1. Performed by: Kurz Daniela Naskidaeva Anastasia Naumova Anna Shalamov Alexander Tarakanov Dmitry COUNTRY ANALYSIS: Russia

2. Austrotherm Group: 8 companies 13 plants 11 countries 690 employees Annual sale: 184 million euro founded in 1953;  1 st producer of expanded polystyrene in Austria part of the “Schmid-Industrie-Holding”

3. Economic analysis + Nine years of economic growth, averaging 7% annually + Steady poverty declining and continued middle class expansion + Stable financial position − Rising inflation: approached 12% − Dependence on world commodity prices − Small banking system

4. Political analysis + Tax, banking, labor, and land codes reforms were implemented − Political uncertainties associated with corruption and lack of trust in institutions − Little progress in building the rule of law, the base of a modern market economy − Weak intellectual property protection

5. High uncertainty avoidance: - used to act strictly to guidelines of hierarchy and avoiding any acting on personal initiative High power distance: The authoritarian leadership and centralization of authority Collectivism + Individualism appreciate group loyalty and the protection resulting from groups one-to-one relationship; unwritten rules Cultural analysis

6. Market analysis one of the fastest developing in Europe: 15 % / year; construction by 2010: 80-88 mln.m3 /year insulating products per 1000 men: 650 m3 – Europe, 120 – Russia; many regions aren’t supported with insulation; growth interest of government to insulation market; dominance of foreign producers, poor quality of Russian insulation; foreign producers move from exporting to production in Russia.

7. - political risk - strict regulations - import quotas YES Should enter the Russian market? + heavy demand for insulation products + high quality of products + few competitors + newest technologies + lot of experience

8. Thank you!