In May 2008, the executive team MLC Corporation (MLC) was deeply involved in the consideration of whether to expand its production and distribution operations in Russia. Russia's economy has grown significantly, mainly due to increased exports of natural gas to Europe. The sharp rise in energy prices have further accelerated the growth of the energy sector, and supports the expansion of the economy. Thus, at the beginning of January 2009, Mark Olexi, general manager MLC, met with three potential alternatives. The first was to increase production capacity in the country and continue to export, as the company has done so successfully for many years. The second option was to risk building a plant for the production and distribution center in Russia and strengthening the competitive position of the company abroad. The third option was to wait and postpone the two solutions due to the uncertainty caused by the global financial and economic crisis. If Russia could manage its economy to avoid a global crisis and domestic financial and economic crisis was an open discussion. In addition, Russia has just gone through a change of leadership, energy prices fell, and the Russian-American relations deteriorated.
This study Thunderbird Case. "Hide
by F. John Mathis, Barbara S. Petitt Source: Thunderbird School of Global Management 8 pages. Publication Date: August 28, 2009. Prod. #: TB0015-PDF-ENG
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