Ste. Basil Hotel - Moscow: Struggling with Values in a Post-Communist State

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Ste. Basil Hotel - Moscow: Struggling with Values in a Post-Communist State

This cases study examined the challenges of operating a business in a foreign country. The case study presents a specific business situation in Moscow, describes the prevailing conditions which needed to be addressed, relates the decisions that were made, and examines the consequences of failing to apply sound business and management principles. This case exemplifies many of the themes in international HR management including recruiting, onboarding, training and development, motivation and rewards/compensation, ethics, performance management, and cultural differences between the home country and host country.

In a foreign business environment there is
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Victor's concerns and resulting actions do not seem to be in alignment with LCC's mission statement or intentions for the hotel. Victor's actions of lack of actions are in direct opposition to the organizations goals, mission, and values. He has not acted in a professional manner in a variety of contexts. As a result Greg is faced with the dilemma surrounding the Russian mob. The other major issue addressed in the case is the competing expectations between the "Americanized" hotel and operating in Russia with Russian employees and Russian cultural norms. The two cultures are very different and adequate attention may not have been given to this problem. Although attempts were made to to train and develop the staff, adequate attention was not given to cultural differences and understanding what and how to motivate employees. The lack of understanding of the Russian culture, goals for how the hotel should be run and function, and clear plan of action to attain these goals all contributed to

What may have been the norm for one may not be the norm to another, especially when it comes to the cultures of foreign lands. Cultural norms often are so strongly ingrained in an individual's daily life that the individual may be unaware of certain behaviors. Until these behaviors are seen in the context of a different culture with different values and beliefs, the

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