The Main Strategies in Business Management and Leadership - Term Paper Example

Table of contents Introduction 3 United Nations & political conflicts 3 General Motors and challenges of energy & Depression 5 Norwich Union & Climate change 7 Imperial Tobacco 10 References 13 Introduction The process of globalization has brought in pluralistic society and changed the dynamics of international business which have become more challenging and interesting. The changing values necessitate development of a new social order which would not only embrace multi cultural values but help forge a universal bond that would transcend national and religious boundaries. The challenges of the emerging times have therefore become multifold that need to be addressed through innovation leadership approach. We would be discussing the strategies used by the four major organizations like United Nations, General Motors, Norwich Union and Imperial Tobacco for global challenges in business management and leadership within their defined paradigms. (107) United Nations and the challenges of political conflicts United Nation was founded with the main mission of establishing an international order of peace and mutual cooperation among the member countries. Several pertinent arms of the United Nations became effective tools for promoting mutual cooperation among the countries and provided neutral platforms to resolve political and socio-economical disputes. The functions and powers of the UNSC that were incorporated, made sure that effective detrimental measures were included that would deter the aggressor states from waging wars against other countries. The role of different bodies of the United Nations became a formidable international tool to deter impending friction between the nations and which also encouraged countries to forge bilateral ties for peaceful coexistence. After cold war era, America has emerged as the most powerful nation of the world. The American war against Vietnam which dragged on for more than 15 years is a classic example of American autocracy in the international arena. American veto in the Israel-Palestinian and the division over the Kosovo crisis in 1999, highlights the emerging powers of America. Iran-Iraq war, Afghanistan war, recent war against Iraq and the deteriorating conditions in the middle-east have shown the declining influence of the United Nations. The inability of the United Nations to curtail the growing aggressive nature of American foreign policies, has in effect, weakened the status of United Nations, as an international body whose primary objective is that of keeping the world free of wars and conflicts. The United Nation is currently facing huge challenges from various quarters and threats from militants and rogue nations have especially become vital to the peaceful co-existence across the world. In September of last year, Secretary General Kofi Annan told world leaders that the time had come to choose between maintaining the Charter as drafted after the Second World War or to contemplate enacting radical changes to the international security system (Malone, internet). The fast changing global environment and the emerging globalisation has necessitated the need to reform the charter of the United Nations. The internal conflicts of the nations, all over the world, has been overpowered by a new genre of aggressors called terrorists, who are now holding the whole world to ransom. President Gorbochev of Russia in 1988 had said "World progress is only possible through a search for universal human consensus as we move forward to a new world order" (Cuddy, internet). It is indeed true that the new world needs a new order and a set of guiding principles which would promote consensus efforts towards problems that have universal implications. (421) General Motors and leadership challenges in facing crisis of energy and depression In the rapidly changing environment of globalization, change has become intrinsic part of development and organizations tend to adapt to the constantly evolving business environment. Thus in the changing paradigms of business environment, there is imperative need for organizations to identify factors and issues that would help meet the challenges with efficiency and unmatched proficiency. General Motors Corp. has been one of the global giants who have successfully adapted changes in their work methodologies. The growing concern of the environmentalists, for the fast decreasing natural resources and the need for finding alternate source of energy, has forced the global businesses to improve and improvise their business strategies to address this vital issue. One of the main factors, that have facilitated the company to keep abreast with the changes and maintain a competitive edge over their rivals, has been its ability to test new approaches in its business strategy. Incorporating the socio-environmental paradigms within the framework of its strategic goals and visions, the company has been able to contribute towards environmental conservations and social issues which have considerable impact on the sustainable development. The company has not only been creative in introducing various innovative measures to propagate its environmental policies among its in-house staff and business partners but it has also facilitated wider interaction with various focus groups and forged alliances to motivate and promotes proactive participation of the public in its drive for environmental conservations. Through the evolving process of entrepreneurial creativeness, it has been able to assess the challenges faced by the company in meeting all its aims and objectives within the framework of its principle and professional and organizational ideologies. It has not only preached but also practiced its ideologies and principles in its area of work by efficiently using technology by making efforts to manufacture ergonomically designed fuel efficient automobiles. At the same time, it various measures are taken to safeguard its workers in its workplace. The American economy is presently undergoing tremendous turmoil. In the recent past, the American economy has been under tremendous strain with its deteriorating job market and dismal performance of its various public private companies. The bankruptcy of few of its major financial institutions has resulted in the financial meltdown that has created a serious crisis situation in the American economy. Auto industry has been the sector that was worst affected and the bailout package of $25 billion to the sector has come as welcome respite. Remaining afloat in the difficult time has become a major challenge for GM. It needs to reschedule its strategic goals and utilize the relief package in a manner that would help it to meet expectations of its employees and customers and at the same time, inculcate fresh confidence within the industry with creative approach. (458) Norwich Union Vs Climate Change Norwich Union is one of the most renowned insurance companies of UK. The company has wide range of insurance products which serve the needs of people through its operations that are spread across the globe. Today, globalization has transformed the world into a global community which demands not only a value based social order but proposes to redefine the socio cultural compulsions that promote universal values and equality that bypassing individual interests. The process of globalization has also raised the pertinent issue of corporate social responsibilities of global businesses that are working in developing economies who need to be more proactive towards the socially relevant issues. ‘Corporate Social Responsibility (CSR), defined in terms of the responsiveness of businesses to stakeholders’ legal, ethical, social and environmental expectations, is one outcome of these developments’ (UNIDO, 2002). Norwich Union has shown genuine concern towards climate change. It has realized that conservation and preservation of natural resources are important part of population dynamics as its sustenance depends on the available resources. The population growth has brought into focus the issue of sustainable development. Sustainable development is defined as maintenance of ecosystem that facilitates a continuous supply of natural resources like water, clean air, energy and food with proper waste disposal system. It is important that awareness regarding sustainable development is created amongst the public so that despite advancement in technology, environment is preserved for our future generation. Fast depletion of natural resources has disturbed the eco system, resulting in change in global environmental conditions like global warming, increasing number of climate related natural disasters etc. Norwich Union has taken the issue of climate change serious and contributed towards the issue through various positive measures. The company has made significant efforts to reduce its energy consumption through reduced consumption and helping preserve environment by using recycled goods like paper, glass etc. In 2007, 95% of the paper used in UK office was recycled and ‘Of the 15,932 tonnes of waste generated in 2007, 88% was recycled, including all our paper waste’ (norwichunioon.com). Norwich Union has also forged alliance with the ‘Climate Care’, an agency that works towards reducing carbon emissions and provides carbon emission calculators that can be used by people and thereafter support projects that absorb or reduce greenhouses gases. The exemplary leadership of the company leadership has encouraged creativity and innovative practices that given a unique perspective to participatory approach of management and employees. The motivating factor of managerial leadership has not only facilitated adaptability to changing equations, which occur due to rapidly changing environment of emerging business paradigms but they also been able to exploit the emerging opportunities to gain considerable leverage in business outcome. (443) Imperial Tobacco and challenges of effective business management Imperial Tobacco has been a leading tobacco company of UK whose products are available in 160 countries across the world (imperialtobacco.com). Although, company’s various brands have a niche matured market but the fast changing socio-economic paradigms and advancing technology has tremendously changed the dynamics of market strategies. In the contemporary times, the customer has become much more informed and technology has provided him with more options within the similar product lines, but produced by different companies. In the global market the companies face cut throat competition. In such a highly competitive environment, Imperial Tobacco needs to adopt more innovative approach in its management strategies to effectively face the challenges from different fronts like segmented markets, environmental compulsions and corporate social responsibility that have become crucial in the contemporary time. The company recognizes the huge controversy that plagues the tobacco industry and the smoking and makes concerted efforts to comply with the government policy of health guidelines and conform to the EU legislation. Apart from statutory warning, the company is also working towards awareness creation on health issues and has taken up various other socially relevant concerns like environmental preservation, transparent working and commitment towards community development. They have taken worked towards better carbon management by going green and reducing consumption of energy. Concerted efforts are made to improve and improvise their operation to include the imperatives of environmental compulsions and climate change (Imperial Tobacco.com). Looking at its controversial area of operation, the company is targeting demographic segment of matured users who understand the risks and can take appropriate measures to moderate the usage of the tobacco and its related products. It also makes conscious efforts towards educating its various stakeholders and looks after their interests in the fiercely competitive environment of global business. The company’s managerial leadership style is more labor friendly and believes in developing joint goals and objectives that are mutually beneficial, thus fostering mutual beliefs and better understanding of each others’ value system. The new dimension in the managerial leadership has also accepted the presence of ‘unexpected situations’ giving them fresh impetus to readily take up the challenges of unforeseen crisis and handle them with aplomb. The presence of uncertainty in an organization implies the recognition that unexpected situations will arise and that they will continue to do so time and time again (Tyrstrup, 1993). The company has taken initiatives in management leadership by targeting that segment of the market which looks for certain defined characteristics which add value not only to the product but also to the lifestyle of the consumers and has help established a niche position in the market. It has displayed extraordinary creativity in its advertisements and market strategy and has proved that it can face the challenges with an approach that is focused and caters to the general welfare of its stakeholders. (470) Total words – 1899 Reference Cuddy, D, L. Chronological History of the New World Order. Available from: [January 16, 2009]. Imperial Tobacco. Corporate Social Responsibility. Available from: [January 16, 2009]. General Motors Corp. Available from: [January 16, 2009]. Malone, David, M. 2004. The UN Security Council: From The Cold War to 21st Century. Available from: [January 16, 2009]. Norwich Union. Corporate Social Responsibility. Available from: January 16, 2009]. Sjostrand, S and Tyrstrup, M. 2001. ‘Recognized and unrecognized managerial leadership’, in invisible management – The social construction of leadership. S Sjostrand, J Sandberg and M Tyrstrup (eds.). Thomson. pp 1-27. Tyrstrup, M. (1993) Företagsledares arbete (Executives' work) Stockholm: EFI. 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