International Programs

This paper analyzed a value added and export operation in Kapiskis Lithuania operated by Ochoco Lumber, a US forest products company. This operation was successfully operating and doing business in Lithuania, Russia, and Commonwealth of Independent States (CIS), at a time when many foreign companies are still hesitant, or have failed in setting up business.
Aspects that will be discussed include reasons for establishing operations in Lithuania, government relations, tax problems, labor force/management issues, raw material supply and availability, plant layout, marketing and export issues, and profitability feasibility. The qualitative and quantitative issues that will be explored will include the cultural aspects of doing business in the Commonwealth of Independent States (CIS). The goal of this project was to outline the benefits and drawbacks of global operations with Russia and the newly independent states.
Many factors have contributed to Ochoco's successful experience in Lithuania. These include Ochoco's ability to adapt quickly to market conditions and customer demand and its ability to span the gap between the differences in culture and business practices and establish working business relationships built on trust.