STRATEGIC BUSINESS PLANNING FOR FOREIGN INVESTORS IN RUSSIA
This research explores the advantages and disadvantages of investment in Russia in the early-1990s through a review of the various aspects involved in the application of the principles of strategic business planning to the Russian economic environment. In the conduct of this exploration, market anomalies between Russia and developed western economies, investment opportunities in Russia, joint venture potentials, and the operation of free economic zones are considered.
Market Anomalies Between Russia and Developed Western Economies
The failure of the attempted coup de etat against the Gorbachev government in the Soviet Union in 1991 led directly to both the official disestablishment and the official disenfranchising of the Communist Party of the Soviet Union (Goldman, 1991, pp. 30-33). Writing the Communist Party out of government in the Soviet Union, in turn, made it possible for the introduction of economic changes that, in effect, marked an end to Soviet socialism, unless it is reborn at some later date (Toffler and Toffler, 1991, pp. 34-39).
The general assumption in the western international press appears to be that the failure attempted coup de etat caused the collapse of Soviet socialism. In fact, the attempted coup de etat was just a manifestation of the collapse of Soviet socialism. The collapse of Soviet socialism began with the ascendancy to power of Mikhail Gorbachev in 1985. By the time of the attempted coup de etat in 1991, Soviet socialism was already dead. The only thing that the failure of the attempted coup de etat.
All in all, western businesses tend to view Russia as a land of opportunity in the early-1990s. Although the political and economic transitions in Russia are creating chaotic conditions, western businesses think that the desire of Russian residents for consumerism will create significant opportunities (Giges, 1990, p. 38).
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