Leadership Assignment- Case Study Philanthropy
Added on 2020-06-06
12 Pages2746 Words125 Views
CASE STUDY
Table of ContentsINTRODUCTION...........................................................................................................................1Personal philanthropy of Carlos Slim.........................................................................................1The Concept of customer “lock-in” that is adopted by another company..................................2Leadership styles in context with Carlos Slim ...........................................................................2Motivation of workers to follow these leadership styles..........................................................3Type of power that Carlos Slim possess and the sources of power(360)...................................7CONCLUSION................................................................................................................................7REFERENCES ...............................................................................................................................8
INTRODUCTIONThis case study is about the richest man in the world Carlos Slim Helu. This man ownsmore than 89% of telephone market in Mexico and accounts 7.5% of the states gross domesticproduct(GDP).In this case study we will examine the personal philanthropy of Carlos Slim insupport to his business interest. The leadership styles that is adopted by this man in order toexpand his business will also be discussed in this case study. This case study will explain theconcept of lock-in customer by giving suitable example. The capability and power of CarlosSlim will also be evaluated with this case study.Personal philanthropy of Carlos SlimIn the case study Carlos Slim believes in the idea of giving rather than on taking fromothers. As per the Forbes Magazine he is one of the richest man in the world. The one ingredientthat makes him so successful is his modesty. He wants to enhance the well-being of the peopleby helping them to solve their issues. He believes that he would take nothing with him when hedies all his business and money will stay. The Grupo Carso organization of Slim operates on theoutskirts of Mexico City (Ferrari, 2017). He is the foremost collector of Rodin sculptures. Hisinterest is also in arts and sciences and philanthropy. With the help of “just cause” philanthropySlim motivates others to deliver best performance and make effective decisions regarding thesuccess of business.Slim believed in the idea of philanthropy and provided help,support and money for a good causein a business. For an instance in the given case Slim does not work for hardware but he investedin software companies in order to help and support his friends. This clearly indicated that hebelieved in the concept of philanthropy and worked for the betterment of well-being .Thecorporate social responsibility is the initiative that is taken by the corporation in order to takeresponsibility regarding factors such environment,philanthropy and ethical labour practice atworkplace .The corporate social responsibility and philanthropy are not same as in corporatesocial responsibility other factors that are related to environment,ethical practice at workplaceare also included. The word ' ethical' helps to distinguish between what is right and what iswrong. In the business the correct course of action need to be taken .In this case study Slimensure that ethical decision are taken in the business .He also ensure that factors such asregulation are structured favourably in his company. Slim did not make fortune in the businessby making use of new technology such as e-business and computing (Carlson, de Vries and1
Taylor 2017). He followed his interest of infrastructure led sectors of business intelecommunication and mining.The Concept of customer “lock-in” that is adopted by another companyIn this case study the implementation and formulation of very simple business model leadto the rise of Grupo Carso. A meeting was called by Slim in 1990 where the business models waspresented to all the partners for the mobile phone sector.After the name of razor company thismodels was named as “ Gillette plan”.In this model;s the customers are locked-in to the businessas Gillette sells razors to the customers and lock-in the customers by selling blades for thatcustomer. A high level of brand loyalty is ensured by this effective model.The concept of customer “lock-in” is used to hold the customers in the business for alonger period of time. This locking concept can help a firm to earn profit as the customers willremain loyal to the company for a longer time period. In the business the customers are mainlylocked due to commitments in the contract,durable purchase,training regarding the specificproduct,loyalty programs etc. In the contractual commitment , a certainty is made between bothseller and buyer but they create switching costs and lock-in. In this case the switching cost is thedamage for breach of contract. In business to business commerce the contractual commitmenthave been ubiquitous. It has been experienced by the consumers more frequently (Reich, 2016)..One such company that used the concept of customer “lock-in” is Nespresso .With a baseproduct Nespresso lure customers into their Ecosystem. The base product Nespresso coffeemachines are sold at a particular price and are available at major retailers so that anyone canpurchase it. The juicy margins are absorbed by the company as the highly profitable pods ofcoffee are only sold through owned sales channels ales of Nespresso. Until 2015, there was noway to buy pods from another manufacture as the exclusive rights were owned by Nespresso toproduce them. Thus locking customers in for that product.Leadership styles in context with Carlos Slim In this case study, the success of companies is attributes to the style of leadership underthe control of Carlos Slim. In some instances Slim adopted the task-oriented and autocratic styles(Helo,Gunasekaran and Rymaszewska, 2017). However the people oriented and transactionstyles are also adopted by Slim. In the task-oriented leadership that is performed by Slim in orderto pay attention on the tasks that need to be done so as to meet the goals and to achieve desiredperformance of businesses. The jobs need to be completed in the task-oriented leadership. The2
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