Summury Essay Example

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SUMMARY – Global Leadership

The global leadership issues in the case

Leadership in an organization is one of the key determinants of success in business operations. Leadership involves getting things right ranging from making objective decisions to developing the right strategies for motivating employees. Sony is one of the companies that faced a number of governance challenges and had to make a turn around in order to help salvage the company and its reputation. Previously, before the appointment of a new CEO Mr Howard Stringer, Sony’s performance was wanting. Sony’s strategies had been poorly formulated and lacked proper implementation. The poorly developed strategies saw the company miss the flat screen television opportunity. Additionally, the company registered poor sales revenue hampering on its profitability. In a bid therefore to make a turn around, the company decided to appoint a new foreign CEO. The CEO was to safe the company from the downfall that lay in wait, especially due to the poor performances registered in the electronics and human resource sections.

Leadership demonstrated in the company

In a bid therefore to help the company get to its world class position, the newly appointed CEO had to develop new strategies. Sony’s recurrent expenditure was very high and the first move Mr Stringer had to take was to reduce the cost of production. The company CEO had to lay off extra employees in order to bring down the recurrent expenditure cost. The CEO also realized that the employees were very demotivated and needed to be motivated in order to improve on their performance and consequently contribute to the company’s success.

Leadership theories that are relevant to the case

It is evident that before the appointment of Mr Stringer, the company was performing poorly in the market courtesy of the management then who were comfortable with how the company was performing. As it would be, they were contended with the status quo. This kind of leadership is in line with the transactional theory of leadership which stipulates that those in leadership are not interested bringing about any new change. However, Mr Stringer realized that for Sony to reclaim its rightful market position, he had to introduce new ideas and consequently bring about change. Mr Stringer was a transformational leader, who believed in the benefits change would bring about. Mr Stringer, being a transformational leader brought about change in Sony in various respects ranging from motivation of employee to development of cost cutting strategies. Mr Stringer realized that in order to achieve organizational success; employees’ objectives had to be in line with the overall organization objectives.

Discussion on impact of macro-economic theories and Team’s recommendations on Leadership

Leadership entails development of conflict resolution techniques and enhancement of teamwork. Part of Sony’s poor performance was due to poor leadership that failed to unite employees as one and make them work towards a common goal. In fact, due to poor leadership and team management skills, Mr Stinger received a lot of resistance from part of the management who were comfortable with the status quo and opposed new developments. Transformational leaders’ make concrete decisions that motivate their team members from all respects. This leads to improved standards of living for the team members who in turn are able to manage their lives in accordance with the macro-economic theorists.