Things That Contributed to Dick Smiths Business Success - Case Study Example

Dick Smith Case Study Analysis Student’s Name Institutional Affiliation Course Name Date of Submission Dick Smith Case Study Analysis Good leadership qualities and hard work are critical for the success of an individual (Bass and Avolio 1990, p. 12). This is demonstrated through Dick Smith, who despite being hopeless after dropping out of university surprised many including his parents who thought he was destined to failure by becoming a successful businessman and a good leader. Currently, Smith is among the most successful businesspersons and adventurer in Australia. The aim of this document is threefold: first, the document will analyze the things that might have contributed to Dick Smith’s success. It will proceed to highlight the qualities that contributed to Smith’s charisma. Lastly, the docum4ent will analyze whether or not Smith is a transformational leader. Things That Contributed to Dick Smith’s Business Success Starting and running a successful business is a challenging undertaking to most entrepreneurs. However, Dick Smith is amongst the entrepreneurs that have managed to start and run very successful businesses among them being Dick Smith Foods and Dick Smith Electronics. Smith’s business success came as a surprise to many including his parents who thought that he was destined to failure in life after dropping out of the university. However, from the case analysis, there are a number of things that Smith did right that ensured his business success. Firstly, Smith’s business success might have been contributed by Smith’s hard work and dedication. Bass and Bass (2009, p. 21) argue that hard work and dedication is very critical to business success. Therefore, despite dropping out of the university and not acquiring a degree, Smith was able to become a successful businessman because of hard work and dedication to his businesses. Secondly, Smith’s business success might have been contributed by the fact that Smith of a risk taker. Risk taking is one of the qualities that an entrepreneur must possess to become successful. Today’s business environment is full of risks and uncertainties. Therefore, to succeed, an entrepreneur must be one who is not fearful of failure; rather must be one who is willing to take risk by exploring opportunities that other businesspeople are fearful of exploiting. Accordingly, from the case, it becomes clear that Smith’s businesses were successful because he was willing to take risk, a quality that gave him an upper hand over others who are risk averse. As a matter of fact, success does not just come; rather one must pursue it. Thirdly, Smith’s businesses were successful because of effective leadership demonstrated by Dick Smith. Bass and Bass (2009, p. 27) noted that effective leadership is critical for any business success. Effective leadership is important in business success as it ensures the formulation of agreed upon goals, setting strategic directions for a business. Additionally, effective leadership is important for business success since good leaders are able to motivate and rally employees towards the achievement of business goals (Bass and Avolio 1990, p. 42). From the case, it becomes clear that Smith was a good leader. His good leadership was demonstrated by the fact that he was able to connect well with the public and employees, as well as business leaders. Additionally, his good leadership is demonstrated by the fact that Smith is that entrepreneur who sought for advice whenever he deemed necessary. Accordingly, these leadership qualities contributed to the success of his business. Fourthly, Smith’s business success was contributed by good public image. Public image has been cited as one of the most important aspects of business success. In this respect, Wren (2013, p. 31) observed that investors, customers, suppliers, employees, government and the community like associating with businesses that are ethical and have good public image. By contrast, people tend to avoid businesses that have poor public image. However, according to the case, it becomes clear that Dick Smith’s businesses had good public reputation. The case reveals that Smith managed to build a good public image for his businesses by acting ethically and investing in corporate social responsibilities initiatives, which involved giving back to the society by donating to charitable causes. Accordingly, these initiatives helped build a good corporate image for Smith’s business, thereby attracting customers and investors o the business; thus success. Additionally, Smith’s business success came because of effective management styles, which involved keeping overheads low. Bass and Stogdill (1990, p. 68) note that most businesses fail because of the inability of the managers to control costs. However, according to the case, it emerges that Smith was able to keep the business overheads low through cost control. Keeping the cost low translated to increased profitability and business success. Lastly, Smith’s businesses were successful because Smith understood the needs of Australian consumers and came up with products that meet the needs of Australian consumers both in the food and electronics industry. Attributes that Contributed to Smith’s Charisma Charismatic leadership has been cited as one of the most effective leadership styles. Bell (2013, p. 66) defines charismatic leadership as a leadership style that involves creating a powerful self-image to the extent that people are naturally drawn to the leader. Charismatic leadership is important in managing people since it makes it easy for a leader to motivate and rally people towards the achievement of a common goal (Conger, Kanungo and Menon 2000, p. 747). Such of the most prominent leaders in the word such as Martin Luther King Jr., Winston Churchill, Nelson Mandela, Steve Jobs and Gandhi were charismatic leaders. These qualities not only enabled these leaders to lead, but also to inspire many people who looked after them for guidance. Charismatic leaders have certain qualities that make them good leaders and a source of inspiration to others. Firstly, Bell (2013, p. 67) noted that charismatic leaders are good communicators. This implies that they are eloquent and are able to communicate to their followers in an emotional and deep level. Additionally, charismatic leaders are able to articulate vision and trigger strong emotion in their followers. Accordingly, these qualities make it easy for charismatic leaders to lead and inspire their followers. According to this case, there are certain attributes that contribute to Smith’s charisma. Firstly, Smith’s charisma was contributed by his ability to speak eloquently and in an emotive level. The case clearly states that Smith was a good communicator whose speech was highly emotive. Accordingly, this helped him arouse emotions in people, whenever he spoke. Secondly, Smith’s charisma was contributed by self-confidence. Like Martin Luther King Jr., Winston Churchill and Gandhi, Smith demonstrated self-confidence in his leadership an attribute that made his followers trust whatever he said. Additionally, Smith’s charisma was contributed by his ability to articulate vision. According to the case, Smith was that leader who was able to articulate and link his vision with the values that the majority of the Aussies stand for, thereby enabling his to enjoy huge following and admiration. Analysis of Whether Or Not Smith Is a Transformational Leader Transformational leadership is one of the most inspirational leadership styles. The leadership style involve the leaders and followers working together to achieve high levels of motivation and morality. Transformational leaders involve rallying followers to bring needed changes in an organization (Bass and Riggio, 2006, p. 241). Transformational leaders, however, poses certain qualities and attributes. These include emotional intelligence, self-awareness, very empathetic, authentic, humble and of high integrity. Additionally, transformational leaders are able to set clear goals, have high expectations, motivate others, recognize and support others, encourage people to work pursue organizational goals than self-interest and are able to stir emotions in followers (Avolio and Yammarino 2013, p. 102). Based on the attributes of a transformational leader described above, it becomes clear that Smith is indeed a transformational leader. The case shows that Smith is a leader who is able to stir emotions in his followers, an attribute that makes him not just a charismatic leader, but also a transformative leader. He acted as a source of motivation to the people and is able to rally his employees towards the achievement of the vision he has for his business and Australia at large. As a matter of fact, Smith is a humble leader who acts with integrity and honesty, ready to face challenges by taking risk to ensure success. As such, as much as Smith was more of a charismatic leader, his attributes and leadership styles show that he was also a transformational leader. Conclusion Dick Smith is a classical example of an entrepreneur that has proved that an individual can succeed in business without necessarily having a degree level of education. Most people believe that succeeding in business requires a degree level of education. However, this has proved not to be the case as after dropping out of university, his parents lost hope in him as they thought he was destined to failure in life. Nevertheless, through hard work, dedication and effective leadership, Smith beat all odds to become a successful businessman in Australia. According to the case, it becomes clear that Smith’s success was also attributed to his charisma. As a charismatic leader, he was able to motivate, inspire and rally his followers towards the achievement of his business goals. His charisma not only made him succeed in business, but also made him among the most admired leaders in Australia. Apart from being a charismatic leader, Smith also demonstrated that he was a transformational leader. His transformational style of leadership was demonstrated by his ability to motivate, bring about change and rally his followers towards ensuring success. Therefore, from the case, it emerges that charisma and transnational leadership styles are critical for business success. References Avolio, B. J., & Yammarino, F. J 2013, Transformational and charismatic leadership: The road ahead. Emerald Group Publishing, New York, NY. Bass, B. M., & Avolio, B. J 1990, Transformational leadership development: Manual for the multifactor leadership questionnaire. Consulting Psychologists Press, London. Bass, B. M., & Bass, R 2009, The Bass handbook of leadership: Theory, research, and managerial applications. Simon and Schuster, Oxford, NY. Bass, B. M., Riggio, R. E 2006, Transformational leadership. Psychology press, Hoboken, NJ. Bass, B. M., & Stogdill, R. M 1990, Bass & Stogdill's handbook of leadership: theory, research, and managerial applications. Simon and Schuster, Sidney, Australia. Bell, R. M 2013, “Charismatic leadership case study with Ronald Reagan as Exemplar,” Emerging Leadership Journeys, vol. 6, no. 1, pp. 66-74. Conger, J. A., Kanungo, R. N., & Menon, S. T 2000, “Charismatic leadership and follower effects,” Journal of Organizational Behavior, vol. 7, pp. 747. Doi:10.2307/3100311 Wren, J. T 2013, The Leader's Companion: Insights on Leadership Through the Ages. Simon and Schuster, London. Read More