” and commentaries coming after it. Give English definitions to the words and expressions in bold print. Learn the dialogue by heart and dramatise it with a classmate.

Sending Business Packages

Maria: I need this package to arrive in Tulsa by next Wednesday.

Sam: Sure, I’ll send it UPS or FedEx using their ground service. It’ll be cheaper than sending it using their overnight service and we can still track it. Is it going to a business?

Maria: Yes, it is.

Sam: Okay, I’ll mark that it’s going to a commercial address.

Maria: That’s fine. I’ll also need these contracts to get to Tokyo by Friday. Send it to the home of the president of the company.

Sam: I’ll send it DHL and use the residential delivery service. This seems like a large package for just contracts.

Maria: I’m also including a gift for the president’s wife.

Sam: If it’s breakable, I’ll pack it really well and then get it insured. What’s the declared value?

Maria: It’s about $700. Oh, and I want this box to go to Olten, Switzerland, but just send it regular mail through the post office. Make sure I get delivery confirmation, though.

Sam: No problem. I’ll just need to fill out a customs declaration form. What are the contents?

Maria: They’re books.

Sam: Okay, I’ll take care of it.

Maria: Thanks. What would I do without you?

Sam: The real question is, what would the mail services do without you?

(From ESL Podcast 456.)

7. Listen to the monologue “Different Work Styles” and commentaries coming after it. Give English definitions to the words and expressions in bold print. Answer the questions.

Different Work Styles

Before I started my new job, I didn’t know that I would be working so closely with another employee of the company. I was used to a lot of autonomy in my last job, and I have always been self-directed. I didn’t need close supervision and the boss never had to worry about me slacking off. To tell the truth, I was a little apprehensive about working in a team after having had so much independence. To my surprise, though, I liked the collaborative environment and I think I actually do better work because of it.

Of the two of us, Delilah is the creative one. While I’m a little adverse to risk, Delilah is always challenging the status quo. She often has good ideas, and because I’m pretty resourceful, we often find a way to put those ideas to work. Delilah has great follow-through, too, and I never need to worry that things will fall through the cracks.

I think the key to our success in working together is that neither one of us tries to exercise authority over the other. We respect each other’s abilities and we know when to take charge and when to back off. If you had told me a year ago that I would be working in a team environment and enjoying it, I would have told you that you were crazy. But I guess the old saying isn’t true: You can teach an old dog new tricks.

(From ESL Podcast 312.)

• What are the advantages of working independently?

• Why are some people apprehensive about their new job?

• Does independence imply responsibility?

• How can differences in character of colleagues help with their business?

• What is essential to successful working together?

• Why isn’t an old saying true?

8. Do the cultural awareness quiz on Canada. Check for answers on http://www.kwintessential.co.uk/resources/quiz/canada/.

1. In Canada business appointments are usually made in the:

• morning;

• afternoon;

• evening.

2. Which two languages are most widely spoken in Canada:

• English and American;

• English and Canadian;

• English and French?

3. Business associates in Canada should in the first instance be address by:

• their first name only;

• their title and first name;

• their title and surname.

4. Direct eye-contact shows:

• sincerity;

• fear;

• distrust.

5. When doing business in Quebec it is a requirement by law that it be conducted in which language:

• English;

• Canadian;

• French?

6. People from Canada consider themselves to really be Americans and prefer this to being called Canadians:

• true;

• false.

7. Canadians typically find it difficult to say “no”:

• true;

• false.

8. Which of the following may be construed as a sign of weakness in Canada:

• a weak handshake;

• making direct eye contact;

• wearing gloves.

9. Business gifts should:

• be modest;

• be extravagant;

• not be given.

10. During business negotiations Canadians often talk about their families and personal life:

• true;

• false.