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Read and analyze the case, “Lenta of St. Petersburg, Russia.” (Attached) Think about what is required in order for Lenta (or any company in an emerging market) to grow, i.e., expand. Once you have considered what factors are critical, analyze the arguments for or against growth. As part of your analysis, be sure to identify the key issues that need to be considered in order for a company to make a well- reasoned decision regarding where and how to expand.

Then write a two page response to the following questions.

  • Should Lenta grow?
  • If so, where? The choices boil down to the following options listed below. Consider the implications for each option.
    • Slow down/stop growth. Consolidate Lenta’s position in the St. Petersburg market
    • Grow, but only in St. Petersburg
    • Grow, by entering the nearest cities surrounding St. Petersburg
    • Grow, and especially target the largest and richest city in Russia, Moscow
    • Grow, and especially target large but underdeveloped cities in southern Russia and/or western Siberia
 
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