The phenomenon of emerging market economies have gained much attention from the global economy perspective in recent years. Although economic growth and various reforms restructure these markets, some common characteristics differentiate them from stabilised ‘market economies’. This study examines the operational environment of Western companies in Russia, focused on distribution, supply management, organisation structures, human resource management and forms of entry. Since the general business environment has a great influence on the business behaviour of companies, economic factors, market and institutions, legal-political and technical conditions are also observed. Moreover, the situation on the Russian market is compared with conditions in other emerging markets. The general objective of this study is to identify obstacles faced by Western companies operating on the Russian market and to observe which strategies companies tend to choose in order to cope with certain difficulties.

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