Strategy, Leadership and Change Management - Assignment Example

Strategy, Leadership and Change management Case Studies Name Institution Course Date Critically examine the role of strategy in creating new market space using complementary products and service offerings. Head-to-head competition can be very challenging, especially in industries where markets are flat or growing at slow speed. Managers that find themselves in this kind of situation normally state that they do not like it and would even better look for a different market. However, for those managers that opt to compete in such an industry, the focus of most such companies has been on trying to match or outdo the competitors and this results in a situation where the strategies adopted by companies in the industry end up converging along the same basic competition dimension. Therefore, any company that hopes to succeed in such a market must seek to create a new market space for themselves which requires thinking differently from the rivals in the industry in terms of strategy. For instance, in the case of teakettle industry, the amount of chlorine in water was found to affect the perceived value of the kettle manufactured and sold in the UK by Philips. According to the case, water, this is a complementary product of the kettle provided by Philips that affected the perceived value of the kettle. Nevertheless, the case indicates that, through value innovation strategy, Philips managed to create a new market space for itself as instead of looking within the industry boundaries for opportunity, Philips looked systematically across the industry and identified a way of creating value innovation by zeroing in on the complements that affected the way customers perceived the value of its kettles. Because water, which is as complementary of its kettle, was the problem and not its kettles, Philips introduces an innovative kettle with a mouth filter that ensured that lime scale in water is captured as the water is poured into the kettle. Zeroing in on the complements with the problem by adopting value innovation strategy ensured that no more limescale could be found in the tea made using its kettles, thus enabling Philips to win a huge market that eventually resulted in huge market demand for its kettles. Examine the relationship between strategy, a Business model and elements required for success in international markets Starting a new business needs thorough planning in order to ensure success. Unfortunately, most small business startups fail within the first few years of operation. However, business strategy and business models are different but related concepts that are critical to planning and managing a business and especially so managing business in foreign markets. A business strategy refers to the approaches that a business adopts to ensure the achievement of the business goals and visions. Business model, on the other hand, defines the means with which a business creates value, delivers it to customers and generates revenue so as to earn profits. In the case of JCDecaux, the business strategy for the company involved making ads available in the city centers for customers willing to advertise their products. This was a strategy that had been ignored in the outdoor adverting industry, which differentiated it from rivals in the industry. JCDecaux business model that is related to its business strategy involved providing street furniture, maintenance and upkeep of this street furniture to municipalities freely and sells the ad spaces on this street furniture to customers. In this respect, the company generated its revenue and profits by providing municipalities with free street furniture and maintained them while using them to advertise for customers on this furniture. This way, it becomes clear that a business model is related to a business strategy in the sense that a business model is basically part of the overall business strategy of a company. Besides, the case also indicates that the adoption of effective strategies and business model are key to succeeding in the international market. According to the case, JCDecaux’s move to adopt a unique strategy and business model that was none-existent in the international market that enables it to succeed, the same way it succeeded in the UK. This is because by the time it entered into the international markets, it was the first to introduced this form of outdoor advertising “street furniture,” and still maintains the lead in the world because of the first mover advantages it gained by coming up with this business concept. Analyze the use of complexity leadership and its impact in General electric Traditionally, leadership models have been based on top-down bureaucratic paradigms. Although these models have proven effective in economies that are based on physical product, they have not been effective in knowledge-oriented economies. In knowledge-oriented economies, complex leadership that focuses on innovation, learning and adaptability have proved to be the trend. Complex leadership theory argues that complex firms operating in complex industries are better placed to succeed in such industries by creating a working environment without boundaries (Uhl-Bien et al., 2007). In other words, complex leadership advocates establishing an organization that fosters learning, innovation and adaptability. This is particularly important in the present day complex business environment, where innovation, knowledge acquisition and adaptability are key to success. General Electric (GE) is a good example of a company that has established a dynasty in the consumer electronics market by adopting complex leadership. GE applies complexity leadership principles in many different ways. First, the company applies complexity leadership through hands off management, allowing self-determinations and self-organization, as well as substituting formal structures as a means of promoting innovation. At the same time, GE applies complexity leadership by promoting the development of social networks, as well as cultivating the culture of collaboration and teamwork so as to promote learning from members of the team (Uhl-Bien & Marion, 2008). Besides, the company applies the complexity principle by promoting training and career development as a way of promoting learning and knowledge acquisition. The application of complex leadership principles has hard positive impact on the organization in the sense that it has promoted innovation by making GE one of the most innovative companies in the industry (Uhl-Bien & Marion, 2008). It has also promoted teamwork among staff, thus resulting in high productivity and success. Additionally, the application of this leadership principle has enabled GE to be adaptive to the market trends, thereby giving it an end over rivals in the industry. Analyze the role of leadership in mapping and implementing change with organizational examples Companies operate in a dynamic and fast-changing business environment. The changes in business environment emanates from different factors that include changes in technology, changes in laws and regulations that affect the nature of business, as well as changes in consumer needs and preferences (McFarland & Goldsworthy, 2013). This implies that, for a company to achieve a sustainable competitive advantage, it must have leaders that are able to anticipate change, map the change and ensure that the needed change is implemented. Mapping and implementing change is only possible when the leader is willing to introduce change. This is because it is the leader who is responsible for providing guidance and direction on the path that a company should take to ensure that it becomes successful and remains competitive in an industry. Leaders also play a key role in implementing change because they have to deal with resistance to change that might come from the employees of the company (McFarland & Goldsworthy, 2013). The role of leadership in mapping and implementing change is well demonstrated by Apple Inc. Today, Apple is known for being one of the leading technology companies in the world. However, this success did not come without challenges. In 1997, Apple faced many challenges that include operation and structural changes that affected its ability to compete against established companies like Samsung in the market. Therefore, Apple was forced to call Steve Jobs, the company’s co-founder to offer advice on how to bring back the company on track. It did not take long for the Board of Directors to appoint Jobs as an interim CEO in 2000 (McFarland & Goldsworthy, 2013). Later on, Jobs dropped the title ‘interim’ to become Apple’s CEO, where he brought many changes that reinvented Apple to become one of the world’s leading mobile technology companies known with products such as ipads and iphones among others. Jobs transformed the company by putting in place good structures and values. Similarly, the appointment of Jeroen Van Der Veer as the chairman of Shell in 2004 after the oil crisis that adversely affected Shell’s share prices managed to save Shell at the brink of collapse. Van Der Veer observed that, to enable Shell survive, there was a need to make structural changes, which he introduced and rallied all the people in the company in implementing, thus allowing Shell to get back to the path of growth and success (McFarland & Goldsworthy, 2013). These two companies demonstrate the role of leadership in mapping and implementing change. References McFarland, W., & Goldsworthy, S. (2013). Choosing change: How leaders and organizations drive results one person at a time. New York: McGraw Hill Professional. Uhl-Bien, M., & Marion, R. (2008). Complexity leadership, part 1. London: IAP. Uhl-Bien, M., Marion, R., & McKelvey, B. (2007). Complexity leadership theory: Shifting leadership from the industrial age to the knowledge era. Leadership Institute Faculty Publications, 18, 298-317. Read More