Strategic management - challenges and opportunities that open up for Austrian construction companies opperating in new emerging markets in Russia and CIS

Abstract

The Russian market is considered to be a huge opportunity for Multinational Enterprises from Western Europe. The focus of this Master´s Thesis is the analysis of the choice of entry modes of Austrian construction companies into the Russian market, their motivations, their activities, their success factors and strategies for further expansion in the CIS region. The influencing factors of operations of construction companies are studied. Four Austrian construction companies which have been expanded to Russia and CIS were selected for analysis. The research is based on the study of the strategies of MNE expansion including the choice of entry modes and its application to construction companies expanding to Russia. Basic objective is to examine how Austrian construction companies enter the Russian market and what factors have an impact on their success. When entering the Russian market, there are comprehensive bureaucratic procedures to be met which derive from legislation or simply habit. Trust and long-standing collaboration are sometimes more important than purely economic criteria. The local business environment has decisive impact on the operational activities of the companies. The policies of the host countries affect operational activities (strict regulations). Other objectives are the comparison of the companies and the examination of future strategies and expansion plans of those companies in Russia and CIS (further expansion or withdrawal). Finally, the results of the research are outlined and discussed. The Thesis ends by drawing out conclusions.