Managing Culturally Diverse Environments †Myassignmenthelp.Com

Question: Discuss About The Managing In Culturally Diverse Environments? Answer: Introduction This paper discusses some of the difficulties encountered by Carrefour after venturing into the Russian market regardless of the two years research conducted on the market availability. Carrefour is the second biggest retailing organization based in financial earning over 108 billion Euros annual income (Gollnhofer, Turkina, 2015, pp.41). By 2008 it had penetrated a lot of regions except of Russia. Due to this, Carrefour started researching on the available gaps in the Russian retail market that could be easily manipulated. Some of the strategies used to enter the market are highlighted in this paper as well as the reasons behind the sudden exit. Entry and Exit Strategies The announcement that Carrefour was soon going to exit the Russian marketing was made on October 2009. The organization gave reasons such as they were not growing. Also, there were few opportunities available for the taking (Gollnhofer, Turkina, 2015, pp.22). Research, however, showed that the major factor that led to this sudden exit was the fact Carrefour was unable to acquire the Seventh Continent. Among the organizations entry strategies were the acquisition of the Seven Continent which would mean fair competition with other retailers such as Auchan and, X5 Retail Group. Another reason was the complex nature of the Russian legislative wing which mostly favored the local investors. Finally, heightened levels of corruption in the retail market as well as the rules set in place to regulate the institutions operations (Frynas, Mellahi, 2015, pp.34). For example, Carrefour was faced by a complex bureaucratic problem in its effort to acquire a permit for the sale of alcoholic drinks in the Russian capital, Moscow. The issue costed the company approximately 15% of the income earned from the sales carried out in that store. References Frynas, J.G. and Mellahi, K., 2015. Global strategic management. Oxford University Press, USA. Gollnhofer, J.F. and Turkina, E., 2015. Cultural distance and entry modes: implications for global expansion strategy. Cross cultural management, 22(1), pp.21-41.