Mikhail Khodorkovsky and Yukos: Chelovek c rublyom (Man with a Ruble) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Mikhail Khodorkovsky and Yukos: Chelovek c rublyom (Man with a Ruble)
In Fall 2003, Mikhail Khodorkovsky, Russia's richest man and the CEO of Yukos, the second-largest Russian oil producer with a market capitalization of US$26 billion, was arrested and thrown into jail on charges of fraud. Several days later he resigned as CEO of Yukos. This case study tells the story of the rise and fall of a young man whom some would call a brilliant entrepreneur, and others would call a scoundrel. The case includes an interview with Khodorkovsky when he was still CEO, and offers a rare opportunity to examine the leadership philosophy of one of Russia's top business leaders.
Authors :: Manfred F.R. Kets de Vries, Konstantin Korotov, Stanislav Shekshnia, Elizabeth Florent-Treacy
Swot Analysis of "Mikhail Khodorkovsky and Yukos: Chelovek c rublyom (Man with a Ruble)" written by Manfred F.R. Kets de Vries, Konstantin Korotov, Stanislav Shekshnia, Elizabeth Florent-Treacy includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Khodorkovsky Yukos facing as an external strategic factors. Some of the topics covered in Mikhail Khodorkovsky and Yukos: Chelovek c rublyom (Man with a Ruble) case study are - Strategic Management Strategies, Leadership and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Mikhail Khodorkovsky and Yukos: Chelovek c rublyom (Man with a Ruble) casestudy better are - – geopolitical disruptions, increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, competitive advantages are harder to sustain because of technology dispersion, increasing energy prices, digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic ,
wage bills are increasing, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Mikhail Khodorkovsky and Yukos: Chelovek c rublyom (Man with a Ruble)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Mikhail Khodorkovsky and Yukos: Chelovek c rublyom (Man with a Ruble) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Khodorkovsky Yukos, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Khodorkovsky Yukos 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 Mikhail Khodorkovsky and Yukos: Chelovek c rublyom (Man with a Ruble) can be done for the following purposes –
1. Strategic planning using facts provided in Mikhail Khodorkovsky and Yukos: Chelovek c rublyom (Man with a Ruble) case study
2. Improving business portfolio management of Khodorkovsky Yukos
3. Assessing feasibility of the new initiative in Innovation & Entrepreneurship field.
4. Making a Innovation & Entrepreneurship topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Khodorkovsky Yukos
Strengths Mikhail Khodorkovsky and Yukos: Chelovek c rublyom (Man with a Ruble) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Khodorkovsky Yukos in Mikhail Khodorkovsky and Yukos: Chelovek c rublyom (Man with a Ruble) Harvard Business Review case study are -
Successful track record of launching new products
– Khodorkovsky Yukos has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Khodorkovsky Yukos 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.
Cross disciplinary teams
– Horizontal connected teams at the Khodorkovsky Yukos 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.
Highly skilled collaborators
– Khodorkovsky Yukos 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 Mikhail Khodorkovsky and Yukos: Chelovek c rublyom (Man with a Ruble) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Khodorkovsky Yukos is present in almost all the verticals within the industry. This has provided firm in Mikhail Khodorkovsky and Yukos: Chelovek c rublyom (Man with a Ruble) 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 Khodorkovsky Yukos in the sector have low bargaining power. Mikhail Khodorkovsky and Yukos: Chelovek c rublyom (Man with a Ruble) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Khodorkovsky Yukos to manage not only supply disruptions but also source products at highly competitive prices.
Strong track record of project management
– Khodorkovsky Yukos is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Mikhail Khodorkovsky and Yukos: Chelovek c rublyom (Man with a Ruble) firm has clearly differentiated products in the market place. This has enabled Khodorkovsky Yukos to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Khodorkovsky Yukos to invest into research and development (R&D) and innovation.
High brand equity
– Khodorkovsky Yukos has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Khodorkovsky Yukos to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Innovation & Entrepreneurship field
– Khodorkovsky Yukos 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 Khodorkovsky Yukos in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Khodorkovsky Yukos digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Khodorkovsky Yukos 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.
Operational resilience
– The operational resilience strategy in the Mikhail Khodorkovsky and Yukos: Chelovek c rublyom (Man with a Ruble) 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.
Innovation driven organization
– Khodorkovsky Yukos is one of the most innovative firm in sector. Manager in Mikhail Khodorkovsky and Yukos: Chelovek c rublyom (Man with a Ruble) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Mikhail Khodorkovsky and Yukos: Chelovek c rublyom (Man with a Ruble) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Mikhail Khodorkovsky and Yukos: Chelovek c rublyom (Man with a Ruble) are -
Interest costs
– Compare to the competition, Khodorkovsky Yukos 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.
Lack of clear differentiation of Khodorkovsky Yukos products
– To increase the profitability and margins on the products, Khodorkovsky Yukos needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
Khodorkovsky Yukos 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Manfred F.R. Kets de Vries, Konstantin Korotov, Stanislav Shekshnia, Elizabeth Florent-Treacy suggests that, Khodorkovsky Yukos 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.
Need for greater diversity
– Khodorkovsky Yukos has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High operating costs
– Compare to the competitors, firm in the HBR case study Mikhail Khodorkovsky and Yukos: Chelovek c rublyom (Man with a Ruble) 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 Khodorkovsky Yukos 's lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Khodorkovsky Yukos 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Mikhail Khodorkovsky and Yukos: Chelovek c rublyom (Man with a Ruble), is just above the industry average. Khodorkovsky Yukos 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Mikhail Khodorkovsky and Yukos: Chelovek c rublyom (Man with a Ruble), it seems that the employees of Khodorkovsky Yukos 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 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 Khodorkovsky Yukos supply chain. Even after few cautionary changes mentioned in the HBR case study - Mikhail Khodorkovsky and Yukos: Chelovek c rublyom (Man with a Ruble), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Khodorkovsky Yukos vulnerable to further global disruptions in South East Asia.
Products dominated business model
– Even though Khodorkovsky Yukos 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 - Mikhail Khodorkovsky and Yukos: Chelovek c rublyom (Man with a Ruble) should strive to include more intangible value offerings along with its core products and services.
Opportunities Mikhail Khodorkovsky and Yukos: Chelovek c rublyom (Man with a Ruble) | 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 Mikhail Khodorkovsky and Yukos: Chelovek c rublyom (Man with a Ruble) are -
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 Khodorkovsky Yukos 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Khodorkovsky Yukos 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 Khodorkovsky Yukos to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Khodorkovsky Yukos can use the latest technology developments to improve its manufacturing and designing process in Innovation & Entrepreneurship 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Innovation & Entrepreneurship industry, but it has also influenced the consumer preferences. Khodorkovsky Yukos can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Khodorkovsky Yukos in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Innovation & Entrepreneurship segment, and it will provide faster access to the consumers.
Creating value in data economy
– The success of analytics program of Khodorkovsky Yukos has opened avenues for new revenue streams for the organization in the industry. This can help Khodorkovsky Yukos to build a more holistic ecosystem as suggested in the Mikhail Khodorkovsky and Yukos: Chelovek c rublyom (Man with a Ruble) case study. Khodorkovsky Yukos can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Khodorkovsky Yukos 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, Khodorkovsky Yukos is facing challenges because of the dominance of functional experts in the organization. Mikhail Khodorkovsky and Yukos: Chelovek c rublyom (Man with a Ruble) 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.
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. Khodorkovsky Yukos can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Khodorkovsky Yukos 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 Mikhail Khodorkovsky and Yukos: Chelovek c rublyom (Man with a Ruble) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Khodorkovsky Yukos to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Khodorkovsky Yukos can use these opportunities to build new business models that can help the communities that Khodorkovsky Yukos operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Better consumer reach
– The expansion of the 5G network will help Khodorkovsky Yukos to increase its market reach. Khodorkovsky Yukos 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.
Building a culture of innovation
– managers at Khodorkovsky Yukos 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 Innovation & Entrepreneurship segment.
Threats Mikhail Khodorkovsky and Yukos: Chelovek c rublyom (Man with a Ruble) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Mikhail Khodorkovsky and Yukos: Chelovek c rublyom (Man with a Ruble) are -
Environmental challenges
– Khodorkovsky Yukos 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. Khodorkovsky Yukos can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Khodorkovsky Yukos in the Innovation & Entrepreneurship industry. The Innovation & Entrepreneurship 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.
Increasing wage structure of Khodorkovsky Yukos
– 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 Khodorkovsky Yukos.
Shortening product life cycle
– it is one of the major threat that Khodorkovsky Yukos is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Khodorkovsky Yukos with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Khodorkovsky Yukos business can come under increasing regulations regarding data privacy, data security, etc.
Easy access to finance
– Easy access to finance in Innovation & Entrepreneurship field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Khodorkovsky Yukos can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Mikhail Khodorkovsky and Yukos: Chelovek c rublyom (Man with a Ruble), Khodorkovsky Yukos may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Innovation & Entrepreneurship .
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Khodorkovsky Yukos in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Regulatory challenges
– Khodorkovsky Yukos 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 Innovation & Entrepreneurship industry regulations.
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. Khodorkovsky Yukos needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
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.
Weighted SWOT Analysis of Mikhail Khodorkovsky and Yukos: Chelovek c rublyom (Man with a Ruble) 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 Mikhail Khodorkovsky and Yukos: Chelovek c rublyom (Man with a Ruble) 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 Mikhail Khodorkovsky and Yukos: Chelovek c rublyom (Man with a Ruble) 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 Mikhail Khodorkovsky and Yukos: Chelovek c rublyom (Man with a Ruble) 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 Mikhail Khodorkovsky and Yukos: Chelovek c rublyom (Man with a Ruble) 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 Khodorkovsky Yukos needs to make to build a sustainable competitive advantage.
