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 - – banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs, supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google, wage bills are increasing, increasing energy prices, increasing government debt because of Covid-19 spendings,
challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China, 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 -
Effective Research and Development (R&D)
– Entrepreneurial Convergence has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Convergence in Entrepreneurial Leadership Style:Evidence from Russia - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
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.
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.
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.
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.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Entrepreneurial Convergence digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Entrepreneurial Convergence has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
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.
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.
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.
Successful track record of launching new products
– Entrepreneurial Convergence has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Entrepreneurial Convergence has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Ability to lead change in Global Business field
– Entrepreneurial Convergence is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Entrepreneurial Convergence in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
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.
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 -
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 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Convergence in Entrepreneurial Leadership Style:Evidence from Russia has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Entrepreneurial Convergence 's lucrative customers.
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.
Aligning sales with marketing
– It come across in the case study Convergence in Entrepreneurial Leadership Style:Evidence from Russia that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Convergence in Entrepreneurial Leadership Style:Evidence from Russia can leverage the sales team experience to cultivate customer relationships as Entrepreneurial Convergence is planning to shift buying processes online.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Entrepreneurial Convergence supply chain. Even after few cautionary changes mentioned in the HBR case study - Convergence in Entrepreneurial Leadership Style:Evidence from Russia, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Entrepreneurial Convergence vulnerable to further global disruptions in South East Asia.
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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Entrepreneurial Convergence is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Convergence in Entrepreneurial Leadership Style:Evidence from Russia can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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.
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.
No frontier risks strategy
– After analyzing the HBR case study Convergence in Entrepreneurial Leadership Style:Evidence from Russia, it seems that company is thinking about the frontier risks that can impact Global Business strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
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 -
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.
Better consumer reach
– The expansion of the 5G network will help Entrepreneurial Convergence to increase its market reach. Entrepreneurial Convergence will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Entrepreneurial Convergence to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
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.
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.
Building a culture of innovation
– managers at Entrepreneurial Convergence can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Global Business segment.
Creating value in data economy
– The success of analytics program of Entrepreneurial Convergence has opened avenues for new revenue streams for the organization in the industry. This can help Entrepreneurial Convergence to build a more holistic ecosystem as suggested in the Convergence in Entrepreneurial Leadership Style:Evidence from Russia case study. Entrepreneurial Convergence can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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.
Leveraging digital technologies
– Entrepreneurial Convergence can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
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.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Entrepreneurial Convergence in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
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.
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 -
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.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Entrepreneurial Convergence will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Entrepreneurial Convergence business can come under increasing regulations regarding data privacy, data security, etc.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Entrepreneurial Convergence can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Convergence in Entrepreneurial Leadership Style:Evidence from Russia .
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.
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.
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.
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.
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.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Entrepreneurial Convergence needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
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.
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.