Strategic Management Report on Yandex: A Comprehensive Analysis

This management strategy report provides a comprehensive analysis of Yandex, a Russian multinational technology company specializing in internet-related products and services. The report examines Yandex's strategic context, including its macro-environmental factors and key capabilities, such as product quality and skilled employees. It explores Yandex's value proposition, business model, and strategic choices, including low-cost leadership, market development, and product development strategies. The report also addresses strategic implementation, including communication, alignment, organizational structure, and stakeholder management. Furthermore, the report provides recommendations and a conclusion, offering insights into Yandex's competitive advantages and future strategies. The report is based on research from company websites and other sources, providing a detailed overview of Yandex's strategic approach.

RUNNING HEAD: MANAGEMENT STRATEGY 0
Management Strategy Report
Student’s Details-
FEBRUARY 16, 2020

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Executive Summary
Strategic management is an essential part of the business in which the organization can make
the strategic efforts for reaching desired goals of the company. The purpose of the report is to
determine the strategic choices of the company and also determination of the appropriate
strategy for reaching the competitive advantage. The report has been made on the basis of the
research on the website sources of the company. The results of the report are helpful in the
formation of the required strategy and also making it more reliable by the proper alignment
and maintenance of the competitive edges.

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Contents
Introduction................................................................................................................................3
Preamble.....................................................................................................................................3
Strategic Context........................................................................................................................3
Capability Context.....................................................................................................................4
Crafting Strategy........................................................................................................................5
Strategic Implementation...........................................................................................................6
Strategic Communication.......................................................................................................7
Startegy map...........................................................................................................................8
Strategic alignment.................................................................................................................9
Organization structure.........................................................................................................9
Stakeholder’s management.................................................................................................9
Roles and responsibilities.....................................................................................................10
Recommendation......................................................................................................................10
Conclusion................................................................................................................................11
References................................................................................................................................12
Appendices...............................................................................................................................15

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Introduction
Management strategy is considered as the setting up of the goals and the targets along with
getting business involved into the controlling and directing of the business. The strategy
depends upon several factors which are to be achieved in the prescribed timeline and use of
necessary resources. Here, the report is based on the discussion of strategic context of
Yandex which is the Russian multinational company which has specialization in the products
and services related to internet. Moreover, the report has stated the strategic context through
the identification of the macro-environmental factors and the key capabilities of the company
that can help the business to fight against the competition. Also, the proper development and
implementation of the company is being shown that has to be achieved in next 10 years.
Preamble
Yandex is into the technological industry in which the company is engaged in the
development of the intelligent products through the use of machine learning. Moreover, the
value proposition is offered by the promises or the values provided by the acknowledgment
and the delivery of value to the customers. Moreover, Yandex provide the value proposition
through their unique services in which the company provides the free of charge flagship
search and other streaming services. The company is market leader in the native Russia and is
the innovative service provider that facilitates the range of products or services through the
integration of the accounts and preferences. Further, business model is defined by the
rationale by which the company delivers the value by considering various contexts. Yandex
has 53 million users in the Russian market (Yandex.com, 2020). The company serves its
customers through new portals and search engine and provides the range of mobile
applications that covers the portfolio of the business. The company builds the customer
relationships through the development of interaction with the customers through the use of
various personalized services and the tailored customer support. Also, the company has
recorded the revenue of RUB 59.8 billion which precisely based on the advertising streaming
which is Yandex Direct and Yandex Market Portals.
Strategic Context
Strategic context can be understood by the macro-environmental factors which are external to
business and also the changes in the competitive landscape. Yandex can get affected by the

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political, economic, social and technological factors. Particularly, the strategic group within
the company can strategically for the political forces in which the company was affected by
the US Securities and Exchange Commission (Johnson, 2011). Further, economic factors
include the changes in the economic position of Russia in which the company can
strategically positioned itself into the competitive environment through the making of
products with the identification of the unemployment rates, inflation rates and economic
growth rates (Kombaiev, 2017). Also, the company’s operations can be influenced by the
social factors in which the company should determine the needs, preferences and the
suitability of the customers in terms of internet services. Furthermore, the company can
position themselves in terms of technological factors through making innovations and also
adapting to the technological needs of the customers. For example, Yandex has been
developing their own technologies and redeveloped the advertising network for keeping up
with the technological trends.
Furthermore, the changes in the strategic context over next 10 years can lead to the impact on
the value proposition of the industry. For example, when the company is aware of the
political environment of the country in which the company can make the change in the
policies and practices of the company and adhere with the regulatory patterns. Also, the
company can make the changes into the prices and making strategies for the controlling of
the exchange rates that can affect the international business. Additionally, changes in the
strategic context can include the changes in the social factors in which the company should
be aware of the lifestyle and the attitudes of the customers over 10 years which can help the
company make their operation as per customer needs. Also, the changes into the technology
can be seen from the company’s efforts for the building up of advertising networks wherein
the company can make the digital analytics tactics for proving value to their customers
(Yandex Support, 2020).
Capability Context
Key capabilities are defined as the core value creation of the company that drives competitive
advantage. Moreover, Yandex has key capabilities are their product or service quality and
their skilled employees which are competitive into the concerned industry. Further, the
company has technology, internet portals and strategic partnerships which are different from
the competitors. Yandex has skilled employees that makes the company recognizable through
on-demand services and the mobile applications which are concerned to be key resources of

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the company. In addition, capabilities refer to the business process and the unique culture that
provides the competitive edge to the company. Moreover, Yandex has been maintaining the
customer relationships through the easy sign up on the new portals. Also, the company’s
services can also be used without any registration (Cleverism, 2020). Further, the company
has been giving more personalized support to the customers which is proved to be the unique
capability of the company.
Also, Yandex has 10,000 employees which are considered as the key resources of the
company in which the company has provided the competitive edge through the superior
delivery of the services (Mcgonigle, 2018). Also, the company has made the intelligent
products and services and world-class mobile applications which is seen as the key resources
of the company which it can effectively use against the competitors. Additionally, the
company has the quality of service delivery to the customers which are the core competency
of the company which can be helpful in fighting against the competition with the
international markets.
Further, the situation of capability gap arises when the offering of the company does not
match with the targets of the company. Moreover, Yandex can ascertain the capability gaps
through the determination of value provided and the overall targets of the company. The
company has ignored the product differentiation as the main factor of the company in which
the company has been retarded from the organizational values which is to become the market
leader into the industry. This can help the company to sustain the competitive advantage. This
capability gap can be resolved through the development of the core capabilities that
specifically utilizes the organizational values and the unique services that can be helpful for
the company to reach the goals in next 10 years.
Crafting Strategy
Selection of the strategic option is crucial for the company in which the company will be able
to sustain themselves into the competitive world and face threats more effectively. As
Yandex is into the technology field and strives to increase the revenue through the
maximizing the offline and online navigation. Firstly, the company can choose the strategic
option of low-cost leadership strategy in which the company can produce the products at
lower cost and also facilitate the online services to the customers at a lower cost. Particularly,
the company has chosen the low-cost strategy as their strategic option in order to increase the

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customer responses. The company has kept their average cost lower and created the
impression of 10,000 users (Support , 2020). This strategy is specifically used by the
company in order to get the competitive advantage and being the market leader into the
Russian market.
Further, the company can adopt the market development strategy in which the company can
make the efforts for reaching their current product offering. Moreover, market development
strategic option can be effective in the sense that it can provide the new perspective for the
company and at the same time it can be helpful in the targeting on new market segments. Not
only the company has been running in Russia, it has 27 worldwide offices which helps the
business to earn the revenue and also get the on-demand services and the navigation products
(Mcgonigle, 2018). The strategic option of the market development can be helpful for the
company for the earning of desired revenue and the profits.
Apart from these two strategic options, the company can choose the product development
strategy which is proved to be the effective strategy for the company as it can be helpful in
the building of competitive edge. Product development strategy focus on the development of
new product offering which can be done either through innovation or through the creativity
into the existing product or services. Moreover, Yandex has launched new product which is
AI-powered smart home product that has the new smart phone capabilities (Pymnts, 2019).
The company has been readily engaged in the facilitation of innovative solutions in which the
company has attracted maximum customers with great ease. These set of strategic scenarios
can be used by the company for the maintaining of the competitive advantage.
Strategic Implementation
Strategic implementation is the process of putting the desired goal or strategy into the action
plan in which the company can attain the desired goals and objectives. Yandex can use the
process of strategic implementation in which the company can make the proper
communication of the strategy and the implementation of the various action plans that is
maintained by the proper planning and implementation of the action plans. The
implementation plan is precisely related with the capability of the company and using a
strategic leadership for initiating the activities. The following issues can be used for the
implementation plan of the company:

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Strategic Communication
Strategic communication refers to the communication and addressing of the strategy for the
proper implementation and development of the long-term strategic planning. Moreover, the
strategy of the company is to develop the products and make the products which can be
helpful for the company to meet the on-demand services of the company. Yandex has
included in the mission statement that the ultimate gaol of the company is to make the
technology based intelligent products and facilitate the quality of services by making business
better and allowing the navigation of the online and offline services for the millions of users
all over the globe (Yandex, 2020). This mission of the company is elicited by the strategies of
the business which are made by the company to drive the competitive edge.
Further, the company’s strategy of product development properly aligns with the mission
statement in which the company has made efforts for the development of the intelligent
products and services for the great ease of the customers and meeting their needs. Also, as the
goal of the company is to reach the global markets in more effective way, it has made efforts
for the development of the strategy that focuses upon reaching the new market segments.
This strategy of market development as an important growth strategy aligns with the mission
of serving the customers of all over the globe (Yandex.com, 2020). Further, the company’s
strategy of making the new product development is elicited with the mission statement in
which the company has innovative experiences of making the product recognizable through
the development of mobile applications and making ongoing innovations into the business
practice.

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Startegy map
Maximise stakeholder value
Increase customer
value
Inspire loyalty
Focus on reuse,
reduce and recycle
Maximisee
operational
effectiveness
Create high quality
products
Recruit skilled
employees
Train employees
Financial
Customer
Internal
Business
Process
Learning
and growth

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Financial: The organization should maximise stakeholder value by fulfilling its obligations.
Customer: It should increase customer’s value by fulfilling their needs and offering quality
products. It should offer quality products at reasonable price to develop loyal customers.
Internal business process: It should motivate its employees to lay focus on reuse, reduce, and
recycle to cut production cost. Additionally, it should recruit skilled employees to gain
operational effectiveness.
Learning and growth: It should recruit skilled employees for the fulfillment of organizational
objectives. It will contribute to organizational growth.
Strategic alignment
Organization structure
Organization structure defines the ay power is distributed in the organization for the
fulfillment of organizational objectives. There are multiple forms of organizational structure
and it mainly includes Hierarchical, Divisional, Matrix and Team based. The Yandex
Company should opt for Divisional organizational structure to support the strategy of Product
and Market Development. In the divisional organization structure, employees are divided into
multiple segments based on the particular product, market and service. It involves the
development of divisional heads to lead, guide and motivate the employees.
Yandex should develop divisions based on product and geographic location of the market. It
aids in clearly dividing the employee’s role according to the division (Yandex, 2020).
Stakeholder’s management
Stakeholders are the individuals attaining high interest in organization. They are highly
impacted and influenced by the organization activities. The board of directors, employees are
the internal stakeholders of the organization (Yandex, 2019). The external stakeholders
include customers, community groups, government and shareholders (CNN, 2020).
1. The Yandex should lay a high attention on fulfilling its obligation towards the
stakeholders. It should engage in recruiting culturally diverse workforce as it will
gave rise to creative ideas and solutions for the successful implementation of the
strategy.
2. It should offer performance based incentives to its human resource. It will generate a
motivating force to deliver quality output to the organization. It will assist in

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development of high quality product. Additionally, it should appreciate its employees
in response to new and creative way for launching a product in the market.
3. It should guide and motivate the employee to opt for recycle, reuse and reduce in the
production process. It benefits in cutting cost and successfully opting for cost
leadership strategy (Mindtools, 2020).
4. The company should align to the legal responsibilities as it will aid in market
development in the global world.
5. It should opt for gaining customer’s feedback to gain their response based on
initiation of new product line. It should consider customer’s needs and preferences
and launch a new product to fulfill their need. The new product aids in fulfilling their
needs and gaining fine demand.
6. It should fulfill its corporate social responsibility towards the society by relying on
sustainability in the manufacturing of new product. It aids in gaining customers
support towards the new product (Csrhub, 2020).
Roles and responsibilities
Every individual and department attains distinct roles and responsibilities in the organization.
The manufacturing department should lay high focus to minimize the aste material. The
marketing department should opt for suitable marketing channel to attract new customers and
gain their attention towards the product/services. It should opt for social media marketing as
it has high number of user and high engagement rate. The supply chain head should avail the
use of Hybrid and electric trucks in transportation process. Thus, it is the responsibility of
multiple departments to minimize cost for successful implementation of ‘cost leadership
strategy’. Therefore, the human resource attains a high role as there are responsible for
conducting these activities in the business.
Recommendation
From the above analysis, it can be recommended that Yandex should adopt the appropriate
strategy for reaching the competitive edge for the company. Also, the chosen strategy should
be underpinned from the external competitive environment in which the company must make
efforts for the successful positioning of the company. Yandex must make the strategies for
the positioning and sustaining of the competitive advantage that can later help the company
meet the strategic expectation and achieve the business goals. Moreover, the strategies for the
business can be adopted in the sense that it can affect the overall positioning. Also, the

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company must make the strategy through the utilization of the core capability of the
company.
Further, it can be suggested that Yandex can overcome the challenges of the business through
the crafting of the appropriate strategy. However, as the company has to deal with various
challenges into the company through taking the necessary steps. For overcoming the
challenge of reaching into the new market, the company should make the prior analysis of the
market in which the company has to deal with the global economic and social trends that can
be helpful for the company to reach and sustain the competitive edge. Further, the company
must make the proper communication of the strategy through the overseeing the strategy and
assessing the strategy that aligns with the mission of the company. Further, management of
the company should make the strategic alignment properly in order to reach the gaols and
also making the success of the strategy for reaching the desired expectation of the customers.
Conclusion
To conclude, it can be said that management strategy is crucial for the company as it allows
the company to make the plans for reaching the desired goals and also making the
organization more advanced. Further, it is important for the company to maintain the value
proposition and also allowing the business to maintain the competitive edge through aligning
with the strategic objectives. Here, the management report highlights the strategic initiatives
of Yandex in which the company’s strategic scenarios are discussed wherein the company
had made the actions for sustaining of the competitive advantage over the competitors. Apart
from the strategic formulation, the report has determined the strategic implementation in
which the report has determined the strategic communication and strategic alignment that has
carefully determined the various actions through the strategy map and the alignment of
various business process such as organization structure and the roles and responsibilities with
the objectives of the company.