Introduction
The entrepreneurship in this day and age is one of the most feasible business endeavors for an individual or a company. Opportunities are endless for entrepreneurs seeking new ideas and incorporating such into a business whole new business undertaking. An efficient management structure with appropriate leadership skills would be highly advantageous for success of entrepreneurial and intrapreneurial firms. Good governance and leadership is the foundation of an efficient business operation and is therefore important in today’s business setting.
The most recent global recession has significantly affected most industries. Very few businesses were able to escape the wrath of the current economic crisis. It is those exceptional companies that possess a desirable amount of capabilities, particularly relating to its top management and consequently carried over to the operational level, that set such companies apart from the rest. Having appropriate leadership skills throughout the organization from top to bottom level management is one important aspect that promotes the efficiency of the company. Having good leadership emanating from the organization as a whole, in effect, supports the company in weathering the declining economy and global recession. To further understand the significance of leadership in withstanding the pressures of recession, certain companies which have weathered the recession will be presented.
Overcoming the Hurdles of the Global Recession
IN order to overcome the pressures of the economic crisis, companies must possess a great deal of strategic efficiency and operational effectiveness. As noted, leadership within the organization supports the goal of preserving the business despite certain downfalls in the economy. Certain companies epitomize good corporate and managerial governance and have been able to outperform its competitors in the market as well as the crisis in the economy.
Cadbury is one of the most successful UK based company. Cadbury enjoys the privilege of ranking second in the confectionery category in the market of United Kingdom. This market advantage connotes a high market concentration of share. This market concentration provides lesser opportunities for competitors’ playground. Thus market rivalry is to the advantage of the Cadbury. The company is the leader in product innovations by setting a higher standard on their packaging and product development. Cadbury in one way or another can also influence the decisions of suppliers to their advantage being a market leader. Differentiation in prices can also be done by the company to gain market advantage. Every business has its own ups and downs and Cadbury has its own share of market fluctuations. From humble beginnings to multi-billion empire to struggling company in the present, changes is inevitable. The recent financial crisis is a wake-up call to the sellers and marketers of Cadbury. Cadbury management were able to formulate marketing strategies that adhere to the current needs and capabilities of the consumers during the crisis. Strong management influenced Cadbury’s employees thereby sustaining the financial aspect of the company. The company’s management was able to find ways in creating a harmonious relationship with small players in the market creating a win-win situation during the financial crisis. With the collaboration of brilliant minds and governmental policies the company was able to take appropriate measures that helped in alleviating the effects of the economic crisis widely felt.
Whole Foods Market Inc. operates and holds natural and organic food chains and supermarkets. The stores are located in most parts of the United States, Canada and the United Kingdom. The current organizational structure of Whole Foods Market Inc. is the team approach. This approach is one of the newly developed organizational structure and internal hierarchy of operations during the turn of the 20th century. It is an innovative way of maintaining a collaboration of ideas and presentation from different parts of the organizations formed in teams. This way, flexibility within the organization is achieved and ample information is delivered through the manipulation of the different categories presented within decentralized groups. The presence of teams promotes the synergy of individual competencies without deluding the significance of team work and competencies of teams in totality. This consequently creates an environment where each units and employees within the organization are encouraged to be the leaders of the whole company due to its decentralized nature. The ability to adapt to changes is an essential leadership skills required by most positions. Changes occur as a result of changes in the views of the organization. These changes are an integral part of any organizations. Certain organizational changes affect a particular organizational segment or division directly.
Wal-Mart is one of the biggest and most successful retail store chain that has been considered to be one of the most successful companies in the world. Wal-Mart is considered as one of the leading grocery store in America. The company has achieved such height as a result of good management view and strategic undertakings. One of the most important characteristic of the company’s success despite the economic crisis is its policy of regenerating leadership skills from bottom level management to top level. Wal-Mart has continuously desired to inculcate company dedication and loyalty on the part of its workers. The company addresses its staff as associates and implements profit sharing among its associates. The company’s new President and C.E.O. Mr. Mike Duke boasts of their sound strategy and extremely capable management team at present and commits to introduce innovations and improvements in all its divisions, stores, suppliers, to the retail sector and most of all to the community.
Fate for Wal-mart continues to be kind despite the industrial turmoil it suffered. Its new management team is dedicated to bring to the customers the satisfaction and the much-needed savings in every family in more than 7,873 stores. At present, more and more families are coming back to Wal-Mart stores all over America as their signature act of saving. The company has also catered online shoppers with free delivery through their “Site to Store” initiative, which significantly helped in the increased in sales.
BMW AG a trusted company in car manufacturing and an industry leader continue its quest with total commitment for quality innovations in car making and car detailing. For more than 80 years in the car industry, the company never ceases to amaze its clientele standing true to their commitment of quality cars and service on this turbulent time. With the recent economic crisis we watch with disbelief how companies fall short of their productions leading to unsatisfied workers and ultimately shutting down of business. Other companies were lucky enough to be bailed out by their government from creditors to remain in the market. But BMW stand firm amidst the economic down turn. It is worth noting that every company who engages in export and manufacturing were really hit hard by the crisis. Even countries declared bankruptcy. But BMW put a strong hold on their market standing. The company conducted studies on how to cope with the recession putting much consideration on the purchasing power of the buyers. We heard no bail outs and employee mass lay off from the company. In this car business, it is important to always be ahead of the market trend. Upgrades and market studies must be continually conducted to keep up with the changing demand of high end industry. Versatility and spontaneity is the key to immediately address and assess problem areas. Albeit all, study on buyer behavior is the most important. Consumer behavior is the sustaining and maintaining force of a company in the market. Consumers hold in their hands the fate of the market economy. Studies and analysis in the constantly changing behavior of the buyer will be the marketing and selling guide of the company. For buyers determine the sales, profitability and staying power of the company in the market.
For more than eight decades BMW AG, conquered the market and continuously described as a luxury car manufacturer. Though founded in Germany, BMW AG creates a worldwide impact as one of the biggest producer of performance luxury cars. In the 20th century, BMW AG created line up of luxury cars referred to as “series”. From saloon/sedan and estate/wagon models, BMW AG engages in manufacturing mid-sized sports activity vehicle (SAV) and mid-sized service utility vehicle (SUV). Producing performance-luxury cars is not only the main objective of BMW. An array of safety features and gadget lined up in every concept cars they produced is also a priority. Engineering teams that endlessly studies and develops car and engine designs uphold the integrity of BMW. Moving unto the good stuff, BMW produced not only gasoline powered engines but also diesel powered engines which gives the consumers a price slash and a wide array of dream cars. Embracing all these prestige and success, BMW continues to retain its image as cars for the rich and famous.
Significance of Good Corporate Governance in Times of Turmoil
Entrepreneurial leadership in the market is characterized by good corporate governance and control. Management is thought to be the force that drives the company to its strategic decisions that consequently influences the overall efficiency of the company.
Good corporate governance is characterised by framing and implementation of internal controls, referred to as checks and balances. They mainly relate to financial audit. Such controls if administered properly provide a timely warning to the management of what is going wrong and take remedial action to prevent further damage and collapse of the firm,. An example of lack of or bad/inadequate financial control is the collapse of the Barings Bank by the actions of one individual employed within the bank by the failure of the system to track the ‘rogue’ nature of his deployment of the Bank’s funds which resulted in the collapse of the bank.
While integrity is the core feature that has to be ingrained not just in the board of directors but across the culture of the organisation, the focus from the point of view of ‘corporate governance’ is on the board of directors, as they are responsible both to the shareholders in delivering value to their investments and stakeholders with whom they conduct the business on a day-to-day basis, This also includes their responsibilities to the employees directly and their families indirectly. The case Enron which shook the corporate world out of its slumber is an ideal example though for wrong reasons of the reek mal-governance can cause to the financial system and people dependant on it. A similar happening in the Europe related to the collapse of ‘Royal Ahold’ a food retaining giant. These cases and numerous other ones not detailed in this paper bring out one fundamental aspect that ‘integrity’ is highly a volatile factor across all the cultures and the role of regulatory system comes into questioning whenever such event occur in any part of the world.
Broad composition of the board of directors; Again good corporate governance manifests in itself by deliberate measures of the managements to have a broad board giving representation to share and stake-holders and some of them go to the extent of appointing brand ambassadors.
Conclusion
As a conclusion, it is important to note that leadership can withstand, and take advantage of the ravages of the current economic crisis by managing to deliver leadership characteristics that adhere to the current business environment. Good governance and leadership is the foundation of an efficient business operation and is therefore important in today’s business setting. The companies discussed support the understanding of how best to promote efficiency in times of economic crisis. Each company presented and possesses the most viable leadership skills as part of its organizational culture and has evidently worked within the industry to which they belong.
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