CLUSTER THEORY AND ITS APPLICATION IN

TRANSITIONAL ECONOMY

Authors:

Patrick Low Kim ChengHugi Gaggiotti

Cluster theory and its application in transitional economy

Presidential decree in 2004 – development of Kazakhstan’s sources of competitive advantage with the use of clustering theory

On the basis of Porters approach

Analysis of cluster theory application in Kazakhstan with the focus on the area of Almaty

Cluster theory and its application in transitional economy

Almaty’s most promising clusters:

tourismnutritive and textile industryoil and gas equipmenttransport and logisticsmetallurgy and building materialsother supporting industries

Cluster theory and its application in transitional economy

Theory: Necessary conditions for development of clusters Types of clusters Influence of clustering on competitive advantage

Critics: Cluster organisation is managed from the top Management difficulties within and among clusters In Almaty the environment and society are not

ready yet

CONDUCTING BUSINESS IN KAZAKHSTAN

Authors:

Domen BajdeAleš GorišekMarija DrenkovskaMatej KlepecAna Lukner

Conducting business in Kazakhstan

Description of a fast developing market with its many drawbacks

Description of business customs and practices in Kazakhstan

Qualitative study of interviews with Slovenian CEOs who conduct business in Kazakhstan

Study of a successful Slovenian company Duol

Conducting business in Kazakhstan

An example of entrance to Kazakh market

Country specific advantages of companies from EU and USA

Competition from China and Korea

Setting up good personal relationships with clients

Differences between low and high context culture

Dealing with corruption

Complications with bureaucracy

Conducting business in Kazakhstan

Business customs and practices in Kazakhstan:

Education levels are high among high class

Laws in Kazakhstan are up-to-date

Clocks are ticking at a different rhythm

Always talk to the upper chief

Inform your embassy about your ventures

Do not trust just any foreigner

Avoid any display of superiority

Have patience and pity in dealing with local staff