Strategic Management & Leadership Skills Development: Xiaomi Case

This assignment examines the relationship between organizational leadership and strategic management, focusing on Xiaomi, a technology company known for its smartphones. It explores how leadership styles, particularly transformational leadership embodied by CEO Lei Jun, align with Xiaomi's strategic emphasis on innovation and customer-centric product development. The report analyzes the impact of leadership on strategic decisions, including the company's commitment to providing high-quality, low-cost products and fostering a customer-focused culture. It further discusses leadership requirements in response to external influences and emerging situations, culminating in a proposed leadership development plan to enhance skills and ensure continued success. The study highlights the crucial role of leadership in driving strategic initiatives and maintaining a competitive edge in the technology industry.

Running head: DEVELOPING STRATEGIC MANAGEMENT & LEADERSHIP SKILLS
Developing Strategic Management & Leadership Skills
Name of the Student
Name of the University
Author’s note

1DEVELOPING STRATEGIC MANAGEMENT & LEADERSHIP SKILLS
Executive Summary
The purpose of the assignment is to determine the dynamics in between organisational leadership
and strategic management. The leaders of an organisation have significant role in the success of
the company’s achievements. The case study that has been chosen to analyze in the assignment is
Xiaomi which is a technology company popular for its high quality low price Smartphone
portfolio. The company is relatively new and in a span of less than 10 years has gathered
significant prominence and goodwill in the industry as well as among the stakeholders. The
organisation has focused on the customers as their priority for their product development. The
assignment covers various aspect of leadership in the company.

2DEVELOPING STRATEGIC MANAGEMENT & LEADERSHIP SKILLS
Contents
1. Introduction..................................................................................................................................3
1.1 Company Overview...............................................................................................................3
Task 1 (LO1)....................................................................................................................................5
1a. Leadership aligned with strategic management of Xiaomi (AC 1.1 and 1.2)........................5
Impact of management and leadership styles on strategic decisions...........................................7
1b. Leadership styles required to adapt the situations of economic recession and management
succession of new leader (AC 1.3)..............................................................................................8
Task 2 (LO2)....................................................................................................................................9
2a. Impact of leadership on strategies of Xiaomi (AC 2.1).........................................................9
2b. Recommendation of leadership strategy that should be adopted by the company (AC 2.2)
...................................................................................................................................................11
Task 3 (LO3)..................................................................................................................................12
3a. The requirements of current leadership with external environmental influences (AC 3.1).12
3b. Leadership required to deal with different emerging situations (AC 3.2)...........................14
Task 4 (LO4)..................................................................................................................................15
4a. Development plan of leadership skills (AC 4.1)..................................................................15
4b. Justification of the development plan (AC 4.2)...................................................................16
Conclusion.....................................................................................................................................18
Reference List:...............................................................................................................................19

3DEVELOPING STRATEGIC MANAGEMENT & LEADERSHIP SKILLS
Bibliography..................................................................................................................................22
1. Introduction
Strategic management is the process by which organisation take and implement decisions
in order to be a successful venture. Strategic management includes rationalizing and planning
process of the business which will be based on logical data and reasoning. There are a number of
theories and concepts that have been developed by scholars regarding strategic management.
Marketing, Administration, finance, Human resource, operations, organisation structure, and
organisation culture are some of the subdivisions of strategic management (Wheelen et al. 2017).
Leadership in an organisation plays an equal important role in the success and achievement of
the objectives that have been implemented by the strategic management decisions of the
organisation. The decisions that are taken in the company are based on the type of leader that
runs the organisation as the values and principles of the leader reflects in the culture of the
company as well (Adair 2009). For example: if the style of leadership in the organisation is
transformational then the culture among the work place will be encouraging creativity and
innovation as transformational leadership drives changes and accepts alterations in the
organisation as a positive aspect (Salleh and Grunewald 2013). This aspect therefore assures that
there is a direct impact of leadership in the strategic management of the company. The
organisation that has been chosen to study the strategic management and leadership is Xiomi
Corporation. It is one of the leading start ups in the international market and in a very short
period of time the company has gained a lot of prominence in the technology industry on a
global platform.

4DEVELOPING STRATEGIC MANAGEMENT & LEADERSHIP SKILLS
1.1 Company Overview
Established in 2010, Xiomi is a privately owned Chinese organisation that is reported as
one of the most valuable technology start up in the global platform (Mi.com, 2018). The Logo of
the company is MI stands for mobile internet and also Mission Impossible, as the management
has faced a number of challenges in the early days of establishment (Mi.com, 2018). The
company stands for innovation and is motivated to reach out to the customers with making high
quality technology and making it available for the customers in minimum price. Lei Jun is the
man behind the endeavor and in 2014 Forbes magazine recognized him as the businessman of
the year owing to the rapid growth and expansion of the company. The product portfolio of the
company ranges from Mi phones, Redmi Phones, Mi TV, Smart Devices, audio accessories, Mi
Power bank (Mi.com, 2018). The company is a multinational organisation having its operations
and distribution in Taiwan, Hong Kong, Singapore, Malaysia, Philippines, India, Indonesia and
Brazil (Mi.com, 2018). The innovation and the mission and objectives of the company will be
explored and aligned with the leadership styles that have been included in the organisation to
bring it to success. One of the qualities that have been observed across the leaders in various
segments of Xiaomi is that the people are experienced in their field and have knowledge and
practical experience. This cumulative experience of the people has enabled the company to take
decisions which have helped in achieving the recognition and success in the industry (Mi.com
2018).
The objective of the company is to be one of the most user-centric mobile internet
company, this decision is taken based on the style of leadership as one of the feature of
transformational leadership is to inspire and reach out in order to provide the best possible
solution in order to build a valuable relationship with the stakeholders (Mi.com, 2018).

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Task 1 (LO1)
1a. Leadership aligned with strategic management of Xiaomi (AC 1.1 and 1.2)
The company believes in innovation in the product development and makes products
keeping in mind the needs and requirements of the customers. The company is strives to provide
the customers with best quality product at the minimum price possible. The price of the products
are kept low hence this does not mean that the quality of the product is low or is compromised
with. The culture of the company is driven by the loyal customers who are recognized as “fans”
of the company (Adair 2009). The company will develop products and continue to achieve the
milestones in order to reach out to these “fans”. The company works with the employees as a
team in order to provide the customers with the best user experience possible by pursuing
perfection in the endeavor, constantly refining and enhancing the products. The company
continues to launch one product after another with higher specification keeping a check on the
price. Therefore, it can be said that innovation is a large part of the business model. The
company operates in the technology industry specifically Smartphone industry making the
competition very tough and in order to maintain the edge over the other organisation the
company has strategic management decisions regarding the price and products development. The
strategic management decisions taken by the company revolves around innovation and thus the
kind of leadership that is prevalent in the organisation is appropriate (Gold et al. 2010). Lei Jun
is the founder and CEO of the organisation and before MI he was associated with a number of
successful startup ventures, he is a person who is known for having visionary approach in the
business. The kind of leadership style that is incorporated by him in the company can be easily

6DEVELOPING STRATEGIC MANAGEMENT & LEADERSHIP SKILLS
termed as Transformational. Transformational leadership is the style where a leder encourages
and motivates changes and welcomes innovation in the organisation (Adair 2009). Such a leader
welcomes changes as an optimistic aspect of the business and in this case Lei Jun is a person
who is always looking forward to change and improve in order to provide the company with
customers with best possible outcome (Gold et al. 2010). As the strategic management decisions
taken by the company is always looking forward for change in the system and in the products
therefore it is important to have a transformational leader, who is far-sighted and is visionary so
that the company can keep up with the dynamics of the industry and accordingly cater to the
requirement of the loyal customers (Adair 2009). Form an employee perspective; a company that
seeks innovation is always encouraging the people to explore their creativity. This aspect of the
company provides the employees with a flexible work culture. The role of a leader is very
important in the way motivation is employed in the work culture. The leader is responsible to
ensure job satisfaction among the people and to grow a sense of commitment among the
employees. The people who are in the higher management of Xiaomi are the leaders in the
organisation and each of them share their perspective of innovation with the employees by
motivating and inspiring them with their involvement of the passion for what they create (Gold
et al. 2010).
The role of a leader in a startup company is more prominent than an established
organisation as the number of challenges for a company that is new is comparatively more than
an established business (Adair 2009). The role of the leaders in Xiaomi is divided according to
their expertise and their knowledge, the role of the leaders of the departments is to achieve the
objectives of the company and in order to does that ensure the people are motivated and are
excited to work with the company. Not only that the leaders focus on building a team and

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making collective effort to strive and achieve success. As a start up the organization has built a
very coherent culture which encompasses the “fans”, which is a major part of the strategic
management to keep up with the culture of the Company the leaders make sure that the process
of product development or any strategies further taken are based on the customers’ requirement
(Mullins 2010). One of the major roles of the leaders of Xiaomi is to be the representative of the
organisation, during any product launch or announcement the company is represented by the
founder or any of the co-founders as representative of the company to communicate with the
customers and the stakeholders. The representatives with their communication share their
excitement and their passion for the company. One of the objectives of the company is to build a
valuable relationship with the customers and this representation of the leaders’ help the company
establish the same (Mullins 2010).
Impact of management and leadership styles on strategic decisions
Strategic decisions of a company are formulated with the help of rational reasoning for
example: market research. The management of Xiaomi take decisions and employees strategies
based on the culture, values and principles that define the organisation, this also includes the
leadership style (Johnston and Marshall 2016). As mentioned above the leadership style that
drive the company is transformational therefore constant change and improvement in the process
and product of the business are the foundation of the decisions that are taken by the management.
The role of a leader is to take decisions for the company in order to achieve the objective of the
business and the style of leadership impacts these decisions. As a transformational leader Lei Jun
ensures that the process of innovation and change is consistent in the company (Johnston and
Marshall 2016). The objective of the company is to provide a low-cost, hi-specification
Smartphone to the customers, and in order to achieve this objective the company incorporates

8DEVELOPING STRATEGIC MANAGEMENT & LEADERSHIP SKILLS
financial investment in research and development department. For example: the company
continuously upgrades the user interface thus making it easier for the user to utilize the product
to its full potential. The management of the company has a MI Forum where the fans of the
company can interact with the customer service and provide valuable feedbacks for the products
and services (Johnston and Marshall 2016). This decision is taken by the management in order to
understand the requirements and the trends of the industry so that they can cater to the customers
better. This is in sync with the characteristics of a transformational leader as the leader following
this style is always looking forward for development in the process (Mullins 2010).
1b. Leadership styles required to adapt the situations of economic recession
and management succession of new leader (AC 1.3)
Any business organisation operates in two business environment: internal and external.
While the internal business environment factors are under the control of the management of the
company the external factors are not, therefore the management should adapt to the dynamics of
the industry in order to survive. Political, economic, society, technology, environment and legal
aspect of the environment in which the business is operating impact the decisions taken by the
management of the organisation. Economic recession is a part of the economy factor of the
eternal environment and is a situation of crisis for any organisation (Bolden 2016). Organisations
take decisions according to the dynamics of the external business environment in order to be able
to combat such crisis situations. A leader should be far-sighted so that he or she can be ready to
mange such crisis situation. During recession the purchasing powers of the people reduce which
in turn makes it difficult for any organisation to earn revenue through sale; the stock price of the
companies in such situation is also low (Yukl 2013). Fiedler's contingency theory of leadership
state that effectiveness of a leader is not only based on the style but is also based on how the

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leader manages a certain situation. For the case of recession first and foremost the leader should
accept the situation and be able to communicate the crisis and the steps that are going to be taken
with the employees as in the time of economic recession the employees will be apprehensive
about their position in the organisation as well as the position of the organisation in the industry
(Fiedler 2015). In order to adapt to the situation the leader must take decisions based on rational
reasoning and ethics (Yukl 2013).
In the case of management succession of a new leader, it is important for new leader to
understand the dynamics of the company first. This will help the leader to adapt to a style that is
fit for the organisation and is aligned with the culture and the prevalent management of the
company. With the help of simple strategic management tools like PESTEL analysis and Porter’s
five forces, Value chain analysis etc the leader can understand the factors that drive the company
as well as understand the strengths, weaknesses, opportunities and threats of the company
(Morden 2016).
Task 2 (LO2)
2a. Impact of leadership on strategies of Xiaomi (AC 2.1)
The leadership style that is incorporated in the organisation leads to the way the
organisation run, defines the culture and the structure that is prevalent in the company. There are
a number of types of leadership styles that are employed by the owners and the managers to
support the team in order to achieve the objectives of the business. Strategic management
decisions of the business begin by defining the mission, vision and objectives (Tyssen et al.
2013). Thus the type of leaders in the organisation also influence the kind of objectives the
business follow for example: if a leader is transactional in nature then they will be inclined to

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make profits more than taking other responsibilities of the people and the planet. There are a
number of types of theories that are developed over the years by scholar in order to understand
the style of leadership among the individuals. Some of the examples are: Transformational
Leadership, Transactional Leadership, charismatic leadership, situational theories etc. As the role
of a leader of an organisation is taking decisions and implementing them, the strategies that the
leaders make in the process of business are based on the type of leader they are ((Tyssen et al.
2013). In the case of Xiaomi, the leaders are transformational in nature, therefore any decisions
that the management formulate comprises of a change in the process of product.
In 1978 in the book, "Leadership" written by James McGregor Burns the concept of
transformational leadership was first introduced. According to the theory of transformational
leadership, motivation is one of the major factors of success among the people both the leader
and the followers need to be constantly motivated in order to keep them engaged and aligned
with the objective of the company (Sethuraman and Suresh 2014). One of the major features of a
transformational leader is the optimistic approach towards change. The leaders who follow
transformational leadership style always encourage and motivate the subordinates to strive to
innovate and make changes in the process in order. The leaders help the subordinates to be
focused in their work and achieve short term goals at a time. Change management is a big part of
transformational leadership as the leader is responsible of strategizing change, communicating
with the employees and ensuring that they are committed to achieving the objectives of the
company. The leaders of Xiaomi are transformational as the company runs on the business
model where innovation and change plays are large role. The objectives of the company to focus
on the customers and be responsible towards the society and the environment are derived from
the values and principles that the leaders of the organisation share (McCleskey 2014). The

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optimistic approach towards the business and the industry is also the culture that drives the
success of the company and the leaders play an important role in establishing the same among
the people associated with the company. The leaders of the company believe that something
wonderful is about to happen is what defines the company. There are multiple layers of
leadership in the organisation which maintains the consistency and understanding in the process
of business. The leaders of each department is responsible in their own ways to run the segments,
however the style of leadership is similar as the culture of the company is based on innovation
and the passion to offer the customers with high quality products (Sethuraman and Suresh 2014).
2b. Recommendation of leadership strategy that should be adopted by the
company (AC 2.2)
The leadership strategy that the company should adapt in order to keep up with the
internal and external factors of the business environment is firstly have a visionary approach
towards the operations of the business. Apart from being motivational and ethical in nature the
leaders must strategies in a way which will make the company keep up with the innovation
business model. In order to innovate and create a product or service that is disruptive the leaders
have to be far-sighted in order to understand the requirement and scope of the future. The leaders
must use their knowledge and market research to analyze the future expectation in order to
incorporate disruptive innovation in their product and service portfolio.
The creation of a new market and new values in the industry disrupting the existing
market is called disruptive innovation (Christensen et al. 2016). Incorporation of disruptive
innovation will help the company to attract a larger and new market which will make opportunity
for the company to grow and expand as well (King and Baatartogtokh 2015). Xiaomi has already
established that the company is focused on the customers and with a disruptive innovation idea

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the company can reach out and create valuable relations with the “fans” or loyal customers. The
strategy for encouraging a disruptive innovation is suitable for Xiaomi as the leadership style that
has been identified is transformational. The leaders of the organisation can motivate the research
and development and invest in a project that is disruptive in nature (Paulsen et al. 2013). One of
the recent examples of disruptive innovation is the concept of Amazon Go which is a fully
automated grocery store that runs completely on technology and cuts any middle men
interference in between the purchase of the items. The direction of the organisation is to provide
the customers with better solutions, with better technology accessible to everyone. By investing
in research and development the leader can create an inspiring vision of the future (Noruzy et al.
2013).
Task 3 (LO3)
3a. The requirements of current leadership with external environmental
influences (AC 3.1)
The external environment factors that impact the business and strategic management
decisions of the business are: political, economy, societal, technology, legal and environment.
These elements are not under the control of any organisation thus the dynamics of the factors
have to analyze during the formulation of strategies (Choudhary et al. 2013). The leaders of any
company should device strategies according to the changing dynamics of the external
environment. Xiaomi is an organisation that has distribution and operation in the international
market and the company is also trying to expand the business further (Gupta 2013). The leaders
have to understand the political condition of the country of operation or distribution so that there
are no challenges or barriers in the process. The leaders of Xiaomi have to adapt to the political

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situation of the country so that there is support from the government in terms of expanding the
business as well as proving opportunities in the process of business. The company has been
trying to enter the US market and in order to do so the current leaders have to be in sync with the
Trump Government (Haselton 2018). Understand the tax policies and trade agreements in order
to ensure the process of business is smooth. In India Xiaomi has launched products with the
Make In India campaign which is one of the flagship project of the current Indian government
and has received immense success in the process (Dhapola 2018).
Similarly the company has to understand the dynamics of the economy of the country in
which they want to invest so that there are less chances of the failure of the venture. All the
economies in which Xiaomi has been investing is developing, thus proving the company with a
scope of placing the product in their market and keep up with the process of innovation and
development. A feature of a developing economy is the opportunities it has in terms of
acceptance of new products and new company (Gupta 2013). The leaders of the company has to
determine the income level of the people of the country where the products will be made
available as it should be in sync with the price of the product in order to sell the items. The
leaders have to understand the dynamics of the economy and use the scope and advantages in the
process. On the other hand, the analysis should be in depth so that the threats in the economy
also can be forecasted and mitigation strategies can be implemented. The leaders should choose
their policies and develop actions which are aligned with the country’s economy for example the
wages of the workers etc (Gupta 2013).
The dynamics of the society and technology are bound together as a technology
associated company, it is very important for the company to understand the acceptance of
development of technology in the society. The changing trends in the society impacts the needs

14DEVELOPING STRATEGIC MANAGEMENT & LEADERSHIP SKILLS
and requirements of the customers (Ho 2014). Xiaomi is a company that focuses on the customer
feedback for improvement of their products and innovation in the product development.
Therefore, the leaders of the company has to understand the society and its trends in order to
keep up with the changes in that can be implemented in the product or process (Ho 2014). The
technology that is available in the country also has to be determined and checked by the
company before investing as the infrastructure that is available in the country should be in sync
with the technology that the company will provide the customers. For example if the country do
not have provision for 4G connectivity then there is no point in developing a product for the
country with 4G facility (Ho 2014).
The leaders have to stay in sync with the external business environment and develop
strategic management decisions for the development and expansion of the company. Xiaomi is
trying to set foot in the US market and in order to do that the company has to investigate the
dynamics in order to determine the right mode of entry and effective communication in order to
market the products in a desirable way (Ho 2014).
3b. Leadership required to deal with different emerging situations (AC 3.2)
A leader should be ready to face any situation in the process of operation. It is a given
fact that there will never be same situation throughout the time. The changes in the external
business environment, posses several challenges for the leader and the organisation. The leaders
should be ready and should also have analytical skills to forecasts and anticipate threats. For
example a recession is a global issue that every organisation has to face, the leader should have
strategic contingency plan in order to deal with such situation. The decisions are expected to be
based on ethical as well rational analysis of the internal environment, stakeholders etc.

15DEVELOPING STRATEGIC MANAGEMENT & LEADERSHIP SKILLS
Fiedler explains the contingency leadership theory, which is one of the theories of
leadership that can be adapted by a leader in order to deal with challenging emerging situations.
It explains that it is important to focus on the control of a situation along with the style of
leadership as well. There are three aspects of the leader that has explained to be significant in the
process: firstly, the relationship with the leader and the member, the clarity in the process of
setting goals and developing tasks to achieve the objectives and lastly the quality of proving
rewards and penalties. This theory emphasizes on the personality of the leader than the skills that
they have acquired.
A leader has to be visionary in order to deal with emerging situation, visionary leadership
is a contemporary extension of the theory of transformational leader, where the far-sighted aspect
of the style is highlighted (Mora-Whitehurst 2013). A visionary leader is a person who takes
decisions even if the goal is short term, the impact of the objective will have a long term effect.
Any decisions and policies created by should have a long term impact and is also analyzed on a
long term basis. The emerging situations should be dealt with the skills of a visionary leader
(Taylor et al. 2014). He or she should be able to analyze situations and take actions to mitigate
any risks in the process. Another major aspect is the willing to take a risk and also to take change
as a positive impact form the change (Cheema et al. 2015).
Task 4 (LO4)
4a. Development plan of leadership skills (AC 4.1)
Skill Reason Time period Measurement Comment
Communication/
mass
To educate the Six months Attend regular
classes with
This will help the
leaders to explain

16DEVELOPING STRATEGIC MANAGEMENT & LEADERSHIP SKILLS
communication customers communication
experts for the
time period to not
only educate the
customers but also
the people.
the people the
understand the
utility of the
product
Adaptability The leaders have
to adapt to the
changes in the
technology first in
order to
incorporate the
same in the
product or process
One year The way new
technology is
incorporate in the
company in order
to address issues
This is important
for a relatively
new organisation
in order to ensure
steady
development.
4b. Justification of the development plan (AC 4.2)
Technology is a large aspect in the business environment and impacts the decisions o of
the leaders in several ways. Technology can be invested in the product or in the process of
business. Adapting to the changing trends of the business can be an issue with traditional
business organisations. Xiaomi is an organisation that operates in the technology industry and is
in sync with the trends of the industry. There are various departments which deal with various
kind of technical work that is required to manufacture the products. The company introduces
several aspects of their products which are upgraded regularly therefore in order to address
technological challenges the company has to ensure that the leaders are accustomed to the

17DEVELOPING STRATEGIC MANAGEMENT & LEADERSHIP SKILLS
technological infrastructure of the countries where they have their operation or distribution
(Cheema et al. 2015).
One of the major technological challenges that Xiaomi can face is the lack of knowledge
among the people regarding their products. For example if the company has introduced a feature
in the Smartphone which is unknown among the people then the utility of the added feature is
zero among the consumers as they will not understand how to use the feature or how this feature
is going to help. Therefore the leaders have to develop mass communication skill which will help
them to address the feature and educate the people at the same time. The leaders of Xiaomi
should also concentrate on the marketing of the product where people should be educated and
made aware of the utility of the features and how it will be worth the money they will be paying
for the product. The leaders should take communication class with some experts and should
ensure there is continuity in the class interval. The classes should be spanning over a period of
six months. As a company that operates in the technology industry the company does not face
challenges in accepting the trends in the technology (Cheema et al. 2015).

18DEVELOPING STRATEGIC MANAGEMENT & LEADERSHIP SKILLS
Conclusion
It can be concluded form the above discussion that the process of integration of
leadership with Strategic management is significant for the development and growth of the
company. Xiaomi is an organisation that has captured the attention of the target market based on
the price and the quality of the products and their advanced features. The management of the
company follows transformational leadership style as they encourage change and innovation in
the process as well as in the product. The company is drive to provide the customers with the
best quality product at the lowest possible price. Operating over just a decade the company has
achieved bench mark in the process of operation and in the global market. Xiaomi can
incorporate visionary leadership style in the future in order to ensure there is a continuous flow
of production.

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