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Overview
• Introduction
• Objectives
• Company Analysis
• Market Analysis
• Recommendations
Language & Consulting 1. Language Services (translation, interpretation, language courses…)
2. Business Consultancy Services
❑ Market Analysis
❑ Trade and Sales promotion
❑ Order fulfillment & logistics
❑ Legal advice
❑ Post sales assistance
Objectives
❑ Conduct a company and market analysis for both British and Russian speaking markets. Identify and critically evaluate the feasibility of suitable British companies trading with L&C’s existing Russian partners.
❑ Make recommendations to increase the effectiveness of Language and Consulting in order to initiate awareness and engagement.
Market Analysis - PEST
Identify the political, economic, social and technological macro-economic factors affecting L&C when doing business with UK, Russia & Ukraine.
Peng, A., Nunes, M., 2009. Using PEST Analysis as a Tool for Refining and Focusing Contexts for Information Systems Research. 6th European Conference on Research Methodology for Business and Management Studies. Lisbon, Portugal. July 9- 10, 2007, pp. 229-236.
Political Economic Social Technological
UK
- Brexit political debates. –
Company tax rate is lower
thanks to Russia-UK
Double Taxation Treaty.
- The economic situation
is very uncertain due to
Brexit and possible
increase in EU
sanctions on Russia.
(information monitoring is
recommended).
- Adaptation to the
different ways of doing
business among these
countries could be
difficult (that’s why L&C
is needed).
- UK exports of goods
and services to Russia
grew by over 75%
between 2009 and
2012.
Success oriented, effort to
minimize social inequalities in
business; high flexibility and
ambition in business deals.
UK’s expertise in ICT
could be used to
improve L&C online
presence and it
could speed Russian
development in this
field.
Russian Federation
- CIS is an advantage due
to tariff reduction among
member countries.
- Conflictual relationship
(influential on commerce)
with the EU. - Volatile
relationship with Ukraine.
Hierarchies are influential in
the business field. Personal
relations are evaluated more
than in the UK. No emphasis
on personal fulfilment, high
control over daily business
life. Planning-oriented.
Ukraine
UK is still one of the major
investors in Ukraine.
Political uncertainty in
Ukraine affects logistics.
Company Analysis
• Use strengths to maximise opportunities
• Use strengths to minimise threats
• Minimise weaknesses by taking advantage of opportunities
• Minimise weaknesses and avoid threats
SWOT => TOWS Matrix: Strategies...
Porter’s (1980) 5 Forces Analysis
• Brand identification and access to latest
technology
• Industry protection /Regulations
• Availability of close substitutes and substitutes
producer’s profitability
• Contribution to quality or service of buyers product
• Buyers profitability
• Concentration and balance among competitors
• Corporate strategy stake
Porter’s 5 Forces Analysis
Recommendations 1. Analysis of competitors in UK suggests it is feasible to
enter the UK market.
2. Recommended new sectors for L&C to help export from
UK to Russia.
3. Improve L&C’s digital marketing strategy.
4. Utilise information monitoring.
5. Increase UK confidence in doing business with L&C by
improving company appeal.
1. Existence of competitors for L&C in UK?
Language and consultancy service providing companies in UK:
(There are a total of 620 business consultancy companies in UK. But the following were selected on the bases of
similar size, services and structure as that of L&C.)
● Albion Overseas Ltd
● Language Connect International Limited
● Russia Local Ltd. Linguistic Consultancy
Business consultancy service providing companies in UK:
● Blue Phoenix Enterprises
● Aperture Management Limited
● Navv Associates Limited
2. Identifying new sectors 1. Biotechnology and Pharmaceuticals
The region the company can look towards expanding to is in Nottingham, as Boots (Pharmaceutical company) is located in this region and is cheaper to set up a branch in this region as compared to London.
2. Education
English is expected to become a university entrance requirement by the year 2020. This would create a demand for taught English. L&C can use this as an opportunity to expand their language services in Russia.
3. Automotive sector (vehicles)
4. Engineering Equipment
5. Mining
a. Supply of Machinery
b. Business Consultancy
6. Consumer Goods
GOV.UK. (2018). Doing business in Russia: Russia trade and export guide. [online] Available at:
https://www.gov.uk/government/publications/exporting-to-russia/doing-business-in-russia-russia-
trade-and-export-guide
3. Improving L&C’s digital
marketing:
WEBSITE TRAFFIC
- SEO (organic search & paid search), Google adwords
SOCIAL MEDIA PRESENCE
- Facebook, Twitter, Consumers highly engage on internet & mobile
WEBSITE EASE OF USE
- Consistency between online and print, precise translation for languages, A/B testing for layout
● Why is it important?
- Low costs, quick, interactive and flexible.
- Gain competitive advantages
- Provide better services to your customers (more precise, less risks)
- Promotes your reputation
● How do you do it?
- Email alert
- Social media
- News feed aggregation
- Create and personalise a dashboard (i.e : Netvibes)
4. Information Monitoring
5. Increase British confidence in doing
business with L&C
• More confidence = more customers. • More company attractiveness = more confidence.
HOW:
• Demonstrate a clear value proposition and competitive advantage (improve self-marketing strategies, banding awareness, provide Russian culture training courses,…)
• A base in the UK (JV with UK partner who better knows the market) would express commitment to the market with a long-term perspective.
• Locate the base in the East Midlands ensures lower rent fees, closeness to places where the possible future clients are based (major UK pharmacautical and automotive companies).
References • Peng, A., Nunes, M., 2009. Using PEST Analysis as a Tool for Refining
and Focusing Contexts for Information Systems Research. 6th European Conference on Research Methodology for Business and Management Studies. Lisbon, Portugal. July 9-10, 2007, pp. 229-236.
• Heery, E. and Noon, M. 2008. A dictionary of human resource management. Oxford: Oxford University Press.
• Porter, M., 1985. Competitive Advantage: Creating and sustaining superior performance. New York: Free Press.
• GOV.UK. (2018). Doing business in Russia: Russia trade and export guide. [online] Available at: https://www.gov.uk/government/publications/exporting-to-russia/doing- business-in-russia-russia-trade-and-export-guide
THANK YOU