As discussed in previous chapters, the business environment pits organizations against uncontrollable threats and prompts them to embrace uncontrollable opportunities. Both are heightened when it comes to global pursuits for business. Certainly competitive, regulatory, economic, social, and technological forces exist abroad, and in many cases the opportunities and threats resulting from these can be nonstarters for global marketing.

According to Sergey Sherstyuk, manager of Russia operations for Farmers Edge, there were, and continue to be, positive and negative forces in the Russian business environment. "Based on the knowledge gained over recent years, we can confidently say that the agricultural sector in Russia is changing, and changing for the better. The structure of agribusiness has been redeveloped. There has been a consolidation of production companies and corporations, and there has been a marked improvement in technical competency. Moreover, the professional mentality has shifted toward the modern energy-saving technologies as being the key component of any profit-increasing production strategy."

When Farmers Edge began operations in Russia in 2009, technology was quite far behind and government subsidy programs were not overly compelling from a foreign, service-based company perspective. However, the rapid improvement in technology seemed to nudge government programs ahead. "The influence of the government on the agriculture industry in the form of different systems of subsidies for certain developmental directions of agribusiness has triggered intensive development of livestock and crop production in Russia," says Sherstyuk. "At the same time, all these factors have enabled Farmers Edge to dramatically expand the spectrum of its services by providing in-depth consultations on manure management and irrigation agriculture."

Within five years of launching its operations in Russia, Farmers Edge went from zero to 1 million hectares of land upon which the benefits of the firm's precision agriculture tools made a positive impact. But Farmers Edge president and CEO Wade Barnes notes that the threats in Russia aren't political, but cultural. "Russia for us has so much opportunity, but it's so difficult to work there. For 70 years it's been bred into their culture to not take risks. So you don't have this agricultural entrepreneurialism that's been passed down through generations." Nonetheless, Barnes sees the opportunities. "Because they're afraid to make decisions with their gut, a technology component is probably more important there than anywhere."

Questions

1. What marketing environmental forces in Russia present Farmers Edge with the greatest opportunity? Explain.
2. What marketing environmental forces in Russia present Farmers Edge with the greatest threat? Explain.