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 - – increasing commodity prices, technology disruption, increasing energy prices, supply chains are disrupted by pandemic , cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings,
competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization, 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 -
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.
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.
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.
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.
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.
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.
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.
Cross disciplinary teams
– Horizontal connected teams at the Entrepreneurial Convergence are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Training and development
– Entrepreneurial Convergence has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Convergence in Entrepreneurial Leadership Style:Evidence from Russia Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
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.
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.
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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Convergence in Entrepreneurial Leadership Style:Evidence from Russia, is just above the industry average. Entrepreneurial Convergence needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
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.
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.
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.
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.
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.
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.
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.
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.
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 -
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.
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.
Using analytics as competitive advantage
– Entrepreneurial Convergence has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Convergence in Entrepreneurial Leadership Style:Evidence from Russia - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Entrepreneurial Convergence to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 -
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.
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.
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.
Shortening product life cycle
– it is one of the major threat that Entrepreneurial Convergence is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
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.
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 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.
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.
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 .
Consumer confidence and its impact on Entrepreneurial Convergence demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
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.