Dealing with Russian regulatory challenges: The tobacco industry experience
Set in Russia, this case discusses the challenges the tobacco industry faced when the regulator decided to address one of the highest smoking incidences in the world and the related health issues of the Russian population. With such a legitimate objective, the regulatory proposal was drawn up without a full impact assessment, and the tobacco industry was facing a significant economic impact. With the stakes high and time ticking away, Tobacco International (a fictitious tobacco company with global operations and a long-term local presence) faced a crucial decision: How to respond to this key operational challenge. A stakeholder engagement model developed in-house was available, but its deployment in Russia would be extremely risky. The case discusses the pros and cons of a more proactive regulatory outreach to influence policy decisions.
Regulatory overreach can be counteracted with timely and proactive engagement with a wide stakeholder base so that regulatory decisions are better informed about economic realities. Participants learn what the alternatives in the public affairs toolbox are and how to effectively deploy them.
Consumer Goods, Tobacco
2011-2014
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in I by IMD 24 June 2024
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Case reference: IMD-7-2457 ©2024
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Case reference: IMD-7-2546 ©2024
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in MIT Sloan Management Review Summer 2024, vol. 65, no. 4
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