Management and Leadership in Global Context: A Report

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Management and Leadership in Global
Context
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Table of Contents
1. Introduction............................................................................................................................3
2. Discussion..............................................................................................................................3
2.1 Describe the functional areas of one chosen business and its hierarchy of management....3
2.2 Why is communication central to leadership and management?.........................................5
2.3 What are current drivers of Globalization?..........................................................................6
2.4 Compare and Contrast two chosen styles of leadership and management...........................8
3. Conclusion............................................................................................................................10
Reference list............................................................................................................................11
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1. Introduction
The purpose of this report is to address the role of leadership and management in the global
context that is in other words it can be said that the organizations are moving towards the
globalization and in this context the necessary practices and skills of management and
leadership can guarantee success to these organizations in the dynamic business environment.
A good leadership and management style enables an organization to operate smoothly
without any hurdles in culturally diversified area because of the managers and the leaders of
the organization can successfully communicate the mission and vision of the organization and
hence can encourage the individuals to meet the organizational objectives.
2. Discussion
2.1 Describe the functional areas of one chosen business and its hierarchy of
management.
Greenergy International Limited is a UK based company that distributes fuel to the motor
vehicle companies and is headquartered at London. The organization operates in four
countries namely UK, Brazil, Middle East, Canada and Ireland and employed with 25 people
as the workforce. The functional areas of Greenergy International Limited are as follows:
 Strategy: The strategy of Greenergy International Limited is to increase the customer
base by serving its customers with diesel and petrol at an affordable range. The
corporate strategy of the business also includes expansion of the business in emerging
markets as well as in the new sectors in order to ensure the continual growth.
 Area of business or operations: Greenergy International Limited source its raw
materials that is the fuel products which includes diesel and petrol globally and
operates in the UK, Ireland, Middle East, Brazil and Canada. Greenergy International
Limited is national supplier of the UK, the organization supply 65% of the road fuel
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to Canada, and imports diesel to Brazil for the purpose of domestic sale (Burns and
Dewhurst, 2016).
 Manufacturing and infrastructure: Greenergy International Limited are investing
large scale amount that aims at reducing the cost of production and enhance the
capacity of the business which will ensure the growth in the business. The company
has its import terminals wherein it manufactures fuel products as a joint venture
which includes Thames Oil port, Navigator terminals, and Plymouth. The company
also has manufacturing facilities of biodiesel at east coast of England (Shenkar et al.,
2014).
 Human resource: Greenergy International Limited manage the human resource well
because it has strong cultural identity and hence their integrity statement includes
workplace safety, delivering services successfully without any corruption and
unethical acts and the company encourage and protect the whistle-blowers.
 Sales and marketing: Greenergy International Limited markets its products in
different countries which includes the UK, Ireland, Middle East, Brazil and Canada.
However the customers ranges from various segments from oil companies,
supermarkets, commercial users to forecourts that are owned independently.
 Logistics: The supply management of the company includes managing the stock of
the clients and as well as supplying them the fuel items. The in-house haulage
operations of the company enables them to deliver the fuel products in a flexible way.
The hierarchy of management of Greenergy International Limited is discussed in the
following section:
1. Top level management: The top level of management of Greenergy International
Limited includes the Board of Directors who are responsible for making important
decisions regarding the organization which includes formulation of the policies and
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strategies. They review the performance of the organization periodically in order to
determine how well the company is performing in other countries like Brazil, Canada,
Middle East and Ireland (Yeoh and Popovič, 2016).
2. Middle level management: The president and the vice-president of Greenergy
International Limited belongs to the middle level management who are engaged with
the direct activities of manufacturing and infrastructure, development of the biodiesel
manufacturing facilities and the import terminals. The middle level of management is
responsible for the negotiation in the joint ventures in the import terminals, arranging
the funds for the business and looks after property procurement (Dunning, 2014).
3. Lower level management: The lower level of management of Greenergy International
Limited comprises of the departmental managers who are responsible for different
departments of the organization such as production department, marketing and sales
department, human resource department and logistics department.
2.2 Why is communication central to leadership and management?
Communication is considered as a central part of leadership and management because
effective communication (both internal as well as external) which promotes motivation to the
employees and hence enables the organizations to socialize in a culturally diversified market.
Tesco PLC is one of the largest private sector of UK in terms of size and revenue which
operates the business globally. In this context the external communication of the company
with its external stakeholders enables them to identify the scope and opportunity of the
business along with the threats. Hence the internal communication of Tesco PLC enables the
organization to determine the capacity of business (Quirke, 2017). Greenergy International
Limited being a small and medium size company of the UK utilizes the benefits of the
effective communication. In this context the internal communication enables the organization
to communicate the policies and strategies of the business and the external communication
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enables the organization to build a cordial relationship with all its stakeholders which can
serve growth to the business (Genç, 2017).
Poor communication leads to the negative consequences to the businesses. Tesco PLC
entered the emerging market of Japan for the purpose of expanding their business. Tesco PLC
is successful in many countries other than the UK but in Japanese market it miserably failed
due to lack of communication. In other words it can be said that there are cultural difference
between two societies of UK and Japan in terms of language and other cultural values.
Effective communication would have resolved this issue but due to poor communication
Tesco PLC had to face failure and in the year of 2012 it left the country (Nätti et al., 2014).
Interdepartmental relationship plays a pivotal role in the hotel business like Tavistock Hotel
has a great interdepartmental relationship. At the time of reservation in the hotel the front
office department immediately communicate with the house keeping department in order to
prepare the room desired by the guest. When the guests request for the room service the front
office department communicate with the food and beverages department and the particular
department communicate with the food production department in order to serve the guests
with the desired food. This interdepartmental communication is considered as a success
factor to the business of Tavistock Hotel (Stanciu et al., 2016).
2.3 What are current drivers of Globalization?
Globalization can be defined as the enhanced connectivity with the world along with the
increased number of diversified participants. In short it can be said that the term globalization
refers to the geographical shift of the national activities that is presenting the domestic
activities on an international level. However, this section thoroughly discuss the current
drivers of the globalization (Moak, 2017).
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 Technological advancements: The technological advancements are considered as one
of the major driver of globalization which aims at making the movement of the goods,
services and ideas across the border with an ease. The technological evolution enabled
the organizations to enhance the interconnectivity through telecommunication and
internet and hence the organizations can access various information irrespective of
location. For example the BOD of an organization of the UK can operate the business
all over the world and can connect with the people through vie conferencing as well
as through teleconferencing (Moak, 2017).
 Trade liberalization: This is considered as a way that drives globalization by
effectively regulating the position of the economy. Trade liberalization motivates the
organizations to access the emerging markets in terms of expansion. WTO promotes
trade liberalization by reducing trade barriers. For example after liberalizing some
trade restrictions in China in the year of 1978 the growth in the GDP was more than
10 percent. Another example of trade liberalization is reduction in trade barriers
which in turn encourage foreign investment that has helped in the creation of a global
marketplace.
 International investment: One of the major driver of globalization is international
investment which has been enhanced by economic integration. For example in recent
years there has been a growth in the international investment which includes FDI,
FPI, commercial loans and many more. The increase in international investment
created job opportunities and also has created productive enterprises with a source of
earnings.
The technological advancements has positively impacted the organizations wherein the
companies can have wide reach to the customers across the world as well as these
advancements also has enhanced the customer experience and thus the competitive advantage
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is maintained. Tesco PLC is one of the major example of that have utilised the advantages of
the technological evolution and hence is headed towards the digital transformation which
includes the emergence of online grocery platform named Tesco Direct. The digital
transformation also includes implementation of digitalized tools that can enhance the
experience of the customers followed by the introduction of Tesco clubcard that can collect
data of the loyal customers (Najam et al., 2016).
Trade liberalization has enabled many organizations to operate in the emerging markets and
hence this can benefit the organization as well as the country where they are operating.
ZARA SA is a Spain based company which can operate in many countries like Japan, China,
Korea, and many more. Reduction in the trade barriers encourage ZARA to expand its
business worldwide. Nestle is a Switzerland based company which operates in 190 countries
currently which signifies the trade liberalisation (Asteriou et al., 2014).
International investment provides an opportunity to the business organizations to enter into a
foreign market directly. International investment in underdeveloped countries can benefit the
organization in terms of market share and also can benefit the underdeveloped country.
ZARA SA is operating in Uzbekistan which is an underdeveloped country, in this context the
organization can grab the international market which can benefit the business in terms of
market share.
2.4 Compare and Contrast two chosen styles of leadership and management.
There are many leadership and management styles that are adopted by the organizations but
when the organizations operates globally they typically follow either transformational
leadership and management styles or transcultural leadership or management styles.
Transformational leadership is considered as a leadership theory wherein the leaders are
responsible for creating visions for the organization in order to provide guidance to the team
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members that is they focus on the desired state of the organization (McCleskey, 2014).
Thereafter, the leaders states the expectation of the organization from the employees in order
to meet the organizational goals and objectives. In short it can be said that transformational
leadership emphasize on the intrinsic needs wherein the group members are encouraged to
transcend the short term organizational goals (Ghasabeh et al., 2015). Transcultural
leadership is considered as a new leadership theory which is a combination of
transformational leadership and multiculturism. This leadership theory was proposed by
Derungs in the year of 2011 which is considered as the viable leadership style in global
organizations. In other words it can be said that by adopting this leadership approach the
organizations that are operating globally can perform well. On other hand, transformational
leadership motivates the workforce of the organization to work in diversified culture that is in
other words it can be said that the transformational leaders models the attitude and behaviours
of the employees by identifying their strengths and weaknesses. Transcultural leadership is
considered as an approach which aims at guiding and preparing the workforce for the
organizational change at the time of globalization (Simons, 2018).
Transcultural leadership style is most suitable for the modern global organizations because of
the following reasons:
 At the time of global diversification the transcultural leadership style prepares the
workforce of the organization for the organizational change meaning that the
leadership style encourage and guides the employees in such a way that they are ready
to change.
 The employees of the global organization follows the transcultural leaders not only
because of their affiliation with any national or cultural or regional backgrounds but
for the reason that the employees can identify the visions well with their actions.
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 The transcultural leadership styles can manage the diversity on the organization well
and in addition to that the leadership style brings new set of culture in the
organization which motivates the employees from diversified backgrounds (Brown,
2019).
 Transcultural leadership style will work best in the modern global organizations
because of the fact that this approach of leadership synergise the differences or
diversification in the organization.
 The transcultural leadership can mentor the organizations with transformative
learning and which ensures that the employees from the diversified backgrounds are
motivated to learn on a continuous basis and hence this reduces the uncertainty of
failure in the international market.
3. Conclusion
From the above discussion it can be concluded that leadership and management plays a
pivotal role in the success of the organization operating at international level. In this
assignment a medium size organization Greenergy International limited is studied in order to
determine the functional areas along with the hierarchy of the management. The impact of
communication in the organization is also studied in this assignment using the example of
several companies like Tesco PLC and Greenergy International limited. Thereafter the drivers
of the globalization are identified along with its impact on the business organizations. The
last part of the assignment thoroughly discuss about the two types of leadership styles namely
transformational and transcultural leadership styles and the justification of adoption of the
transcultural leadership by the global organizations is also discussed in this part.
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