(PDF) Leadership and Management: Assignment

Leadership and
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
.........................................................................................................................................................6

INTRODUCTION
Leadership is an ability which helps an individual to motivate and influence the member
of a team or company (Bolden, 2016). This helps in achievements of tasks in an effective
manner. Management is a procedure which helps in controlling the individuals and all the
activities of an organisation which is important for accomplishment of business goals. The
present report is based on the profile of Warren Buffet, an investor, business magnate, and
speaker etc. This report includes career position, leadership styles, life achievement, career
achievement and their contribution to the society.
MAIN BODY
1. Name: Warren Buffet
2. Career position: Chairman and CEO of Berkshire Hathaway.
3. Career path: Warren Buffett started earning from his childhood as he use to work with
hid grandfather's grocery store and sold newspapers at the age of 6. At 11, he started
investment in stock markets. He got chance to study under Benjamin Graham, who is
consider as the father of value investing. Benjamin refused to give job to Buffett and he
went to Omaha, where he started working with his father in brokerage firm. Buffett
started his first business in that he sold weekly magazines, chewing gums and bottles of
Coca-Cola. After sometime Graham offer him a job opportunity in New York (Simonet
and Tett, 2013). There he create investment theories for value investment. Buffett take
this theory at next level as he wants to concentrate on management and competitive
advantage of the firm rather than the numbers. In 1956, he launched his own company
Buffett Association. He also buy Berkshire Hathaway a textile business but after some
time he closed his business. He use to buy securities at discounted rates and use to hold
them until their prices goes high. He purchased large stocks in many companies like Coca
Cola, Gillette Company and American Express.
4. Personal circumstances: Warren Buffett was born in 1930, in Omaha, Nebraska. he is
the second child among the three children. He has one younger and one elder sister. His
father was a stock broker and four time U.S. Congressman. His mother, Leila Stahl
Buffett, she was a home-maker. He was very much interested in business from early age.
Warren use to visit his fathers' stock brokerage office when he was a child and he started
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getting interest in stocks and investments. Once he told his friend that he will become a
millionaire by the age of 30 and if not then he will jump off from the tallest building of
the city (Algahtani, 2014).
5. Education: Buffett started his primary education at Rose Hill Elementary School. He
attended Alice Deal Junior High School after his family moved to Washington, D.C., and
completed hid graduation level education from Woodrow Wilson High School in 1947.
From his early childhood he was interested in entrepreneurial ventures. On his father's
encouragement he applied in University of Pennsylvania but he left it after two years and
get admission in University of Nebraska. He completed M.Sc. in economies from
Columbia.
Significant leadership qualities: Warren Buffet is consider as the best leader. He has
many qualities which are followed by his followers. The following are the leadership
quality of Warren Buffet:
Trustworthiness: Without trust no one can lead their team and the business. This helps in
consistency, effective communication and compassion and provide transparency in discussion on
important matters.
Skill: Skills are the another way to create trust among the followers. This will increase
respect. Warren Buffett is an expert investor with allocating capital in his company. Besides the
technical skills and knowledge he has abilities to related to thinking in a strategic way, effective
management of project and creating good relationship with followers and members of
individuals of their organisation or nation helps them in becoming the most successful leader or
manager.
Energy: It refers to the way an leader do his all the activities as it is very necessary when
a person is leading so many individuals or team in a business. For this leader needs to have self
awareness because this helps in understanding and evaluating the enthusiasm and energy in their
actions (Mládková, 2012).
Affection for business: Warren Buffett is consider as a person who is loves his business a
lot and someone who can do job and get in other individuals to the business by influencing them.
It is considered as the passion one have towards his work and wants to achieve something big.
Frugality: Warren Buffett is ranked as the richest person in the world and he is
surprisingly frugal. He is the only individual who had made a lot of money than almost every
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person. He has so many stories of frugality and the best one is when he turned a dresser in a
bassinet for his child. He has the ability to save money in a wise way and create opportunities for
future. By saving money managers and leaders can create good image in the eyes of team and
customers. It is a sign of high emotional intelligence to realize that careless spending negatively
impacts others (Katz, 2014).
Humility: Warren Buffett is an astonishingly humble man, which translates into much of
his success. He is humble in that he rejects the idea of dynastic wealth (New York Times). He
doesn’t feel as if anything should have ever been handed to him and believes working for
something is important. But beyond that, his humility shows through in charitable giving as well.
In 2006, he announced that his fortune will go to the Bill & Melinda Gates Charity Foundation
which is the largest act of charitable giving in history. Warren Buffett has repeatedly emphasized
the importance of sharing wealth. Humility is embedded further within that act, in that he will be
donating to their efforts, because he feels he wouldn’t be as adequate at philanthropy. He
suggests that if someone can do something better than he can, he’s happy to let them do it.
Patient: According to Warren Buffett Holding period of securities should not be less than
a year. The lesson of patience in dealing with securities and stocks is the one thing which he had
learnt from his childhood investment experience. As when he was 11 year old, he purchased
three securities of clients services at discounted rate and then the prices of the share dropped. At
the time when prices become high then he sold the shares at small profit margin. He regretted his
decision when prices of the shares become so high nearly about 100% .
Go Against the Grain: Warren Buffett has made successful achievement by investing and
holding shares on basis of the value and amount invested. Like Buffett invested a large amount
in Washington post in 1973, When US was facing crisis. After 40 years of investment he earned
dollar 1 Billion from investment of dollar 10 Billion. All the investments made by him were
considered as unattractive and he earned so much amount from these investment by following
the principle of Go against the grain (Răducan and Răducan, 2014).
Be Humble: In 1990's Berkshire Hathaway was absent from the technology sector where
every investor was creating so much money from their investment made in this sector. At that
time critics suggested that Warren Buffett was creating harm to the interest of his investors by
missing the chance to create a lot of wealth. Then he said that he did not make investment in
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those businesses he could not understand. He explain that he did not understand business model
of high technology organisations.
6. Life achievements: Warren Buffett was very much interested in the entrepreneurship as
he started doing investment at early age. For this he was inspired by a book One
Thousand Ways to Make $1000s, which he got from Omaha public library when he was
only 7 years old. For him the biggest life achievement is when he got a chance to study in
guidance of Benjamin Graham who is admire as father of value investing. Graham
creates the theory of Value investing which was based on only quantitative approaches.
Buffett was having some other thoughts in his mind regarding this theory (Vaccaro and
et. al., 2012). He introduce some new ideas in this theory which includes some qualitative
aspects like he introduce concept of margin of safety after analysing the trade-off among
prices and intrinsic value of stocks. He purchase his property at the age of 15. He
purchased a corporate jet. When acquired this one he named it the “ Indefensible”. That
time public criticise this decision about spending a lot of money on jets.
7. Significant career achievements: Warren Buffett achieved so much in his career. He is
the most successful investor. He became investment salesman in his father's business
Buffett-Falk & company in the year 1951. After this he started his career as a partner and
security analyst in Buffett Partnership. In 1970, he become chairman and CEO of
Berkshire Hathaway. Now this company is the biggest corporate investment business
across the globe. He is running this company from last 30 years of incorporation. Buffet
was listed in Times' 100 Most Influencing Person in globe. In 2011, he was awarded with
Presidential Medal of Freedom by President Barack Obama. Buffett is biggest
philanthropists. He has achieved big name in the world by acquiring various big, high
quality, successful and competitive businesses. In 2011, he makes large investment in
International Business Machine Corp. In middle of 2012, he acquired a company Media
General which is a collection of 60 newspapers.
8. Contribution to society at large: Warren Buffett is known for his huge contribution to t
he society. In 2006, Warren Buffet announced that he will give most of his wealth to
charity. He will donate his fortune to Bill and Melinda Gates foundation. In 2009, Buffet
was ranked as second wealthiest person in United States after donating billions of dollars
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to the society. He has promised to do charity work as much as he can till he is alive.
Warren has joined with Bill and Melinda group whose main purpose is to serve and help
society. Most of the amount he contributes is towards the health and rights of individuals
of the nation. This group also helps in eliminating the level of poverty in the world.
Buffett is very much interested in philanthropy and he is focusing towards addressing the
issues related to the health and education. Bill and Melinda Gates Foundation is focusing
for solving the global inequity and making contribution for providing required resources
to the poor individuals of the world. This group provide financial assistance in
performing research to find out best solution to problems to resolve the issues.
10 Business influence overall: Business was in the blood of Warren Buffett. As his
grandfather was the owner of a family grocery store and his father owned a small brokerage
business. He has spent his childhood by watching what investors were doing and listening to
what they said. He used his saving for buying several pinball machines that he placed in local
businesses. Hid desire to run a business from very young age did not easily converted into
reality. As his father forced him to continue his education (LeRoux nd Feeney, 2013). He got
rejected from Harvard Business School after this he started his studies under Benjamin
Graham. There he become friend with David Dodd, both these are well known securities
analysts. He learned fundamentals of value investing in Graham's class. Once ha said in an
interview that Graham's book The Intelligent Investor, had changed his life and help him to
follow the path of professional evaluating the investment market. Buffett used value
investing techniques in his business which he learned in school. He also learned business
environment to bargain in stock market. He discovered a textile manufacturing firm
Berkshire Hathaway and started buying shares of this company. Later in 1965, he took over
this company. In 1985 he convert his textile business into insurance business. By doing all
these activities, in 2018 he became the richest person in the world.
CONCLUSION
From the above report it is concluded that Warren Buffett is a kind of leader which is
admired by all the individuals in the world. As he has good leadership qualities which attracts,
motivates and influence all his followers across the world. His application which he gave about
the value investing has now become very useful for the investors. He himself earned so much
amount of money by following this approach.
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REFERENCES
Books and Journals
Bolden, R., 2016. Leadership, management and organisational development. In Gower handbook
of leadership and management development (pp. 143-158). Routledge.
Simonet, D. V. and Tett, R. P., 2013. Five perspectives on the leadership–management
relationship: A competency-based evaluation and integration. Journal of Leadership &
Organizational Studies. 20(2). pp.199-213.
Algahtani, A., 2014. Are leadership and management different? A review. Journal of
management policies and practices. 2(3). pp.71-82.
Mládková, L., 2012. Leadership in management of knowledge workers. Procedia-Social and
Behavioral Sciences. 41. pp.243-250.
Katz, L. S, 2014. Leadership or management: expectations for head of reference services in
academic libraries. In Managing the Twenty-First Century Reference Department (pp.
123-136). Routledge.
Răducan, R. and Răducan, R., 2014. Leadership and management. Procedia-Social and
Behavioral Sciences. 149. pp.808-812.
Vaccaro, I. G., et. al., 2012. Management innovation and leadership: The moderating role of
organizational size. Journal of Management Studies. 49(1). pp.28-51.
LeRoux, K. and Feeney, M. K., 2013. Factors attracting individuals to nonprofit management
over public and private sector management. Nonprofit Management and Leadership.
24(1). pp.43-62.
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