個案總覽

This case describes the process of launching and developing a U.S.-Belarus joint venture that produces wood pellets in Belarus for sale in countries in the European Union. The combination of high demand for biofuels in EU countries and the potential for producing a good product at a low price in Belarus, provides a compelling business opportunity for brothers Victor and Aleksey Kruglov. Victor, who lives in the U.S., had experience in business in the U.S., and has access to capital. Aleksey, who lives in Belarus, has experience in wood-products production in Belarus, and has access to qualified workers. Having a well organized operation and continuous demand for its products, the company grew quickly. However, growth put the company in jeopardy in state-controlled Belarus. Local institutions (city and regional governments) perceived successful firms as sources of revenue for solving city infrastructure problems. Central institutions viewed successful firms as potential parts of their system of the larger government-controlled economy. Government involvement would most likely require the firm to follow specific directives, implement specific procedures for export operations, and share revenue. To avoid the threat of government control, the partners saw three options. Staying its course, their company could continue to grow and accept the role of major donor for the city's needs, and become a part of the larger government-managed wood-processing industry. Alternatively, it could control its growth by slowing down or splitting up into several smaller firms located in different regions and still stay considerably invisible. A third option was to relocate operations entirely, to a country that provides a friendlier environment for business operations, yet has similar cultural and economic advantages.

The Academy for Professional Development (APD) was launched in 1993, shortly after Perestroika and the turbulent time of Soviet disintegration. With the support of the Soros Foundation and a local Ministry of Privatization, APD became the most prestigious professional business education and consulting firm in the country. Assembling and training a "team of talents" is always difficult, more so in this case because of the nature of local business practices, the proliferation of professional service firms competing for business and state-director clientele, and the lure of opportunities in more stable environments. As APD gained experience in business education and consulting, different directors implemented new programs and brought different styles of management. As the organization experiences turnover of its professional staff, its founder and Chairman of the Board is concerned about the role he should take as the organization matures.