Wooden Bakery: Leadership Styles, Decision Making, & Change Initiative

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This report provides an in-depth analysis of Wooden Bakery's change initiatives, particularly focusing on its potential expansion into the U.S. market. It evaluates the company's background, including its history, culture, and growth trends, and examines the various change initiative strategies that could be employed, such as market acquisitions, diversification, and strategic partnerships. The report also discusses the managerial strategies required for successful international expansion, emphasizing the importance of resource allocation and stakeholder engagement. Furthermore, it addresses the barriers to change that leaders may face during this process and applies force field analysis to understand the driving and resisting forces influencing decision-making. The analysis considers the leadership approaches necessary to effectively navigate these challenges and achieve organizational objectives, drawing upon a Harvard Business Case study for context. The report concludes by evaluating the effectiveness of different leadership approaches and models of change management in the context of Wooden Bakery's strategic goals.
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Running head: LEADERSHIP STYLE AND DECISION MAKING
Leadership Style and Decision Making
Name of the University:
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Author Note:
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1Leadership Style and Decision Making
Introduction:
Wooden Bakery, founded by Mr Edward Bou Habib, came into the scenario in the year 1969,
in Lebanon. The Wooden Bakery had revolutionised the face of the Bakery industry by
quality bread and services to its customers. The company had come into being with the
simple aim of providing freshly baked breads, however, they had also included into their
mission, providing quality services to its customers. Recently, the company is observed to be
including a change management process within the organizational system. To grow and
expand, the company has taken into account international expansion plan, and as the first step
they have expanded over Saudi Arabia. Further, they want to expand across the globe thus,
aiming to become a giant figure in the bakery industry, across the world, and hence, they
want to extend their chain America. Therefore, to materialise the expansion, the company is
observed to undergo a huge decision making process, that is, especially done by the leaders
of the company.
Therefore in the following essay, the change initiative of the company will be evaluated. In
order to that, the decision making processes and the influencing leadership styles will be
illustrated and discussed.
Discussion:
Company Overview:
The company further expanded during the second generation of the company, that is, when it
was run by Edward’s sons. The new generation had incorporated spaces for innovation into
the system along with the inclusion of an experienced management team. The first retail
outlet had come into the industry in 1999, at a prime location of Lebanon and they had first
franchised their operation in the year 2002. In 2009, the company had first taken into its
account the international expansion, and they had first launched their Master Franchise
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2Leadership Style and Decision Making
overseas, in Saudi Arabia, which was an emerging potential market and was included as the
first international expansion plan. Further, the company wants to establish their presence in
the global market and strengthen its brand by continuous expansion and growth and
expanding customer base, and for that they aim to focus upon delivering the customers with
highest quality of products and quality services to the same. The goal of the company is to
develop a franchise both nationally and internationally, where the network is to be respected
universally and grow together. Further, to achieve the goals, the organization focuses on the
workforce of the organization and aims to make it a more dedicated, energy driven and
skilful. Further, the company believes in growing together, whereby, both the employees of
the organization and the managerial board will enjoy a strong brand, opportunity for growth
together with the usage of a skilled training program and a proven business formula.
As the company is now trying to expand overseas, it is incorporating changes both into the
business structure and in the business conducts, and exercising changes; within the
organizational structure. Therefore. To enlighten upon the change initiatives that are taken by
the organization, it is important to discuss about the changes that are usually taken by the
organizations in order to initiate the change process. Also, the barriers that are usually
observed in these scenario, will also be discussed. However, since the organization
effectively wants to step into the market of United States, therefore, the discussion of will
primarily focus upon whether or not the organization should step into the American market.
WOODEN BAKERY: SHOULD IT ENTER THE U.S. MARKET?
A particular case study has been made by the Harvard Business Case, in order to understand
that whether, the organization must or rather should enter the American market, and to focus
upon that, the Harvard Business Report has included certain steps that have been explained in
the following.
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3Leadership Style and Decision Making
Firstly, in order to understand that whether the company will be able to achieve its goals, the
market condition and the market competition o the country must be evaluated. As observed
by the market analysts, there are certain big bakery brands and organic bakery brands already
governing in the market. Therefore, it can be a bit difficult for the organization to expand
itself across the US market. Further, the company must also be able to offer the people of the
country with some lucrative products that are lacking in the country under an appealing price
structure, in order to grasp the market. The company must also be focusing upon the products
and the quality provided by the other companies to the consumers of the country. Therefore,
the notion is that the company must made a market analysis before reaching and expanding
over the US market, in order to understand the gap in the market, so that, the gap can be
fulfilled by the presence of the company.
Further, the case study has propounded that to understand whether the company will be
effective in the new market and whether the company should enter the market, it is essential
to review the company background, which will further include the undermentioned ones,
Company History:
The company history includes the background of the company, the initiation process of the
company and the aims and objectives that have been taken by the company. Analysis on this
is essential, to understand and evaluate the aims and goals of the organization, as, if the goals
of an organization are in the alignment of the market needs, only then can the organizations
reach and expand over a new market.
Company Culture:
The work culture of an organization uphold the nature of the organization as a whole and the
nature of the business conducts of the same. The motivation present among the employees
and the energy level of the same, helps the people to understand that whether the employees
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4Leadership Style and Decision Making
of the organization will be able to achieve the aims and objectives of the organization. This is
an essential place to focus upon as the success of any organization depends upon the
workforce of the organization. If the staff of an organization is not motivated enough then it
is difficult for the organization to achieve the goals and objective and acquire a good and
strong customer base.
Company Growth Trends:
To evaluate the success of an organization, in a particular setting, it is essential to understand
the success rate of the dame or the growth rate of the organization. The trends and patterns in
the growth of a particular organization, helps to understand the nature of the organization and
the business conducts of the same and also helps to understand, according to the market
analysts, whether it will be able to achieve the goals and objectives that the organization has
taken into its account. In case of Wooden Bakery, it can be stated that the organization has
taken the approach international expansion and exposure much late as compared to the other
organizations, and has first expanded over Saudi Arabia, which is a potential and emergent
market but as well as it has been a second word country, so therefore, the company did not
need to spend as much as it needs to, in order to grasp the American market. Moreover, in
Saudi Arabia, the competition was not as high and potential as it is in case of America.
Therefore, the evaluation of the company growth trend is very important to analyse the
strengths of the organization or its expansion in the American market.
Further, in order to understand the change initiatives that can be taken by the company, it is
important to understand the strategies for change initiatives that are often taken in the
organization.
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5Leadership Style and Decision Making
Change Initiative Strategies:
The change initiatives taken by the companies are usually taken into the orientations of the
organizations, for a number of reasons. To acquire a good staff management, to change the
policies governing in an organization, to acquire a new organizational culture replacing the
existing ones, and the like. However, the most important reason for taking a change initiative
is to acquire a new market or to expand the existing customer base. Therefore, as per the
market analysts, there are a certain number of strategies that must be included by the
organizations, in order to include a change management into the orientation of the
organization. Therefore, the effective change strategies are,
Considering the Market Conditions:
The pivotal point for any organization is to understand and evaluate the market conditions,
where upon the organization wants to expand. Therefore, the approaches related to these
strategy are,
Acquisitions: The companies can practice the market acquisition policy which enables an
organization to acquire the small industries. It is proved to be effective if the prospective
companies, that cannot flourish because of the challenging economic situations and
conditions. Therefore, the bigger industries, can, in order to expand undertake the smaller
organizations and expand over them. This will provide them, not only with sources but also
with customer base. The resources will include, in house employees, materials and other
resources, and this will enable both the organizations to sustain.
Market Share: This includes increasing the share in the market, which enhances the financial
of conditionings of the market.
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6Leadership Style and Decision Making
New Markets: The new market approach is another strategy that has proved to be effective
for the organizations. The new market refers to find out the ways to channelize the existing
products in the newer markets with newer approaches, in order increase the sales.
Diversification: Diversification enables the organizations or the companies to explore and try
out newer products to capture newer fields. This will not only increase the sales of the
company but also will enable the organization to explore newer fields and to increase the
customer base. This also enable an organization to create its own niche in such a market,
where the competition is higher.
Franchising the business: Franchising one’s own business also proves to be effective in terms
of financial statements.
Strategic Partnerships: Strategic partnership refers to partnering with a company, exercising
the businesses in the same ground or in the related field. This proves effective for the
organizations as it helps them to increase the sale and the customer base. It also helps the
organizations with gaining on the manufacturing of the products.
Repositioning and Efficiency: This strategy refers to the system of acquiring growth and
profit by repositioning the products or the organizational face as a whole and also by
increasing the skills of the employees which will further increase the effectiveness of the
organization.
Managerial Strategies:
To expand the business overseas and to expand the customer base in the international market,
the managerial section of an organization must be effective and proficient. Therefore the
followings are the areas that are to be managed by the managers of the organization.
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Allocation of Resources: One major criterion to conduct a business is to understand the
allocation of the resources properly. It is important for the managers to understand that which
product is effective and applicable for which market and how the designing of the allocation
of the products should be made. It is a challenging position for the manager as it needs
extensive market research.
Engaging Stakeholders: Expanding the business in the new country, needs the participation of
the stakeholders of the company. In order to expand the business overseas, the stakeholders
of the company, are to take initiatives and major roles in the change process. The
stakeholders are the ones who are to take the change initiative and include a rigorous change
strategy into the organization.
Therefore, all these strategies refer to the fact that the leaders of the organizations must be
effective enough to materialise the change initiative taken by the organization. However,
while conducting the change initiatives, the leaders are often faced with certain barriers.
The Change Barriers:
In order to achieve a successful change, the organizations must primarily focus upon the
barriers or the hindrances that are often posed in the way. Therefore, the leaders of the
organization, must primarily focus upon recognising the potential threats or barriers.
Therefore, the potential changes barriers that the organizations are usually faced with are,
Lack of a skilled workforce. An unskilled workforce can hinder the achievements and
te productivity of the organization.
The organizations may face a situation of failing to establish the correct structure, that
is, they may fail to establish the correct set up that will enhance their customer base
and further will impact on their productivity and profit, and this is especially true for
the organizations aiming to spread overseas.
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8Leadership Style and Decision Making
An effective change process can be successful with the implications of the correct
tools into the organizational structure and set up, that are pivotal for the initiation of
the change management. Further, the tools to be implemented for the change
management differs from one country to the other. Also, the organizational
infrastructure, is also very important to initiate and materialise the change
management process.
Another potential threat for the expansion of the organization is failing to understand
the market needs and the competition, already existing in the market. It is important
for the leaders and the mangers to understand the potential competition in the market.
The leaders must also recognise the nature of work and the patterns of work in that
particular country. For example, as the Wooden Bakery wants to expand the market in
America, therefore, the company must understand the work patterns of the country.
This is imperative for the organization to thrive, as the work patterns of an
organization determines the productivity. Therefore, the work pattern of the company
must be in alignment with the other organizations of the country, else there will be in-
house conflicts within the organization, which will further affect the productivity of
the same.
Further, the work culture of the organization is also an important factor for the
organization to thrive. The work culture of the organizations, refers to a motivated
workforce and to sound culture of the organization. The work culture of the
organizations can be in the alignment with the other organizations of the country, or
the organization may focus on a different work culture of its own, which will enable
the people of the organization to work effectively.
More importantly, since the company is aiming to open a chain in the country,
therefore, the infrastructural set up of the organization and the patterns of the same
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9Leadership Style and Decision Making
should be in the alignment with the other organizations of the county. The work
culture of the organization should also follow the standard work culture of the
country. This is essential in order to avoid the potential threats that these may elicit
and also to avoid the internal conflicts within the organization that may crop up.
Further, as the organization must in take personnel from the country itself, therefore,
it is essential that the organization follows the standard rules and standard set up and
maintain the same in order to avoid the conflict situations. Furthermore, such an
approach will also enable the company to retain its staff. This will further impact
upon the productivity of the organization as a whole, and also to will increase a
position in the market.
Another potential threat that the organization can be posed with is gaining the
customer base in the market. As there are certain other organizations or companies
that are conducting business in the same area, therefore, the company can be faced
with potential competition that can affect the productivity as well as the sustaining of
the organization in the market.
Effective Leadership approaches:
As mentioned earlier, the leaders of the organizations hold the most important part to initiate
the change process into the organization. There are certain leadership approaches that impact
upon the changes in the organization.
There are primarily, three types of approaches to the leadership policies. First is the autocratic
Leadership approach, whereby, the leaders take the all-in-all role and decide for the whole of
the organization. The second approach is the Democratic or Participative approach, whereby,
the leaders of the organization gives space to the employees and involve all the employees as
well as the stakeholders into the change management process, thus including a participative
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approach into the system will effectively impact upon the change initiative. The third
approach is the Laissez- Faire approach, whereby, the leaders do not have any role in the
change management and the whole process of change is to be decided and done by the
employees of the organization and the stakeholders of the same.
However, in case of Wooden Bakery, a participative leadership approach should be exercised
by the leaders of the organization, in order to include the employees as well as the
stakeholders of the organization into the organizational system. The participative approach
will help the leaders to gain different perspectives that can be included in order to make the
change management process a success. Further, the leaders of the organization should use a
thorough change strategy, with applying the automation policies and applying proper labour
management system into the structure. Further, the leaders must also think through regarding
the distributional channels and the multi- branch chain process. The participative approach
will also enable the leaders to include innovation into the system, regarding the product
modification and ways of reaching to the customers.
Conclusion:
The Wooden Bakery has a sound strategy management system. The organization has rightly
taken the international expansion approach, they have started of late, which clearly depicts
that they undergo a thorough market analysis process. Further, they were also right about
stepping into a second world country first, and them moving on to the first world countries.
This depicts the clear vision and approach that the organization has. Therefore, if the
organization focuses properly on the change strategies and the barriers that affect the
achievement of their international expansion goals, then the organization can easily achieve
their aim of going global and can create a niche in the market.
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11Leadership Style and Decision Making
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