Boston Consulting Group: Moscow represents an efficient platform for business development
Jan Dirk,Senior Partner and Managing Director at BCG
The Boston Consulting Group has been working on the Russian market since 1990. At the start, most projects were associated with reforms in various sectors of the Russian economy, and major clients included primarily international organizations, e.g. The European Bank of Reconstruction and Development, and commercial firms. In order to get closer to our Russian and CIS clients, in 1994, we opened our office in Moscow. Since then, we have been continuously expanding our presence with the most notable achievements during the latest 8 years when BCG’s business in the CIS was increasing by an average of 20% a year.
Russia is one of the most important sources of global economic growth: following the recovery after the 1998 financial crisis, its GDP has been increasing by more than 4-6% annually. Although it mainly resulted from high oil and commodity prices, economic growth was promoted through state sector reforms and improved private company management. Over the long term, the Russian economy promises golden opportunities both for Russian and foreign companies, however, it also faces tough challenges. This means one should:
- Choose the right strategy;
- Create a stable platform:
- to define a corporate centre role with regard to the structure of the business
- to strike a compromise between demand for independence and entrepreneurship and need to maintain control
- to attract and retain the best managers in a tighter market
- to identify and form the best possible capital structure
- Establish highly efficient operations.
Relying on instruments proved by the best global practices and adjusting them to the Russian market, Boston Consulting Group helps major Russian companies find answers to the above questions. Working with Russian companies, BCG seeks to create value according to shareholder strategies and objectives, whether it is initial public offering, sale to a strategic investor, partnership or long-term management. Based on our international expertise, we help Russian companies understand the global environment in which they operate, project developments in their industry based on foreign experiences and apply global best practices to their operations in Russia.
The huge potential of the Russian economy is evident to BCG’s international clients not simply in terms of an attractive market for their goods and services, but also as a profitable base for export production or scientific research and development abroad.
Moscow is very important for BCG as a place for living and working. Moscow is the very place where decisions are made for state and private companies and, therefore, the city represents an extremely influential platform for business development. This advantage outweighs frequently mentioned problems, such as overloaded transport infrastructure.
Consulting is based on human capital and today, when competition for talent is becoming more severe, Moscow offers sound opportunities to find talented Russian and foreign candidates. Regarding cultural life and leisure, Moscow is one of the brightest capitals whose priorities include continuous improvement in the quality of life.