Is Strategic Leadership Necessary to Effectively Manage Global Strategy in Today's Turbulent Business Environment

Topics: Strategic management, Management, Globalization Pages: 7 (2824 words) Published: January 26, 2011
Strategic Management and change:
Critically evaluate whether strategic leadership is necessary to effectively manage global strategy in today’s turbulent business environment In today’s environment, companies need more and more flexibility to success in a rapidly changing world which evolves constantly over the year. It is interesting to speculate if a strategic leader is necessary to lead the company to the success and to well manage the global strategy of the firm. The term of leadership is hard to define and there are over 400 definitions of what it really is. Leadership can be in a poetic way, according to Warren Bennis, “like beauty: it’s hard to define but you know it when you see it”. Or in a more concrete way, we can say that leadership” is a matter of making a difference. It entails changing an organization and making choices among plausible alternatives. It depends on the development of others and mobilizing them to get the job done. “(Useem, 2001). Consequently, strategic leadership is the vision of the leader, the directions chosen by him to lead the company to the success. Strategic Leadership consists also in persuading the members of the organization in order to build an organizational structure whose aim is the strategic productivity. (, 2010). This concept of strategic leadership is more and more important in a context of global strategy. Indeed, nowadays, it is more and more usual to globalize its company in order to gain in productivity and performance. Thus, the global strategy of a company is somehow, a kind of strategic guide to succeed in the globalization process. This is a guide which permits the company to go ahead the barriers to international trade by gaining competitive advantages according to (, 2010). A global strategy must ask itself some questions like what must be the presence on the market in each country? How to build an international global presence? Regarding to these two important aspects of a business, it is interesting to wonder if the strategic leadership is related to the global strategy and more precisely if the strategic leadership is necessary to success in globalizing its company within this turbulent business environment. The strategic leadership may have an impact on the global strategy of a firm; nevertheless, strategic leadership is sometimes subject to some issues which can impair the viability of the company and its potential success. Indeed, the leaders have a lot of pressure, they have to deliver results and manage the personal, which is more and more complicated in a changing world directed by the development of new technologies which implicated more and more reactivity. And sometimes leaders can make mistakes, Gerald Ratner, CEO of Barclays Bank, has said in front of TV cameras and reporters that he didn’t have a credit card because... it’s too expensive! That wasn’t very professional... Thus, the position of the leader is always a kind of a precarious position because he has to make decisions which will determine the success of the company. Charan and Colvin (The quest for quality of work life: a TQM approach) highlight some strategic mistakes that a leader could make, some misjudgements which can lead to issues in term of strategic leadership. The first one may be people related. Indeed people can’t be underestimating, and sometimes it happens, people of an organization are the glue of this one, so it is necessary to understand people skills to have a harmony in the corporation, especially in terms of relationships, according to Bill Donaldson and Tom O’toole (strategic market relationships: from strategy to implementation, 200), “personal contact cannot be underestimated”. So it is crucial to have some strategic leadership to make sure that everybody is held at fair value. Moreover, another difficulty for the leader is to fail putting the right people at the right place, this task requires a analysis of each people in the...
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