Global business Essay Example | Topics and Well Written Essays - 500 words

Global business - Essay Example Particularly this discussion will be looking at the issues that American businesses going in Russia need to understand in order to formulate effective entry strategy. These two countries have major cultural difference in language, authority, customs and norms thus conducting businesses in Russia present a communication and management challenge. Communication is essential for any business, Russia unlike America has several official language due to the large number of ethnic communities of about one hundred (Bloshteyn, 2007). This will need the company to have people who understand a variety of these ethnic languages while in US English is their official language. Body language help to convey certain messages like nodding the head to show agreement Russians do not use body language as such like Americans do but are said to be very emotion for instance they can walk out on you during a meeting to show disagreement. Authority in Russia is centralized and chain of commands are from top to bottom and the juniors staff are expected to perform their tasks without any questioning while the Americans top managers give directions and give room for debating. Russians organizational structures are very bureaucratic in nature and this makes it difficult to do business for instance according to an executive director of Russo-British commerce chamber Stephen Danziel, ‘‘you have to fill forms for all most everything and have them signed by the right authorities usually in triplicate’’. According to Trompenaars & Woolliams ( 2003), culture is the core value of any society, businesses have to understand the cultural background of the customer in order to be able to meet their needs. The ideologies and gender views of these two countries are different, Russians are seen as communalism and believe in collectivity while Americans are entrepreneurship and very competitive. Therefore Amer icans businesses need to be aware of these background which will enable the