Читать реферат по маркетингу: "The development strategy of international enterprises in the conditions of crisis (case study: the tobacco industry)" Страница 1


назад (Назад)скачать (Cкачать работу)

Функция "чтения" служит для ознакомления с работой. Разметка, таблицы и картинки документа могут отображаться неверно или не в полном объёме!

The development strategy of international enterprises in the conditions of crisis (case study: the tobacco industry)

Table of contentsIntroduction

1. Crisis in Russia and international tobacco enterprises

.1 General characteristics of the crisis

.2 International tobacco companies in the Russian market

. Recommendations for the international tobacco business development

Conclusion

Reference list Introduction Today international business environment is unstable and changeable. It depends on the great changes in modern global economy and politics. The reason for this change is the economic crisis that erupted in connection with the entered Western countries ' sanctions against Russia on the background of the Russian-Ukrainian conflict. Western sanctions and the response of Russia have led to an economic loss on both sides, and create additional difficulties for international business conducting. The tobacco industry is also influenced by the situation. It is useful to consider the example of the tobacco industry in regard to the fact that more then 92% of the tobacco companies in Russia belong to international business and operate entirely on foreign raw materials.

The main objective of the present essay is to make some proper suggestions with the purpose to adapt them to the Russian tobacco market in the new circumstances to maintain the level of profit and to prevent losses. We are going:

to analyse the current situation: the features of the modern crisis in terms of the impact on the international companies activities, including the sanctions and the exchange rate regimes;

to consider the situation in the Russian tobacco market in order to identify the main problems and risks and to give the recommendations.1. Crisis in Russia and international tobacco enterprises 1.1 General characteristics of the crisis

tobacco enterprises market

From the point of view of Western countries, in early 2014, Russia violated international law by annexing Crimea and allegedly fomenting separatist uprisings in the eastern Ukrainian region of Donbass. Under this pretext, with the aim to influence public opinion of the Russian population the European Union, the United States and several other Western countries adopted sanctions targeting the Russian energy, defence and financial sectors and several individuals. (Russell M., 2016, p.1) At the moment, the economic sanctions are extended until July 2016, they are imposed by the USA, European Union, Australia, Canada and Japan. (Western Sanctions Against Russia , 2015)

In turn, Russia imposed retaliatory sanctions against primarily the EU, which is aimed at limiting the supply of agricultural products, automobiles, and other goods. The damage to EU and Russia from sanctions is roughly comparable. The Russian Federation lost from them 75 billion Euro or 4,5 % of GDP in 2015 and presumably will lose 25 billion Euro or 1,5 % of GDP in 2016. The EU lost 50 billion Euro or 0,4 % of GDP in 2015 and presumably will lose 40 billion Euro or 0,3 % of GDP in 2016. Thus, the EU will lose 90 billion Euro in two years and the RF - 100 billion Euro. (Russell M., 2016, p.18)exchange rate regime is one of the main factors influencing the economic situation in the country. In the international business such components of great importance as buying capacity and pricing policy depend on it. exchange rates of the countries whose tobacco companies work in the Russian Federation are rather stable and are subject to minor fluctuations only. But in Russia the situation is much more difficult. In connection with the crisis the Russian ruble has lost its stability. Since the beginning of 2014 there were several drops in the exchange rate of the ruble. In January 2014 one US dollar was equal to 32,66 rubles and one Euro - to 45,06 rubles. And 16 December 2014 one US dollar cost more then 80 rubles and one Euro - 100 rubles. (Dynamics of the ruble against the dollar and the Euro in 2014-2015) Now the exchange rate is still unstable. At 12 May 2016 the picture is the following:

USD = 66,24 RUB

EUR = 75,45 RUBthe national currency significantly lowed in value on the world money market. This has led to higher prices and the reduced purchasing power of Russian consumers. Because of these events the international companies face a risk of decrease in profit due to the reduction of sales volume.

1.2 International tobacco companies in the Russian market

The tobacco industry of the Russian Federation provides the budget more than 250 billion rubles every year. In 2015 annual sales of tobacco products amounted to 355 billion pieces with the total value of 750 billion rubles. then 92% of the tobacco companies belong to international business and operate entirely on foreign raw materials. There are four transnational companies, which work successfully at the Russian tobacco market: Philip Morris International, British American Tobacco, Japan Tobacco International and Imperia Tobacco. leading position belongs to Japan Tobacco International, which has two factories in Russia: “Petro” in St. Petersburg and “Ligget-Dukat” in Moscow. The company specializes in the production of cigarettes of low segment. The second place on volume of manufacture of cigarettes is Philip Morris International, which produces more than 50 types of cigarette brands. (Drobyshevskaya L.N. 2015)tobacco market attracts multinational companies with a large consumer demand. On the one hand the demand depends on the high level of stress among the population and on the other hand it depends on the loyal public and government opinion. In recent years the attempts to form a more negative attitude



Интересная статья: Основы написания курсовой работы