Convergence in Entrepreneurial Leadership Style:Evidence from Russia SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Convergence in Entrepreneurial Leadership Style:Evidence from Russia
Entrepreneurial leadership is crucial for economic growth in all countries, yet little is known about the leadership style of entrepreneurs in transition economies such as the BRIC countries (Brazil, Russia, India, and China). There has been a need for research into cross-cultural similarities in entrepreneurial characteristics that would support an argument for convergence across cultures. This article investigates entrepreneurial leadership styles based on interviews with 130 exemplary Russian entrepreneurs over a recent five-year period. The results showed that a large majority of these entrepreneurs had adopted an open leadership style similar to U.S. entrepreneurs, adding support to a convergence theory of entrepreneurial leadership style.
Authors :: Daniel J. McCarthy, Sheila M. Puffer, Sergei V. Darda
Swot Analysis of "Convergence in Entrepreneurial Leadership Style:Evidence from Russia" written by Daniel J. McCarthy, Sheila M. Puffer, Sergei V. Darda includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Entrepreneurial Convergence facing as an external strategic factors. Some of the topics covered in Convergence in Entrepreneurial Leadership Style:Evidence from Russia case study are - Strategic Management Strategies, Entrepreneurial management, Leadership, Managing people and Global Business.
Some of the macro environment factors that can be used to understand the Convergence in Entrepreneurial Leadership Style:Evidence from Russia casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing, geopolitical disruptions, increasing energy prices, there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%,
increasing household debt because of falling income levels, technology disruption, etc
Introduction to SWOT Analysis of Convergence in Entrepreneurial Leadership Style:Evidence from Russia
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Convergence in Entrepreneurial Leadership Style:Evidence from Russia case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Entrepreneurial Convergence, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Entrepreneurial Convergence operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Convergence in Entrepreneurial Leadership Style:Evidence from Russia can be done for the following purposes –
1. Strategic planning using facts provided in Convergence in Entrepreneurial Leadership Style:Evidence from Russia case study
2. Improving business portfolio management of Entrepreneurial Convergence
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Entrepreneurial Convergence
Strengths Convergence in Entrepreneurial Leadership Style:Evidence from Russia | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Entrepreneurial Convergence in Convergence in Entrepreneurial Leadership Style:Evidence from Russia Harvard Business Review case study are -
Analytics focus
– Entrepreneurial Convergence is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Daniel J. McCarthy, Sheila M. Puffer, Sergei V. Darda can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Low bargaining power of suppliers
– Suppliers of Entrepreneurial Convergence in the sector have low bargaining power. Convergence in Entrepreneurial Leadership Style:Evidence from Russia has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Entrepreneurial Convergence to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Entrepreneurial Convergence has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Entrepreneurial Convergence to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Entrepreneurial Convergence is one of the most innovative firm in sector. Manager in Convergence in Entrepreneurial Leadership Style:Evidence from Russia Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Diverse revenue streams
– Entrepreneurial Convergence is present in almost all the verticals within the industry. This has provided firm in Convergence in Entrepreneurial Leadership Style:Evidence from Russia case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Strong track record of project management
– Entrepreneurial Convergence is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to recruit top talent
– Entrepreneurial Convergence is one of the leading recruiters in the industry. Managers in the Convergence in Entrepreneurial Leadership Style:Evidence from Russia are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy in the Convergence in Entrepreneurial Leadership Style:Evidence from Russia Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Organizational Resilience of Entrepreneurial Convergence
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Entrepreneurial Convergence does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Entrepreneurial Convergence has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Convergence in Entrepreneurial Leadership Style:Evidence from Russia HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in Global Business industry
– Convergence in Entrepreneurial Leadership Style:Evidence from Russia firm has clearly differentiated products in the market place. This has enabled Entrepreneurial Convergence to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Entrepreneurial Convergence to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Entrepreneurial Convergence has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Weaknesses Convergence in Entrepreneurial Leadership Style:Evidence from Russia | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Convergence in Entrepreneurial Leadership Style:Evidence from Russia are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Convergence in Entrepreneurial Leadership Style:Evidence from Russia HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Entrepreneurial Convergence has relatively successful track record of launching new products.
Interest costs
– Compare to the competition, Entrepreneurial Convergence has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Convergence in Entrepreneurial Leadership Style:Evidence from Russia, it seems that the employees of Entrepreneurial Convergence don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High bargaining power of channel partners
– Because of the regulatory requirements, Daniel J. McCarthy, Sheila M. Puffer, Sergei V. Darda suggests that, Entrepreneurial Convergence is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Capital Spending Reduction
– Even during the low interest decade, Entrepreneurial Convergence has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Skills based hiring
– The stress on hiring functional specialists at Entrepreneurial Convergence has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Convergence in Entrepreneurial Leadership Style:Evidence from Russia, in the dynamic environment Entrepreneurial Convergence has struggled to respond to the nimble upstart competition. Entrepreneurial Convergence has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to strategic competitive environment developments
– As Convergence in Entrepreneurial Leadership Style:Evidence from Russia HBR case study mentions - Entrepreneurial Convergence takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
High cash cycle compare to competitors
Entrepreneurial Convergence has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Workers concerns about automation
– As automation is fast increasing in the segment, Entrepreneurial Convergence needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Products dominated business model
– Even though Entrepreneurial Convergence has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Convergence in Entrepreneurial Leadership Style:Evidence from Russia should strive to include more intangible value offerings along with its core products and services.
Opportunities Convergence in Entrepreneurial Leadership Style:Evidence from Russia | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Convergence in Entrepreneurial Leadership Style:Evidence from Russia are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Entrepreneurial Convergence to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Entrepreneurial Convergence to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Entrepreneurial Convergence can develop new processes and procedures in Global Business industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Entrepreneurial Convergence can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Loyalty marketing
– Entrepreneurial Convergence has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Entrepreneurial Convergence in the consumer business. Now Entrepreneurial Convergence can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Entrepreneurial Convergence can use these opportunities to build new business models that can help the communities that Entrepreneurial Convergence operates in. Secondly it can use opportunities from government spending in Global Business sector.
Low interest rates
– Even though inflation is raising its head in most developed economies, Entrepreneurial Convergence can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Entrepreneurial Convergence is facing challenges because of the dominance of functional experts in the organization. Convergence in Entrepreneurial Leadership Style:Evidence from Russia case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Entrepreneurial Convergence can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Convergence in Entrepreneurial Leadership Style:Evidence from Russia, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Entrepreneurial Convergence to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Manufacturing automation
– Entrepreneurial Convergence can use the latest technology developments to improve its manufacturing and designing process in Global Business segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Entrepreneurial Convergence can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Entrepreneurial Convergence can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Entrepreneurial Convergence can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Convergence in Entrepreneurial Leadership Style:Evidence from Russia External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Convergence in Entrepreneurial Leadership Style:Evidence from Russia are -
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Entrepreneurial Convergence.
Technology acceleration in Forth Industrial Revolution
– Entrepreneurial Convergence has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Entrepreneurial Convergence needs to keep up with the evolution of technology in the Global Business sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Convergence in Entrepreneurial Leadership Style:Evidence from Russia, Entrepreneurial Convergence may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Entrepreneurial Convergence in the Global Business industry. The Global Business industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Increasing wage structure of Entrepreneurial Convergence
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Entrepreneurial Convergence.
Environmental challenges
– Entrepreneurial Convergence needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Entrepreneurial Convergence can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Stagnating economy with rate increase
– Entrepreneurial Convergence can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Regulatory challenges
– Entrepreneurial Convergence needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Global Business industry regulations.
High dependence on third party suppliers
– Entrepreneurial Convergence high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Easy access to finance
– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Entrepreneurial Convergence can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Entrepreneurial Convergence with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Convergence in Entrepreneurial Leadership Style:Evidence from Russia Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Convergence in Entrepreneurial Leadership Style:Evidence from Russia needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Convergence in Entrepreneurial Leadership Style:Evidence from Russia is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Convergence in Entrepreneurial Leadership Style:Evidence from Russia is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Convergence in Entrepreneurial Leadership Style:Evidence from Russia is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Entrepreneurial Convergence needs to make to build a sustainable competitive advantage.
