ANALYSING THE RELATIONSHIP BETWEEN STRATEGIC MANAGEMENT AND LEADERSHIP The objective of this essay is to analyze the relationship between strategic management and leadership in an organization, to discuss its link as well as the impact and how leadership styles are adapted specifically in H&M (Hennes and Mauritz). 1.1.1 The link between Management and Leadership
Strategic management and good leadership play an important role in meeting the organization’s objective. The management is linked to processes and structures of the organization while the leadership is to the vision and values of the organization. According to Buhler, (2001), leadership is more focused on revitalizing individual’s performance. Management, on the other hand, is more absorbed on checking their performance levels. The keys of any successful organization are the quality of its management and leadership skills. In a fast changing world, organizations are increasingly dependent on good management and leadership style to improve their business which somehow supports organizational productivity. 1.1.2 Strategic Management
As per Parthasarthy, (2007), strategic management is a series of long-term decisions and actions taken by managers in which they select and implement strategies with a purpose of building the firm’s strengths through market positioning and/or accumulation of internal resources that will give the firm an advantage over rivals. This essay is an example of a student's work
This essay has been submitted to us by a student in order to help you with your studies. This is not an example of the work written by our professional essay writers. Essay Writing Service Essay Marking Service Example Essays
Who wrote this essay Become a Freelance Writer Place an Order Strategic management is said to be an area in an organization which deals with the major intended and emergent initiatives taken by managers on behalf of policy makers. It is mostly about the processes. 1.1.3 Leadership
Drucker, (1986), refers leadership as a “lifting of people’s vision to a higher sight, the raising of their performance to a higher standard, the building of their personality beyond its normal limitations.” As per Parthasarthy, (2007), leadership broadly refers to “the ability of managers to conceive an inspiring vision, formulate goals, articulate them, and successfully guide a firm toward the envision future”. 1.2 Case Study ( H&M, Hennes and Mauritz)
H&M is well known as a successful and expansive Swedish fashion group. Today, it operates in 38 countries and has 76,000 employees throughout Europe, North America and Asia. The company offers a range of clothing, cosmetic, footwear and accessories for men, women, children and teenagers as stated in Ideas and Thoughts, (2009). The business runs by strong values as commercial mindset, simplicity, constant improvement, cost consciousness and entrepreneurship. The CEO of H&M is Mr. Stefan Persson (born 4.10.1947), since 1982 Mr. Stefan has been the main shareholder of H&M. In 2010, he is second richest person in Sweden and 13th richest person in the world. In 2009 his son Mr. Karl-Johan Persson took over as president and CEO of H&M. The management strategy is linked with its leader, CEO of H&M. So far the vision of leadership is implemented with certain strategies to increase 10-15% in the number of stores every year, which would be founded internally. The aim is to increase sales in existing stores, while focusing on quality and continued profitability, 1.2.1 The impact of management and leadership styles on strategic decision. The objective of H&M is “fashion and quality at the best price”. As per stated by Ideas and Thoughts, (2009), H&M focuses on three main aspects of business concept which are: Price Control, this means, the company is constraining the number of merchants purchasing in bulk, depending on the massive proficiency in the design, the company is also ensuring to obtain goods the best...
Please join StudyMode to read the full document