Asian Business Systems                          Final ReportRUSSIAN MAFIYA Analyzing the World’s Most Powerful      Parall...
Flow of Analysis                    ORIGIN           History, Culture, Uniqueness             BUSINESS SYSTEMS            ...
Madhuranath RORIGINWhat are the cultural and historical factorsthat make the Russian Mafiya a unique system?
Tracing the RootsTSARs + COMMUNISM + GULAGs  RED MAFIYASuppression of people since Tsarist times; serfdoms thrive in Russ...
Uniqueness                 RUSSIAN           ITALIAN           TRIADS          COLUMBIANOrg. Unit         Brotherhood     ...
Critical Success Factors Govt. support & military collusion Loyalty to Brotherhood (Bratva) Amorphous & Dispensable Bratva...
Tanmoy DeySYSTEMWhat is the underlying business systemframework that the Russian Mafiya operatesin?
Core Illegal Businesses                                                             • Terrorist organization       • Onlin...
Business System     Counterfeit                                       Oil & Gas     $ 120 billion                        F...
Vincent BermejoCOMMERCEWhat is the economic size and impact ofthe Russian Mafiya?
Economic ExposureThe Economic Situation•   10% Territory (including old Russian States)•   25% Economy (US$ 450B)•   40% S...
Criminal Syndicate Industry                                                                                               ...
Darshak S JEVOLUTIONHow did the Russian Mafiya evolve withthe changing global environment?
TRANSFORMATION       2009- FRAGMENTED                                  2012- ORGANIZEDDigitalization of the Russian Crime•...
CYBER CRIME in $                                                          $4.7 Billion                                    ...
The Binary Numbers Games’ Distribution                                                                      Online        ...
Madhuranath RFORECASTWhat will be the future trajectory of thebusiness system of Russian Mafiya?
ORGANIZATION                            PAKHAN                               GODFATHER                             SOVIETN...
Bases of Social Power                 Attraction                                      Resistance              COERCIVE    ...
Analysis of a Business System - Russian Mafia
Upcoming SlideShare
Loading in …5
×

Analysis of a Business System - Russian Mafia

2,150 views
1,825 views

Published on

This work explores the past, present and future of Russian Mafiya from a Business System perspective. It is only an academic work based on research and data from the internet. It demonstrates the use of 5 Bases of Social Power as a powerful framework to explain the growth or decline of an extensive organization in future.

Published in: Business
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
2,150
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
56
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Analysis of a Business System - Russian Mafia

  1. 1. Asian Business Systems Final ReportRUSSIAN MAFIYA Analyzing the World’s Most Powerful Parallel Business SystemAsian Institute of Management Learning Team – 1 AMBA-2012 | Cohort-7 - Darshak S J - Madhuranath R - Tanmoy Dey - Vincent Bermejo
  2. 2. Flow of Analysis ORIGIN History, Culture, Uniqueness BUSINESS SYSTEMS Illegal & Legal Businesses BUSINESS COMMERCE Economic Impact TRANSFORMATION New age crimes FUTURE
  3. 3. Madhuranath RORIGINWhat are the cultural and historical factorsthat make the Russian Mafiya a unique system?
  4. 4. Tracing the RootsTSARs + COMMUNISM + GULAGs  RED MAFIYASuppression of people since Tsarist times; serfdoms thrive in Russia1900sGulags create notorious yet loyal thieving brotherhoods – “Vory”1920-1990Lenin, Stalin, Khrushchev & Communism make people poorerCommunism & Organized CrimeVory organize into Bratva; offer protection, arms, drugs, prostitutes1990 – till nowMafia spreads globally; bigger; more organized; more businesses
  5. 5. Uniqueness RUSSIAN ITALIAN TRIADS COLUMBIANOrg. Unit Brotherhood Family Clan GangOrg. Structure Amorphous Hierarchical Hierarchical Hierarchical Global Europe / Asia / America South America /Reach America Africa / AsiaSize 8,000 Bratva Few 1000s Very large Few 100s Arms Assassination Assassination Assassination Assassination Extortion Drugs Arms Drugs Gambling Extortion Drugs Extortion Protection Gambling Gambling Gambling Prostitution Protection ProstitutionBusinesses Protection Prostitution Prostitution Money Money Laundering Laundering Cyber Crime Centralized yet Centralized Centralized per Centralized perControl Dissipated Clan Gang
  6. 6. Critical Success Factors Govt. support & military collusion Loyalty to Brotherhood (Bratva) Amorphous & Dispensable Bratva Continuous Innovation in Business Diversification & Legalization
  7. 7. Tanmoy DeySYSTEMWhat is the underlying business systemframework that the Russian Mafiya operatesin?
  8. 8. Core Illegal Businesses • Terrorist organization • Online & Offline media. funding & Drug cartels. • Threats, damage to property & • 3 million regular takers, life. 2.1% of Russian youth • Celebrities , glam shows & events, population. sports events. • Prime overseas markets • UK, West Europe, US Extortion• Fake ads, mail orderbride catalogues, casualacquaintances. • Supply to paramilitary• Sexual exploitation, groups , terrorist Human Trafficking Drug Trafficking organizations anddebt bondage, forcedlabor. exchange to drug cartels.• To Middle-East, SEA, • Prime markets- LatinWest Europe Prostitution America, US, East Europe Arms Trafficking • Prime hubs- Israel, Ukraine, UK, Czech • 7% of illicit world trade • $ 3000-5000 on each • Easy money from fake products. sale • Funded to terrorist organizations, • Cheap service tariffs triad gangs, mafia hubs. • Girls cannot escape, Counterfeit • Cohesive global network blackmailed
  9. 9. Business System Counterfeit Oil & Gas $ 120 billion Funds from illegal businesses used to fuel stakes and Human Trafficking interests in legal Banking $ 100 billion businesses Drug Trafficking Automotives $ 25 billion Prostitution Electronics $ 25 billion Arms Trafficking $ 20 billion Proceeds from Food & stakes in legal Agriculture holdings re-invested and laundered into illegal dealings. Extortion Information $ 6 billion Technology
  10. 10. Vincent BermejoCOMMERCEWhat is the economic size and impact ofthe Russian Mafiya?
  11. 11. Economic ExposureThe Economic Situation• 10% Territory (including old Russian States)• 25% Economy (US$ 450B)• 40% State-Owned Corporation (influence on policy making & justice system)• 80% Banks (taken out of the EU’s white list)• 90% SME’s (protection fees are cheaper compared to paying the government exorbitant tax rates)The Economic Impact• Channeling billions of dollars out of the economy• Bypassing legal procedures• stealing tax revenues needed to sustain an economy• robbing the country of aid• discouraging foreign investors and domestic businesses from starting up “If it was not for the mafia there would not be an economy. They are a major driving force behind what goes on in Russia.”
  12. 12. Criminal Syndicate Industry DISTRIBUTION LEGAL Red Mafiya BUSINESS VENTURES VALUE – CHAIN PRODCUTIONILLEGAL MARKET REACH LOCAL GLOBAL
  13. 13. Darshak S JEVOLUTIONHow did the Russian Mafiya evolve withthe changing global environment?
  14. 14. TRANSFORMATION 2009- FRAGMENTED 2012- ORGANIZEDDigitalization of the Russian Crime• 2011 saw consolidation of individuals to form 6 potent groups.• Growth of internal market- C2C services.• Expansion of cybercrime in the international market.• Lack of proper cyber laws.• No jobs for Young IT Engineers.• Ease of entry and difficult to be caught.• Doubling of cybercrime in 2011 from 2010.
  15. 15. CYBER CRIME in $ $4.7 Billion Russian Speaking Cyber Crime Type Of Crime Revenue % of total Online Fraud $ 940,000,000 41% Spam $ 830,000,000 36% Internal Market C2C $ 230,000,000 10% DDoS Attacks $ 130,000,000 5.6% Others $ 168,000,000 7.4% Source: Ib report
  16. 16. The Binary Numbers Games’ Distribution Online Spam Banking fraud Internal Market Consulting Online Piracy Brand Attack DDoS Malware Fake Drugs Fake SW Measure of perceived damage to the organization Low High
  17. 17. Madhuranath RFORECASTWhat will be the future trajectory of thebusiness system of Russian Mafiya?
  18. 18. ORGANIZATION PAKHAN GODFATHER SOVIETNIK COUNCILOR OBSHCHAK BOOKMAKER AVTORIYET AUTHORITY BOYEVIK WARRIOR KRISHAS TORPEDO BYKI ROOF/COVER KILLER BULL
  19. 19. Bases of Social Power Attraction Resistance COERCIVE POWERINFORMATION REWARD POWER POWER RUSSIAN MAFIYA EXPERT LEGITIMATE POWER POWER REFERENT POWER

×