From Strong Leadership to Stressed Leadership A case study on Rock Bottom (a company) ACCA P3 Business Analysis As food for thought, please, in your free time, read the following brief analysis, based on a case study from ACCA P3. It’s a bit long, but it’s hard for me to make it shorter than this. Anyway, enjoy reading it, esp for your future business if any. Phase I: a private company was first launched in the market. The owner could run the business successfully as a first mover in the market. In addition to competitive advantage as a first mover, his leadership style tremendously contributed to the business success. Phase I Leadership: he was charismatic and an influential motivator, who appointed the right staff for the right job. Noticeably, He toned down his action to satisfy the providers of the funds (the banks). Phase II: a number of competitors entered the market. The owner floated the company on the stock exchange. As a result, his management and leadership styles were under scrutiny from shareholders. He did not have as much freedom as before the flotation. His generous salary packages had to be disclosed and this act embarrassed him. Phase II Leadership: he did not change his leadership style to fit the condition of a publicly listed company. As everything had to be transparent, he had to disclose information to other related parties to protect their interests, not his personal interests. Apparently, he could not distinguish between managing all his own business and managing business on behalf of others. This led to a difficult communication between him and shareholders. Phase III: A company was bought back from shareholders. As a result, it was back to be his private business with no accountability to shareholders anymore. He held a huge celebration party for bringing back the company under his private and free control. Phase III Leadership: He was rude to a new generation of store managers as they thought his leadership was unfocused. This implied that he did not intend to get useful input from up-to-date store managers for his success. As a result, he distanced himself from them. Based on the 3 brief phases above, the owner’s leadership should be changed to be strategically fit to the current business environment. Plus, I strongly believe that a business can survive and prosper in a dynamic environment when the owner is equipped with dynamic leadership.
Posted on: Mon, 05 Aug 2013 15:39:26 +0000
Trending Topics
Recently Viewed Topics
© 2015