Effective Leadership Styles for Organizational Growth

This assignment analyzes the importance of adopting effective leadership styles in achieving organizational growth and success. It highlights the need for leaders to adapt to changing internal and external drivers and implement corrective measures to bring positive results. The assignment also discusses various types of leadership, including autocratic, democratic, laissez-faire, transformational, and transactional styles, and their impact on employee motivation and performance.

Understanding and
Leading change

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Comparison between different organisation's operations and strategy after adopting
changes...................................................................................................................................1
P2. The way internal and external drivers of change affect leadership, individual and team
behaviour................................................................................................................................4
P3. Evaluate how to minimize negative impact of change on organisation...........................6
TASK 2............................................................................................................................................7
P4. Barriers which affect the change and affect leadership decision making strategies........7
TASK 3............................................................................................................................................8
P5. Application of suitable leadership style in organisational context...................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Innovation is essentially required for every organisation in order to achieve growth and
success for a long period of time. The business environment is complex in nature and changes
frequently which affect the business operations and performance of an organisation. Therefore, it
is required for company to bring innovation and changes in their business operations which help
them in achieving the competitive advantages. Main purpose of preparing this project report is to
provide the importance of bringing innovation in organisational structure which makes business
more successful in competitive market world. There are different drivers of change covered in
the report which put a huge impact on the leadership, team as well as individual behaviour.
Starbucks and Costa are two organisations which are selected for the purpose of preparing this
project report.
TASK 1
P1. Comparison between different organisation's operations and strategy after adopting changes
It is important for an organisation to first analyse the present trends, technology, taste and
preferences of customers, market tactics, etc. and accordingly, implementing changes in their
overall business structure which help them in gaining a strong position in competitive market.
An organisation must be required to adopt innovative changes in order to take advantage of
present trends. An organisation needs to concentrate on internal as well as external factors which
influence the business operations either in a negative or in a positive way and accordingly, focus
on implementing changes which help them in dealing with such factors effectually so that they
can achieve maximum output. There are two organisations i.e. Starbucks and Costs which deals
in operating restaurant in different locations and destinations.
Starbucks
It is a UK company which offers coffee and other refreshments to their customers located
in differed countries. Actually, it started its first business in the small streets of Washington
where they provided fresh roasted whole beans coffees. Further, it expanded its business in over
50 countries and has more than 15000 stores across America.
Costa
This is the UK based company which is started by Costa family in 1971 when they
offered roasted coffee beans and Italian coffee in the small street of London. After then, they
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reached their business to over 31 countries and has operated in more than 3400 stores across
world. They also look to operate its business in India as well. It has gained the largest market
share and second position after Starbucks in competitive market.
As these organisation have their own strategies which help them in gaining competitive
advantage. The difference between the strategies of two organisations is described as below:
Strategies Starbucks Costa
Competency based strategies An organisation should first
identify the taste and
preference of customers and
accordingly, formulate plans
and strategies that will help
them in fulfilling their
requirements in an efficient
manner. They first do not
categorise their goods but after
implementing changes in
strategies, they focus on
dividing goods on the basis of
customer's tastes and
preferences. As Starbucks
provides coffee and other
items which are needed to be
separated on the basis of their
prices and nutrition they get
which help customers to think
twice before buying their
product.
As this company also involves
ion providing similar products
as compared to Starbucks.
Sometimes, they get failed to
estimate actual requirements of
products needed by customers
due to which they increase the
price of product. For this, they
need to first analyse the needs
and requirements of customers
and accordingly, produce
products in order to meet
customer's requirements.
Change in taste of coffee will
also bring interest of customers
to buy their product.
Pricing strategies As Starbucks carry good brand
image in competitive market
through which they can attract
Company needs to adopt
competitive pricing strategy
due to which they can provide
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large number of customers.
Therefore, they charge high
prices on their products with a
hope that their brand name will
attract customers. But in order
to capture a large market
share, company must
categorise their product on the
basis of price through which
they can attract middle and
higher level group of people.
products to their targeted
customers at low price which
can easily attract a large
number of customers. This will
help company in gaining a
large market share in the
competitive environment.
Promotion and advertising
tactics
Various promotional strategies
are needed to be taken in order
to advertise their products due
to which they invest a huge
amount which reduce the
profits as well. Adopting
marketing strategy helps in
providing information and
quality about their products to
their customers which
influences their interest and
behaviour to buy their
products.
As the company did not invest
so much money in promoting
their products as they believe
that providing quality product
will easily can attract large
number of customers without
adopting any promotional
strategies.
Process Starbucks has operated its
business over 15000 stores in
USA through which they can
provide their products to their
targeted customers. The
customers also have an option
In Costs Coffee, the employees
first take orders from the
customers and accordingly,
serve the product on the table.
Thus, communication and
presentation skills must be
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to get products at their
doorstep through ordering
online.
required among employees
with the help of which they
can serve their customers
better.
P2. The way internal and external drivers of change affect leadership, individual and team
behaviour
Leadership:
It refers to the skills and abilities which motivate and lead team in an effective and
efficient manner in order to achieve desired goals and objectives. An individual who is having
such skills and abilities is called as a leader who guides and directs the members to bring
efficiency in their work. Some of the traits and qualities are inbuilt from birth which makes them
unique and different from others and can be developed after getting experience. There are
different styles of leadership which must be used by an organisation in order to run the business
successfully. There are some challenges which influence the behaviour of leadership, an
individual or a team which need to required to make some changes relating to internal and
external drivers which are as follows:
Internal drivers of change
 Innovations and advancement also influenced in this factor which help in bringing large
number of customers though implementing changes in their products and services.
 An organisation can introduce new changes in business operation only when their
employees gives permission and feel comfortable while working with the help of new
techniques and methods. Therefore the company need to communicate them about the
benefits of adopting changes and influence their behaviour and interest so they can give
their consent. This will make a positive impact on the overall performance of company.
 Misuse of available resource will also affect the profitability of company therefore
knowledge of using resources at an optimum manner will help company in achieving
productivity in their work.
External drivers of change
Customers: They are the one whose taste and preference influences business activities of
an organisation thus it is essentially required for company to analyse their needs and demands of
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product they prefer to buy so that they can meet their requirements in an effective and efficient
manner (Foltin and Keller, 2012).
Competitors: There are many competitors in similar type of organisation through the
company faces risk and challenges to exist in competitive market. Therefore it importasnt for
company to make innovative changes in their production and marketing process which help them
in gaining largest market share and competitive advantage.
Investors: They are the one which help company to attain strong financial position in
market with the help of which they can implement necessary innovative changes. There are also
various sources such as financial institution, Banks, creditors etc. which provide them financial
help in order to bring innovation in techniques and methods.
Technology: Using existing and outdated technology will bring company backwards than
their competitors. The company can achieve customer's needs and requirements on time only
when they have sufficient updated and latest technology through which they can add extra value
and features to their product. This will maximises the level of satisfaction of customers and
capture largest market share in competitive market. It is also important for company to conduct
training programs to their employees which help them in acquiring knowledge and skills of
utilise technology in profitable manner (Fullan, 2014).
Government: The certain rules and regulations implemented by government also affect
and influence business decision and organisational structure of company. The company must
required to follow standards and guidelines implemented by government in order to run business
more successfully. If they fail to comply with such rules and regulation then the company may
faces legal consequences which adversely affect their goodwill and brand image as well.
Linkage of leadership with drivers of change
As leaders has an ability and skills to lead team in an effective manner and motivate them
to contribute their maximum efforts in order to achieve common goals. Leaders need to first
identify the organisational structure and accordingly direct their members to perform better. As
the employees also have different needs and requirements which need to be identified and fulfil
by implementing an effective strategies relating to resolve their requirements. As some
employees may not satisfied with the new techniques and methods as they do not have any
knowledge and skills to utilise such innovative techniques. Therefore it must required for a
leader to conduct training and development programs which help their employees to acquire
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skills and knowledge of using advanced technology in an optimum manner (Glass and Cook,
2016). Proper communication is also required to their employees regarding collecting vies and
suggestions and also required to inform them about the advantages of adopting changes in
existing technology which will enhance their interest level to work with using such changes.
Leadership goals and motive
The roles and responsibility of a leader in order to achieve desired goals and objectives are as
follows:
Direction: Leader need to direct their employees in order to ensure that their teammates
perform their roles and responsibilities in an effective and efficient manner.
Control: Leader has an ability to control and monitor the performance of employees
through using grid and statistical format. This will help in bring an accurate result.
Authority: An individual should be a good leader when they have adequate authority and
rights relating to appointing employee to get into their team and remove any employees who fails
to contribute their efforts in achieving desired goal (Hallingerand Heck, 2011).
Influence: The leaders also need to provide some benefits to their employees on the basis
of their performance which brings motivation and self-confidence among workers and therefore
perform in profitable way. Giving rewards, compensation, bonus etc. will influence the interest
and behaviour of employees to perform in the direction of achieving desired goal. There are
different theories and approaches which need to be follow by leader with a motive of
encouraging their workers to perform allotted work in an effective and efficient way.
P3. Evaluate how to minimize negative impact of change on organisation
If there is any changes made in an organisation structure then it will bring huge risk as
well as dissatisfaction among employees which affect the overall performance of company.
Therefore it is required to form a committee whose main responsibility is to analyse and manage
such risk in such an effective way that will not make negative impact on the business operations.
It is important to consider various factors while implementing changes in Starbucks. The
negative impact after bringing new changes in an organisation will mentioned as below:
Employee resistance: Sometimes it is difficult for the employees to perform their
delegated work by using new technology as they don't have enough knowledge and skills to
utilize such advanced technology in an effective and efficient manner. For this the manager is
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responsible to increase their confidence and motivation level through conducting training and
development programs which enhances their skills and knowledge as well (Hrebiniak, 2013).
Expenses: As implementing changes in business operations required huge investment
which affect the productivity and profitability of company. Thus it is important for company to
have adequate amount of funds to invest through which the company can able to convert their
innovative ideas into actions. Starbucks has capturing largest market share and achieve good
brand image in competitive market world through which they can easily manage funds from
different sources such as financial institutions, creditors, investors etc. But it is difficult for small
companies to find investors as they carry less goodwill. Thus before adopting any new changes
the company must prepare a list of investors from where they want to raise funds and
accordingly prepare an effective strategy (Johnson, 2016). If the company facing losses after
implementing changes in business operation then it will be difficult for them to repay amount to
their investors which adversely affect their brand image as well as their stability in competitive
market may also comes in danger.
Lack of support and failure: Changes made in technology will bring fear of losing
employability of the members working in an organisation through which they feel demotivated
and brings negative impact on their interest and behaviour. Therefore it is important for manager
and leaders of company to create a platform from where they can communicate with workers and
informing them about the advantages they get after adopting new technologies. This will help in
enhancing satisfaction level as well as improves productivity in work.
Morale: Introducing new changes in technology brings loss of fearing employment
through which employee's performance also decreases. Therefore it is important for a leader to
ensure them about their important role in business and provide them confidence which help them
in performing delegated task (Keppel and et. al., 2012).
TASK 2
P4. Barriers which affect the change and affect leadership decision making strategies
Management is held responsible to focus on finding new and innovative ways which brings
efficiency in work as well as enhance their profitability. As there are several factors which affect
the business operations in negative manner thus it also influences the decision making process as
well (Yoder-Wise, 2014). As there are different employees who are having different skills and
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knowledge by which leaders found difficulties in bringing employees together to achieve
common objectives as working in a team will lead to conflicts and issues among members of an
organisation. Therefore it should required for a leader to create a platform where they can collect
feedback and issues and accordingly implement corrective measures in order to resolve them.
Sometimes the employees doesn't know how to utilize changing technology which brings
negative outcome to the company. Therefore it is the responsibility of leader to conduct training
and development programs in order to enhance their skills and knowledge so that they feel
motivated and perform their delegated work.
Implementing changes in organisational structure will require huge investment which
brings difficulties for company to arrange funds from different sources as they should attain good
financial position so that their investors show their interest in providing financial help to them.
The company must present their financial statements in front of their investors in order to
influence their interest and behaviour of granting loan to them. Thus it will help company in
implementing an effective strategy for adopting new changes. It also bring some problem for
company if after adopting changes will bring negative result then it will difficult for company to
repay their investors along with interests (Different type of leadership, 2017).
TASK 3
P5. Application of suitable leadership style in organisational context
In an organisation it is required to adopt different styles of leadership which help in
achieving desired gaols and objectives. Some leadership style which company should follow are
as follows:
Figure 1. Different types of Leadership, 2017
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Autocratic: It is one of the type of leadership style in which leader is solely responsible
to make an effective decision after collecting feedback and opinions from the employees of
company. No interference shall be allowed by employees as the leaders are enough capable to
make profitable decision. This will help leaders to focus on finding new ways to achieve desired
target (Salmela, Eriksson and Fagerström, 2012).
Democratic: This style of leadership allows employees to take participate in decision
making process through which the chances of achieving positive outcome will be more. In
Starbucks, the leader must required to collect views and suggestions before implementing any
changes in business operations. This will enhance the satisfaction level as well as morale of
employees.
Laissez Faire: With the help of adopting such leadership style, the employees need not to
take any guidance and direction from their leaders as they have sufficient skills and knowledge
to perform their delegate work in their own possible way. Leaders should not interfere in any
employee's work which will increase their confidence level also. Thus it is important for every
company to adopt such approach which gives freedom to their employees to bring new ideas and
innovative ways to perform delegated work.
Transformational: According to this approach, the leader should required to have
communication skills and knowledge which is helpful in communicating to its employees
regarding their roles and responsibilities. This style of leadership allow leaders to interfere in
employee's work which will decreases their satisfaction and motivational level. This will restrict
the freedom of employees to perform in their own way which directly affect their performance as
well (Suchman, Sluyter and Williamson, 2011).
Transactional: Through this approach the leader should required to rewards their
employees on the basis of their performance which motivates the employees through which they
can can achieve pre-determined goals in an effective manner (Stanleigh, 2013). Therefore the
leader of Starbucks need to first set target and accordingly direct their employees to complete
given task in given time and if they achieve then they will liable to get rewards and if not the
punishment may also be given in terms of imposing fines and penalties.
CONCLUSION
As per the above report it can be concluded that an organisation can achieve growth and
success only when they implement new changes in the overall organisational structure on regular
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basis. It is also important for manager of Starbucks to carefully analyse internal and external
drivers of changes and accordingly implement corrective measures in order to bring positive
result. Various styles of leadership are also required to adopt which help company in achieving
desired objectives.
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REFERENCES
Books & Journals
Online
Different type of leadership, 2017. [Online]. Available through:
<https://blog.wisdomjobs.com/different-leadership-styles-effective-management/>/
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