IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 4 NO. 1 2018

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Critical Evaluation of the International Business Environment of a BRICS Member: A Case Study of the Russian Automotive Industry in Relation to Competitiveness in the Domestic and International Market Arena and the Contemporary Environmental Issue of Human Resources Management

Sadeeq Garba Abubakar, Muhammad Zaharadeen Abubakar & Abdullahi Abdulrahman

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Abstract

This study looks at BRICS’ vision, mission statement, its origin, organisational structure, and the overall economic role and challenges facing the BRICS. The country under review in this study is Russia. Russia, one of the BRICS countries, its automotive industry and AvtoVAZ are identified as the focus country, industry and organisation in this study respectively. PESTLE technique was used to critically examine the external business environment of Russia while the Porter’s Five Forces was utilized to assess the competitive factors impacting the automobile industry in Russia. An analysis of the internal business environment (SWOT) of a Russian automotive organisation (AvtoVAZ) was carried out. Findings indicated that Russia has undergone substantial change during the past two decades as the country has transitioned from the centrally planned Soviet system to a more market-oriented economy. Russian managers entered the decade of the 1990s ill-prepared to manage their companies in the country’s chaotic transition to a market economy. Part of the recommendation is that Russian companies and components suppliers need to become more efficient in the overall production processes and systems. On sustainability, there is the need for the organisations in the automotive industry to take a more holistic and integrated approach to human resources management and environmental concerns. Managers would need to reassess their role, specifically their responsibility in persuading their organisations to adopt practices that supports a sustainable approach. The new knowledge workers who every organisation need to recruit and retain are the driving force behind an organisation and are those capable of producing designs and development to deliver products to the markets which are less environmentally harmful; marketing management to raise consumer awareness of environmental factors and to achieve business success through the provision of environmentally safe products.

keywords:

Russia, Automotive Industry, PESTLE, SWOT, Sustainability, Human Resources.

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