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Case study: Rus Build joint venture

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  1. Introduction
  2. Provide a brief description of the case study that was discussed in your group
  3. Organization
  4. Identify the key challenges and problems that are described in the case
    1. Hiring qualified staff
    2. Defining the role of the board of directors
    3. Finding serious client & hard currency
    4. Frederick's credibility
  5. Describe your recommended solution
    1. National culture dimensions
    2. Organizational culture dimension
    3. JV's corporate culture
  6. Conclusion.

The Rus Build case talks about a joint venture created in 1989 between an American and Russian company. The US Company is Fredericks Construction, Inc led by john Fredericks and Gribov Engineering Institute is the URSS Company.

Before getting into details let's remind briefly what a joint venture is. According to website it's ?A contractual agreement joining together two or more parties for the purpose of executing a particular business undertaking. All parties agree to share in the profits and losses of the enterprise?.

So, the US Company was looking for partner to start a new business in the USSR, a professor at the institute heard of that and decided to set a meeting with M. Frederick to see what they could do together. They found an agreement and define 3 lines of business:

-Marketing of products in the construction industry
-Management of large-scale construction projects
-Design & delivery of management training programs

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