The Art of Effective Strategic Leadership Essay

The Art of Effective Strategic Leadership - Essay Example Over the course of studies, we analyzed few case studies about strategic management. These cases along with real life experiences helped the students learn key lessons about strategic leadership. In some cases, it was seen that the management failed to take right decisions on time. The failure to take effective steps within time resulted in catastrophes of various sorts. However, some leaders were able to take hold of the situation accurately and thus became effective strategic leaders. It was found that the leaders who were complying with the rules of strategic leadership used some key strategies. These strategies have been summed up in three key lessons of strategic leadership. The three key lessons are: (1) making realistic decisions, (2) becoming flexible, and, (3) keeping long-term goals in mind. Effective Strategic Leadership- Key Lessons The leaders everywhere face a situation in which they lose their cool and tend to take wrong decisions. The following key lessons would help them learn the basic strategies for taking accurate decisions. Key Lesson 1: Making Realistic Decisions Always look for realistic approaches in dealing with the situation you face. Do not follow idealistic assumptions which appear futile in the face of reality. At times, the leaders tend to look for making idealistic changes in the situation. It is good as far as you are in control of the situation. However, you will need to adopt a practical approach which fits the certain situation to tackle it completely. In the case of the launching of Challenger, the spaceship, the managers were aware of the critical situation they were in. Some of them knew that it could blow up in view of the incompatible temperature surrounded by it at that time. However, the decisions were made in haste not realizing the risk the action involved. They were trying to fulfill the people’s expectations and did not take a realistic approach which resulted in the catastrophe. An example of the realistic a pproach can be seen in Madonna’s case who managed her business career successfully. She did not hold idealistic assumptions and switched roles keeping in view the need of the hour. She had put her own interests aside and met the demands of the time in order to reach to the top of her music career. Key Lesson 2: Becoming Flexible Never try to seem rigid in taking important strategic decisions which involve your opponents. Be flexible in your approach to attain your goals. In some cases, the managers are inclined to get angry on their clients’ demands. They have the responsibility to ensure the organization obtains its goals efficiently. They might adopt a rigid approach to respond to the aggressive demands of the other party. However, it might result in the ending of deal which could have successfully accomplished by being flexible. The disaster of the Challenger could be avoided if the management was appreciative of the engineers’ concern about the risk in the l aunching of this spaceship. However, it was overlooked and rigidity was shown in not stopping the launch till the technical problems got sorted out. After the disaster, NASA took immediate action and researched for two long years to stop the probability of such event in future. The case study of Madonna highlights the approach of flexibility in the life of this queen of pop. She had become a saint, an erotic, a rebel and adopted many

Building Trust in Virtual Teams - Leadership Role Research Paper

Building Trust in Virtual Teams - Leadership Role - Research Paper Example   A leader should be someone who is willing to serve than to be served, has a strong will to be able to bring a group together despite probably different interests and opinions, and perhaps someone who has enough knowledge to instruct his fellow team members. However, when you come to think of it before all these are actually even possible, there is one thing that needs to be achieved which is no other than trust. Trust is indeed the foundation of real teamwork and is something that will enable a leader to be able to lead a group effectively to a specific goal (Hung, Yu-Ting Caisy, Alan R. Dennis, and Lionel Robert). We all know that every follower has their own set of interests that would not easily be influenced by a leader they do not trust. Thus, if you want to be a leader who does not influence one’s followers, one key to this is to not win their trust. Why? Well, this is because of the fact that the only thing that would make people listen to what you, as a leader would have to say, let alone you are a total stranger to them, is because of the fact that they see something good about you or clean in your intentions that would be beneficial for the whole group. That is why, to be able to start winning the trust of people or your team is to avoid focusing on putting words in their mouths or manipulating them over your highfaluting goals and start with what you, as a leader has to say about moral duty or commitment you are willing to give to the team (Hung, Yu-Ting Caisy, Alan R. Dennis, and Lionel Robert). Once this has been established, a leader now gains that voice to reflect the goal s and at the same time for that voice to actually be heard. However, it is important to know that it does not end in laying out the big picture of the do’s and don’ts to your team to be able to achieve a certain goal. In a way, understanding human nature, where self-interest can never be set apart, should be considered aside from the social considerations of any goal set for a team.  Ã‚  

Horizontal and Vertical Financial Analysis - PepsiCo vs Coca-Cola Essay

Horizontal and Vertical Financial Analysis - PepsiCo vs Coca-Cola - Essay Example The structure of this article is framed in such a manner that firstly income statements of both the companies are analyzed on horizontal and then on vertical basis. Next section is based on the analysis of balance sheets for the two companies on horizontal basis and then followed by vertical analysis. The major components of income statements are analyzed for both the companies in respect of cost of goods sold, operating income, income before taxes and finally net income. Cost of sales for PepsiCo is around 43% of the sales whereas the same for Coca-Cola is around 35% of the sales which is substantially lower than that of PepsiCo. In respect of operating profits, Coca-Cola has also an edge over PepsiCo such that its operating income is around 26% of the sales whereas PepsiCo remained behind and has the operating profit of just around 18%. Coca-Cola remained successful in maintaining a healthy position in respect of its income before taxes such that it managed to earn income before ta xes around 28% of the sales whereas PepsiCo hardly managed to earn income before taxes of around hardly 19% of the sales. Net income for Coca-Cola has remained on a stronger side pursuing around 21% of its sales. On the other hand, PepsiCo just managed to earn net income of 13% of its sales in the three years. Following are the attached tables for percentage change on horizontal basis for two companies.... s 19.60 18.95 18.51 Provision for Income Taxes 7.08 4.69 5.28 Income from Continuing Operations 12.52 14.26 13.23 Tax Benefit from Discontinued Operations 0.00 0.13 0.00 Net Income 12.52 14.39 13.23 Coca Cola Inc.                Income Statement    Horizontal Analysis 2005    2004    2003 Net Operating Revenues 100.00 100.00 100.00 Cost of Goods Sold 35.47    35.30    37.28 GROSS PROFIT 64.53 64.70 62.72 Selling, general and administrative expenses 37.82 36.29 34.94 Other operating charges 0.37    2.21    2.75 OPERATING INCOME 26.34 26.21 25.03 Interest income 1.02 0.72 0.84 Interest expense 1.04 0.90 0.85 Equity income — net 2.94 2.86 1.95 Other loss — net (0.40) (0.38) (0.66) Gains on issuances of stock by equity investees 0.10    0.11    0.04 INCOME BEFORE INCOME TAXES 28.96 28.62 26.35 Income taxes 7.87 6.32 5.50 NET INCOME 21.09    22.29    20.84                   Income Statement Analysis on Vertical Basis In respect of vertical analysis, PepsiCo is found to have earned much more growth as compared to Coca-Cola such that PepsiCo’s revenues increased by 8% and 11% respectively as compared to previous years whereas Coca-Cola’s revenues increased with 4% and 6% during the same periods. Operating profits of PepsiCo increased by around 10% and 12% as compared to previous years, however, only 9% and 7% increase in operating income for Coca-Cola can be observed. Net income of PepsiCo decreased by 3.18% as compared to previous year but Coca-Cola managed to increase its net income by 0.52%. Following tables highlight the comparative vertical analysis for both companies. PepsiCo Inc.       Income Statement    Vertical Analysis 2005 2004 Net Revenue 11.28 8.49 Cost of sales 11.85 8.41 Selling, general and administrative expenses 11.63 8.70 Amortization of intangible

The Importance of Diversification Essay Example | Topics and Well Written Essays - 750 words

The Importance of Diversification - Essay Example The Importance of Diversification Diversification involves adding new products from different industries (Investopedia, 2013). For instance Tuscan Treasures can add to its product line the sale of vacation packages and cruise trips. In 2011 the global tourism industry generated revenues exceeding one trillion dollars (Berwyn, 2012). The use of a diversification strategy lowers the business risk of the company, while at the same time increasing its income streams. The third growth strategy the firm must use is product development. The company can introduce its own line of decorative products. These products are going to be unique and different because they will be made using banana ply paper as the raw material. Banana ply paper is a renewable source that comes from the trunks of the banana trees. The owner of the patent is the company Papyrus Australia. This company offers licensing agreement to companies interested in sponsoring its product to become business partners. Decorative products are a complimentary product to furniture that will increase the overall revenues of the firm. It is important to properly market the new green product through different marketing channels such as the internet, television, satellite radio, and mobile technology. The company is suffering from profitability problems. There are a variety of factors that could be causing the firm’s inability to generate profits. Profitability issues typically involve either declining sales or increasing costs. The company’s sales must be sufficient to cover all fixed and variable costs. If the expenses of the company exceed its revenues the company will incur in net losses. The firm must determine its breakeven cost to ensure the sales projections of the company exceed that number. A way to boost the sales of the company is by investing in advertising. The poor profitability of the company may be associated with high costs. The company must perform a cost analysis to evaluate the payroll obligations of the company. The analysis should provide information regarding whether the company is overpaying its employees and to determine if the firm could operate with a smaller workforce. Investment in new technologies can increase the efficiency and profita bility of the business. New technology can also reduce labor costs. A second element of the cost structure of the company that must be evaluated is its materials costs. The market must be analyzed to determine if a suitable supplier of Italian furniture is available that offers lower prices than the firm’s current suppliers. Lowering materials costs will reduce the cost structure of the firm and raise profitability. Another reason the profitability of the company may be suffering is a lack of productivity. Low employee morale or a lack of motivation can hinder the productivity of the workers. The managers of the company are responsible for motivating the staff. A way to increase the motivation of the workers is by offering intrinsic and extrinsic rewards. An example of an intrinsic reward is a manager telling a subordinate they did a great job during a work day. Offering positive reinforcement can increase the confidence of the workers. Giving financing incentives such as a C hristmas bonus is an example of an extrinsic reward. Part C The downsizing initiative of the firm must be well planned and executed in an effective manner. The company must keep the information about the strategy internal to avoid hurting

Achieving Sustainable Development in Construction Essay - 1

Achieving Sustainable Development in Construction - Essay Example In UK planning system, the notion of sustainable development is thoroughly expressed from national level, through the regional level, and finally touching the Local Development Framework. Nevertheless, how far a principle of sustainable development is adhered to in local planning could be different from one area to the other. The concept of sustainable development can be traced from various meetings held during the 1970s and 1980s. The 1972 UN Stockholm Conference on the human environment was one such initiative taken for the first time on global scale over the negative impacts of human functions causing harm to the environment. The concept of environmental security was advanced through the 1980 World Conservation Strategy planned by the International Union for the Conservation of Nature in collaboration with the UN Environment Program and the World Wildlife Fund, for the welfare of mankind. Later, in 1987, the UN-sponsored Bruntland Commission issued a report, Our Common Future that attracted the attention on global poverty and degrading environment, which culminated in grabbing global attention through the 1992 UN Conference on Environment and Development, in Rio de Janeiro. It paved the way on reaching global agreements over sustainable principles and action agenda over it (The Sustainability Report par. 3-7). The Brundtland Report 1987 The Brundtland Report (WCED 1987: 5)) has stressed on specific aspects of the definition of sustainable development, which is for â€Å"ensuring a better quality of life† to be attained through improved economic and environmental conditions. Sustainable development should be beneficial â€Å"for everyone†, assuring socially sustainable development. Stress is on sustainable development â€Å"for future generations†, which means all the three aspects, social, economic and environmental should be sustainable for attaining equal development of the present generation along with posterity (Lafferty 5). The Brun tland Report strives for â€Å"Common Action† on environmental policy by adhering to two methods, first, by following the ‘standard agenda’ on environmental policy, law, and institutions that create positive environmental impacts. Secondly, it advocates adhering to such policies that help in creating that positive impact. These two approaches indicate a unique way of addressing the problems and at organizations on resolving them (Lafferty 5). It is critical for the sustainability motive under the policy that its ecological aspects are discussed at the same time when other aspects such as the economic, business, energy, agricultural, industrial, and other aspects on the ditto agendas and in the same national and global level institutions are analyzed. The Bruntland Report admits it to be the leading challenge of the 1990s to include the objectives of sustainable development in the terms of reference of the government-formed committees to formulate concerned states ’ policies and planning besides managing with leading sectoral and global policies. Not only this, the concerned states are expected to take full responsibility of implementing such policies, programs, and budgets to support development that is ecologically and economically sustainable (Lafferty 5). United Nations Conference on Environment & Development, Rio de Janeiro 1992 It was an unusual UN conference on environment and development held in Rio de Janeiro in 1992, known as the Earth Summit. It was extraordinary because of its huge attendance and range of the issues discussed. After a lapse of twenty year in organizing another global scale conference on env

WSJ Analysis Number 3 Essay Example | Topics and Well Written Essays - 500 words - 1

WSJ Analysis Number 3 - Essay Example A small percentage of women report, according to the article, a lower level of interest in sexual practices, but hold a doubt in whether or not such a lack of interest would even be considered a medical condition of sorts. Despite whatever benefits may to be had of the patch, whatever risk factors for illness remain the primary consideration for those who seek to decide whether or not it will get federal approval for public usage. Federal regulators have stated that in order to achieve approval for the public, they would in fact require a larger test study to be done with a great level of participants in order to better assess the level of effects after using the hormone treatment. At the time, Procter and Gamble had yet to say whether or not they would go about getting the approval of the Food and Drug Administration (FDA). Other related drugs for the use of aiding female sexual behavioral patterns do not seem to be on a path either towards approval by any approving body. For any form of drug to be approved, such agencies are given the task of giving the approval needed for customer consumption and use. In this case, the FDA is placed with the task of approving the drug. Without it, the company is unable to legally market the drug to the public in such a manner. For many men, as well as women, the inability to truly enjoy sexual relations with those who have been chosen can be quite unfortunate. As it is natures way to have a time in life to where women enter the period of menopause, that can in many ways impede upon the truly enjoyable nature that comes from engaging in intimate practices with spouses or lovers. For these, as well as other drugs, the approval of organizations such as the FDA, is very important for many reasons. While crucial for the ability to market them in the first place, they are also important to those who

Restaurant Business as One of the Most Rewarding Type of Small Essay

Restaurant Business as One of the Most Rewarding Type of Small Businesses - Essay Example According to the research findings, it can, therefore, be said that restaurant business is one of the most rewarding types of small businesses. The researcher has witnessed one of his uncle’s advances so much economically because of owning one of them. His restaurant is a fast food restaurant located in the middle of one of the busy streets in Saudi Arabia. The main types of food served at the restaurant are chicken, chicken burgers, fries,  burgers,  pizza, sandwiches, junk food among other fast meals. Fresh fruit juices are also served at the restaurant. The restaurant offers quick dining for those who have time to sit and eat but for those who have no such time, quality food packaging services are offered. The legal ownership structure of the business The legal ownership structure for the restaurant in question is the sole proprietorship. The business is classified under sole proprietorship type of business because only one person legally owns the business, and he and t he business are treated as one entry. He did not partner with anyone in or outside the family in the setting up of the business or running it. Instead, he is the overall manager of the business, overseeing operations, and employees like chefs, customers attendants, and cashiers. At the end of every month, all the profits or losses are upon him alone and he carries liability for any debts incurred. Alternative possible structures An alternative for the sole proprietorship is General Partnership. However, their losses are determined by the extent of their investment. Peacock states that as for a Limited Liability Company, no partner is personally liable for any debts incurred by the business. Before commencing with business, all partners make a written agreement detailing the organization of the business, alienability of interests, provisions of management, and distribution of profits and losses. Sole proprietorship as the most appropriate structures Sole proprietorship is the most ap propriate type of business ownership structure, especially for a small business. It is best fitted for hardworking individuals and those who can learn to sacrifice for a better tomorrow. This is because the owner can decide to plow back a large portion of the profits accrued over a period just to ensure that the business expands within a short period. As for partnerships, not all partners could be ready to make this sacrifice. It is easy to make decisions in sole proprietorship since opinions are sought before undertaking anything. Such structure protects a business from the weaknesses that are found in some form of partnerships with family businesses where decisions are emotionally driven instead of being driven by logic. The owner is not obliged to hire any family members but qualified persons for the business. Out of the hard work of the month, there is no one to take away any portion of the profit from the owner. Reed points out that such business is not subject to government ta xes.