University of Plymouth 2009
Submitted to: Sarah Keast
Course: Research Methods
Date: 13 February 2009
Word Count: 1858
Purpose for the project
Purpose of the project
The overall aim of this project is to explore international strategy approaches and their successful implementation outside Europe and examine the Russian market as a potential business environment.
“Russia has engaged in a wide range of cooperative activities with the states of Europe. It has negotiated all manner of arrangements with NATO and the European Union and has become a full member of the Council of Europe”, (Webber, 2000 p. vii). The researcher has come across various publications concerning internationalisation strategies of different companies and Russia and its relations with Europe. One research was conducted on the strategic management of a subsidiary within an international business, focusing on how competence building in the international business leads to the creation of capabilities in foreign subsidiaries, (Birkinshaw et al 1998). This is one method of internationalisation. Further research was conducted on locations of international companies, where the author suggests that many of the explanations of the 1970s and early 1980s need to be modified as firm-specific assets have become mobile across natural boundaries. He also examines the dynamic interface between value-added activities of international business in different locations, (Dunning, 1998). This research looks precisely at the strategic location that an international business can acquire in the foreign market like Russia for example. One other research area that has been introduced is about the elements of cooperation and conflict between Russia and Europe, focusing in the main on how Russian policy toward Europe has developed since the end of the Cold War and the disintegration of the Soviet Union, (Webber, 2 000 p. vii).
Psychic distance has been a subject of study as it is a key element and determinant for expansion in the internationalisation process. It is assumed that the higher the level of cultural difference, the higher is the risk for a company going international. This would be the case if a European business expands to Russia. The cultural differences and certain assumptions thereof or stereotypes will be of high importance for this project.
“Can such a country as Russia with eleven time zones, extreme climatic conditions from arctic temperatures to dry stone and sand deserts, with more than one hundred nationalities and very limited experience with liberal ideas and concepts, and with civil-democratic traditions, be ruled in a modern world”, (Eberwein and Tholen, 1997 p. viii) is one other research area that deals with the development of administrative organs and the Russian economy and criticises Russians who are unable to make compromises to put the common good before the egoistic interest of individuals. This research might contribute to the evaluation of how difficult it might become for a European company to expand its business to Russia.
The very few above – mentioned research areas will provide the researcher with information that he can use while working on his own research question. However, in course of writing his project he will discover other researches and in particular consult relevant books that provide theories to support and foster the findings. The researcher will use books such as International Business by Rugman and Hodgetts, Economics by Degg, Comprehensive Business Studies by Whitcomb, Exploring Corporate Strategy by Johnson and Scholes, Multinational Business Finance, Market or Mafia by Eberwein and Tholen, Russia and Europe by...
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