Change Management in Transition Economies: Integrating Corporate Strategy, Structure and Culture

Arnold Schuh and Hartmut Holzm ¼ller

Abstract

The rapid and often drastic changes in national business environments in the course of the transition from centrally planned to free market economies pose specific challenges to Western consumer goods firms in Central and Eastern Europe. Once lured by the huge market potential they are faced with a poorly developed marketing infrastructure, price-conscious and not very brand-loyal consumers, and intense competition. When designing their marketing strategies they have to find a balance between likely returns on investment and the risks involved. Building up a local presence in a stepwise manner, transferring marketing strategies from the West in a sensitive way and developing regional management structures seem to be effective approaches for Western firms in this region.