Category: Business 11471

The way in which managers communicate change is very crucial to the success of a changed program in any organization. The communication style which the company decides to use should ensure that their staffs appropriately understand what will happen and why it should happen. They should also be in a position to know what is expected of them, or how the change will impact them. The strategy used needs to make sure that, the message is delivered appropriately; with no overload, and that the message is communicated with no distortion. The communication approach used by Agilent Technologies to solve the downsizing problem was not well designed. Before deciding on downsizing the company did not scrutinize the reasons for the layoffs. They should have considered other alternatives instead of the layoffs and these alternatives should have ensured that the company still accomplishes its objectives. This is achieved through the tell and sell approach, where the managers identify alternative interests which can help disrupt the proposed change.

The company maintained its competitiveness after the layoffs but that was a short-term advantage. They did not consider the long-term advantages in relation to the employment cycle. It was not prudent for the company to lay off its employees who have taken years of experience and once the economic cycle change, they would need to recruit again. They should have estimated the costs they would incur in training new staff and recruiting again once the economic patterns change. Although the company tried ways to save their costs, by the pay cut off of 10%, reducing the external consultants and also by hiring and calling their staff in order to reduce travel expenses, their guidelines as said were not clear. They did not strategize on all the possible alternatives before deciding on downsizing. Other possible alternatives could be; reduction of working hours, the introduction of compulsory vacations, requesting for any person who wished to volunteer for a layoff. Some staff can be willing to go for early retirement and others can agree on reducing the hours they work and this approach is the best way to win people to the change.

The getting buy-in approach used by Agilent Technologys

Agilent Company focused on getting the word out and did not mind getting buy-in. The manager believed in communicating the change, which actually is the ability to control instead of shaping the information in such a way that the recipient understood well the need for the change. They overloaded the employees with too much information on change by holding so many brainstorming meetings, coffee talks, several newsletters, public address meetings, emails and they did not give the employees a chance to put their views across. They should have focused on letting the staff know why the change and why it was so inevitable to maintain the change. This would have helped the staff to react hence airing their views out.

The focus should have been to getting buy-in; this would be done by ensuring interactions through dialogue to discuss the change. They would also share similar values and in turn made aware of the measures appropriate to those values. The managers should provide the staff with knowledge of what is going on. The managers should recognize that not all the staffs buy the idea of change. Their main aim should be to provide rich communication media.

The communication media used by Agilent Technologys

The communication media varies according to the managers ability to communicate change. Downsizing is a non-routine activity that requires a richer communication style. Face-to-face meetings are richer than memos since the manager can tell the reaction of the staff when change is communicated. Immediately the management learned of the need to lay off, they should have broadly thought about different ways to communicate the downsizing. Then they should have come up with an effective strategy on how to communicate before the downsizing, during the actual process of downsizing, and also after the downsizing. This would ensure a good workforce by unifying the companys mission, vision and also creating a new organizational structure which would have ensured better success strategies. Open communication reduced anxiety especially through the newsletter which answers most of the questions the employees have on the reason for downsizing. Emotions also determine how the staffs receive the information and react to it. The messages should be passed in an empathetic manner.

The limitations of open communication during the downsizing process

Open communication in most cases is an advantage to those who remain after the downsizing but the ones who go prefer private communication. This avoids situations like when Rays colleagues felt that he did not have to work so hard yet he was going to be laid off. It is always advisable to deliver the news of downsizing to those involved directly. You should inform them about the reasons for the layoff. The affected staff should be treated with dignity and respect. Most prefer the privacy of the whole process and prefer either to pick their belongings in the evening or over the weekend to avoid witnesses.

Retaining staff motivation after layoffs

Staff motivation is very crucial in an organization that has just faced downsizing. This does not only affect those directly retrenched but its also very devastating to those left behind since they have to work more due to less manpower. There is a possibility of low commitment among the staff and this would lead to low productivity. Layoff should not be determined by capabilities or skills but by the performance of each individual. This way the staffs feel that the criteria used to determine who goes and who stays is justified. During downsizing, the manager should be careful on how you handle the situation and ensure dignity and respect to all the staff. Downsizing should be done in the most humane way possible. This means that it should be done with utmost respect and trust, thus the loyalty of the surviving staff is maintained.

Introduction

Burger King is a popular fast-food chain that has a strong presence in many markets all over the globe. Recently, the company started planning an expansion to Sub-Saharan Africa in order to improve financial performance by reaching a new market (Gray & Fontanella-Khan, 2018). However, there are several important considerations with regards to this expansion. The present paper will examine the viability of Burger Kings expansion to sub-Saharan Africa and provide recommendations for proceeding. The research question for the analysis is How should Burger King address the opportunity of expanding its fast-food chain to sub-Saharan Africa?.

General Environment

Burger King operates in the fast-food market, which involves several large companies, such as McDonalds and KFC. The fast-food market is generally profitable, as it is popular among people from the consuming class. Food in fast food restaurants is usually affordable and tasty, which allows the company to attract regular customers. In sub-Saharan Africa, the fast-food market is soon expected to reach the same size as in the United States or Europe (Zion Market Research, 2018). Due to the overall trend towards increased income, sub-Saharan Africa has a large consuming class, and many fast-food chains are capitalizing on this new opportunity (Veselinovic, 2015). Thus, the expansion would grant Burger King access to a potentially profitable market.

Industry and Competitor Analysis

Due to the high profitability, the fast-food market is characterized by severe competition. Burger Kings main competitor is McDonalds, which is the largest fast-food restaurant chain in the world. McDonalds and Burger King have a very similar menu, as both fast-food chains focus on burgers as their main product. KFC is also a prominent competitor of Burger King, particularly because it has an attractive selling point. KFC does not sell products made from pork, veal, or beef, focusing solely on chicken. This appeals to customers who do not like red meat or do not eat it for ethical reasons, as well as to people from various cultures and religions, such as Islam. Thus, KFCs unique selling point contributes to the companys global expansion strategy while also ensuring that it remains popular in culturally diverse markets, such as the United States.

Besides global fast-food restaurant chains, Burger King also faces competition from local fast food companies. In most countries of the world, there are numerous local companies that sell particular types of fast food that are popular in the region.

For example, in the United States, there are various Mexican fast-food restaurants, such as Chipotle and Taco Bell. In Japan, there are fast food restaurant chains offering sushi and other traditional foods at affordable prices. These local chains influence the competitive environment in the fast-food market while also threatening companies that are willing to expand abroad. In sub-Saharan Africa, the competitive landscape is affected by both global and local competitors. McDonalds and KFC are present in many countries of the region, and there are also multiple local takeouts and fast food chains that are popular among residents.

Internal Firm Analysis

There are three key factors that influence the performance of fast-food chains. First and foremost, profitable fast-food companies have a strong supply chain in order to ensure that they have all the products required at all times. Burger King has a reliable supply chain management strategy that has helped it to expand in the United States and many other countries. For instance, in India, Burger King is focused on strengthening relationships with existing suppliers rather than looking for the ones providing the best price (Mullan, 2018).

This enables the company to ensure a high quality of its products, thus contributing to its popularity among the customers. In fact, quality management is the second significant advantage of Burger King that enables it to be profitable. Popular fast-food restaurant chains all have an established quality management system that allows ensuring that each product offered to customers is of excellent quality. In Burger King, the menu does not differ significantly from one market to another, which helps its quality management efforts. With a relatively small menu, the company can create strict preparation guidelines and characteristics for each of its products and require staff to comply with them.

Thirdly, marketing is an important factor affecting the development of fast food chains on national and global levels. Due to its marketing strategy, Burger King has a strong brand image, which allows it to remain among the key fast-food market players in the world. According to Roderick (2017), the brand has a long-standing commitment to creativity, which enables it to win customers through marketing. The most recent marketing strategy of Burger King was to capitalize on its rivalry with McDonalds using edgy slogans for advertisements and posters. Roderick (2017) reports that Burger King even suggested collaboration with McDonalds to celebrate World Peace Day, but the rival company refused.

A strong marketing strategy benefits Burger King by allowing it to expand where competitors struggle. The brand has been continuously opening new stores in the United States, while McDonalds has been closing restaurants in its home market (Roderick, 2017). With regards to international expansion, marketing is crucial, as it would attract customers to switch from brands that are well-established in the area to Burger King.

SWOT Analysis

The key strengths of Burger King are its established brand, successful supply chain management, and high quality of food. These qualities enable the company to attract customers that would otherwise eat at other fast-food restaurants, thus contributing to profitability. Excellent supply chain management also allows Burger King to cut down on costs, which helps to save resources for opening new stores or investing in marketing. The primary weakness of Burger King is its limited menu.

It increases the companys similarity to McDonalds and influences its success in other parts of the world. For example, in sub-Saharan Africa, Burger King is likely to struggle due to the high price of beef (Ford, 2014). Product diversification would help to ensure that customers can get burgers at an affordable price while also controlling business costs.

Burger King is a famous brand that operates in a highly popular market, and thus it has few opportunities. One particular way in which Burger King could become more profitable is by opening new restaurants. However, as the company already has a lot of restaurants in most countries of operations, global expansion is a potentially lucrative opportunity. Another possible opportunity for Burger King is to improve its product range, thus achieving a competitive advantage over McDonalds. The biggest threat faced by Burger King is that of competition.

As discussed above, the company operates in a highly competitive market where customers decisions are usually influenced by convenience and affordability rather than individual preferences. Competition with other well-established companies means that there are always more alternatives for customers to choose from, and thus Burger King will struggle to achieve a leading position in the market. The competition also influences the labor market, which is critical to providing great customer service. Burger Kings employees are mostly young people who are in need of money, and thus they might choose to work for one of its competitors if it pays more.

Strategic Alternatives

The key challenges to Burger Kings expansion are its product range and high competition. Therefore, the main recommendation would be to enhance the menu by adding new items. For instance, Burger King could improve its selection of chicken burgers or add more vegetarian menu items. In addition, it would be beneficial to add culture-specific items to the menu, such as traditional foods. This would help to achieve two significant advantages that would help the companys growth in the area. On the one hand, it would assist in attracting more customers from various cultural and religious backgrounds. On the other hand, it would provide a competitive advantage by distinguishing Burger King from McDonalds, its principal competitor.

The second strategic alternative for Burger King would be to avoid expansion to sub-Saharan Africa at this time and focus on growing operations in existing markets instead. This is a low-risk alternative that would have a high chance of success, as Burger Kind already has a strong market presence in many countries and could thus improve financial performance by opening more restaurants. It would also help the company to avoid the risks associated with the expansion, such as high business costs and competition.

Finally, the third strategic alternative is to penetrate the new regional market starting from a country where the presence of other fast-food brands is not too strong. For instance, McDonalds is yet to expand to Nigeria, which could prove to be a significant market opportunity for Burger King. Being the first foreign burger fast-food chain would offer several significant advantages. Firstly, it would help to influence peoples preferences, thus undermining the success of future rivals upon their entry into the market.

Secondly, it would help to reduce the potential risks associated with the expansion by avoiding the most significant threat influencing Burger Kings performance. Moreover, it would also help to minimize losses in case the expansion efforts fail and Burger King fails to attract a high number of customers in sub-Saharan Africa.

Strategic Recommendation

The preferred strategic alternative for Burger Kings expansion is to open several spots with a diversified menu in one particular country in sub-Saharan Africa. Indeed, entering this emerging market is a critical opportunity for Burger King due to the high popularity of fast food and the continuous population growth in the area (Gray & Fontanella- Khan, 2018). However, the company should conduct extensive market research to determine a target country where the threat of competition is low and the potential for growth is significant. This is essential due to the high number of local fast-food chains, as well as the strong presence of global competitors, such as KFC.

The menu should be expanded to include traditional foods and a more comprehensive selection of chicken burgers. This would help Burger King to appeal to local customers while also reducing the costs due to high beef prices (Ford, 2014). Overall, proceeding with the expansion and following the recommendations provided here would help Burger King to improve its profitability and achieve a larger share in the global market.

References

Ford, T. (2014). Challenges in Africa for fast food restaurants. Global Edge. 

Gray, A., & Fontanella-Khan, J. (2018). Burger King looks to expand in sub-Saharan Africa. Financial Times. Web.

Mullan, L. (2018). How Burger King India aims to boost its share in the QSR market. Digital Supply Chain. 

Veselinovic, M. (2015). How Africa is giving fast food a new spin. CNN. 

Zion Market Research. (2018). Fast food market share 2016: Global industry growth will reach USD 690.80 billion by 2022. Globe Newswire. 

Executive Summary

This report introduces the process of a company quality system implementation. The issue is addressed from the perspective of an aspiring leader who is yet to acquire the respect and confidence of their followers. A good quality system acknowledges the complexity of the business landscape that comprises both the company and the stakeholder perspectives. When implemented with due diligence, a company quality system within the ISO 9001 framework helps the organization attain the required level of performance and generate better returns, while leaving both customers and employees satisfied. The implementation process is presented as a series of basic steps from designing the model to perfecting it. However, in this particular scenario, this plan needs to be complemented by Kotters model of change. By building the links between the two processes, a leader is provided with an optimal framework that will not only generate initial returns but also help them sustain the growth.

Background

Aspiring leaders face a series of challenges that originate from several spheres of their professional expertise. First of all, there is a strong need for gaining positive results in the new position, inspiring the team and reassuring the companys executives. At the same time, long-term, strategic objectives may be difficult to attain shortly, which is why a considerate plan needs to be included to make gradual progress. Second, new leaders may see doubts and even resistance from their followers who are not yet convinced of the feasibility of the new appointment. This is particularly relevant for the people who are promoted to their first management positions and take command of the team of which they have been a part. These factors compose the primary set of challenges that is in the focus of the present report. In total, the key goal is to ensure that the team functions in the spirit of unity and rapport toward its operational and strategic objectives. For such a global task, a comprehensive system of quality management is required. This report proposed ISO 9001 as a leading quality management system for the team.

Introduction

Today, the business environment has become increasingly complex with an array of challenges affecting enterprises on both operational and strategic levels. In this regard, companies benefit from comprehensive formalized systems of documenting their internal and external processes and responsibilities. The point of these procedures is to attain the required levels of performance and efficiency that align with the companys goals. Quality management systems coordinate the efforts made by diverse expert teams in terms of customer relations, professional operations, and growth objectives. This way, the entire operational unit can sustain its growth through perpetual improvement and planning. This is particularly important for aspiring leaders who need to consolidate their resources and give the new team the impetus that is required for further development. Through an advanced company quality system, they can rely on a well-established framework capable of channeling the resources in the right direction. At the same time, the very implementation of such a paradigm may be challenging unless a fitting change model is applied to consolidate the team.

Investigation

A modern quality management system is expected to comply with several key principles and criteria. It is expected to be in line with the requirements posed by the complex operational environment of the organization, as conditioned by the overall industry landscape. According to ASQ (n.d.), an optimal quality management system exists at the intersection of two key spheres of organizational functioning. From one perspective, it focuses on the needs of the customers, creating a positive image in the eyes of the target audience. This effect is attained through the quality of the products or services and their value, but it also depends on more sophisticated matters, such as corporate social responsibility. On the other hand, a full-fledged quality management system will also address the needs of the organization. Each company has to adhere to a specific set of regulations that exist to control the operations within a given industry. Furthermore, it is equally important to ensure that all employees can work in comfortable conditions that help them reach their full potential. When executed correctly, this system helps all components synergize to generate better returns for all parties.

Overview of the System

In light of the needs and requirements formulated prior, a quality management system standard known as ISO 9001 is proposed as an effective framework of reference. As ASQ (n.d.) informs, it is currently the dominant quality management system in the world, which is followed by the majority of prosperous organizations. In fact, the value of ISO 9001 is that it does not provide a ready-for-use, step-by-step plan of quality assurance. Instead, it represents a certain basis upon which the management can build a fitting framework for their particular organization. ISO 9001 introduces a structure of principles that is shown in Figure 1. Each of the elements represents a key area of expertise that needs to be included in the operational planning of the team.

Key Principles

The principles of a quality management system inform the directions, in which the team will need to channel its efforts. Evidently, the exact nature of these efforts is to vary, depending on the exact position of the company or a specific unit. Importantly, a considerable emphasis is laid on the person-centered component of the overall framework. A quality management system acknowledges that people are engaged in the operational activity from all sides. There is a focus on the customer needs, as their satisfaction is the primary determinant of the organizations performance.

However, the company side is also represented by people with their own expectations, interests, and needs. The key idea of a quality product is to find the right balance between all sides instead of disregarding one of them for the sake of the other. The engagement of people principle is expected to play a role of paramount importance in the introduction of the system. People are the key link between the non-human elements, as they power the product, produce value, and ensure the lasting impression of it. Thus, without the engagement on all parts, quality in its current understanding will not be attained.

Implementation of the System

The systems implementation is expected to be challenging for an aspiring leader who may experience a lack of confidence on behalf of the team. Figure 2 shows the basic implementation process proposed by ASQ (n.d.). It provides guidelines for the key steps that being with formulating the company quality system to be introduced. The design is to have the ISO 9001 system at its core, and each principle will inform the specific policies depending on the companys operational environment. However, this scheme cannot be used in isolation, as it does not address the necessity of engaging the people who drive the change.

Therefore, Kotters change model is to be used simultaneously with the general implementation plan (Table 1). With the generally hesitant team, it is especially important to create a sense of urgency that is genuinely shared by the team (Kotter Inc., n.d.). This can be done through identifying an action group of the most loyal followers who will be more likely to become the role models to inspire the most hesitant members of the team. Through the volunteer armys contribution, the design of the quality model will take its final form in light of all perspectives. The participation of this group will be needed from step one (design) until the pilot system is deployed. Next, upon experiencing the first positive outcomes of the initiatives, the level of support will grow, inspiring other members of the team. This will be the short-term win generation, formulated in Kotters framework. Upon this foundation, the progress will be sustained, bringing the team closer to institutionalizing the change. In this particular case, this outcome will consist of fully implementing the quality management system.

Table 1. Company Policy System Implementation Plan

Recommendations

Overall, the situation requires a stronger emphasis on the engagement of people in the process of implementing the company quality system. Furthermore, it is related not only to the customers or stakeholders of the organization but also to the team itself. For an aspiring leader, the doubts of their followers may become a serious barrier on the path of change. Thus, it is imperative to eliminate the concerns by proving that the chosen policy is optimal. For this purpose, Kotters change model appears to be a viable choice. It will be implemented along with the general implementation plan for the quality management system. More specifically, it can be presented as a timeline with two parallel, yet interrelated processes that will eventually lead to the ultimately positive outcome.

References

ASQ. (n.d.). What is a quality management system (QMS)? Web.

Kotter Inc. (n.d.). The 8-step process for leading change. Web.

Would firms increase their revenue if they were to lower hearing aid prices? Evaluate the situation by doing a critical analysis?

When the price of a product increases tremendously the demand for that particular product tremendously decreases. The given situation is that the firm wants to maximize its profit by lowering the price for the product. The concept of the profit has been augmented to take into description ambiguity faced by the firm and the value of the money as the time passes. Profit maximization is the subject matter to a range of restriction confronted by them. This is mainly related to resource scarcity, the changes in technology, the legal restrictions, contractual obligations and the changing rules and regulations. All these factors play a significant role in defining the profit maximization objective of the concern. A contemporary firm is commonly controlled as a conglomerate in which shareholders are the authorized possessor of the firm, and act as on behalf of their managers. Under the present competitive world, the managers in the organization are forced take crucial decisions against the upcoming challenges. The growth maximization strategy has a strong impact on the overall development of the concern and it acts as a guiding principle for the maximization goal of the organization. In an organization there will be a number of goals and it is the responsibility of the managers to link al the goals in an organization and bring them all together to achieve the predetermined goals and objectives of the organization. The profit is composed of many costs that are involved in the over all functioning of the organization. when the prices of the hearing aids reduce, ultimately the demand for the product increase and thus this will enable the firm to generate more revenue and this will enable the firm to increase the profit.

Evaluate different possible strategies that companies could implement to gain a sound position among their competitors in this hearing aids market. Use relevant theoretical concepts discussed in chapters:

It would not be wrong to suggest that perhaps, the hearing aids market in the United States is of the oligopolistic type, since it manifests certain characteristics that are typical of oligopolistic businesses. For one thing, these markets consist of relatively large firms whose influence is determined by in differentiating their products from their competitors through product innovation, use of advanced technology or some other special benefits, which may also perhaps carry a higher price tag for the ultimate user of such sophisticated and hazard free hearing aids, adding to sophistication, comfort, convenience and aesthetic appeal. The competitive elements in business makes it intrinsic to become market sensitive and to monitor the activities of competitors very closely and guardedly. Pricing is also a major deterrent, and as explained, may be one of the main reasons for circumspection and non-committal attitude on the part of buyers to invest around $2000 to $4000 on them, without Medicare or governmental aid of any kind. In other words, in the absence of government aid, hearing impaired adults and children would need to source hearing aids from their own private sources. The main strategic aspects that need to be considered are whether the competition in the market could be in terms of product differentiation, or cost leadership. Product differentiation would mean providing select brands and charging higher prices, due to superior quality and performance of such products. Again, in an oligopolistic setup, cost leadership would mean that this company sets the price for products which are carried on by the others as followers. Thus, the company has to decide whether it wishes to be in the role of a product differentiator or a cost leadership status.

What economic conditions are relevant in managerial decision-making and how are they related with the typical types of risk faced by a firm?

The decisions made by the managers are critical to the victory or collapse of a business. As the complexity in the business world grows, the effort that has to be taken by the managers is also growing. The business judgments are progressively more reliant on constriction forced from outside the economy in which a particular business is supported both in terms of manufacturing of commodities as well as the markets for the commodities produced. The swift technological change, modernization in product and processes, contemporary marketing and sales technique occupies a major position towards increase in the complexity of the business environment. The globalization in the market consign has amplified the precariousness in both put in and product prices. The incessant changes in the economic and business atmosphere, craft it as ever more complex to exactly evaluate the effect of business decisions.

The managerial decisions are taken to solve certain issues such as decisions related to pricing of the product, the quantity of the products to be produced, deciding whether to make or buy, deciding upon the production techniques to be used, deciding the inventory level to be maintained in the organization, deciding the advertising media and campaign, decisions related to making employment and training and finally on the investment and financing the investments. (Sahu, 2010, para.4).

Critically analyze the importance of the factors that managers must consider in forecasting? Elaborate with examples on the prerequisites of a good forecast?

Forecasting involves making estimates of the future requirements of the firm. This could be in terms of sales forecasts and projection of estimated expenses for the future. The importance of forecasting could be gleaned from the fact that it offers a roadmap and direction for future course of actions. Forecasts need to be compared with actual performance and their variance determined and honestly analyzed. The importance of the factors that managers must consider in forecasting is as follows:

1. Forecasts needs to be based on realistic and practical aspects of business.
2. Forecasts need to be based on data that are itself above doubt and reservation.
3. Forecasts, though based on past estimates, need to reflect current and future impact on businesses. There is no point in making forecasts based on obsolete data, when business conditions have changed, or when the product lines for which data has been sought has been scrapped, or discontinued. Moreover, there are many aspects in business that are constantly evolving, or changing, like Research and Development (R&D), sales linked incentives and bonuses, etc. Since turnover itself is now subject to several fluctuations over time, it is necessary that accurate forecasting, taking into account the margin of error need to be made. To prepare our first pass forecast we determine how each asset, liability, and expense should behave as sales change. Sometimes the changes in the assets, liabilities, and expenses occur on their own& Whether the changes occur on their own or whether we must force the change, before forecasting we must determine these relations (Dave, 2010, para.5).

Reference

Dave, N.W. (2010). Financial forecasting and management decision: Excerpts. AICPA. Web.

Sahu, P.A. (2010). Managerial economics. Encyclopedia of business, 2^nd Ed. Reference for Business. Web.

Introduction

BRL Hardy is a merger of two wine companies BRL and Hardy that was established in the year 1992. Operating within the wine industry and setting high goals can be challenging for every organization, and BRL Hardy faced specific issues in terms of creating a global wine brand. Globalizing the company is the primary goal of BRLH, which requires the implementation of new strategies. The purpose of this paper is to conduct a careful analysis of the companys three strategic options and to make recommendations for them.

DIstinto

Christopher Carson, as a managing director BRL Hardy Europe, has suggested a new wine line that can open new horizons for the business. Distinto is a wine brand that is created in collaboration with a Sicilian winery. This new line emphasizes the Mediterranean lifestyle, focusing on warm atmosphere, on delicious foods, and on creating a cozy environment. The major goal of BRL Hardy is to create a global brand, and Carson believed that Distinto could help to build BRLH Europe in size, impact, and reputation.

The description of this new line fits within the objective of the company in terms of quality and price combination, brand image, and desired experience to be delivered to the consumers. The price range for Distinto is from £3.49 to £5.99 per bottle, which positions the brand within the affordable pricing strategy that is important to create a globally recognized image (Bartlett). Consequently, Distinto brand fits the goal of globalization with its price and image.

DIstinto line offers various wines at different prices within a narrow range, which sort of creates a significant scope of the implementation of this product. However, the concerns for the management of BRLH about this specific wine line are based on the previous experiences of working with Chilean wineries. Partnerships with outsourced suppliers have not justified itself for the company in the case of Mapocho, where the sales havent reached even one-third of the estimated amount. Collaborating with Sicilian wineries implies extra costs for the company, while the price for Distinto bottles stays at an affordable level (Bartlett). Therefore, this kind of strategy might create too many unexpected challenges for the company on the functional and financial levels and might not have the desired outcome.

The positioning of Distinto brand is unique, which creates a good potential competitive advantage for this product line. Carson emphasized strong marketing strategies for these wines, like sticking a booklet to each bottle, which created the sale of the experience along with the high-quality product. Alongside with attractive and distinct image of the brand, there is an issue of its acceptance by the leaders of the company.

Though Distinto offers something unique, the management team that consists mostly from BRL employees, rather than Hardy, highly focuses on the numbers (Bartlett). In other words, the uniqueness of Distinto experience proposed by Carson might not be valued that much as the potential sales that the desired global brand needs to generate. Thus, collaboration with Sicilian wineries and creating a product that doesnt cover the scope of a big target market is risky for BRLH.

Kellys Revenge

Paul Browne, an Australian marketing manager, came to work with Carson and proposed his strategic option that can lift BRLH to the creation of the global brand. His suggestion was Kellys Revenge, an entry-level Australian wine that targets a younger audience, maybe those who are just starting their journey of wine drinking culture. The uniqueness of this wine line comes from its name because it is called after an essential figure in the Australian wine industry history (Bartlett). Thus, Kellys Revenge was a good alternative to pursue the further development of the company.

The price for Kellys Revenge brand was established to be £3.99 with a chance to be promoted at £3.49, which fits the goal of making the brand globalized because of its affordability. Colorful label, affordable price, catching history of the name  all of those are the right signs for the desired scope of operations and the competitive advantage. However, this idea did not gain the CEO support, who immediately expressed negative feedback about this line (Bartlett). Kellys Revenge has good potential in becoming world-famous, but it also has a chance of becoming a mass-market wine with no distinct features.

In financial terms, this new line can generate good sales and high revenues. In terms of functionality, purchasing, and accessibility, Kellys Revenge is a good alternative because it does not require collaborations with unknown suppliers. Paul Browne believed that this brand brings new opportunities to the company, introducing something fun and original (Bartlett). Though BRLH wants to create a global brand and generate high sales, it is crucial to remember the established image of the company, which might be changed with an implementation of the brand like KR. Therefore, besides a good fit for the globalization of the brand, Kellys Revenge creates potential challenges and risks and might not justify the expectations.

Banrock Station

The third strategic alternative proposed by BLRH is Banrock Station wines, which represents an entry-level Australian wine that had its success in Australia. The integration of Banrock Station to the European market is highly supported by the leaders of the company, suggesting that it can be a good step towards creating the global brand. An integral feature of this wine line, as it positions itself as an environmentally responsible product. The label on the bottle does not imply anything unique but focuses on simplicity. The suggested price range for BS in the UK is the same as for Kellys Revenge (Bartlett). Banrock Station is a reliable option that has all the chances to enter the market in Europe successfully.

It is important to note that Banrock Station, unlike Distinto and Kellys Revenge, is not a new line, which significantly reduces financial risks of failure. This wine line offers stability and standards to its consumers, based on previous experiences and success.

Affordable price, simple label, focus on the broad audience are the positive sides of BS. However, the European management team did not support the idea of Banrock Station, stating the reasons that it is too dull and that environmental positioning would not work (Bartlett). Still, the possible reason is that there was a high emphasis on KR product line, and accepting another direction would be too complicated.

Banrock Station represents a good competitive advantage due to its positioning, simplicity, and pricing strategy. Earth-tone label and emphasis on the environment, on the contrary, create a perception of good-quality wine. It is a functional line on operational, purchasing, and marketing levels due to the gained experience in Australia. The risks for this product line are lower than for KR and Distinto, which implies a high possible success rate and the possibility of becoming a global brand.

In conclusion, there is a controversy of different management teams that might prevent an objective view on which alternative is the best. Based on the evaluation above, one should note that Banrock Station represents the most favorable alternative for further development and for successfully becoming a global brand. Without any doubt, it is hard to predict the same success that this product had in Australia, but the chances are very high.

Work Cited

Bartlett, Christopher A. BRL Hardy: Globalizing an Australian Wine Company, 2000.

Introduction

The Container Store was established in 1978 by Kip Tindell and Garett Boone. It started its main operation with the ultimate aim of offering a solutions-based approach to retail at its headquarters at Capell, Texas, with 49 locations across the country selling more than 10,000 products. This unique approach made it develop in its initial 1,600 square foot store from a founding $35,000 in 1978 to earning an income of over $800 million as of 2017 (Whittington, 2017). In 2021, 53% of its top administration group was female, and 33% of senior administration was placed as Black, Indigenous, or a Person of Color. The Container Stores fundamental business ideologies of supporting its staff, clients, merchandisers, shareholders, and the general public in a respective and dignified manner gained it lots of accolades (Agan & Starr, 2018). This is a tradition guided by its seven Foundation Principles and results in an atmosphere where the energies of individuals associated with its business are augmented and brimming with possibility

Ethical Culture For The Container Stores Relationship With Its Stakeholders

The Code of Business Conduct and Ethics Policy is the policy of The Container Store Group, Inc. and all of its branches, its board members, officers, and workers. They are bound to adhere to all applicable laws and regulations and act accordingly and ethically on behalf of the company (Huang & Paterson, 2017). None of its workers has the moral authority to breach this code or influence any other individual to breach it. Non-adherence to the applicable laws or the ethical firms standards as outlined in this code could lead to the company and its workers fiduciary fines, civil indictment, legal sanctions, or tarnished company goodwill (Crane et al., 2019). It is the expectation of the company workers to have fair dealings, uphold integrity, good stewards, and be objective in the performance of their roles and responsibilities. All the staff and stakeholders are trusted by The Container Stores to flaunt commitment in all affairs and not to entertain in any unlawful or inappropriate activity.

Conscious Capitalism success of The Container Store

Conscious businesses are directed by servant managers whose major issue is the mutual benefits of each person at work instead of personal gain. The Container Stores embraced conscious capitalism which is a value-based venture utilizing stakeholders theory. FR Oswald AJ Mascarenhas (2018) argued that conscious capitalism is a distinguished way of dealing with the internal capability of the business venture to create an opportunity for the world. This theory holds that enterprises should always create value for stakeholders instead of money for shareholders. For a long period enterprises have benefited from conscious capitalism in several ways, including: improved community participation, heightened stakeholder allegiance, improved workers and customers satisfaction, a working environment between the employers and workers, and also increased nearby communities and its surrounding.

Conclusion

The application of conscious capitalism demonstrated that success in todays firms environment is directly associated with a high ethical, reliable, and inspiring demeanor. Enterprises that satisfy and surpass the stakeholder requirements and considerations in practices that win them over via a moral cycle of favorable exchange, resolve to be the industry to take a leading role in the current times and future. A significant element of a conscious capitalist approach is firms that focus on strategic major principles and buy-in. Firms should therefore commit themselves to ensure a working environment for their workers by investing more in empowerment and commensurate compensations of their staff, promoting fair dealings in all its endeavors, and prompt payment to all its suppliers.

References

Agan, A., & Starr, S. (2018). Ban the box, criminal records, and racial discrimination: A field experiment. The Quarterly Journal of Economics, 133(1), 191-235. Web.

Crane, A., Matten, D., Glozer, S., & Spence, L. (2019). Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.

FR Oswald AJ Mascarenhas, S. J. (2018). The success of free enterprise capitalist system when designed and deployed rightly. In Corporate Ethics for Turbulent Markets. Emerald Publishing Limited.

Huang, L., & Paterson, T. A. (2017). Group ethical voice: Influence of ethical leadership and impact on ethical performance. Journal of Management, 43(4), 1157-1184. Web.

Whittington, J. L. (2017). Creating a positive organization through servant leadership. In Servant leadership and followership (pp. 51-79). Palgrave Macmillan.

The Issue

The critical issue facing Jimenez in trying to transport the solution which worked at the Wichita site to the Lubbock site is that the Lubbock plant is missing the charismatic leadership of a veteran like David Keller. Keller is an exceptional leader who is quick to seize an opportunity when he sees it. Besides, he had also previously worked at Wichita for eight years and people probably still recognized him. At the Wichita site, he was obviously making all the decisions and hence there was no ambiguity (Rogers & Blenko, 2007). Since the workers trusted Keller, it was easier for them to suggest changes for the benefit of the site. Kellers absence at Lubbock made that all-important difference between the success and failure of the strategy.

In attempting to transfer the model to Lubbock, Jimenez is trying to take on the leadership role which was taken by Keller at Wichita. However, she does not have the charisma of Keller and workers probably think of her in the same way as they think of engineers: she knows how to mine only on a computer screen. Her various attempts to get the workers to participate in the problem-solving process are not working because the workers are seeing it as a distraction that is preventing them from doing the real work (Zaleznik, 1997). As far as the workers are concerned, their job is to mine and not sit in some conference room discussing the mining process on paper. And when Jimenez tried to force the Wichita methodology at Lubbock she is seen as taking undue advantage of her authority. In short, everything that worked at Wichita is failing at Lubbock because of lack of inspirational leadership.

The Response

Although the problems at the two sites were similar, the same strategy is not working in both the places because the strategy involves human participation. Humans are complex beings and it is difficult to say how they would react in a particular situation. Same person may react differently to the same problem at different times depending on a number of personal and professional reasons. So while strategy used at Wichita was a good one, it needs to be tweaked to adjust to the realities of Lubbock site.

The success of the strategy at the Wichita site proves that the people are at the heart of the problem and they alone can solve it (Heifetz, 2006). Just as at Wichita, at Lubbock too, the main problem is that the workers do not get along with the managers. However, unlike at Wichita, at Lubbock the workers are unwilling to cross the mental barrier and work cooperatively in an attempt to find the solution. The one person who could change this is Keller, but he is unavailable. Under the circumstances, Jimenez needs to change her strategy and instead of trying to bring the workers to attend the monthly problem chat, she could accompany the managers on a weekly tour of the site, trying to find out what the problems are. The workers are more likely to co-operate when they see the managers alongside, getting down and dirty. Also, since they would not be required to leave their work while offering their suggestions, they would not feel that they are ignoring real work at the managements whim. Once the management has thus isolated and fixed a couple of problems, they are likely to get more respect and trust from the workers, who are then likely to be more forthcoming with their problems.

Another strategy would be to allow the workers to be more participative in solving the day-to-day problems (Hersey & Blanchard, 1995). Since the workers are doing this work daily, they are closer to the operational issue which prevents better efficiency. As such, instead of the management telling them what to do, the leadership could encourage the workers to solve their own problems, even announcing awards for those who solve a major problem. Such a strategy would make the workers feel more responsible and reduce their antagonistic attitude. Once the workers let their guard down, it will become easier to improve the relationship between the workers and the managers, helping raise their morale and improving the productivity of the site.

Although this strategy could succeed at Lubbock, it is not without its drawbacks. Communication between the management and the workers is the biggest barrier and there is no guarantee that the strategy would be able to overcome this barrier. Also, some of the workers may resent being asked too many questions and feel that managers are interfering in their work. Jimenez will have make sure that when the managers make their rounds of the site, they do not come in the way of the workers and their presence should not in any way threaten the workers.

Annotated Bibliography

Heifetz, Ronald. Anchoring Leadership in the Work of Adaptive Progress. The Leader of the Future 2. Eds. Frances Hesselbein & Marshall Goldsmith. San Francisco: Jossey-Bass, 2006. 73-84.

The writer discusses the role of leadership in handling various challenges when adapting to change. Of the several challenges discussed in the essay, one of the challenges is that the people with problems are the problem, and hence, they are the solution. Since in the present case the workers are unwilling to work towards improving the productivity, they are the problem and hence they alone can solve it.

Heresy, Paul, and Kenneth Blanchard. Situational Leadership. The Leaders Companion. Ed. J. Thomas Wren. New York: The Free Press, 1995. 207-211.

The essay discusses the importance of changing the leadership style as per the situation and the followers readiness to follow. Based on follower readiness, they identify four situations for leader behavior. These are High task-low relationship, high task-high relationship, low task-low relationship and low task-low relationship. The low task-high relationship behavior called Participating should be used when people are competent but have variable commitment. Since in this case, competency of the workers is not an issue, including them in the decision-making process could be beneficial.

Zaleznik, Abraham. Real Work. Harvard Business Review. 1997: 39-51.

In this article, the author suggests that real work is often sidelined because managers pay more attention to psychopolitical rituals such as smoothing conflicts, avoiding aggression and promoting human interaction. In this case, managements insistence on monthly problem chats and invitation to games could be seen by many workers as deviating from real work and could be the cause of the problem.

Rogers, Paul, and Marcia Blenko. Who has D. Harvard Business Review. Boston, Massachusetts: Harvard Business School Publishing Corporation, 2007. 1-24.

The authors discuss the decision-making bottlenecks as a result of ambiguity about who gets to make a decision. They suggest ways to align the decision-making process so that the right people make the right decision and the people who have to live with it are included in the decision-making process. In the present case, the Wichita site was a success because the right person was making the decision and the workers were included in the decision-making process.

Company Background

Diageo (a coined name combining the Latin for day and earth, respectively) is the undisputed global leader in what is styled the premium spirits business (Murray, 2009) in point of gallonage, net sales in pounds, and operating profit. Having originated with J & B blended Scotch in the mid-eighteenth century and grown chiefly through acquisitions of or alliances with, other distilleries since then, Diageo boasts eight of the worlds 20 most popular spirits brands (Ibid.). Johnnie Walker Scotch, José Cuervo tequila, Tanqueray gin, and Smirnoff vodka have pride of place in the company stable of spirits.

Consolidations and mergers in the last century endowed the company with a broad product spectrum that came to include beer and wine as well. It is also one of the few international beverage companies that span the entire alcoholic drinks sector, offering beer, wine, and spirits. In beer and wine, the better-known of these brands are world-beater Guinness Stout, Harp Lager, and chateau or estate wines like Sterling Vineyard and Blossom Hill. Having both the spirits inventory and beer brewing technology also enabled the company to create a new segment, popularly known as alco-pops: single-serve, carbonated beverages rather more potent than beer such as Smirnoff Mule or Smirnoff Ice.

The important blending, brewing and bottling operations of Diageo are the original ones in the domestic market (the U.K. and Ireland), as well as in Italy, Canada, and the US. The firm also has wineries in France, Argentina, and the US. In smaller markets, the company ships out concentrate that is then blended with water and alcohol before being packaged and distributed.

Diageo has no qualms about reaching outside its core business to acquire, for instance, a 34% holding in Moët Hennessy (the spirits and wine subsidiary of LVMH), a stake in the Smirnoff distribution company in Russia, and a 43% interest in Quanxing to take advantage of the massive market in mainland China for baijiu, a rice or sorghum wine.

Industry Position: The Global Beer and Spirits Industry

Competing as the firm does in three market segments, Diageo must reckon with such redoubtable competitors as Beam Global Spirits & Wine, Pernod Ricard, SABMiller (American, European and Asian beer entries), Angostura, Anheuser-Busch, Asahi Breweries of Japan, Asia Pacific Breweries (Malaysia and Singapore), Bacardi, Bavaria S.A., Blavod Extreme Spirits (black vodka), and Cabo Wabo (an American tequila maker).

The league-leading position of Diageo owes as much to strong brands that have earned drinker loyalty for decades and even centuries in the case of Guinness, Johnnie Walker and J & B as to mergers and consolidations. The Diageo of today is the more robust descendant of a 1997 merger between Guinness and GrandMet as both companies sought to combat stagnant liquor sales and ruthless competition. The J & B brand (along with Baileys and Bombay gin) came from a GrandMet acquisition of International Distillers & Vintners in the 1970s.

Environmental Scanning

For the leaders in the alcoholic beverages industry, the competitive arena extends to all industrialised nations and emergent economies as well. Despite the proliferation of homebrews and local favourites among the native populations, branded spirits, beer and wine already account for some 38% of alcohol consumption worldwide (Jernigan, 2008).

That said, the number of truly international brands is not significantly large, bespeaking the numerous consolidations of prior decades into what is now a few large multi-national corporations. In such a context, the three main success factors are distribution, new product development and marketing.

Jernigan (2000) asserts that like many other fast-moving consumer goods  particularly of the impulse-purchase and lifestyle-enhancing type  the character of international beer and spirits is very much the marketing-driven commodity chain. Particularly in respect of penetrating and carving out share in new markets, it does seem that international players exact monopoly rents for equity that consists largely of proprietary drinks recipes and investments in marketing and promotions. Multinational drinks companies have little interest in licensing and marketing local beverages, after all, China being one notable exception for Diageo.

That being so, high-profile advertising and promotions are the norms to foster acceptance of international brands, permeate consumer lifestyles and day-to-day, as well as celebratory, drinking. The alcoholic beverage marketing toolbox is well-known: major-media advertising, creative materials attuned towards camaraderie and festive occasions, sports and entertainment sponsorships, aggressive product placement in both on-premise (pubs, hotels and restaurants) and off-premises (e.g. wine cellars, duty-free stores) retail outlets, and price strategy to address all socio-economic strata.

In 2006, Advertising Age ranked Diageo 82^nd among the Global Top 100, with an outlay of US$ 359 million in measured media (TV, radio, press, out-of-home media, Internet) advertising, down slightly from US$ 370 million the prior year (Wentz, 2007). Diageo allocated more effort to the U.S. market, up the A & P investment there by 10% (for a half share of the company budget for the year) while pouring almost all the balance to Europe (US$ 130 million) and a minimal US$25 million to all Asian markets combined.

That same year, the six beer, wine and liquor companies in the Global 100 spent some US$ 2.05 billion in measured media. Collectively, advertising and promotional effort in the category shrank at a faster rate (9.4%) than did Diageos (down 3% for the year). The other five aggressive advertisers were Anheuser-Busch (US$ 517 million for 2006), LVMH Moet Hennessy Louis Vuitton (US$ 456 million), Heineken ($338 million), SABMiller ($ 321 million), Canadas Molson Coors ($267 million), and chief rival but occasional ally Pernod Ricard ($247 million).

The chief environmental pressures on the beer, wine and spirits industry are political and social. Governments lend an ear to recriminations about adolescent drinking, drunk driving and other violent outcomes of excessive drinking but they are generally loathed to ban alcoholic beverages outright because these are lucrative, evergreen sources of specific, ad valorem and GST revenue.

As to the social repercussions of drinking, countries like the UK, Russia, Australia and the U.S. at least recognise the existence of problem drinking (along with problem gambling and drug addiction) amongst their citizens. Whether or not alcoholic beverage advertising should be banned remains subject to debate, not least due to the efforts of the industrys PR agents. As well, however, there are empirically-minded authors like Fisher(1993) who drew on experience investigating a wide range of issues around alcoholism in the 1970s and early 1980s, as well as conducting commercial tests for large advertisers since 1996, to deny that the extent of alcohol advertising has anything to do with the incidence of abusive consumption. The authors investigation covered a review of the literature on sexual imagery in alcoholic beverage advertising, social-learning theory, econometric studies (see Figure 1 below, by way of example), warning labels, and the effect of advertising on brand shares. Ultimately, the not-unreasonable conclusion is that advertising does help attain better market share but is seemingly impotent when it comes to encouraging minors to begin drinking or motivating adults to drink to excess (Chafetz, 1994).

Bibliography

Chafetz, M. E. (1994) Contributions to the study of mass media and communications: No. 41. New England Journal of Medicine, 330: pp. 724-725.

Diageo (2009) Ordinary share price. [Internet], Diageo and EuroInvestor. Web.

Fisher, J. C. (1993) Advertising, alcohol consumption, and abuse: A worldwide survey. Westport, Conn., Greenwood Press.

Hanson, D. J., Ph.D. (2007) Alcohol advertising. Web.

Jernigan, D. H., Ph.D. (2000) Cultural vessels: Alcohol and the evolution of the marketing-driven commodity chain. Ph. D. thesis, University of California, Berkeley.

Jernigan, D. H. (2008) The global alcohol industry: an overview. Addiction, 104 (s1), pp. 6  12.

Murray, B. (2009) Diageo plc. Dun & Bradstreet/Hoover Company Records. 55181.

Wentz, L. (2007) 21st annual global marketers: Part 1, global ad spending by marketer. Ad Age, 2007.

Introduction

Organizational leadership is the most fundamental factor that influences all aspects of companies. Leadership is a managerial function instrumental in directing resources for organizations to enhance efficiency and accomplishment of set goals and objectives. Therefore, leaders strive to provide their followers with clarity of purpose, guide, and motivate them to realize particular missions. Various leadership theories explain why and how some people become leaders and the approaches they adopt to establish interactions with their juniors. The leader-member exchange (LMX) theory is one of the perspectives that address specific aspects of the leadership process. LMX focuses on the association between leaders and very subordinates in the pursuit of organizational goals. Although leaders provide particular benefits, such as rewards, followers reciprocate through commitment, cooperation, good performance, respect, and others. Organizations managers apply the LMX perspective of leadership to ensure productive interaction with their subordinates. Evaluating the way LMX theory develops and its social-emotional and economic relationship aspects is vital in understanding how it impacts individual and organizational performance.

The LMX theory of leadership is a relationship-based approach to the management of organizations. According to Martin, Thomas, Legood, and Dello Russo (2017), LMX develops through four evolutionary stages that influence the level and quality of leader-member interaction. The first stage of LMX involves vertical dyad linkage and work socialization. The organizations managerial processes transpire on a dyadic basis, where leaders establish segregated interactions with their subordinates. Therefore, the working relations inputs, processes, and output can result in high-quality (in-group) or low-quality (out-group) exchanges (Howell & Wanasika, 2019). While the former is characterized by intensified respect, mutual trust, and obligation, the features are significantly low in the latter. Notably, the limited social resources and time managers have allowed them to develop only a few high-quality exchange interactions.

The second stage of LMX theory is referred to as the leader-member exchange. This phase of LMX development explains the differentiated relationships that develop and their consequences on organizational functioning. Like any other form of interaction between individuals, the LMX relationships growth is impacted by impacted my leaders and members behaviors and characteristics (Martin et al., 2017). For instance, an ambitious leader is more likely to establish a high-quality exchange with creative and conscientious workers. This stage also acknowledges that the rule-making process contributes considerably to LMX development. Additionally, leaders, followers, departments, and companies benefit from high-quality LMX interactions.

The third stage is about leadership-making, which emphasizes going beyond the formation of differentiated working relationships within organizations. The fundamental focus is to produce an effective leadership process by establishing productive associations. The phase adopts a leadership-making model to offer a practically imperative approach to leadership development (Martin et al., 2017). The model accentuates the importance of creating and maintaining high-quality relationships within organizations. The performance of individual followers or members who seize the opportunity of forming a high-quality LMX improves significantly. Such an interaction goes through a stranger, acquaintance, and mature partnership exchange levels.

The last stage of LMX development is about team-making within companies. The phase explains how the differentiated dyadic relations come together to create large network systems. The latter defines the leadership structure or leadership relationship pattern among employees throughout organizations. The mutual dependencies among individuals and the network of relationships that develop as members execute their roles and responsibilities play a significant role in the emergence of the leadership structure (Martin et al., 2017). Therefore, the differentiated connections between leaders and their juniors can impact the parties and the entire organizational leadership structure.

Socioemotional and Economic Relationship Aspects of LMX Theory

The relations formed between leaders and members can be categorized into two: socioemotional and economic relationships. Most people measure the LMX along the high-to-low-quality continuum, capturing only socioemotional potentials. Each level of LMX evaluated reflects the absence of characteristics that are features of the other, overlooking the role of economic qualities in LMX relationships. According to Andersen, Buch, and Kuvaas (2020), the key characteristics that define the socioemotional LMX relationships include high-degree of trust and long-term investment. The former and the latter create diffuse responsibilities, a sense of one individual being cared for by another, and anticipated mutual exchanges. This aspect is about how much every involved party benefits from the interaction.

Trust is one of the most imperative elements that affect relationships between employees and managers and among workers. The leaders do all that they can within their capacity to gain the trust of the workers. They focus on ensuring that their subordinates have adequate confidence in their capability to lead them toward accomplishing personal and organizational goals. Thus, leaders strive to understand and meet the social needs of their followers. For instance, managers provide training, emotional support, and other benefits to employees. As a result, they create mutual trust, respect, and commitment. However, the level of socioemotional LMX interaction varies from one individual to another depending on various factors, such as personal characteristics (Andersen et al., 2020). The relationships that employees have with their leaders involve exchanging multiple types of resources necessary for the achievement of set goals and objectives.

The LMX relationships between supervisors or managers and workers can be defined by workflow and friendship ties, which significantly impact performance. While workflow relations encompass specified interdependencies between employees that are vital to completing tasks, attitude similarity, mutual liking, and personal choice lead to friendship networks within organizations (Regts, Molleman & van de Brake, 2018). The level of LMX relationships influences job performance through resources exchanged between leaders and their followers. Examples of resources that leaders can provide to their followers are training opportunities, incentives, rewards, empowerment, participation in the decision-making process, and social support (Andersen et al., 2020). These resources have a direct positive impact that enhances employees performance since they gain knowledge and become more committed to their work. Andersen et al. (2020) add that workers who perceive strong social exchange feel a more significant obligation to reciprocate the support and benefits through engagement that sometimes exceeds minimum employment requirements. Therefore, a high-quality socioemotional LMX interaction is instrumental in improving individual and organizational performance.

Unlike the socioemotional LMX, economic LMX relationships in organizations are more formal and instrumental. Consequently, there is little interpersonal trust that guarantees future reciprocation of obligations. Andersen et al. (2020) note that workers with strong economic LMX perceptions consider their relationships with their leaders as encompassing a set of tangible and financial obligations in exchange for the execution of duties and responsibilities. This type of interaction between leaders and their subordinates is not long-term and is characterized by minimal involvement. Andersen et al. (2020) add that the economic LMX relationship is consistently related to unfavorable follower outcomes. They note that economic LMX has a moderately negative association with intrinsic motivation, affective commitment, and the need for competence, relatedness, and autonomy. These aspects have an undesirable influence on employees or followers performance. Thus, leaders must pursue both social and economic LMX to ensure enhanced performance at individual, departmental, and organizational levels. The level of LMX relationships affects the way employees, both managers and subordinates, share work-related knowledge.

LMX Influences Knowledge Sharing

The leadership within organizations influences the interaction between management and the workers and among the employees. The relationships are vital since they determine how well people can share knowledge to enhance productivity. Hao, Shi, and Yang (2019) indicate that LMX theory can explain organizational members behavior of sharing knowledge. The different levels of LMX can influence the way employees to share information and knowledge. For instance, if a leader establishes a relationship that focuses on empowering workers, it can effectively facilitate and promote knowledge-sharing behavior. This can happen because the approach has a positive impact on the employees attitude towards sharing information that is instrumental in enhancing ones expertise. As a result, the workers become more committed toward perceived team goals, enhancing individual, departmental, and organizational productivity. Conversely, abusive managers and supervisors contribute to negative relationships, hurting the employees ability and willingness to share knowledge. Therefore, the establishment and maintenance of high-quality LMX or in-group relationships between organizational leaders and employees are important in promoting companies growth.

Although it is evident that high-quality LMX is beneficial at individual and organizational levels, LMX theory does not address the ambiguity related to the nature of relationships. According to Hao et al. (2019), the theory does not explain the in-between psychological processes fundamental to the interactions. For example, psychological processes such as learning, perception, motivation, and emotion can determine the level of association between frontrunners and their followers. Motivated employees who are willing to learn from their leaders are more likely to establish and maintain a high-quality LMX than those who do not. Although high-quality LMX promotes encouraging social context for the workers, diverse individuals can assess the situation differently due to contextual factors and personal characteristics that influence behaviors (Hao et al., 2019). Further, some approaches adopted by leaders to develop and maintain high-quality LMX may not work equally across cultures. For instance, the Chinese culture has workplace guanxi, defining specific duties and expectations and impacting the exchange of information and personal resources (Hao et al., 2019). Thus, personal and cultural factors can determine the level of effects LMX has on knowledge sharing among employees.

Summary and Conclusion

Organizational leadership is a fundamental factor that influences all aspects of companies. Leaders strive to provide their followers with clarity of purpose and guide and motivate them to realize particular missions. LMX theory is one of the perspectives that address specific aspects of the leadership process, focusing on the relationship between leaders and their followers. LMX develops through four evolutionary stages that influence the level and quality of leader-member interaction. The first stage of LMX involves vertical dyad linkage and work socialization. Although the second phase of LMX theory is about leader-member exchange, the third one focuses on leadership-making, emphasizing going beyond the formation of differentiated working relationships within firms. The last stage of LMX development explains team-making within companies. The socio-emotional and economic relationship aspects of LMX influence knowledge sharing among employees and performance. Indeed, LMX theory helps in understanding the interactions that exist between leaders and their followers. Organizational leaders need to capitalize on ensuring high-quality LMX to ensure enhanced productivity and all levels. Therefore, they need to devise strategies to overcome factors, such as attitudes, that may hinder the establishment and maintenance of in-group interactions.

References

Andersen, I., Buch, R., & Kuvaas, B. (2020). A literature review of social and economic leadermember exchange. Frontiers in Psychology, 11(1474), 1-12.

Hao, Q., Shi, Y., & Yang, W. (2019). How leader-member exchange affects knowledge sharing behavior: Understanding the effects of commitment and employee characteristics. Frontiers in Psychology, 10(2768), 1-13.

Howell, J., & Wanasika, I. (2019). Snapshots of great leadership (2nd ed.). New York: Routledge.

Martin, R., Thomas, G., Legood, A., & Dello Russo, S. (2017). Leadermember exchange (LMX) differentiation and work outcomes: Conceptual clarification and critical review. Journal of Organizational Behavior, 39(2), 151-168.

Regts, G., Molleman, E., & van de Brake, H. (2018). The impact of leadermember exchange on follower performance in light of the larger social network. Human Relations, 72(8), 1265-1291.

The public opinion on the dont ask, dont tell policy can be mainly assessed from the position of discrimination. In that regard, taking the US marine as an organization, such policy can be seen as a crisis that changes the original definition of such organization, and thus, require a certain intervention to overcome such crisis. The usage of frame grids as a tool in the case of analyzing the US marine organization might help identify the origins of such crisis as well as the way such crisis might be solved.

The frame for the US marine can be seen as follows:

Reframing the organization into one or more dominant frames will allow identifying the source of the crisis as well as provide means of solving such aspects. The choice of the frames to be political and structural can be seen due to several characteristics of the organization, which include the absence of individual commitment and motivation for success, work from the top-down, the importance of ambiguity and uncertainty.

The use of the structural frame will enable overcoming one of the main problems of the dont ask, dont tell crisis, which is a vague framework that allows homosexuals to serve. In that regard, the policy of dont ask, dont tell is controversial in itself, as it does not provide strict rules to follow, e.g. reporting harassment will lead to that the complainant will get kicked out of the military for being gay (Belkin 105). The political framework will provide a point of view of the organization as clear and consistent (Bolman and Deal). Accordingly, one cause of the crisis in the policy is that it was put in action without sufficient evidence that would justify its purpose, where the only reason for the policy is the unit cohesion rationale, which is the idea that if gays and lesbians revealed their sexual orientation, then units no longer would be able to function (Belkin). Such a problem can be seen in the structural nature of the organization, which implies a blueprint for pattern of expectations and procedures (Bolman and Deal).

Reframing can be used to solve the problem, where a combination of frames will allow overcoming the deficiencies of the policy. For example, taking the political frame in power, will allow the problem to be seen from the perspective of people and resources. The policy at the present time was estimated to put human and financial expenditures on the period through which the policy was in effect, as of 2005 (SCHEPER et al.). The political perspective implies recognizing people and resources, and thus, will force articulating the needs and mobilizing forces to change the policy (Bolman and Deal). The utilization of such frame will allow restructuring the priorities, the differences of the opinions on the issue along with scarce resources lead to a conflict. Thus, negotiating and making alliances can be a suitable solution for the current crisis. One possible example can be seen through making alliances, where the focus will be put on the interests of higher order. In this case, and as it can be seen from the grid, the interests are those of the nation. Accordingly, leadership as well can be reframed toward a political leader, where the crisis implies different powers and interests, where a political leader will help assess their distribution.

Works Cited

Belkin, Aaron. The Pentagons Gay Ban Is Not Based on Military Necessity. Journal of Homosexuality 41.1 (2001). Web.

Bolman, Lee G., and Terrence E. Deal. Reframing Organizations. n.d. The Nellens.

Scheper, Jeanne, et al. The Importance of Objective Analysis on Gays in the Military: A Response to Elaine Donnellys Constructing the Co-Ed Military. Duke Journal of Gender Law & Policy 15 (2008): 419-48. Print.