Comparing Leadership Styles and Challenges in SMEs and Global Firms

This report examines the leadership challenges faced by managers in small and medium enterprises (SMEs) and global organizations, using the "Tech will save us" firm as a case study. It compares challenges like balancing quality and growth, and money management. The report then analyzes different leadership styles, including autocratic, coaching, and transformational approaches, within the context of SMEs and global companies like Tesco. It further discusses the skills and knowledge needed to manage change programs, such as personal resilience, trust-building, and forcing clarity. Finally, it assesses the impact of resistance to change and suggests strategies for leaders and managers to effectively implement change, emphasizing the importance of communication and employee engagement. The report provides a comprehensive overview of leadership and change management in diverse organizational settings.

SME

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Compare the key challenges facing the manager in different range of business from small and
medium enterprises to the global organization............................................................................3
Examine and discuss about the different leadership styles within the range of organizational
context from small business to the global organization. .............................................................4
Examining the skills and knowledge used in the organization in order to manage the change
programmes..................................................................................................................................5
Accessing the impact of the resistance to change which may convert the leading and managing
style within the company.............................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Small medium business are basically operates the small type of enterprises and they also
performed the task through manager or leaders. This assignment will discuss about the “Tech
will Save us” Firm which based on technology that starts their business to make DIY gadget kits.
It was found in 2012 London, by Bethany koby and Daniel. This organization is also
collaborated with the BBC on micro Bit. This assignment will discuss about the challenges that
faced by manager in the small or medium business. Furthermore, it will examine the different
type of leadership style in the organization and also performing an effective role in the small
business development. It will analyse the skill and knowledge that help for organization to
manage their change programmer in effectively. It will create a large size on the basis of
development and growth. This documentation will describe that why the changes occurs in the
teams and organization whether the manager or leaders are effectively overcome the resistance to
achieve the business goals and objectives.
MAIN BODY
Compare the key challenges facing the manager in different range of business from small and
medium enterprises to the global organization
The “Tech will save us” business has the biggest achievement for the owner, but
maintaining is one of larger challenge for the manager in the organization. Manager is
responsible person in the “Tech will save us” that help to manage the business operations and
functions. It is no surprise that enterprises of different size will face challenges where employee
or manager will face different problem and obstacles in Business activities (Al-Marri and Al-
Hasan, 2019). There are several type of challenges faced by the manager in the tech will save us
business.

Balancing quality and growth-
In case, the business is not founder dependent, there comes a time when manager faced
many issues and problem regarding the growth which seems to match or outweigh the benefits.
At that point, manager has scarifies the product in order to scale (Marković and Tomaš, 2018).
The manager of “tech will save us” often find themselves ties to the habit of detriment in terms
of business growth and development but the unhealthy obsession affect the brand image in global
marketplace.
On the other hand, TESCO which is a global business have faced the challenges
regarding the balancing quality where the employee cannot maintain the product quality and
never check test the product on time (Nyoni and Bonga, 2018). In this ways, manager face many
problem regarding the quality and growth. It is directly impact on the business growth or
development.
Money Management-
In “Tech will save us”, Having the enough cash flows to cover all the bills which must
part of business. This organization will emerge as a capital drain that puts so much pressure on
manager. Money management is the most important part of business which required for manager
to handle the enterprises accounting and other taxes in proper manner (Jameel and Ahmad,
2018). Manager has faced difficulty to regarding the cash flow system due to less security and
privacy. In this way, manager will not handle track and update all information of overall budget.
This problem is generally arise in small medium business like TWSU (Tech will save us).
On the other hand, TESCO which is a Global organization has faced the issues regarding
the money management due to lack of financial control and single source of truth etc. This will
directly impact on the cash flow management system of TESCO.
Comparison between the SME and Global company
SME Global company
Money management In small enterprise, Managing
the money means monitoring
the company financial
statement. The owner or
manager keep up with the
sales, operating expenses and
In tesco, the finance of
corporation takes the
management task which make
them more complex. The
manager has considered the
other issues such as currency

profit. risks. Tax regulations and
reporting etc.
Balancing quality and growth “Tech will save us” have
changed the business scenario.
They are so disparate in the
size and nature which is the
most apprehend complexities
of supply chain process.
In Tesco are hungry of those
intermediary that can fit into
the strategic supply chain.
They can cut the cost and
slightly upper edge against the
competitors. In this way, it is
pressurizing the MNC to look
beyond the traditional
approach for reducing cost.
SME:
Illustration 1: SME contribution in world
(Source: SME enterprise. 2018)

Examine and discuss about the different leadership styles within the range of organizational
context from small business to the global organization.
Leadership styles are the appropriate manner and approach that help to provide the
direction, plans, inspirations, motivations and implementing the business development process.
In TWSU, Manager is the leader in this organization to perform different task on the basis of
their leadership style (Julien, 2018). They always influence other employee towards their specific
goals and objectives. There are different type of leadership styles within the Small medium
business and Global organization.
Autocratic leadership style-
This type of leadership style is the strongest one dimensional style that provide full of
authority and power to the manager. In TSWU (Tech save will us), Manager makes the decision
to handle all task in effective manner without any subordinates and other members. SME is small
based enterprises so that they have limited employee where all decisions are taken by the
managers.
Figure 1: Leadership style
[Source: Ceptureanu, 2015]
On the other hand, TESCO which is a Global organizations have used the democratic
style where manager takes important decisions at critical situations otherwise they always
consult with the team members and employee to identify their opinion towards the decision. It
help to maintain the good relationship between the business environment in effective manner.

Coaching leadership style-
It is one of the most effective leadership style where managers are involved in the
coaching and supervision the team (Kato and Charoenrat, 2018). In SME, they are trying to give
the training to their employee and also uses the modern style to inspire the other people.
In TESCO which is a global organization, Managers are providing the modern training to
their employee where they will enhance their skill and knowledge. In this way, managers and
employees are participating in the organization to increase the productivity or profitability in
marketplace.
Transformational leadership style-
This type of leadership style is depended on the culture and environment through the
effective communication in the team. In SME enterprises has changed the policies and
procedures on the basis of demand. However, they can use to certain level of strategic vision and
intellectual stimulation to change in oneself and other in an organization (Kiss, Fernhaber and
McDougall, 2018).
In TESCO, This type of leadership style is used for setting the high goals with the strict
specific deadline. It has challenges for global business to change all the concept and set the new
goals and objectives.
Figure 2: Leadership style

[Source: Analoui and Al-Madhoun, 2017]
Examining the skills and knowledge used in the organization in order to manage the change
programmes
Development of new strategies within Small medium enterprises generally requires
proper analysis and planning. TWSU (Tech will save us) company is currently trying to
strengthen the business by changing the policies and procedures of the business. So these
changes will impact upon the operational activities of the TWSU (Mole, North and Baldock,
2017). In today's competitive world, the change has been more rapid or more constant in order
to enhance the overall productivity and profitability of the business. These change programmes
may be in the form of implementation of new system within the enterprise or takeover or merger
acquisition of the company. The way in which the change will be managed by the small -medium
enterprise makes all the differences in success or failure of the business. So it is necessary to
provide good change management training which supports the leader and manager to effectively
drive change throughout their organization. Below presented are the three stages which helps in
employing the leaders and managers for effective implementation of the change within TWSU.
Personal Resilience
This is one of the important skill which need to be developed among the managers and
leaders of the Small medium enterprises (Puppim de Oliveira and Jabbour, 2017). Suppose the
TWSU wants to implemented the change management regarding the cost reduction initiative
within the organization, so line manager have to lose value colleagues and team members and
also have to quickly learn to work with fewer people and resources. In this situation, providing
the support to colleagues, peers and senior managers and establishing proper routes for line
managers to get the things done is considered as an important part in managing the change within
the organization.
Trust-Building
The speed of the trust level among employees is directly proportional to the speed of
change within the firm. So manager of TWSU company have to inform their juniors employees
about the effect of such changes within the business (Chung and D’Annunzio-Green, 2018). So
this will help in developing the trust among other employees and hence this will support the
change management within Small medium enterprise.

Forcing clarity
When the details for the change properly worked out then line managers will support the
leaders in shaping such changes within TWSU. It will enhance the abilities of the employees to
deal with the uncertainties that occur within the business. So it is very important for the line
manager to force the clarity in the minds of the workforce as early as possible in order to
effectively implement the changes.
Accessing the impact of the resistance to change which may convert the leading and managing
style within the company
Resistance to change is referred as the refusal from the side of the workforce in order to
accept such changes. Resistance occurs when employees will not able to handle the changes that
occur during the entertainment of the change management programs within the business
(Sikalieh, Linge and Asiimwe, 2016). This impacts on the overall management and operations of
the business. At the time of resistance to change, leaders and managers have to actively handle
such problems and they also need to motivate and engage the workers towards understanding the
reasons behind such changes. Managing the resistance to change need not be solely a reactive
tactic for the change management practitioner within TWSU. Managing the resistance to change
is one of the important part for the success of all change efforts as it is a critical aspect of
transforming and modification within company structure and system (Analoui and Al-Madhoun,
2017). In order to overcome these situation, various steps need to be considered from the leaders
and managers to effectively implement such programme. Such steps are as follows:
 Manager need to effectively communicate the resistance to change within the firm.
Effective Communication helps the managers to overcome the situation of resistance to
change within TWSU.
 Leaders need to effectively engage the employees in listening to the directions of the
leaders.
 In order to overcome the opposition regardless of how the companies normally manage
the change within the firm (Ceptureanu, 2015). Resistance can be addressed by allowing
time to employees for their input. It motivates them and also make them realise that they
are the part of the team and their suggestions matters.

 Effectively engage the employees towards receiving the feedbacks of the client which
makes them realise that the clients are happy by their work and therefore, it improves the
satisfaction of the employees who resists the changes.
CONCLUSION
From the above study, it can be concluded that every organization faces the change
within the company weather it is small or big enterprise. Managing the change programmes
within the company leads to the effective management and sustainable growth of the firm. Also
this study has helped in making clear understanding about the application of skills and
knowledge of the leaders in effectively carrying out the change programmes within various
SME's. It has also helped the readers in identifying the key challenges which are faced by the
managers in a wide range of business context. Also, it will help in establishing a clear knowledge
about the different leadership styles used within the different businesses in order to address
different situations of the organizations.

REFERENCES
Books and Journals
Analoui, F. and Al-Madhoun, M., 2017. Empowering SME managers in Palestine. Routledge.
Ceptureanu, E.G., 2015. Research regarding change management tools on EU SMEs. Business
Excellence and Management Review. 5(2). pp.28-32.
Chung, K.L. and D’Annunzio-Green, N., 2018. Talent management practices in small-and
medium-sized enterprises in the hospitality sector: An entrepreneurial owner-manager
perspective. Worldwide Hospitality and Tourism Themes. 10(1). pp.101-116.
Jameel, A. and Ahmad, M.A.A., 2018. Determine some factors that affect to adoption of e-
commerce among small and medium enterprises in Erbil.
Julien, P.A., 2018. The state of the art in small business and entrepreneurship. Routledge.
Kato, M. and Charoenrat, T., 2018. Business continuity management of small and medium sized
enterprises: Evidence from Thailand. International journal of disaster risk reduction. 27.
pp.577-587.
Kiss, A.N., Fernhaber, S. and McDougall–Covin, P.P., 2018. Slack, Innovation, and Export
Intensity: Implications for Small–and Medium–Sized Enterprises. Entrepreneurship
Theory and Practice. 42(5). pp.671-697.
Marković, M.R. and Tomaš, R., 2018. Resilience of Small and Medium-Sized Enterprises in
Terms of Globalization: an Evidence of Serbia. International journal of entrepreneurship.
22(3). pp.1-7.
Mole, K., North, D. and Baldock, R., 2017. Which SMEs seek external support? Business
characteristics, management behaviour and external influences in a contingency
approach. Environment and Planning C: Politics and Space. 35(3). pp.476-499.

Nyoni, T. and Bonga, W.G., 2018. Anatomy of the small & medium enterprises (SMEs) critical
success factors (CSFs) in Zimbabwe: Introducing the 3E model. Dynamic Research
Journals' Journal of Business & Management (DRJ-JBM). 1(2). pp.01-18.
Puppim de Oliveira, J.A. and Jabbour, C.J.C., 2017. Environmental management, climate
change, CSR, and governance in clusters of small firms in developing countries: toward
an integrated analytical framework. Business & Society. 56(1). pp.130-151.
Sikalieh, D., Linge, T.K. and Asiimwe, J.B., 2016. The relationship between transformational
leadership style and SMEs growth in the top 100 SMEs in Kenya.