Analysis of a Business System - Russian Mafia
Upcoming SlideShare
Loading in...5
×
 

Analysis of a Business System - Russian Mafia

on

  • 1,308 views

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 ...

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.

Statistics

Views

Total Views
1,308
Slideshare-icon Views on SlideShare
1,305
Embed Views
3

Actions

Likes
2
Downloads
32
Comments
0

1 Embed 3

http://www.linkedin.com 3

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Analysis of a Business System - Russian Mafia Analysis of a Business System - Russian Mafia Presentation Transcript

    • 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
    • Flow of Analysis ORIGIN History, Culture, Uniqueness BUSINESS SYSTEMS Illegal & Legal Businesses BUSINESS COMMERCE Economic Impact TRANSFORMATION New age crimes FUTURE
    • 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 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
    • 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
    • Critical Success Factors Govt. support & military collusion Loyalty to Brotherhood (Bratva) Amorphous & Dispensable Bratva Continuous Innovation in Business Diversification & Legalization
    • Tanmoy DeySYSTEMWhat is the underlying business systemframework that the Russian Mafiya operatesin?
    • 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
    • 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
    • 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% 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.”
    • Criminal Syndicate Industry DISTRIBUTION LEGAL Red Mafiya BUSINESS VENTURES VALUE – CHAIN PRODCUTIONILLEGAL MARKET REACH LOCAL GLOBAL
    • Darshak S JEVOLUTIONHow did the Russian Mafiya evolve withthe changing global environment?
    • 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.
    • 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
    • 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
    • Madhuranath RFORECASTWhat will be the future trajectory of thebusiness system of Russian Mafiya?
    • ORGANIZATION PAKHAN GODFATHER SOVIETNIK COUNCILOR OBSHCHAK BOOKMAKER AVTORIYET AUTHORITY BOYEVIK WARRIOR KRISHAS TORPEDO BYKI ROOF/COVER KILLER BULL
    • Bases of Social Power Attraction Resistance COERCIVE POWERINFORMATION REWARD POWER POWER RUSSIAN MAFIYA EXPERT LEGITIMATE POWER POWER REFERENT POWER