Mabe: Learning to be a Multinational.
1) What should Ramiro Perez do?
AlternativesStay in Russia (same operations: exportations)
Stay in Russia and expand operations (manufacturing plant)
Stop operations in Russia
Best decisionStay in Russia and continue with exportations. Continue implementing Mabe culture.
Center human resources in new generations.
Why stay ind Russia with same operations?
After 4 years of operations, Mabe understand the culture.
Exporting products to Russia doesn´t represent important costs to the company. Low risk for Mabe (no manufacturing plant)
Profits projections (80 million in 2012)
Posibility of TLC between México and Russia (2012 conversations) In the future Russia could have more stability. ( great Business opportunity) The JV market share increase for 0.9% in 2008 to 4.9% at the end of 2012 Why dont expand operations in Russia?
Country AdministrativeGeographic EconomicCultural
(147 de 180)
Volatile political enviroment
Inestability in the capital market
Lack of financial institutions.
Loans difficult to adquire.
Poor regulation a propiedad intelectual
Gravity model results not favorable.
Big distance between Rusian countries.
Rusia the biggest country of the world.
Moscow and Saint Petersburg most important countries. Lack of small and middle size enterprises. Poor middle class.
No modern banks.
Rusians not invested at home.
Morgage market non existent
Negative foreign direct investmentLow trust of outsiders.
Heavily influence by the history.
Short therm oriented.
New and different attitude of young russians.
Poor loyalty of employments.
RussiaAdministrativeCorruption 147 de 180
Volatile political enviroment, lack of clear direction (complex tax system , concerns about Russia political interferente, arbitrariedad in the aplication of laws.) Lack of Skill stuff.
Inestability in the capital market ( Lack of financial...
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