Case Study

Frontstep Russia (C): Epilogue: Ownership Transition

Published 11 Jan 2006
Reference 5034
Region Other Regions
Length 3 page(s)
Language English
Summary

It was long believed that entrepreneurship in Russia is close to impossible without government or mafia connections. This case study argues that, on the contrary, "garage-type" entrepreneurship is possible in Russia. For the Russians at Frontstep, the company in this case study, however, there were no how-to manuals to turn to. When the employees started making demands for Western-level salaries and benefits, matters came to a head. The problem was solved as the founders developed a hybrid organization, with Western incentives and structures, and Russian corporate culture.

Teaching objectives

The objectives of this case is to analyze:
1. Dynamics of growth of entrepreneurial organizations in Russia:
• Evolution of complexity of managerial challenges faced by entrepreneurs.
• Naïve nature of relationships with foreign partners.
• Staffing approaches and limitations faced in entrepreneurial organizations.
• Identity issues (Russian versus multinational company).

2. Managing new generations of professionals:
• New labor force in Russia (and, by extension, other Eastern European organizations).
• Career aspirations of young professionals.
• Career development and growth challenges.
• Coaching and counseling issues.
• Owner-manager development in areas beyond functional expertise.

Keywords
  • Entrepreneurial start-up
  • Russian organisational leadership
  • Corporate culture
  • Russian culture
  • Human resources issues
  • Career development