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Article

Current Strategic Actions of Russian Manufacturing Subsidiaries of Western Multinational Corporations

Journal of East-West Business. 2017. Vol. 23. No. 2. P. 171-193.

This paper provides a critical analysis of the current strategic actions of Russian manufacturing subsidiaries of Western multinational corporations (MNCs). We retraced the content of strategic actions in various aspects of subsidiary management implemented during 2015–2016 and the activities of strategists of different ranks. We found that some actions implemented during 2014–2016 by MNCs in Russia represent standard strategic practices during downturns. In contrast, other strategic practices (facilities expansion against negative market dynamics and reluctance to change the system of permanent job contracts and abundant employee social benefits) generally contradict with the textbook solution for company strategies during downturns.