Management practices of Russian companies : in 2 vols. Vol. 1

   National Research University Higher School of Ecomonics
   Graduate School of Business






                MANAGEMENT PRACTICES OF RUSSIAN COMPANIES




  CASES FROM THE COLLECTION
  OF THE HSE GRADUATE SCHOOL OF BUSINESS
  VOLUME 1

  2nd edition, electronic






        ©

   HIGHER SCHOOL OF ECONOMICS
   PUBLISHING HOUSE
   MOSCOW
   2023

UDC 005.7
LBC 65стд1-21
      M69

Recommended for publication by the Academic Council of the Graduate School of Business, National Research University Higher School of Economics
R e v i e w e r s :
S. Smirnova, PhD, Associate Professor, Head of Department of Marketing, Graduate School of Management, Saint-Petersburg State University;
I. Melnik, PhD, Director for Innovations, X5 Group
A u t h o r s :
P. Artamoshina, A. Vinogradov, M. Gorgisheli, T. Grishchenko, Y. Zelenkov, A. Ivanova, E. Ivanova, O. Isaeva, A. Lebedev, A. Likhachev, N. Milovantseva, O. Mondrus, A. Osipova, O. Osipova, E. Panteleeva, V. Rebiazina, A. Rozhkov, V. Silchev, A. Stepanov, A. Sterligova
E d i t e d b y
S. Kushch, Doctor of Sciences, Professor, Deputy Dean, HSE Graduate School of Business
M69 Management practices of Russian companies : in 2 vols. Vol. 1 / P. Artamoshina et al. ; ed. by S. Kushch ; National Research University Higher School of Economics, Graduate School of Business. — 2nd ed., electronic. — 1 file pdf : 116 p. — Moscow : HSE Publishing House, 2023. — (Cases from the collection of the HSE Graduate School of Business). — System requirements: Adobe Reader XI or Adobe Digital Editions 4.5 ; screen 10". — Text : electronic.
          ISBN 978-5-7598-2485-5 (vol. 1)
          ISBN 978-5-7598-2815-0
          This collection of compact cases on management practices in Russian companies was produced by professors of HSE Graduate School of Business and other units of HSE University and resulted from a joint project between HSE GSB and The Case Centre, the one of the top case clearing houses globally. The cases in this volume reflect on a wide range of the current issues in business management, such as Strategic Management, Business Innovation, Supply Chain Management, Brand Management, ESG and Business Ethics, Talent Mana gement, Entrepreneurship, as well as doing business during the COVID-19 pandemic.
          This case collection is recommended for students, participants and faculty of various programs in management — from Bachelor and Master to MBA and Executive Education.
UDC 005.7
LBC 65стд1-21

      Electronic edition based on the printed edition: Management practices of Russian companies : in 2 vols. Vol. 1 / P. Artamoshina et al. ; ed. by S. Kushch ; National Research University Higher School of Economics, Graduate School of Business. — Moscow : HSE Publishing House, 2022. — 120 p. — (Cases from the collection of the HSE Graduate School of Business). — ISBN 978-5-7598-2688-0. — Text : direct.

ISBN 978-5-7598-2485-5 (vol. 1)
ISBN 978-5-7598-2815-0

© National Research University
  Higher School of Economics, 2022

        CONTENTS


    INTRODUCTION ................................................................. 5
    E. Ivanova, N. Milovantseva
        CIRCULAR ECONOMY DILEMMA AT BIOFOODLAB: HOW TO STAY FAIR, HEALTHY AND GREEN ........................................................ 9
    V. Rebiazina, A. Rozhkov RELOADING THE KALASHNIKOV BRAND IMAGE, HIT OR MISS ...................... 19
    O. Mondrus, A. Osipova CRACKING CROC’S TALENT .................................................. 31
    E. Panteleeva, A. Lebedev
        50 SHADES OF GREEN: THE RE-POSITIONING OF PEREKRESTOK IN THE GROCERY SUPERMARKET SECTOR ....................................... 43
    A. Sterligova, M. Gorgisheli JOOM — CHALLENGE TO THE AMAZON .......................................... 55
    T. Grishchenko, P. Artamoshina
        WHICH PERSONA? APPLYING ARTIFICIAL INTELLIGENCE TECHNOLOGIES AND DIGITALIZATION TO TRANSFORM THE FASHION INDUSTRY .................... 67
    O. Isaeva, O. Osipova
        ORGANIZATIONAL CHANGE MANAGEMENT IN PA§ABAHQE-RUSSIA: MOVING UPSTREAM ......................................................... 79
    A. Vinogradov, A. Ivanova
        GAINING COMPETITIVE ADVANTAGE IN THE E-GROCERY MARKET IN MOSCOW: VKUSVILL’S RESPONSE TO THE CORONAVIRUS PANDEMIC ......................... 91
    Y. Zelenkov, V. Silchev
        DELIVER2.ME: EXPLORING THE POTENTIAL OF DATA SCIENCE TO IMPROVE RELIABILITY OF SUPPLIER DELIVERIES ..................................... 101
    A. Likhachev, A. Stepanov
        DIGITAL CHALLENGE: THE STORY OF THE INNOVATIVE 3D SCANNER OF THE HUMAN BODY ...................................................... 109

        COMPACT CASES DISTRIBUTION BY SUBJECT CATEGORIES

                                                                                                      Subject category                                                                   
№            Compact case title           Change management Data analysis ESG and Business Ethics Logistics and Supply Marketing / Branding Strategic management   Talent management /  
                                                                                                    chain management                                             Organizational behavior
   CIRCULAR ECONOMY DILEMMA AT                                                                                                                                                          
1  BIOFOODLAB: HOW TO STAY FAIR, HEALTHY                                             •                                                               •                                  
   AND GREEN                                                                                                                                                                            
2  RELOADING THE KALASHNIKOV BRAND                                                                                              •                    •                                  
   IMAGE, HIT OR MISS                                                                                                                                                                   
3  CRACKING CROC’S TALENT                         •                                                                                                              •                      
   50 SHADES OF GREEN: THE RE-POSITIONING                                                                                                                                               
4  OF PEREKRESTOK IN THE GROCERY                                                     •                                          •                                                       
   SUPERMARKET SECTOR                                                                                                                                                                   
5  JOOM --- CHALLENGE TO THE AMAZON                                                                        •                    •                    •                                  
   WHICH PERSONA? APPLYING ARTIFICIAL                                                                                                                                                   
6  INTELLIGENCE TECHNOLOGIES                                                                                                    •                    •                                  
   AND DIGITALIZATION TO TRANSFORM                                                                                                                                                      
   THE FASHION INDUSTRY                                                                                                                                                                 
7  ORGANIZATIONAL CHANGE MANAGEMENT               •                                                                                                              •                      
   IN PA? ABAHC E-RUSSIA: MOVING UPSTREAM                                                                                                                                               
   GAINING COMPETITIVE ADVANTAGE IN                                                                                                                                                     
8  THE E-GROCERY MARKET IN MOSCOW:                                                                         •                                         •                                  
   VKUSVILL’S RESPONSE TO THE CORONAVIRUS                                                                                                                                               
   PANDEMIC                                                                                                                                                                             
   DELIVER2.ME: EXPLORING THE POTENTIAL                                                                                                                                                 
9  OF DATA SCIENCE TO IMPROVE RELIABILITY                         •                                        •                                         •           •                      
   OF SUPPLIER DELIVERIES                                                                                                                                                               
   DIGITAL CHALLENGE: THE STORY OF                                                                                                                                                      
10 THE INNOVATIVE 3D SCANNER OF                                                                                                 •                    •                                  
   THE HUMAN BODY                                                                                                                                                                       

INTRODUCTION

SERGEY KUSHCH
Professor, Deputy Dean for Research, HSE Graduate School of Business


We are pleased to present you this first volume of compact cases produced by the Graduate School of Business at the National Research University Higher School of Economics, Moscow. With this book we start a large-scale project of creating the HSE Graduate Business School's collection of cases which will focus on the management practices of Russian companies and multinationals that are doing business in (and with) Russia. Although there are currently more than 100,000 cases in various international databases, very few of them focus on business management in Russia. Also, we at HSE GSB are interested in developing the case method further in order to adjust this traditionally key learning method of management education to the new challenges that business schools face — in Russia and elsewhere.

   The work on this volume started in Autumn 2020, when 20 HSE business management faculty members (16 from GSB and 4 from the University campuses in St. Petersburg and Nizhniy Novgorod) formed a study group in a seminar, jointly organized by HSE GSB and The Case Centre to develop competencies in designing and writing compact cases. This type of cases is increasingly popular in the leading business schools around the globe. Conceptually, these are short cases — no more than five pages long — that may embrace a wide range of business issues in various fields, as it is with full-size business cases (the so-called Harvard cases). Thus, compact cases provide contextual backgrounds, connect theory with practice, and develop insights as well as full-format cases.
   This first compact cases project has been the initial action of the newborn HSE GSB’ Russian Case Center which aims to promote integration of the case method not only at HSE but in the Russian business education at large — by creating a collection of Russian-centered cases, and also by accumulating and promoting advanced expertise in the case writing and the case method. The collaboration with The Case Centre (the world's largest

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clearing house and distributor of business cases) provided expert support during the entire case development process. This allowed HSE faculty to familiarize with international standards of all stages of producing high-quality compact cases, thus aiming at registering them at The Case Centre after appropriate procedures.
    The collection covers a wide range of topics including Entrepreneurship, Strategic Management, Business Innovation, ESG and Business Ethics, Supply Chain Management, Brand and Talent Management. Furthermore, some cases considered such “hot” topic as the features of management during the COVID-19 pandemic.
    This volume is published simultaneously in two languages — English and Russian — which means that these educational materials will be used not only at Russianspeaking, but also at international business schools. Publishing this set of cases in English also provides for registering them in The Case Centre database, thus making these cases available to professors and students all over the world.

   This set of compact cases was developed for business school students of undergraduate and graduate programs, and also could be used in executive education, as well as by professional managers interested deepening understanding of effective management decisions in the Russian institutional and business context. Each case specifies the appropriate target group and programs where the case can be best applied.
   I wish to express here my deep gratitude to the management and experts of the companies, who provided the information necessary for developing these compact cases, as well as all the project participants for their enthusiasm and extensive involvement in creating and presenting the cases. Special appreciation to Trevor Williamson from The Case Centre for his outstanding professionalism and careful attention to each case and to each member of the project group.
   With great sincerity and best wishes to all the project participants.

TREVOR WILLIAMSON
Elmfield House Associates, on behalf of The Case Centre

My passion for and belief in the value of the case method approach to teaching and learning can be traced back to late September 1976 when I was inspired by my Marketing lecturer to engage in a marketing strategy case, Nike in China. I was a final year “Management Sciences” undergraduate at the University of Manchester Institute of Sciences&Technology. Little did I know at that moment in time that I would be here, 44 years later, trying my best to help faculty members at HSE Business School write “teaching”cases that will, hopefully, have an equally inspirational impact on the lives and careers of students with whom they and other lecturers come into contact with, around the world.
   A career switch into Higher Education, sixteen years later in September 1992, provided the platform for me to practice the art and craft of delivering cases in the classroom with students of my own. I had been appointed Programme Leader for a “Financial Services” degree at Manches

ter Metropolitan University and was intent on releasing the potential of case studies to help them acquire skills and insights into business and management that no other approach to teaching and learning could deliver, in my view.
   The next step on my journey of discovery that has underpinned the design and delivery of something in the order of 80 case teaching and case writing workshops at leading Business Schools around the world, was participation in “An introduction to case writing workshop” at The Case Centre in Cranfield, in 1995. Little did I know at that moment in time that 25 years later I would receive a telephone call, Kate Cook, Events Manager at The Case Centre, to invite me to participate in this wonderful, ground-breaking, case writing project.
   From the moment I was introduced to the collegues from HSE I struggled to contain my excitement at the prospect of laying case writing foundations at the Business School to showcase the quality of the applied research, teaching and business connections that the cases in this booklet reveal. The quality of the first cases to emerge from the process reflect the depth and range of expertise of faculty members in the Business School that was shared with its business partners, from startup entrepreneurs to corporations with a global presence. This provided

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for a platform for discussion and debate about contemporary business issues and concerns, and consideration of alternative perspectives on their solution. Those who engage with the cases will find it a rich and valuable learning experience that will stand them in good stead when they face similar challenges in their future careers.
   It has been a privilege and pleasure to work with such an able and enthusiastic group of authors, all of whom showed great commitment to establishment of a compact case collection at HSE Graduate School of Business. I congratulate the case authors and hope their work receives

the recognition I believe it deserves. I look forward to working with Cohort 2 to build upon the foundations of the case collection that have now been laid.
    Wouldn’t it be wonderful if in 44 years’ time another individual writes a foreword in a case booklet, reflecting upon the lifechanging and inspirational experience of engaging with one of these cases, delivered by a faculty member at HSE. I am confident that in the meantime the lives of many students around the world will be enriched as a result of this collective endeavour. For those of you who have participated in this project, I thank you on their behalf.

Case № 0001-2-1



CIRCULARECONOMY DILEMMA
I 1Ц |\T BioFoodLab:
HOW TO STAY FAIR, HEALTHY AND GREEN




E. Ivanova, N. Milovantseva

This case is written for upper-level undergraduate and graduate students to be used in business ethics, corporate social responsibility, sustainable development, social entrepreneurship and strategic management courses. The case was compiled from field research and open sources about a Russian pioneer in healthy food snacks industry.
The readers are invited to identify, analyze and understand the risks and opportunities that business faces with introduction of environmentally friendly packaging in the context of emerging markets; investigate how to develop and continuously improve a responsible product according to the principles of circular economy; internalize the importance of business with purpose capable of meeting expectations of company‘s stakeholders.

Figure 1. Elena Shifrina, BioFoodLab, 2019 Source: BioFoodLab.

Immediately after reopening her business production works in the middle of May, 2020, after the first COVID-19 lockdown, Elena Shifrina, the BioFoodLab founder, was very happy to reconvene with her office staff. Having finished her morning rituals — a jog around the neighbourhood, a healthy home-made breakfast with the family — Elena rushed to lead a meeting at the renovated space of Trekhgornaya office in the western downtown of Moscow.
   Alexandra, Anton and Anastasia, BioFoodLab’s R&D, finance and marketing directors correspondingly, had already gathered to make a strategic decision. The decision concerned the commitment

the company should take to switch to a more environmentally-friendly packaging solution for its flagship Take a Bite snack bar. The company attributed 60% of its product success to packaging with stylish design that speaks directly to ‘Generation Z’. The dilemma about how to change the packaging without compromising the company’s values, raising production costs or impairing product quality was on Elena’s mind.
   As she was heading to the office, Elena recalled a recent trip to the BioFoodLab's production site in Moscow’s Khimki district where she welcomed the first guided tour for a group of curious visitors. During the tour, some of the lifestyle of health and sus

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