Daniel Goleman, in his article “Leadership That Gets Results”, has identified six different leadership styles, and he believes that good leaders will adopt one of these six styles to meet the needs of different situations. “What are the six styles of leadership? None will shock workplace veterans. Indeed, each style, by name and brief description alone, will likely resonate with anyone who leads, is led, or as is the case with most of us, does both. Coercive leaders demand immediate compliance. Authoritative leaders mobilize people toward a vision. Affiliative leaders create emotional bonds and harmony. Democratic leaders build consensus through participation. Pacesetting leaders expect excellence and self-direction. And coaching leaders develop people for the future.” – Daniel Goleman. None of the six leadership styles by Daniel Goleman are right or wrong — each may be appropriate depending on the specific context. Whilst one of the more empathetic styles is most Continue reading
Strategic Management Concepts
Case Study: Competitive Advantage of Boeing
As an airplane manufacturer Boeing started its business in 1916. It was William Boeing and George Westervelt who bring this company in to existence. It was 1952 when Boeing launched its first short range jet plane with the name of Boeing 707. After that Boeing continued its journey and makes a number of joint ventures, mergers, acquisitions and many contracts with many Governments and suppliers and became one of the largest Aircraft Jetliner manufacturers in the world. As one of the largest exporter in USA Boeing has a wide range of products. Boeing manufactures and design commercial jetliners and military aircraft combined, rotor-craft, electronic and defense systems, missiles, satellites, launch vehicles and advanced information and communication systems and also is one of the major service providers to NASA in operating Space Shuttle and International Space Station. Boeing is divided its operations into two business units (1) Boeing Commercial Airplanes (2) Continue reading
Components of a Strategic Plan
Strategic plan of any enterprise is a picture of the desired position of the organization. Strategic plan gives a root path that how the organization will achieve the desired place or position in the given industry. Three major components of strategic plan include formulation, implementation and evaluation of strategy carries that information and plan which provides a direction towards the organizational objectives. 1. Strategy Formulation Strategy formulation process starts with the situation analysis of the organization. Situation analysis is an important part of strategic plan as it gives an overview of the existing position of the organization. Situation analysis includes the analysis of internal and external environment of the organization. Different strategic tools can be used to evaluate this situation i.e. SWOT analysis, PEST Analysis etc. This also includes the evaluation of current mission and vision of the organization. Vision statement clarifies that what an organization want to become and Continue reading
Link Between Core Competency and Competitive Advantage
In order to explore the link between core competency and competitive advantage, it is crucial to understand the implications of both terms. Competitive advantage could imply exploitation of resources resulting in an organisation’s distinctive position compared to competition. While most firms view the attainment of competitive advantage as earning greater investment returns, it can comprise of various aspects, for instance, enhancing environmental impact or capturing a greater market share can be viewed as a source of competitive advantage for a particular firm. Porter (1985) defined competitive advantage as the value delivered by a firm’s products that exceeds costs of creating that value. In this context, competitive advantage was achieved by a firm through adoption of either a differentiation or cost leadership strategy. However, competitive advantage does not solely rely upon implementation of value creating activities as the notion undermines and sometimes ignores to account for the potential of competitors. Therefore Continue reading
Importance of Organization Culture in Business
Organizational culture is defines the different type of place an organization, this organization is for people, they will be any type of stakeholder: general manager director, employee and customer. Organizational culture is the big part of values, rules, symbols, taboos and rituals that evolve over time. It is the common feel and thinking shared by members that identifies how is the things get done in the organization. Culture drives expected behaviors internal to the organization ads well and those engaged when interacting with its outside environment. Understanding an organization’s culture helps an employee learn the line and discover whether their personality is a good fit. The greater the acceptance of key values and norms, the stronger the culture. Strong cultures are associated with employee commitment and organizational performance. The strength of culture is determined by the size of the firm, how long it has been around, intensity and turnover rate. Continue reading
Recent Developments in Corporate Governance
The Department of Company Affairs, in May 2000, invited a group of leading industrialists, professionals and academics to study and recommend measures to enhance corporate excellence in India. The Study Group in turn set up a Task Force, which examined the subject of Corporate Excellence through sound corporate governance and submitted its report in Nov. 2000. The task force in its recommendations identified two classifications namely essential and desirable with the former to be introduced immediately by legislation and the latter to be left to the discretion of companies and their shareholders. Some of the recommendations of the task force include: Greater role and influence for nonexecutive independent directors Stringent punishment for executive directors for failing to comply with listing and other requirements Limitation on the nature and number of directorship of managing and whole-time directors Proper disclosure to the shareholders and investing community Interested shareholders to Continue reading