HFT 4295 - Leadership Strategic Management Assignment

Running head: STRATEGIC MANAGEMENT
Strategic management
Name of the student
Name of the university
Author note

1STRATEGIC MANAGEMENT
Question: 1
Characteristics of Cost Leadership Strategy
The cost leadership strategy includes the following characteristics:
 The cost leadership strategy generally reduces the costs. Therefore, the firm needs to
invest more capital in technology that can minimize the cost.
 It is essential to follow the efficient logistic process for the cost leadership strategy.
 The sustainable cost cutting, and low cost base facilities, materials
Characteristics of Differentiation Strategy
The differentiation strategy includes the following characteristics:
 Extensive research, innovative ideas, and efficient development process are required.
 It is essential to gain the capability of providing high quality products and services.
 Understanding the benefits ensured by the differentiation offerings, the firm needs to
develop the effective sales and marketing process.
Risks in Cost Leadership Strategy
The major risks in pursuing the cost leadership strategy is that the sources utilized for
reducing the costs are not unique. Therefore, the competitors can easily imitate the process.
Risks in Differentiation Strategy
The differentiation strategy involves the new product development process. Therefore,
there is the high chance of risks that the competitors may start pursuing the differentiation
strategy in the different market segments.

2STRATEGIC MANAGEMENT
Example of Organisation using Cost Leadership Strategy
Walmart has been using the cost leadership strategy to secure the competitive edge.
Example of Organisation using Differentiation Strategy
McDonald has been using the differentiation strategy to earn profits.
Question: 2
Strategies act as an important part in terms of achieving efficiency in business operations.
Here, the role of the CEO is important for achieving positive outcomes. Developing a framework
in this direction possesses flexibility to achieve positive outcomes in standardizing the quality of
the business operations. Within this framework, there are certain key areas, which need to be
emphasized while implementing the strategies. These areas are wellbeing of the stakeholders and
shareholders; enhancement of the corporate social responsibility; financial flexibility along with
the achievement of the identified and specified aims and objectives.
The key elements of the framework are:
 Goal setting- This enhances the clarity and vision of the personnel towards the activities,
which they perform. This consciousness generates confidence within the personnel
regarding the performance of challenging and enduring tasks smoothly.
 Analysis- This is important in terms of the proposed plans. This analysis makes the
personnel aware of the effectiveness of the exposed performance in terms of the
identified and the specified goals.

Running Head: LEADERSHIP AND STRATEGIC MANAGEMENT 0
Leadership in the 21st century and strategic development of organisations

LEADERSHIP AND STRATEGIC MANAGEMENT 1
Table of Contents
Introduction................................................................................................................................3
Over a period of time, a number of theories have evolved........................................................3
The two main components of a transformational leader are to develop a vision and sell the
vision..........................................................................................................................................5
Leader and her leadership story.................................................................................................6
Discussion on my leadership......................................................................................................7
Conclusion..................................................................................................................................9
References................................................................................................................................10

LEADERSHIP AND STRATEGIC MANAGEMENT 2
Introduction
Efficient leadership is very important for any business operating in the 21st century. It is also
not confined to organization and business firms but also covers the area of government,
politics, religion and education (Renzulli, 2012). In an organization, the role of business
leaders is to strategically define the goals and vision of the company and ensure that is should
be followed in the same manner to get higher level of success.
The leader in 21st century are more focused towards power than trust and in most of the cases,
organization gets the path of failure due to the selection of wrong leader and giving them
much power than they deserved. Therefore, trust is a crucial element, which needs to be
incorporated in the leaders (Schaubroeck, Lam and Peng, 2011). In addition, to recognize
what kind of leader must be suitable in this scenario, it is necessary to get the exact definition
of the leader and its related function.
In the betterment of the organization, the leader performs the process of directing and
organizing a group of employees. The role of leader is not confined to just leading team but
also to inspire and motivate the employees for achieving the goals and objective of an
organization in an effective manner (Zhang, Wang and Shi, 2012). In this 21st century, the
major task of leader includes realization of oneself, communication of vision to all the
individuals and employees, build trust in them for the achievement of that vision and making
efforts with full leadership potential.
Over a period of time, a number of theories have
evolved
 Trait Theory – This theory is used to predict leadership effectiveness and it is based
on the characteristics of various leaders. According to this theory, a combination of
relevant set of skills and traits can give rise to the leader (Colbert, Judge, Choi and
Wang, 2012). The important traits that leader must possess are situation flexibility,
reserved towards societal environment, cooperative, dominant to motivate and inspire