Company Introduction

Engro Fertilizers Limited, a wholly owned Engro subsidiary, is a premier fertilizer manufacturing and marketing company with products that focus on balanced crop nutrition and increased yield. The company markets primary and secondary fertilizers.

Organizational Culture
Engro is about the people who are a part of us. Our culture is dynamic and energetic, with emphasis on our core values and loyalty of our employees. Our work environment promotes leadership, integrity, teamwork, diversity and excellence.

Products and Brands of Engro Fertilizer Engro UREA

Engro is the first company to have setup urea production facility in Pakistan, a landmark event in agricultural sector of the country. This together with the fact that urea is the most widely used fertilizer in the country, gives Engro Urea a special standing in the domestic fertilizer market.

Engro DAP
For a healthy growth the plant requires three major nutrients namely Nitrogen, Phosphorus and Potassium. Di-Ammonium Phosphate (DAP), which contains 46% Phosphorus, is the most widely used source of Phosphorus for the plant. DAP strengthens the roots of the plant and improves nutrient uptake. DAP was imported in Pakistan by the fertilizer import department until 1994 and since then the private sector has been responsible for all imports. Engro Fertilizers has been importing and marketing DAP in the country since 1996. Engro Fertilizers is the most trusted and one of the largest importer of DAP in the country.

Zorawar
For a healthy growth the plant requires three major nutrients namely Nitrogen, Phosphorus and Potassium. Engro Zorawar is a specialist product which provides the plant with Phosphorus content for its growth. Zorawar was introduced in 2003 and is the highest Phosphate content product available in the market. It has 52% Phosphorus content which is higher than DAP (which has 46%).

Engro NP
NP formulations that contain Nitrogen and Phosphorus in almost equal quantity have been especially important to Pakistani farmers, given the peculiar deficiency of both components in most of the Pakistani soils. This category serves the needs of a particular niche of farming community in the country; where application of nitrogen and phosphorus is required in almost equal proportions.

Engro Zarkhez
Plants require three major nutrients (i.e. Nitrogen, Phosphorus and Potassium) for quality higher yield. Zarkhez, introduced in 2002, is the only branded fertilizer in Pakistan which contains all three nutrients. Presence of all the macro nutrients results in synergistic plant nutrient uptake. The resultant yield is of high quality; sucrose content of sugar cane increases, quality and size of potato improves, fruit and vegetables appear and taste better. Zarkhez is a high quality fertilizer containing correct proportions of the three nutrients in each of its granule. This helps ensure uniform and balanced nutrient application across the crop field.

Zingro
Zinc is a micronutrient, it is a nutrient which the crop requires in small dosages and it compliments functions of major nutrients. Over the years zinc deficiency has been well established on a variety of crops and in rice specifically. Zingro brings to the market the trust of Engro and high quality standard which has made it distinct from all the competition.

Why Russia?
Climatic and geographic factors limit Russia's agricultural activity to about 10 percent of the country's total land area. Of that amount, about 60 percent is used for crops, the remainder for pasture and meadow. In the European part of Russia, the most productive land is in the Central Chernozem Economic Region and the Volga Economic Region, which occupy the grasslands between Ukraine and Kazakstan. More than 65 percent of the land in those regions is devoted to agriculture. In Siberia and the Far East, the most productive areas are the southernmost regions. Fodder crops dominate in the colder regions, and intensity of cultivation generally is higher in European Russia.

Crops
Grains are among Russia's most important crops, occupying more than 50 percent of cropland.
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 Potatoes, a vital crop for food and for the production of vodka, are grown in colder regions Sugar beet production has expanded in recent years; the beets are grown mainly in the rich black-earth districts of European Russia. Flax, also a plant tolerant of cold and poor soils, is Russia's most important raw material for textiles Flax also yields linseed oil, which together with sunflowers (in the North Caucasus) and soybeans (in the Far East) is an important source of vegetable oil. Production of fruits and vegetables increased as private farms began to expand around 1990. In the mid-1990s, the largest yields in that category were in cabbages, apples, tomatoes, and carrots.

Agricultural Policy
Soviet Policy
A number of factors made the Soviet collectivized system inefficient throughout its history. Because farmers were paid the same wages regardless of productivity, there was no incentive to work harder and more efficiently. Administrators who were unaware of the needs and capabilities of the individual farms decided input allocation and output levels, and the high degree of subsidization eliminated incentives to adopt more efficient production methods.

The Gorbachev Reforms

The Gorbachev agricultural reform program aimed to improve production incentives. Gorbachev sought to increase agricultural labor productivity by forming contract brigades consisting of ten to thirty farm workers who managed a piece of land leased from a state or collective farm. The brigades were responsible for the yield of the land, which in turn determined their remuneration Although Gorbachev's reforms increased output in the agricultural sector in 1986, they failed to address fundamental problems of the system, such as the government's continued control over the prices of agricultural commodities, the distribution of agricultural inputs, and production and investment decisions. In the contract brigade system, farmers still had no real vested interest in the farms on which they worked, and production suffered accordingly. In the 1980s, the Soviet Union went from being self-sufficient in food production to becoming a net food importer.

Yeltsin's Agricultural Policies

In December 1990, the Congress of People's Deputies of the Russian Republic enacted a number of laws that were designed to restructure the agricultural sector and make it more commercially viable. The Law on Peasant Farms legalized private farms and allowed them to operate alongside state and collective farms, to hire labor, and to sell produce without state supervision. The same session of the congress passed the Law on Land Reform, which permitted land to be bequeathed
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as an inheritance from one generation to the next, but not to be bought or sold. The government also established the State Committee for Agrarian Reform, whose responsibility was to oversee the transfer of available land to private farming. The decree required that farmers choose either to reorganize into joint-stock companies, cooperatives, or individual private farms, or to maintain their existing structure. Under the first two arrangements, workers would hold shares in the farms and be responsible for managing the enterprises. An individual farmer could later decide to break from the larger unit and establish private ownership of his or her share of the land, as determined by an established procedure. As of 1996, individual private farming had not assumed the significance in Russian agriculture that reformers and Western supporters had envisioned. Although the number of private farms increased considerably following the reforms of 1990, by the early 1990s the growth of farms had stalled, and by the mid-1990s the number of private farms actually may have dropped as some individuals opted to return to a form of cooperative enterprise or left farming entirely. By the end of 1995, Russia's 280,000 private farms accounted for only 5 percent of the arable land in Russia. A number of factors have contributed to the slow progress of agricultural reform. Until the mid1990s, the state government continued to act as the chief marketing agent for the food sector by establishing fixed orders for goods, thus guaranteeing farmers a market. The government also subsidized farms through guaranteed prices, which reduced the incentive of farmers to become efficient producers. Perhaps most important, effective land reform has not been accomplished in Russia. The original land reform law and subsequent decrees did not provide a clear definition of private property, and they did not prescribe landholders' rights and protections. In addition, the fiscal position of the federal government has forced it to reduce subsidies to many sectors of the economy, including agriculture. Subsidies are among the targets of major budget cuts to comply with the standards of the IMF and other Western lenders and achieve macroeconomic stabilization.

Constraints to fertilizer use in Russia

Structure of agriculture: the lack of small and medium size enterprises Low farm gate prices for agricultural commodities Inadequate use of modern agricultural technologies + predominance of extensive farming
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 Inadequate fertilizer distribution system Slow recovery of advisory and soil analysis system Slow technology transfer from research institutions to farms

National program on Development of agriculture 2008-2012

The program focused on animal husbandry, stimulation of private farm production up to 30% of agricultural output through subsidies for bank interests, establishment of farms cooperatives, land mortgages, and house building for young agricultural specialists. The government implemented guaranteed minimal price for such cereals as wheat, barley, rye and maize. If market price falls below this fixed minimal price the government starts buying the excess of grain at a minimal price. For 2009 the minimal price for wheat is fixed at the level USD 145-180 per ton depending on protein content in grain. The government abolished income tax for agricultural producers until the 1st of January of 2013 and VAT has been reduced to 10% (for the rest it is 17%). Government compensates producers rates for credit used to buy machinery, fertilizers and seeds and gives direct subsidies to compensate fertilizer cost. And finally the government will support agricultural sector to survive during the globe financial crisis of 2008- 2009 giving additional subsidies for agricultural producers in amount of 30 billion USD International plant nutrition Institute has developed software that will forecast fertilizer needs of the land, the name of the software agristats by using past 10 year data. By using this software IPNI has forecasted that fertilizer needs have will increase in Russia. The nutrition requirement of the land is nitrogen, phosphorus and potassium By above policies the market for chemicals had largely recovered and reached pre-crisis levels in Russia by the end of 2010 and the prospects for the future look good in most branches. The International Fertilizer Association forecasts that by 2014 the volume of demand for mineral fertilizers should grow by almost 12%6 as a result both of population growth worldwide and the reducing amount of fertile farmland. Owing to the wildfires which plagued Russia during the summer and caused significant damage to the harvest, demand for fertilizing chemicals remains high. The nitric fertilizer industry appears to be stagnating somewhat but the demand for phosphorous- and potassium-based fertilizers is forecast to grow strongly.
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In addition WTO membership for Russia Should Russia finally be accepted into the WTO in 2011, solving the current problems with the organization on issues such as protectionism, state enterprises, the cost of oil/gas and intellectual property rights, this will mean amongst other things that Russia will provide for improved market access for foreign firms and a much healthier competitive environment domestically. Through commitment to WTO rules and norms, trade with, investment in and expansion onto the Russian market will become much more predictable for foreign firms, thus reducing the risk cost of the entry ticket onto the market. The most recent reports suggest that Russia could be looking at an April 2011 accession to the organization

Entry strategy for market

Alliance and Joint Venture
Entering into a JV with a Russian partner will derive certain benefits, such as Facilitating the start of the foreign investors business operation by taking advantage of the Russian partners relationships with, and experience of, the Russian authorities, suppliers and consumers; Reducing the risk of the Russian partner competing; and Enabling (e.g. for tax purposes) a transfer of the Russian partners assets to some sort of control by the foreign investor without having to finance an acquisition of Russian assets.

More over Russia exports its fertilizer products, as there is established market for exporting fertilizer products Engro fertilizer can take benefit of that market by jointly working with partner

Find the Right Russian Partner

The right business partner is the single, most important factor to a companys successful entry into the Russian marketplace. Again, give serious consideration to working with qualified outside consultants to locate potential Russian partners and to conduct comprehensive due diligence investigations. The task of finding the right Russian partner should not be left to a staff member who does not have knowledge of and experience in the Russian market.

Negotiating With Russians

Although Russians are inexperienced in western business practice, they are often very skilled and shrewd negotiators. In many, many instances, a stubborn Russian negotiator gets the best of an businessman who is in a rush to close a deal. For newcomers, negotiating with Russians can be a trying experience. The delays, the fibs, the continual need to consult with higher authority, and the stubbornness have sent many business delegations home in anger. However, those who live in Russia and get used to Russian techniques often find negotiating Russian style to be an intricate, formalized game of power politics. To negotiate with Russians successfully, you must be thick-skinned, bull-headed, and warm-hearted, and always remember: the Russians are the world's greatest chess players.

The Outrageous Initial Position

The first phase in Russian negotiation is the outrageous initial position. This position is put forward as a test of your character. Regrettably, Americans, anxious to please, sometimes agree to the initial demands with only minor changes. This then teaches the Russian that he can make further outrageous demands. Sometimes, the initial position is used as a way to get the businessman angry or off-balance. Dont take initial Russian positions too seriously. Often, it is best to counter with your own equally outrageous initial position.

The Critic
Sometimes, a Russian manager enters a negotiation with a burst of criticism. The Russian then requests concessions as a way to mend the relationship. When the businessman resists, the Russian repeats the litany, and the demands, often with greater emotion. Hear the Russian out -you may learn something. Then, consider attack him for his sins against you; or, if all else fails, apologize. Frequently, the honest exchange of emotions puts your relationship on firmer ground.

The Savior
Other times, a Russian manager may tell of a tale of woe -- unpaid workers, lost orders, a bankrupt factory with no prospects. Despite his poverty, because he is a good host, he spends his last ruble on food, drink, and gifts for his guest. He calls upon the good-hearted businessman to help him in his troubles. (Most of the time, the factory's troubles are all too true; though, sometimes, the troubled factory manager has a new Mercedes parked outside.) Many
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businessmen find themselves transformed from business managers into social workers trying to save a troubled Russian factory. Try to avoid this. Try to enter and maintain a business relationship between equals. The "factory savior" approach to business in Russia usually ends badly for both sides.

Delay as a Negotiating Tactic

Russians are skilled at using delay as a negotiating tactic. When Russians know you are anxious to move quickly (usually the case), they will use this anxiety against you. They will delay on setting a date for a meeting, delay on fixing a time and place, delay on reaching an agreement, and delay on implementing. The Russian may be using delay as a way to extract further concessions from you (or, the Russian may have better things to do.) Sometimes, business delegations arriving Sunday are kept stewing Monday and Tuesday just so the Russians can establish a position of initial advantage during the Wednesday meetings. Dont be in a rush. Use this free time to your advantage by meeting with the Russians competitors, or at least, seeing the Kremlin or hermitage, and, of course, consulting with us&fcs commercial officers.

Concealment
Your Russian counterpart will not tell you everything. Make sure you don't tell him everything. Concealment -- of assets, of rivals, of tactics, of legal arguments, of technologies --is tried and true strength of Russian negotiators. Dont fire all your ammunition in the first engagement. A valuable Russian saying: "don't hurry to reply, but hurry to listen."

"I Do Not Have The Authority."

Russians use this phrase (and variations) as a polite way of saying "no." Sometimes, it's true -other times, it just means no. Feel free to use this tactic yourself; its works.

"I Get Half - You Get Half"

Russians place great stake in reciprocity. If you give me this, I will give you that. I get half; you get half. You can use this national desire for reciprocity as a tool to reaching agreement -eventually.

Legal Issues
Russia is therefore often perceived as a country that is struggling to observe the rule of law. Russia has a civil, as opposed to a common, law system. Between 1994 and 2002, Russia adopted an entirely new civil code which covers most areas of business law. As well as being new, the Russian legal system is also in a state of almost constant flux, as rafts of new laws come into effect to replace the old and to fill in gaps in legislation. The inevitable uncertainty this creates is exacerbated by the fact that there is little guidance in doctrine and no developed system of jurisprudence from which to draw benefit: precedent cases are difficult to access, and are published mainly in the form of guidance notes by the supreme commercial court or the supreme court of common jurisdiction. This makes it very difficult to opine on the interpretation that a court may give to a specific provision of Russian law. If an international treaty or agreement ratified by the Russian Federation establishes rules other than those established by domestic law, the rules of the international agreement apply So it is advisable to hire a consultant which has years of experience about Russian law in doing business with Russians.

Political risk
Political stability has been achieved but it is young and widely criticized and its political stability rests largely on the authority of one man, Prime Minister. Bureaucracy is another problem in Russia, Corruption, the rule of law, questions as to the independence of the judiciary, red tape and customs formalities are just some of the problems which can be located under the broad umbrella of bureaucracy. Corrupt practices are usually widespread in Russia, and are considered normal. Practices corrupt by western standards run through the fabric of Russian society, from school teachers taking cash from parents to give students better grades, to federal ministers and parliamentary deputies running private business empires. Some estimates put the size of Russias corruption economy at 1015% of GDPa conservative estimate since it only reflects traditional cash bribes, not more sophisticated practices such as using a government job to promote private business interests These come in many forms including:
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 Voluntary contributions to special projects or the funds of regional and local administrations or government departments (police, emergency services, etc.) Traditional bribes and more complex schemes to influence courts and prosecutors Extortion demands from power ministries (police, secret services, etc.) Bribes in return for necessary approvals from various agencies (e.g., fire inspection, building safety inspection) or to obtain licenses (e.g., telecom frequency licenses). Commissions to high-level officials in the case of high-profile deals requiring their authorization Petty bribes to traffic inspectors, doctors, teachers, etc.

Culture Key Concepts and Values

Work Practices
A strong organizational culture with clear sustainable organizational practices that are used to achieve specific goals has a positive correlation with high-performance in Russia. In the decades of communism most Russian organizations were dull places to work because they provided little meaning or opportunity for the majority of their members. Office politics, double ethical standards, murky procedures, and unclear goals reigned. Companies that emerged during the first decade of Russian capitalism often suffered from the same diseases of non-transparency and arbitrary rule. As a result, the efforts of some Western companies to build strong and transparent organizational cultures at their Russian subsidiaries have created a very positive response from most Russian employees. This type of environment emulates the famous words from the film Field of Dreams: Build it and they will come. Russias work ethic is increasingly influenced by western culture, but the Russians also have a unique set of values and attitudes and a different approach to communication, negotiation and decision-making which could affect anyone doing business in Russia.

Structure and Culture of Companies

The new wave of Russian capitalism confirms this tradition: regardless of a successful Russian entrepreneurs competencies and management style, he or she invariably has enormous power
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within the organization. Followers look to the leader as a superior being who has unique rights and, by definition, deserves compliance. Russians have a need for powerful charismatic leaders and tend to create them often irrespective of the leaders intentions. Russians expectations of foreigners in leadership positions, however, are more complex. The formal title of CEO does not guarantee its holder the same level of compliance from Russian subordinates when a Russian does not hold that position. Respect and conformity will come only if the foreign leader demonstrates superior competence and delivers tangible results. Many foreign executives suggest that creating an empowered organization in Russia is their largest management challenge. Yet those who have made significant progress down the road to empowerment emphasize the positive impact that it can have on employees motivation and performance if implemented correctly, at a reasonable speed, and to the right extent considering employee readiness. First and foremost, firms that have been successful with empowering their employees recognize that empowerment should be a process, not an event. It cannot be implemented overnight and requires continuous step by step efforts. At the same time, empowerment should produce some visible results quickly to excite employees. Two elements are especially critical here tolerance of mistakes and refusal to make decisions that has been delegated to an empowered employee. While empowerment is a challenge in many countries, in Russia it is particularly challenging and important because of Russias tradition of limited empowerment and severe punishment of mistakes. This tradition leads to reluctance to make decisions even when management has delegated such power. In some instances when one tries to empower employees in Russia, the actions are met with some resistance. For example, one manager at Gillette commented that several times after he had delegated a decision he would find employees returning to him asking him to make the decision. Culture should not be considered as a side dish by foreign organisations in Russia. Focusing solely on the bottom line and market shares may be a very short-term tactics but in no way a sustainable strategy to enter the Russian market.

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Geert Hofstede Cultural Dimensions

COUNTRIES Pakistan Russia Pdi

PDI 55 93

IDV 14 39 Power distance index Individualism Masculinity

MAS 50 36

UAI 70 95

LTO 0 -

IDV MAS UAI LTO

Uncertainty Avoidance Index Long-Term Orientation

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However when compared to Pakistan, Hofstede dimensions clearly prove that Russia and Pakistan are quite different to each other in terms of cultural dimensions. So this means we have to be aware about Russian culture before making entry in this market. Russias highest Hofstede Dimension is Uncertainty Avoidance (UAI) is 95, indicating the societys low level of tolerance for uncertainty. As a result of this high Uncertainty Avoidance characteristic, the society does not readily accept change and is very risk averse In an effort to minimize or reduce this level of uncertainty, strict rules, regulations, laws, and policies are adopted and implemented. The ultimate goal would be to control everything in order to eliminate or avoid the unexpected. Therefore, Engro fertilizer has to be extremely careful with this. As the Russian culture depicts that they believe in facts and figure and they believe in power of legitimacy, so we have to provide them authenticated facts and figures and persuade them about future prospect. Everything should be mentioned during meeting and agreement and there should be no hidden clause, to reduce their uncertainty avoidance level.

Power distance index PDI is around 93, indicating that Russian obeys orders of their
superiors, companies follow centralized decision making and tall organization structures (many levels of management). Russians prefer autocratic or majority rule decision making and are reluctant to trust one another. On other side in Pakistan (Power distance index) PDI is 55, indicating moderate structure it varies from organization to organization, some follow centralize decisions or vice versa. Therefore, Engro Fertilizer has to give authority to their partners in Russia and deal with the top management.

Masculinity culture dimension index of both countries indicates that they give more
importance on value tradition, belonging and family. This shows that Russian are concerned with others, they have strong feelings and empathy towards others, where as Pakistan is in between the scale. Therefore Engro Fertilizer management has to give importance to both the dimensions and not to just earning, advancement and wealth. For their success, Engro Fertilizer has to be making strong long term relationships with their counter parts along with the societal and economic development.

Individualism score in Russia is around 39 which shows that Russian give salaries and
promotions on the basis of seniority. People of Russia value group, cooperation and satisfaction, which is further higher in Pakistan as individualism score is 14. Results showed a surprising level of individualism in the respondents from CEE; those from Hungary, Czechoslovakia, Poland, Bulgaria, Romania and Russia all scoring in the top quartile for individualism. Russian is a collectivism society, where promotions, advancement and earnings are based on seniority and people look after each other in return of loyalty. So, the Engro Fertilizer has to considered this in the HR policy and the procedures has to be formed on the basis of this ,objectives and targets

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should be formulated in such a manner that individual should meet their targets along with the considerations of other needs.

Trompenaaar:
Specific versus Diffuse: Managers from specific cultures such as Denmark are much more
prone to criticize subordinates directly and openly without regarding their criticism as a personal matter. Russia is more tuned towards diffuse culture which suggests that individuals are protective regarding their public spaces. Russian have a diffuse culture, individualism are much more protected about their public spaces. Engro Fertilizer has to look carefully for this things and individual should be given equal respect everywhere and protect the individual public space.

Universalism vs. Particularism: Russians often modify legal contracts and change the
way deals are executed which suggest they are more towards particularism and decisions are mostly made according to the situation rather than predefined methods of decisions. Russian execute their operation in accordance with the local responsiveness, therefore Engro Fertilizer will not face many difficulties in their operations because Russians are flexible to mold themselves.

Neutral vs. Emotional Cultures: Russians culture is more towards emotional cultures.
People of Russia love to smile, talk loudly and express their feelings with enthusiasm but they are conservative to strangers. It can also be extracted from their buying patterns as Russians are patriotic while buying products and they dont accept any foreigner to talk against their country. Engro Fertilizer has to be extremely cautious, because Russians are emotional and patriotic. We have to keep these factors in mind. All the documents, agreements, packaging and promotions campaigns should be associated with Russian culture and history, in order to build strong bonding between Engro Fertilizer and Russians. Russian language should be used in all promotional activities and packaging. So Engro Fertilizer manager should be careful in dealing with Russians and dont talk about any negative aspect of Russian individual, culture and history.

Achievement vs. Ascription: Russians give importance to what or who the person is, to
them a person who is a friend will be more important and they would love to give time to those who are known to them. Therefore Engro Fertilizer has to nurture the strong relationship between employees.

Use of time: People of Russia are mostly following synchronous i.e. they dont mind getting a
little late but want others to be on time. Synchronous time is used; they dont have any pre14

determined schedule and can alter their schedules due to personal engagement. Russians do more than one task at one time. Russians can be late themselves but they want others to be punctual. So Engro Fertilizer has to put this thing in consideration while having meeting with Russians counterpart.

Communication
Language: The official language of the RF is Russian. It is also widely used in former
Republics of the USSR. Foreign languages studied in Russia are primarily English and German, and at many schools English is an obligatory subject.

Verbal communication
Russia is a high-context culture. They tend to be indirect in their communications and their understanding of a situation is typically based on a whole host of factors, rather than the immediate threat alone. The language itself is 'high-context' - Russia's defining feature is its contradictory nature. So, even though it is generally high-context, you will often encounter very low-context Russian behavior. Probably the best example is a person you've maybe met once approaching you, suggesting a time and place to meet, and saying "agreed? This sort of blunt exchange, stripped of all contexts (i.e., 'i don't even know you'), will surprise even the most low-context of people. In sum, Russians are high-context in general but be aware that they can sometimes switch to low-context behavior without warning. Russians will tend to wait and think before responding to a point made to them - do not be impatient. Allow the Russians the time and space needed to take part fully in the conversation and remember that they are probably struggling with foreign language as well. In practice, the use of nicknames (or diminutives), inside jokes or corporate traditions are the most visible features. The newcomer needs to be initiated to belong to the group.

Nonverbal communication
There tends to be very little visual or verbal feedback during meetings in Russia. People listen silently and with little obvious body language being displayed. This does not, however, mean that the listener is disinterested or does not understand - it is merely a cultural characteristic which Russians share with.
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For example many people in Russia consider smiling at strangers in public to be unusual and even suspicious behavior. Yet many Americans smile freely at strangers in public places (although this is less common in big cities). Some Russians believe that Americans smile in the wrong places; some Americans believe that Russians don't smile enough. As we got to know from the research the Russia is at a midpoint between Japan and U.S, so Engro Fertilizer has to deal very delicately in communicating with Russians because they tend to be more direct and straight forward in some situations and in certain situation they tend to be implicit and try to express themselves with gestures, body language therefore Engro Fertilizer management has to Be careful in distinguish the different context and understanding the meaning behind the words and gestures. For example in understand the consumer behavior and their attitude it will be difficult to understand the behavior of high context cultural followers, so it will be beneficial to appoint local researchers to conduct research and better understand the implicit factors. HR policy should be designed in considering both the culture and understanding the employs behaviors and attitudes in order to satisfy and motivate them, Procedures and policies also be according to them.

Tips for Doing Business in Russia

The following tips will help you ensure make the most of your experience doing business in Russia: Since personal and informal contact is crucial when doing business in Russia, be ready to spend some time establishing rapport before discussing business. Getting past the initial formality and silence you may experience with your Russian colleagues might take time but it will result in stronger relationships and improved business interactions. Russians are very patriotic. Avoid criticizing any aspects of Russian history, culture or politics. Good neutral discussion topics are sports (especially winter sports) and family. In meetings, Russians prefer a direct approach. You should be well prepared and your presentations should be straightforward and comprehensible. Russians are very status conscious and prefer to have meetings with those of equal status. Decisions tend to be made by the most senior person. Avoid praising or rewarding anyone in public as this may be viewed with suspicion and can cause envy and jealousy. Any praise or criticism will be much better received in private. The typical greeting is often a (very) firm handshake with the appropriate greeting for the time of day like good morning, good afternoon or good evening.

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On the whole Russians have three names. The first name is the given name while the last name is the father's family name. The middle name is a version of the father's first name, known as a patronymic; for a man, it ends with the suffixes "vich" or "ovich" meaning 'son of.' For a woman, the patronymic is also the father's first name but with suffixes "a" or "ova" added, which means 'daughter of.' When doing business in Russia make sure you take a business card. It is always a good idea if you plan to maintain contacts in Russia to have one side translated into Russian. If you do so make sure you add your title and any degrees or qualifications you have. Always be punctual when doing business in Russia. However do not take offense if your Russian counterpart is not. It is not unknown for Russian business people to turn up hours late. A good indication of how serious a meeting is taken is how punctual they are. Initial meetings are usually approached as a formality. It is at this stage that your credibility will be assessed. The best strategy is to appear very firm and dignified, while maintaining an air of warmth and approachability. Pitches or presentations should be simple and straightforward. Generally Russians are not impressed by foreigners doing business in Russia who use special visuals, flashy PowerPoint presentations and the like. These do not sway decisions. The most critical element is demonstrating your knowledge, professionalism and expertise. Many Russian business personnel speak good English so presenting in the language is not a problem. If it could be then hire a Russian interpreter. It is however that you make the effort to present anything written in Russian. Negotiations are an interesting affair for anyone doing business in Russia. They are tough and like to indulge in a fair amount of theatre if necessary. Their main aim is to gain concessions so there will be a lengthy process of grinding you down. Caving in too early is a sign of weakness so stand your ground. If you do feel the need to concede ask for the gesture to be reciprocated in some way. Generally speaking, Russians view compromise as a sign of weakness. Don't be surprised by loss of tempers, walkouts, threats to end the deal, and similar incidents. It's all part of the fun.

Conclusion
Russia is considered as riskiest place to do business but if one can understand its cultural values, communication styles, their negotiation techniques and their rules and regulations can get good profits. Certainly there is big difference in Pakistani cultural and other dimension from Russia one need to understand and apply those things that are mentioned above, to successfully run their business in Russia.

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Bibliography http://www.scribd.com/doc/35808378/Trompenaars-Cultural-Dimensions http://www.country-studies.com/russia/agriculture.html http://www.east-x-net.dk/oest-mag/artikler/working_with_partners.htm Doing Business in Russia - Industry Overview (www.consultvm.com)

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