Dick Smiths Success in Business - Case Study Example

Essay: Dick Smith Case Study Name: Tutor: Course: Date: Introduction Successful business people have specific traits, personalities and attributes that make them different from non-entrepreneurs and ordinary business owners (Mayer 2002). Success in business as in the case of Dick Smith can arise from particular social networks and culture at thrives on leader’s ability harness followers trust, admiration and confidence. Leadership and organizational characteristics are critical factors that have failed or made corporate and individuals to succeed (Djankov, 2007). Attributes to business success are broad and diverse such as leadership, drive and energy level, self-confidence, long-term achievement, setting realistic and challenging goals and using money as performance measure (Dingee et al. 2007). The aim of this essay to explore the issues that led to Dick Smith’s success in business attributes that contribute to his charisma and whether he is a transformational leader or not. Dick Smith’s success in business The success of Dick Smith in business is a combination of strong values, attributes, and personality. He has been able to gain admiration and respect from business leaders and employees. In the social sciences, two distinct entrepreneurial perspectives come into play (Djankov et al. 2007, p. 4). Nature, according to psychologists is essential in determining who becomes an entrepreneur. Specifically, personal traits relate to entrepreneurship and comprise individual self-confidence, belief in the effect of personal effort on outcomes, and the need for achievement. For example, Dick has been a successful businessman or entrepreneur because of his fairness, emulation of others’ success, good public image, keeps the costs low, hard work and extensive consultation. Bhide (2000) in a research on Inc 500 US companies suggested that the critical features of successful entrepreneurs are decisiveness and tolerance of ambiguity. Besides, Mayer (2002) observes that a major theme of entrepreneurship involves personal characteristics. The author in a survey data of MBA graduates of Stanford University found that those with shorter job tenures and a higher number of jobs before graduating from school had a higher likelihood of becoming entrepreneurs afterward. The findings showed that individuals who become entrepreneurs have abilities to acquire general skills that they can apply in their own businesses. Alternatively, nurture also shapes entrepreneurship. Entrepreneurial activities can be promoted or discouraged by social networks and the role of values. For example, Dick works in service to others and expresses gratitude despite his parents lacking hope in him after dropping from the University. Iyer and Schoar (2007, p. 15) note that social networks and culture work through various channels such as social groups, friends, relatives, and family in business spheres. Social responsibility of Dick Smith Foods is evident in the way they respond to community’s needs in charitable activities. Dick’s beliefs and values also seem to align with those of the government regarding protectionism and nationalism. This endears his confidence and trust to the Australian consumers who take pride in his ability to connect with people. Attributes that contribute to Dick Smith’s charisma Dingee et al. (2007, p. 3) observes that characteristics of successful entrepreneurs compared to ordinary businesses and non-entrepreneurs are differentiated by personal attributes. These include leadership, drive and energy level, self-confidence, long-term achievement, setting realistic and challenging goals and using money as a performance measure. Others include listening, making good use of resources, using criticism, learning from failure, climate building persistent problem solving and taking moderate risks (Dingee et al. 2007). Dick Smith is one such person who believes in freedom of speech, virtues of hard work and free enterprise. He also has a good public image, the ability to connect with employees and fellow business leaders that are vital to business success. Mayer (2002) asserts that successful people have dreams, plans, willingness to work hard, specific training or knowledge and do not take ‘no’ for an answer. Dick Smith is a hard working individual, has dreams of retaining a balance of Australian business ownership and takes pride and self-confidence in himself. He loves critics and pride in personal connection and relationships with people. Successful business people take risks, have cognitive abilities and are patient compared to non-entrepreneurs (Djankov et al. 2007). Dick is self-confident, highly emotive and articulate, demonstrates honesty and social responsibility, and does not fear the risk of venturing into a new environment. For example, when called upon to assume the role of Chair of Civil Aviation Authority, he readily accepts the task with all the challenges that accompany. Transformational leadership Bass and Bass (2008, p. 13) suggest transformational leadership as influencing followers and earning their trust, respect, loyalty, and admiration. The followers will then strive to work harder so as to please the leader. These leaders offer followers more than just a personal gain but also senses of identity, mission, and vision of life (Mayer, 2002). Dick Smith draws on personal magnetism, respect and admiration from business leaders and employees. His vision has been also used to drive self-confidence, pride and national identity in Australia. Moreover, the ability to link vision to Australian values in the business space endeared Dick Smith to the business community, employee fraternity, and Australian consumers. Transformational leaders have the ability to motivate and transform followers by way of idealized influences (charisma), individual consideration and intellectual stimulation (Djankov et al. 2007). Dick Smith is articulate, confident and highly emotive to the extent that his employees feel energized and motivated to work harder. He also has the broader image of the Australian consumers in the way he projects Dick Smith Foods. The leader has succeeded in making Australians believe in the consumption of home-made brands as a means of improving the national economy and retaining the national pride. This indicates that Dick Smith is a transformational and transactional leader. Moreover, transformational leaders encourage followers to adopt unique and new ways of altering the environment and challenging the status quo to be successful (Antonakis & Sivasubramaniam, 2003). However, this is not the case in Dick Smith case as seen in the failure to transform Civil Aviation Authority. The leader lacked authority and power to influences events and issues that affected airline companies at the time. After numerous frustrations, Dick Smith left CASA with little success under his name. Despite this setback, it was established that the leader is multi-dimensional and could have found massive challenges in CASA that required the application of a different type of leadership such as authoritarianism or bureaucratic leadership to work. Yulk (1999, p. 290) argues that transformational leaders work alongside employees to develop attractive and challenging vision. The achievement of this vision is tied to a strategy that is specified and translated into actions. The leader expresses optimism, decisiveness and confidence regarding the vision and how it will be implemented. Besides, the leader realizes the vision through small successes and planned steps drawn into the path of full implementation. Dick Smith has confidence, works on reducing costs, and seeks advice and triumphs on other peoples’ success. To succeed in a team, Dick Smith strives for change and overcoming challenges. Intertwine of adventure, philanthropy, social leadership and entrepreneurship has made Dick an all rounded personality that people and business desire. Bass and Bass (2008) identify four elements of transformational leadership as individualized consideration, intellectual stimulation, inspirational motivation and idealized influence. Individual consideration draws on the ability of the leader to coach or mentor and attends to the needs of the followers. The leader offers support, empathy and opens communication as well as challenges before the followers. The leader also celebrates the individual contribution and commands respect (Mayer, 2002). These traits describe Dick Smith, who commands respect and admiration not only from employees but also business leaders. Regarding intellectual stimulation, the leader solicits follower’s ideas, takes risks and challenges assumptions. The leader also nurtures and develops people, figures out better ways of executing tasks and thinks deeply about issues (Bass & Bass, 2008, p. 12). Owing to the failure to achieve in CASA, Dick Smith may have failed to demonstrate transformational leadership given the deficiency in thinking on how to reform the aviation authority. Transformational leaders inspire motivation and articulate vision by inspiring followers (Yulk, 1999, p. 301). Followers are challenged to provide meaning of tasks at hand, communicate optimism of future goals and observe high standards (Alimo-Metcalfe & Alban-Metcalfe, 2001, p. 15). However, Dick Smith may not promote high standards in innovation and change owing to lack of tested procedures and being unconventional. Despite this shortcoming, Dick Smith is articulate and emotive to the extent of making the vision powerful, precise and understandable. Idealized influence provides that a role model should have trust, respect, pride and high ethical behavior (Yulk, 1999). Dick Smith is admired and respected, has good personal image and values that mirror national aspirations. Most of the descriptions of transformational leadership indicate that Dick Smith is a transformational leader. Conclusion The combination of strong values and attributes, and personality has been described as some of the success factors that informed Dick Smith’s business success. It was found that Smith has admiration, vision, and respect not only to the business leaders and employees but also the entire Australian consumers and government. Despite failure to demonstrate charisma and drive at Civil Aviation Authority (CASA) Dick Smith is a role model who has earned trust, respect, pride and good public image. Dick Smith is admired and respected, has good personal image and values that mirror national aspirations. Most of the descriptions of transformational leadership indicate that Dick Smith is a transformational leader. This shows that Dick Smith is a charismatic or transformational leader. Reference list Alimo-Metcalfe, B & Alban-Metcalfe, J 2001, ‘The development of a new Transformational Leadership Questionnaire’, The Journal of Occupational & Organizational Psychology, Vol. 74, pp. 1-27. Antonakis, J Avolio, BJ & Sivasubramaniam, N 2003, ‘Context and leadership: An examination of the nine-factor Full-Range Leadership Theory using the Multifactor Leadership Questionnaire’, The Leadership Quarterly, Vol. 14, no. 3, pp. 261-295. Bass, BM & Bass, LM 2008, The Bass Handbook of Leadership: Theory, Research, and Managerial Applications, 4th Edition, Free Press. Bhide, A 2000, The Origin and Evolution of New Businesses, Oxford University Press, London. Dingee, AL Haslett, B & Smollen, LE 2007, Characteristics of successful entrepreneurial management team, Ventures Founders Corporation, UK. Djankov, S Qian, Y Roland, G Zhuravskaya, E 2007, What Makes a successful entrepreneur? Evidence from Brazil, Rio de Janeiro. Iyer, R & Schoar, A 2007, Are There Cultural Determinants of Entrepreneurship?, Sloan Business School, MIT, working paper. Mayer, JJ 2002, The 13 Characteristics of successful people, Nextass Resource Center. Yukl, G 1999, ‘An evaluation of conceptual weaknesses in transformational and charismatic leadership theories’, The Leadership Quarterly, Vol. 10, pp. 285-305. Read More