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Using the General environment, explain how 3 out of the 6 elements impacts the companies listed in the MCP case study How Businesses Respond to
Using the General environment, explain how 3 out of the 6 elements impacts the companies listed in the MCP case study
How Businesses Respond to the Russian invasion of Ukraine. Dozens of the world's biggest companies have abandoned or scaled back their operations in Russia in response to its invasion of Ukraine. These large multinational companies have had to make difficult decisions about this situation and deal with many negative impacts. These decisions include whether to continue to do business in Russia or withdrawing from Russia and closing operations there You have been given the authority as an expert management consultant to examine and discuss the problems for foreign businesses operating in Russia as discussed ONLY in this article. If your analysis of problems is good enough, you will be employed with other management experts to work in small teams to provide solutions for these problems in order to implement appropriate measures to protect and assist these foreign businesses to survive and recover from this devastating event. The response to the Russian invasion affects every corner of the global economy. Sanctions imposed by mostly European and Western countries are hurting Russia by preventing sales of its vast NOWAR energy riches primarily, but also sanctions affect autos, finance, retail, entertainment and fast food. OCTAHOBNITE BOWIE These sanctions are starving Russia of revenue HE BEPOTE nPonArAHA! and capital for new investments. Foreign "7ECb BAM BPUT businesses have reacted to the sanctions by IANS AGAINST WAR removing popular products and services in Russia. For Russians "...it's a feeling of deep gloom, kind of a horrified reaction as they see all these Western and global companies abandoning..." their country, said Daniel Treisman, a professor of political science at UCLA. "So much culture is in the products we use, the movies we see," he said. "All of this leaves the Russians who've grown up in this new internationalised environment feeling isolated, cut off." These days, companies are more sensitive to what people are thinking, including not just consumers, but their own workers and their shareholders. The response from foreign companies has been very fast, which could be due to increasing shareholder involvement in company decisions and actions and pressure from shareholders for companies to behave in more socially responsible ways. > Amazon's (AMZN) cloud division, Amazon Web Services, said March 8 it would halt new sign-ups for the service in Russia and Belarus. The company has already had a "long-standing policy of not doing business VI- with the Russian government" and does not have data centres, infrastructure or offices in Russia, the company said in a blog post. "AWS has clear terms of service where if a customer is using AWS services to threaten, incite, promote, or actively encourage violence, terrorism, or other serious harm, they will not be V permitted to use our services," Amazon said. "Any customer we know of who is participating in this type of behaviour will have their access to AWS suspended." +How Businesses Respond to the Russian invasion of Ukraine. Dozens of the world's biggest companies have abandoned or scaled back their operations in Russia in response to its invasion of Ukraine. These large multinational companies have had to make difficult decisions about this situation and deal with many negative impacts. These decisions include whether to continue to do business in Russia or withdrawing from Russia and closing operations there You have been given the authority as an expert management consultant to examine and discuss the problems for foreign businesses operating in Russia as discussed ONLY in this article. If your analysis of problems is good enough, you will be employed with other management experts to work in small teams to provide solutions for these problems in order to implement appropriate measures to protect and assist these foreign businesses to survive and recover from this devastating event. The response to the Russian invasion affects every corner of the global economy. Sanctions imposed by mostly European and Western countries are hurting Russia by preventing sales of its vast NOWAR energy riches primarily, but also sanctions affect autos, finance, retail, entertainment and fast food. OCTAHOBNITE BOWIE These sanctions are starving Russia of revenue HE BEPOTE nPonArAHA! and capital for new investments. Foreign "7ECb BAM BPUT businesses have reacted to the sanctions by IANS AGAINST WAR removing popular products and services in Russia. For Russians "...it's a feeling of deep gloom, kind of a horrified reaction as they see all these Western and global companies abandoning..." their country, said Daniel Treisman, a professor of political science at UCLA. "So much culture is in the products we use, the movies we see," he said. "All of this leaves the Russians who've grown up in this new internationalised environment feeling isolated, cut off." These days, companies are more sensitive to what people are thinking, including not just consumers, but their own workers and their shareholders. The response from foreign companies has been very fast, which could be due to increasing shareholder involvement in company decisions and actions and pressure from shareholders for companies to behave in more socially responsible ways. > Amazon's (AMZN) cloud division, Amazon Web Services, said March 8 it would halt new sign-ups for the service in Russia and Belarus. The company has already had a "long-standing policy of not doing business VI- with the Russian government" and does not have data centres, infrastructure or offices in Russia, the company said in a blog post. "AWS has clear terms of service where if a customer is using AWS services to threaten, incite, promote, or actively encourage violence, terrorism, or other serious harm, they will not be V permitted to use our services," Amazon said. "Any customer we know of who is participating in this type of behaviour will have their access to AWS suspended." +Some companies claim that they are being socially responsible by continuing to trade and operate within Russia. These firms suggest that they have a responsibility to their Russian employees and customers and that closing their business in Russia would have a harmful effect on these stakeholders. Ukrainian President Volodymyr Zelensky specifically called out several French companies including Renault who were still operating their plant in Moscow, which remained open while other brands like Volkswagen had already suspended their Russia business. Zelensky's public shaming of the French car giant had an almost immediate effect as Renault announced it would stop manufacturing there, and reconsider its stake in the AvtoVaz company which makes Lada cars. Renault employs two thousand workers at its Moscow plant, while AvtoVaz has 45,000 staff -- with the French company suggesting it had to consider the interests of their Russian workers and act "responsibly". "Companies are in a difficult position when they have a large amount of production in Russia," says Peter Gabrielsson, Professor of International Marketing at the University of Vaasa in Finland. "You cannot just suddenly stop the production and if you leave the country Russia has indicated they will confiscate the firm and the facilities there, so it's really not easy to stop the operation," he said. Professor Gabrielsson suggested that there are "big risks" for companies that decide not to pull out of the Russian market, or are seen to be taking too long to make a decision. "These well-known recognised global brands have this problem that consumers are making their own decisions. And if they don't like what the brand is doing, they'll stop purchasing. " he said. KOCH Koch, the American company run by billionaire Charles Koch, was explicit about its intention in a statement last week signed by Chief Operating Officer Dave Robertson. The Robertson statement said conoco 12 Koch would continue to operate its two Russian glass facilities, which uniongas Sofin are owned by Guardian Industries, a company acquired in 2017. A Spectra Energy Company 'While Guardian's business in Russia is a very small part of Koch, we INE will not walk away from our employees there or hand over these BRAWNY manufacturing facilities to the Russian government so it can operate QUILTED and benefit from them" Robertson said. ogle NORTHERN Soft & Strong Although the Koch senior executive was willing to acknowledge the Sparkle "horrific and abhorrent aggression against Ukraine" as an "affront to March humanity, it was not enough to persuade Koch to pull out of Russia, as Ukrainian President Volodymyr Zelensky urged companies to do when he addressed the U.S. Congress by video link last week. "All American companies must leave the Russian market immediately because it is VIN flooded with our blood," Zelensky said. More than 450 foreign companies have announced plans to pull out or curtail their activities in Russia since V a list of multinationals still doing business in Russia/ was first published by Jeffrey Sonnenfeld and his research team at the Yale School of Management. The Yale professor, who is monitoring companies that are still doing business in Russia following its unprovoked invasion of its neighbour, described the Koch statement as "pathetic" and said it "reveals that all they care about is the loss of assets." He was also + scathing toward SC Johnson, describing its decision to continue operating in Russia as providing "globally branded confidence" to Russia's war machine.Some companies claim that they are being socially responsible by continuing to trade and operate within Russia. These firms suggest that they have a responsibility to their Russian employees and customers and that closing their business in Russia would have a harmful effect on these stakeholders. Ukrainian President Volodymyr Zelensky specifically called out several French companies including Renault who were still operating their plant in Moscow, which remained open while other brands like Volkswagen had already suspended their Russia business. Zelensky's public shaming of the French car giant had an almost immediate effect as Renault announced it would stop manufacturing there, and reconsider its stake in the AvtoVaz company which makes Lada cars. Renault employs two thousand workers at its Moscow plant, while AvtoVaz has 45,000 staff -- with the French company suggesting it had to consider the interests of their Russian workers and act "responsibly". "Companies are in a difficult position when they have a large amount of production in Russia," says Peter Gabrielsson, Professor of International Marketing at the University of Vaasa in Finland. "You cannot just suddenly stop the production and if you leave the country Russia has indicated they will confiscate the firm and the facilities there, so it's really not easy to stop the operation," he said. Professor Gabrielsson suggested that there are "big risks" for companies that decide not to pull out of the Russian market, or are seen to be taking too long to make a decision. "These well-known recognised global brands have this problem that consumers are making their own decisions. And if they don't like what the brand is doing, they'll stop purchasing. " he said. KOCH Koch, the American company run by billionaire Charles Koch, was explicit about its intention in a statement last week signed by Chief Operating Officer Dave Robertson. The Robertson statement said conoco 12 Koch would continue to operate its two Russian glass facilities, which uniongas Sofin are owned by Guardian Industries, a company acquired in 2017. A Spectra Energy Company 'While Guardian's business in Russia is a very small part of Koch, we INE will not walk away from our employees there or hand over these BRAWNY manufacturing facilities to the Russian government so it can operate QUILTED and benefit from them" Robertson said. ogle NORTHERN Soft & Strong Although the Koch senior executive was willing to acknowledge the Sparkle "horrific and abhorrent aggression against Ukraine" as an "affront to March humanity, it was not enough to persuade Koch to pull out of Russia, as Ukrainian President Volodymyr Zelensky urged companies to do when he addressed the U.S. Congress by video link last week. "All American companies must leave the Russian market immediately because it is VIN flooded with our blood," Zelensky said. More than 450 foreign companies have announced plans to pull out or curtail their activities in Russia since V a list of multinationals still doing business in Russia/ was first published by Jeffrey Sonnenfeld and his research team at the Yale School of Management. The Yale professor, who is monitoring companies that are still doing business in Russia following its unprovoked invasion of its neighbour, described the Koch statement as "pathetic" and said it "reveals that all they care about is the loss of assets." He was also + scathing toward SC Johnson, describing its decision to continue operating in Russia as providing "globally branded confidence" to Russia's war machine.SC Johnson said in a statement that it feels a "deep obligation" to stand by its 200 workers in Russia and 130 workers in Ukraine. "We're not going to turn our backs on our people in Russia," the American company's chief communications officer, Alan Vander Molen said. "We believe we have an obligation to provide them with a livelihood and will continue to do so as long as we are complying with sanctions and the law." Cloudflare responded to calls to end all of its services in Russia by consulting with government and civil- society experts, according to its Chief Executive Matthew Prince. "Our conclusion, in consultation with those experts, is that Russia needs more Internet access, not less," he wrote. The company has seen a "dramatic" rise in requests from Russian networks to global media, he said, reflecting the interest from Russian citizens to see news beyond what is offered within Russia. "Indiscriminately terminating service would do little to harm the Russian government, but would both limit access to information outside the country, and make significantly more vulnerable those who have used us to shield themselves as they have criticised the government," Prince wrote. Foreign companies that opt to dig in and continue operating in Russia are facing substantial reputational risk at a time when younger people, in particular, expect companies to reflect their values and are willing and able to mobilise against them when corporate behaviour disappoints. "Gen Z are very careful about where they shop, whom they buy from and where they invest," an American business academic suggested. Some activists are already organising boycotts of Koch and SC Johnson products on social media. The ethical response from foreign companies was unusual, in that the first to announce plans to withdraw from Russia were energy companies, "who have not always been on the right side of social-justice issues," said Sonnenfeld. Today, one of the main building blocks for brands in building the image and fighting for customers is corporate social responsibility. As companies exit Russia en masse following the invasion of Ukraine, Asian brands have been conspicuously absent from the corporate exodus. Of the more than 370 global companies that have withdrawn, suspended or scaled back operations in Russia, the vast majority are headquartered in Europe or North America, including iconic brands such as Mcdonald's, Shell, Nike and Apple. With the exception of a handful of corporate giants from Japan, South Korea and Taiwan, Asian brands have largely opted to V IW either cautiously remain in Russia or keep quiet about their plans It was January of 1990 and Mcdonalds was opening its very first restaurant in the Soviet Union, becoming V one of the few Western companies to breach the Iron Curtain in its final days as it slowly opened up to the world. "From the moment you stepped in, it was an entirely different experience than a Soviet restaurant. You were greeted with smiles and shouts of 'Can I help you?" Products were of consistent quality and always consumable. The burgers were hot!" This was a culture shock to Soviet denizens, many of whom + expressed confusion when staff would smile at them. "When I smile, people are asking what's wrong, they think I am laughing at them," one Russian employee at the Mcdonald's opening day in 1990 told a reporter.SC Johnson said in a statement that it feels a "deep obligation" to stand by its 200 workers in Russia and 130 workers in Ukraine. "We're not going to turn our backs on our people in Russia," the American company's chief communications officer, Alan Vander Molen said. "We believe we have an obligation to provide them with a livelihood and will continue to do so as long as we are complying with sanctions and the law." Cloudflare responded to calls to end all of its services in Russia by consulting with government and civil- society experts, according to its Chief Executive Matthew Prince. "Our conclusion, in consultation with those experts, is that Russia needs more Internet access, not less," he wrote. The company has seen a "dramatic" rise in requests from Russian networks to global media, he said, reflecting the interest from Russian citizens to see news beyond what is offered within Russia. "Indiscriminately terminating service would do little to harm the Russian government, but would both limit access to information outside the country, and make significantly more vulnerable those who have used us to shield themselves as they have criticised the government," Prince wrote. Foreign companies that opt to dig in and continue operating in Russia are facing substantial reputational risk at a time when younger people, in particular, expect companies to reflect their values and are willing and able to mobilise against them when corporate behaviour disappoints. "Gen Z are very careful about where they shop, whom they buy from and where they invest," an American business academic suggested. Some activists are already organising boycotts of Koch and SC Johnson products on social media. The ethical response from foreign companies was unusual, in that the first to announce plans to withdraw from Russia were energy companies, "who have not always been on the right side of social-justice issues," said Sonnenfeld. Today, one of the main building blocks for brands in building the image and fighting for customers is corporate social responsibility. As companies exit Russia en masse following the invasion of Ukraine, Asian brands have been conspicuously absent from the corporate exodus. Of the more than 370 global companies that have withdrawn, suspended or scaled back operations in Russia, the vast majority are headquartered in Europe or North America, including iconic brands such as Mcdonald's, Shell, Nike and Apple. With the exception of a handful of corporate giants from Japan, South Korea and Taiwan, Asian brands have largely opted to V IW either cautiously remain in Russia or keep quiet about their plans It was January of 1990 and Mcdonalds was opening its very first restaurant in the Soviet Union, becoming V one of the few Western companies to breach the Iron Curtain in its final days as it slowly opened up to the world. "From the moment you stepped in, it was an entirely different experience than a Soviet restaurant. You were greeted with smiles and shouts of 'Can I help you?" Products were of consistent quality and always consumable. The burgers were hot!" This was a culture shock to Soviet denizens, many of whom + expressed confusion when staff would smile at them. "When I smile, people are asking what's wrong, they think I am laughing at them," one Russian employee at the Mcdonald's opening day in 1990 told a reporter.Mcdonald's President and Chief Executive Officer, Chris Kempczinski stated, "After more than 30 years of operations in the country, Mcdonald's Corporation announced it will exit the Russian market and has initiated a process to sell its Russian business". Kempczinski further said, "We have a long history of establishing deep, local roots wherever the Arches shine. We're exceptionally proud of the 62,000 employees who work in our restaurants, along with the hundreds of Russian suppliers who support our business, and our local franchisees. Their dedication and loyalty to Mcdonald's make today's announcement extremely difficult. CEO Chris Kempczinski said he was proud of all of the company's workers employed in Russia and that the decision was "extremely difficult." He also said that the employees will continue to be paid until the business is sold and that "employees have future employment with any potential buyer." The burger chain will now sell its business, saying that the "humanitarian crisis caused by the war in Ukraine, and the precipitating unpredictable operating environment, have led Mcdonald's to conclude that continued ownership of the business in Russia is no longer tenable, nor is it consistent with Mcdonald's values Chris Kempczinski further stated, "We have a commitment to our global community and must remain steadfast in our values. And our commitment to our values means that we Mcdonald's can no longer keep the Arches shining there." Mcdonald's will take a significant write-off from exiting Russia - AAAA BaHA between $1.2 billion to $1.4 billion. For Bakhti Nishanov, a Eurasia specialist who grew up in the Soviet Union, the departure is oddly emotional. "This has a massive symbolic importance: Mcdonald's coming to Russia, then part of the Soviet Union, was an implicit signal to the world that Russia is open for business. The company leaving Russia is an explicit signal that the country is no longer a place you want to be in as a business". Not all Russians feel bad about the golden arches leaving. Russian influencer and comedian Natasha VIW Krasnova wrote in an Instagram post in March that was viewed more than 5 million times "Hello Americans ... We want to thank you for all your sanctions, for taking away from our country Coca Cola, KFC, Mcdonald's and all that sh--. Now by summer we will be healthy, strong and without ass fat". V Many Russians have encouraged replacing Western chains with Russian-made brands, and at this point are perfectly capable of making their own burgers and other fast food products. There has also been a push by some to ditch American-style food as a whole in favour of local dishes, as much of the country rejects Western symbols out of patriotism. After the fast-food chain closed a grand total of 847 restaurants + in Russia, totally leaving the country from a business perspective, the Russian government has renamed all the previously Mcdonald's branded restaurants as 'Uncle Vania'Mcdonald's President and Chief Executive Officer, Chris Kempczinski stated, "After more than 30 years of operations in the country, Mcdonald's Corporation announced it will exit the Russian market and has initiated a process to sell its Russian business". Kempczinski further said, "We have a long history of establishing deep, local roots wherever the Arches shine. We're exceptionally proud of the 62,000 employees who work in our restaurants, along with the hundreds of Russian suppliers who support our business, and our local franchisees. Their dedication and loyalty to Mcdonald's make today's announcement extremely difficult. CEO Chris Kempczinski said he was proud of all of the company's workers employed in Russia and that the decision was "extremely difficult." He also said that the employees will continue to be paid until the business is sold and that "employees have future employment with any potential buyer." The burger chain will now sell its business, saying that the "humanitarian crisis caused by the war in Ukraine, and the precipitating unpredictable operating environment, have led Mcdonald's to conclude that continued ownership of the business in Russia is no longer tenable, nor is it consistent with Mcdonald's values Chris Kempczinski further stated, "We have a commitment to our global community and must remain steadfast in our values. And our commitment to our values means that we Mcdonald's can no longer keep the Arches shining there." Mcdonald's will take a significant write-off from exiting Russia - AAAA BaHA between $1.2 billion to $1.4 billion. For Bakhti Nishanov, a Eurasia specialist who grew up in the Soviet Union, the departure is oddly emotional. "This has a massive symbolic importance: Mcdonald's coming to Russia, then part of the Soviet Union, was an implicit signal to the world that Russia is open for business. The company leaving Russia is an explicit signal that the country is no longer a place you want to be in as a business". Not all Russians feel bad about the golden arches leaving. Russian influencer and comedian Natasha VIW Krasnova wrote in an Instagram post in March that was viewed more than 5 million times "Hello Americans ... We want to thank you for all your sanctions, for taking away from our country Coca Cola, KFC, Mcdonald's and all that sh--. Now by summer we will be healthy, strong and without ass fat". V Many Russians have encouraged replacing Western chains with Russian-made brands, and at this point are perfectly capable of making their own burgers and other fast food products. There has also been a push by some to ditch American-style food as a whole in favour of local dishes, as much of the country rejects Western symbols out of patriotism. After the fast-food chain closed a grand total of 847 restaurants + in Russia, totally leaving the country from a business perspective, the Russian government has renamed all the previously Mcdonald's branded restaurants as 'Uncle Vania'Another important example is the experience of Leroy Merlin. Shortly after a Russian rocket obliterated one of the largest shopping malls in Kyiv on Monday, Ukrainian employees of Leroy Merlin, a home improvement store that was destroyed in the blast, commandeered the company's Ukraine Instagram page. "Stop Sales in Russia," they wrote, posting a picture of the shattered remains of the site, where a security guard for the company was killed, one of eight fatalities in the predawn strike. Leroy Merlin shut its six stores in Ukraine after the war started, and paid employees the equivalent of three months' salary. It has even helped workers and their families cross the border to Poland and Romania for safety. But in Russia, the company operates 112 stores, and has given no public signs that it plans to leave. Just the opposite: It is working to expand its Russian inventory to adjust to sanctions and the departure of rival Western chains, according to an internal message provided by employees. The Instagram message wasn't the first time the Ukrainian workers had spoken out against Leroy Merlin's insistence on doing business in Russia. Around 350 of them signed a petition last month asking the French parent company of Leroy Merlin, the Adeo Group, one of Europe's largest retail conglomerates, to withdraw all business operations from Russia. After employees sent executives the plea and posted messages on social media, Leroy Merlin shut down the Ukrainian unit's internal Gmail accounts - blocking the ability to communicate with the home office and one another, according to interviews with two employees and posts by other Leroy Merlin workers on social media. Managers also asked Ukraine staff to remain politically neutral about company business, they said. LEROY MERLIN "Adeo told us that their biggest quality is their humanism," said Anatoliy Zelinskyy, Leroy Merlin's brand manager in Ukraine and STOP SUPPLING an author of the message on the Instagram page. "But I never expected such a reaction from a business that claims RUSSIAN AGRESSOR humanitarian values." The list of global brands announcing their exit from Russia is growing by the day, adding pressure on the Russian economy and drawing threats from Russian President Vladimir Putin to nationalise Western businesses that pull out. But the Adeo Group is among a number of companies making a decision to stay. It also owns the Auchan chain of giant supermarkets and Decathlon, a sporting goods retailer. For Leroy Merlin and Auchan, Russia is the second-largest market behind France. Altogether, they have over 400 stores in Russia, where they employ 75,000 workers and earned combined sales of over E8 billion in 2021. VIA The destruction of the Leroy Merlin in the Retroville mall in Kyiv opens a window onto the conflicting interests and thorny corporate and humanitarian calculations facing companies that have spent decades setting up operations and gaining market share in Russia. Adeo has not issued any statements on its V activities in Russia since the conflict began. The company did not respond to email, text and telephone requests for comment for this article. Adeo's Linkedin page promotes solidarity with Ukraine, but after a barrage of online criticism over its unwillingness to leave Russia, comments were removed and disabled. + The company's position remains a source of angst for a number of its Ukraine employees. They see humanitarian actions taken by Adeo since the conflict began, including providing donations and helpingAnother important example is the experience of Leroy Merlin. Shortly after a Russian rocket obliterated one of the largest shopping malls in Kyiv on Monday, Ukrainian employees of Leroy Merlin, a home improvement store that was destroyed in the blast, commandeered the company's Ukraine Instagram page. "Stop Sales in Russia," they wrote, posting a picture of the shattered remains of the site, where a security guard for the company was killed, one of eight fatalities in the predawn strike. Leroy Merlin shut its six stores in Ukraine after the war started, and paid employees the equivalent of three months' salary. It has even helped workers and their families cross the border to Poland and Romania for safety. But in Russia, the company operates 112 stores, and has given no public signs that it plans to leave. Just the opposite: It is working to expand its Russian inventory to adjust to sanctions and the departure of rival Western chains, according to an internal message provided by employees. The Instagram message wasn't the first time the Ukrainian workers had spoken out against Leroy Merlin's insistence on doing business in Russia. Around 350 of them signed a petition last month asking the French parent company of Leroy Merlin, the Adeo Group, one of Europe's largest retail conglomerates, to withdraw all business operations from Russia. After employees sent executives the plea and posted messages on social media, Leroy Merlin shut down the Ukrainian unit's internal Gmail accounts - blocking the ability to communicate with the home office and one another, according to interviews with two employees and posts by other Leroy Merlin workers on social media. Managers also asked Ukraine staff to remain politically neutral about company business, they said. LEROY MERLIN "Adeo told us that their biggest quality is their humanism," said Anatoliy Zelinskyy, Leroy Merlin's brand manager in Ukraine and STOP SUPPLING an author of the message on the Instagram page. "But I never expected such a reaction from a business that claims RUSSIAN AGRESSOR humanitarian values." The list of global brands announcing their exit from Russia is growing by the day, adding pressure on the Russian economy and drawing threats from Russian President Vladimir Putin to nationalise Western businesses that pull out. But the Adeo Group is among a number of companies making a decision to stay. It also owns the Auchan chain of giant supermarkets and Decathlon, a sporting goods retailer. For Leroy Merlin and Auchan, Russia is the second-largest market behind France. Altogether, they have over 400 stores in Russia, where they employ 75,000 workers and earned combined sales of over E8 billion in 2021. VIA The destruction of the Leroy Merlin in the Retroville mall in Kyiv opens a window onto the conflicting interests and thorny corporate and humanitarian calculations facing companies that have spent decades setting up operations and gaining market share in Russia. Adeo has not issued any statements on its V activities in Russia since the conflict began. The company did not respond to email, text and telephone requests for comment for this article. Adeo's Linkedin page promotes solidarity with Ukraine, but after a barrage of online criticism over its unwillingness to leave Russia, comments were removed and disabled. + The company's position remains a source of angst for a number of its Ukraine employees. They see humanitarian actions taken by Adeo since the conflict began, including providing donations and helpingUkrainian refugees flee Russian rockets, as being at odds with the decision to continue doing business in Russia. Adeo's chief executive, Philippe Zimmermann, laid out the company's thinking in a video address to employees, which was obtained by The New York Times. "The war in Ukraine is dramatic, unbearable for both Ukrainians and Leroy Merlin in Ukraine. It affects us all," Mr. Zimmermann said, acknowledging the concerns of Ukrainian employees and citing the bombing of the mall and the death of the contract security guard. "There is no reason to condemn our Russian teams for a war they did not choose. There is no reason to turn away 45,000 employees representing more than 100,000 people with their families. There is no reason to stop being useful to Russians who need to repair, insulate, insure, protect and light their homes. We sell them essentials. It is our responsibility as employers and companies." Leaving Russia would risk having the company's assets taken by the Russian government, to the detriment of Adeo's Russian employees. Workers in Ukraine say the two situations can't be compared. "They are talking about the well-being of Russian employees," said Yevgeniy Kuzmin, digital director for Leroy Merlin in Ukraine. "But we are facing life and death in Ukraine - this is war," he said by telephone from Lviv, an air raid siren blaring in the background Hundreds of the Ukraine employees signed the internal petition calling MERLIN for Leroy Merlin to exit Russia and posted similar messages on the retailer's Ukraine Facebook and Instagram pages. Managers LEROY pressured them to remove the messages, Mr. Zelinskyy and Mr. Kuzmin said. Soon after, Leroy Merlin's corporate communications channels in Ukraine were taken offline. "Adeo explained that they were doing this due to the high risk of hacker attacks on our system and that it would be blocked temporarily," said Mr. Zelinskyy, the communications manager. "But one month later, these still have not been put back online." Some employees were also angered by a leaked internal message, dated March 11, that showed that managers in Russia were trying to expand their selection of items as major competitors pulled out of the country and Western sanctions disrupted imports. "After the departure of some companies, we are open to your suggestions to increase supplies and expand the product range," said the message, which was sent to Russian suppliers and seen by reporters. "In the next three to four months, we plan to completely replace the imported products with goods produced in Russia." In interviews, Ukraine employees acknowledged that Leroy Merlin had taken numerous steps to help deal with an unfolding humanitarian disaster when the Russian military invaded on Feb. 24. It authorized V donations from its stores, including sand, wood and insulation, enabling Ukrainian soldiers to build bomb shelters and use sandbags to block Russian military vehicles. Some Leroy Merlin workers took up arms or joined Ukraine's cyber army to combat the invasion. + Meanwhile, Mr. Kuzmin said, opposition to Leroy Merlin and Adeo's decision to stay in Russia was growing online. "We started to receive a lot of hate messages from our customers on social media, saying, guys, you are an international company cans a great deal of financeUkrainian refugees flee Russian rockets, as being at odds with the decision to continue doing business in Russia. Adeo's chief executive, Philippe Zimmermann, laid out the company's thinking in a video address to employees, which was obtained by The New York Times. "The war in Ukraine is dramatic, unbearable for both Ukrainians and Leroy Merlin in Ukraine. It affects us all," Mr. Zimmermann said, acknowledging the concerns of Ukrainian employees and citing the bombing of the mall and the death of the contract security guard. "There is no reason to condemn our Russian teams for a war they did not choose. There is no reason to turn away 45,000 employees representing more than 100,000 people with their families. There is no reason to stop being useful to Russians who need to repair, insulate, insure, protect and light their homes. We sell them essentials. It is our responsibility as employers and companies." Leaving Russia would risk having the company's assets taken by the Russian government, to the detriment of Adeo's Russian employees. Workers in Ukraine say the two situations can't be compared. "They are talking about the well-being of Russian employees," said Yevgeniy Kuzmin, digital director for Leroy Merlin in Ukraine. "But we are facing life and death in Ukraine - this is war," he said by telephone from Lviv, an air raid siren blaring in the background Hundreds of the Ukraine employees signed the internal petition calling MERLIN for Leroy Merlin to exit Russia and posted similar messages on the retailer's Ukraine Facebook and Instagram pages. Managers LEROY pressured them to remove the messages, Mr. Zelinskyy and Mr. Kuzmin said. Soon after, Leroy Merlin's corporate communications channels in Ukraine were taken offline. "Adeo explained that they were doing this due to the high risk of hacker attacks on our system and that it would be blocked temporarily," said Mr. Zelinskyy, the communications manager. "But one month later, these still have not been put back online." Some employees were also angered by a leaked internal message, dated March 11, that showed that managers in Russia were trying to expand their selection of items as major competitors pulled out of the country and Western sanctions disrupted imports. "After the departure of some companies, we are open to your suggestions to increase supplies and expand the product range," said the message, which was sent to Russian suppliers and seen by reporters. "In the next three to four months, we plan to completely replace the imported products with goods produced in Russia." In interviews, Ukraine employees acknowledged that Leroy Merlin had taken numerous steps to help deal with an unfolding humanitarian disaster when the Russian military invaded on Feb. 24. It authorized V donations from its stores, including sand, wood and insulation, enabling Ukrainian soldiers to build bomb shelters and use sandbags to block Russian military vehicles. Some Leroy Merlin workers took up arms or joined Ukraine's cyber army to combat the invasion. + Meanwhile, Mr. Kuzmin said, opposition to Leroy Merlin and Adeo's decision to stay in Russia was growing online. "We started to receive a lot of hate messages from our customers on social media, saying, guys, you are an international company cans a great deal of financegoes to the Russian state budget, which helps to support war," Mr. Kuzmin said. When the Russian rocket obliterated Leroy Merlin's Kyiv store and killed the security guard - who had a wife and a child and had worked at the store as a sales associate for several years before switching jobs - Ukraine employees ramped up the visibility of their plea. They logged into Leroy Merlin's Ukraine Instagram page and posted a link to an online public petition for the company to stop sales in Russia, which had gathered over 15,000 signatures by Wednesday evening. On Thursday, the page had been taken down. "Every day, our directors would tell us that Adeo is human-centric, that humanity is at the heart of the company," Mr. Kuzmin said. "But when it comes to war, where is the humanity? Only money matters." End of MCP case study.goes to the Russian state budget, which helps to support war," Mr. Kuzmin said. When the Russian rocket obliterated Leroy Merlin's Kyiv store and killed the security guard - who had a wife and a child and had worked at the store as a sales associate for several years before switching jobs - Ukraine employees ramped up the visibility of their plea. They logged into Leroy Merlin's Ukraine Instagram page and posted a link to an online public petition for the company to stop sales in Russia, which had gathered over 15,000 signatures by Wednesday evening. On Thursday, the page had been taken down. "Every day, our directors would tell us that Adeo is human-centric, that humanity is at the heart of the company," Mr. Kuzmin said. "But when it comes to war, where is the humanity? Only money matters." End of MCP case studyStep by Step Solution
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