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    Case Study

    Dealing with Russian regulatory challenges: The tobacco industry experience

    By Carlos A. Primo Braga, Michelle Noguchi and Sanja Fabrio
    6 pages
    June 2014
    Order this case study
    Reference: IMD-3-2419

    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.

    Learning Objective

    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.

    Keywords
    Regulation, Stakeholder Management, Regulatory Framework, Value Chain, Economic Impact, Tobacco, Regulatory Overreach, Strategy
    Settings
    Europe, Russia
    Consumer Goods, Tobacco
    2011-2014
    Type
    Generalized Experience
    Copyright
    © 2014
    Available Languages
    English
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