The Influence of Leadership on Market Performance - Bounce Foods Company - Case Study Example

Leadership Styles - The Influence of Leadership on Market Performance Name: Student Number: Institution Affiliation: Date: In the Twenty-First Century, most companies are international entities, and those that are not are considering going global. It is one of the ways that an organization can capitalize on large consumer markets and resource availability, especially with the growth of globalization. This paper will compare and contrast two Australian companies, focusing on their global reach, so it can determine how leadership influences a firm’s performance in the market. From the 2014 BRW Fast 100 Companies list, I chose Schnitz (position 5) and Bounce Foods (position 45), companies in the Accommodation and Food Services industry. Schnitz registered as a corporation in 2009, its current CEO is Andrew Dyduk, turnover is 41,736,410, and growth rate is 195%. Bounce Foods registered in 2004, its current CEOs are Andy and Paula Hannagan, turnover, 6,688,673 and growth rate is 73%. This essay will utilize information on efficient and ineffective management in organizations so it can give more meaning to the leadership context. There are many theories of leadership available today, and they will help elaborate further on the usefulness of one management technique over another. Leadership is a broad phenomenon, and since there are numerous materials available on the same, this paper will concentrate on the global executive. First, the paper will explain how similar the chosen companies are, and what common trait makes them successful. It will then look into the differences these organizations have, as it tries to point out the various leadership practices and their outcome on employees, clients, suppliers, and the world as a whole. Schnitz started in 2007 after Roman Dyduk, its founder opened the first restaurant. Dyduk was Polish-born and a schnitzel expert who was famous in several restaurants for his unique schnitzel, but he created Schnitz with a different idea in mind (Schnitz story, 2015). He planned to perfect his schnitzel-making skills with the help of Andrew and Tom, his sons. Their primary goal over the years is that they perfect the schnitzel instead of majoring in the production of the snack. Today, Schnitz boasts of more than 40 restaurants all over Australia, and an ever-growing fame for schnitzels around the world. Tom and Andrew already registered the Schnitz brand in 60 countries worldwide, employing many people in the process (James, 2015). The restaurants uphold traditional techniques of making schnitzels, as they embrace modern cooking methods. Andy Hannagan and his wife Paula started Bounce Foods in 2004, and their company has approximately 50 employees (Bounce, 2015). Bounce Foods operates both internationally and locally maximizing on nutrition since Andy realized that they could not sell without ensuring they deliver on taste, health and quality. They make energy “Bounce Balls”, like the Coconut Ball, the Strawberry Vitality Burst, the Apple Cinnamon Protein Punch, and the Cacao Orange Protein Burst (Bounce energy balls, 2015). They strictly use natural ingredients to ensure nourishment, satisfaction, and sustenance of energy. The food outlet centers on healthy lifestyles through nutritious snacks and their operations spread to Scandinavia, UK, The United States, Canada and Ireland. The first strategy that both the Dyduks and the Hannagans use is developing their customer base by listening to consumer demands and finding ways to fulfill them. They recognize that today’s customers are health conscious, spend money more carefully, have more information, and are very aggressive when demanding quality foods. Both families, therefore, use different approaches to penetrate this evolving market. Andy and Paula are fitness oriented, so they developed protein-based snack balls that people can carry with them anywhere they go no matter how busy their schedules (Bounce, 2015). They deliver on both nutrition and convenience, which put them ahead other snack manufacturers. Roman and his sons are traditional but do not take for granted the fact that they live in a modern and ever-changing world. With their Schnitzel brand, they give consumers the treasured delight of long-preserved perfection in a way that incorporates modern technology. Schein (2010) observes that through the years, groups change their culture and norms, so he advises that business leaders should keep vigil to note them and adapt to them quickly. Another good tactic is branding products. Aaker & Joachimsthaler (2012), advocate for proper brand management whenever a firm wants to go global. They support this by observing through study that most consumers identify with brands, and they are more loyal to well-known organizations than to upcoming ones. Customers believe that famous companies like McDonalds and Burger King do things differently, and that is why such outlets get many customers eating from their food channels. However, Burger King faced numerous problems expanding into Australia because it had not invested in trademarks there (James, 2015). In the end, it had to rebrand to Hungry Jacks for the name to register in the new country. Andrew Dyduk learned from this experience and invested more than $250,000 into creating trademarks in 30 countries before Schnitz began to expand (Hurley, 2014). The Hannagans, on the other hand, extended their reach into countries in Europe and nearby Asia to impart their “healthy lifestyle” strategies on people outside Australia (Bounce, 2015). From the way that Andy and Paula describe their passion for the Bounce business on their websites and in interviews, they fit into the trait theory of leadership. Mendenhall and Osland (2012) define traits as the personality characteristics that are critical to a person emerging as a leader or failing in the task. Characterizing the Hannagans regarding this definition, it shows that they have a strong drive to accomplish their business responsibilities, they are persistent, original in coming up with solutions, and confident. In addition to having positive personalities, the Hannagans lead through collaborative and decentralized decision-making. George (2012) observes through his work that this strategy has become an essential tool for companies to adapt to new cultures. The Hannagans use this tool by frequently consulting with their employees when handling a problem, so they can collectively form solutions or innovate. The third strategy that the CEOs of both businesses use well is product differentiation. Andrew Dyduk noticed that in Australia and many other countries, schnitzels were not fresh products. The meat used to make them was either cheap or parched due to staying frozen for long (Hurley, 2014). The family came in to change that by ensuring they give the best quality food made with fresh meat and vegetables. The schnitzels are hand-made, cut with knives and pan-fried to make them unique (Schnitz story, 2015). When the Hannagans started their business; they opted to stay away from unhealthy products, artificial flavors and genetically modified food ingredients for their health snacks (Bounce, 2015). Their nutritious balls are singular because they offer more protein than carbohydrates and sugar since the latter gives quick amounts of energy but lasts for shorter durations. Holcombe (2009), states that organizations differentiate their products to make them stand out, and appeal more to consumers. He calls it the “engine of economic progress” because customers will always prefer superiority to variety. Both Bounce Foods and Schnitzel companies concentrate their efforts on food products that are readily acceptable in countries beyond Australasia. As Roman worked on commercializing his specialty in schnitzels, the study done by his sons exposed them to the fact that there is a variety of meat products in other countries. They readily associate with schnitzels in one way or another, a fact that led Andrew to know he had to secure their brand name in those states ahead of their expansion (Hurley, 2014). The familiarity of the existence of such a product, even though it is in a different form, gives the Dyduks an easy time introducing schnitzels outside Australia. Another boost is that schnitzels use a variety of meat sources like chicken and veal, so the product works even in countries whose tradition forbids the intake of particular meat. For the Hannagans, the competitive advantage of their energy balls is that they come in different tastes and utilize a broad range of ingredients (Bounce energy balls, 2015). The wide selection reduces chances of failure when meeting the desires of a customer. The difference in the types of leadership that the two families offer their businesses is that the Hannagans provide their clients convenience with their products. The Dyduks uphold tradition in how they make their meals. Even though this has more to do with business marketability than with leadership decisions, it contributes to the growth of the enterprises. Fitness experts all over the world who used Bounce energy balls in the past advise their friends and clients to use them. They truly are healthy and more nutritious than the energy balls found in the market in the past. Customers, who experience the impeccable service that Schnitz restaurants give, come back for more, especially if they are people who value the consistency in food quality. Though the outlook for the two firms differs in what they believe their customers need, the both conform to a tip that George (2012) gives companies willing to go global. He advises that corporations should not judge the cultural differences in people because criticism will cause the business to differ in the way it operates. An additional contrast in the leadership of the companies is that the Schnitz group of restaurants thrives on franchising while Bounce Foods is independent in it operations. The difference is mainly because the CEOs take advantage of the available opportunities available to them. In their different ways, both firms record numerous successes in their efforts. Andy Hannagan notes that as a leader, his role expands as the business grows in operation, calling for an enhancement in skills (Bounce, 2015). He is, therefore, keen to make sure he grows as a business person and an individual. Andrew Dyduk noticed there was an opportunity for expansion when organizations like Retail Zoo offered to buy a share of the company (Hurley, 2014). The franchising concept is new to the family, but currently a significant amount of their income is dependent on the franchised stores. The family did not let the opportunity pass them by, and they are expanding more rapidly than they imagined they would while they started. The Hannagans became successful in their overseas business, but since they introduced Bounce Balls into America, they found the need to handle personally the operations there. They are currently in the process of moving to America so they can tap into the market there. From the analysis above, Schnitz and Bounce Foods executives use the democratic style of leadership in running their businesses since they share responsibility (Schein, 2010, p.121). Though Roman started the company alone, he shared the leadership and decision-making activities with his sons when they volunteered to join him. Today, Andrew runs the business, but his brother’s input is valuable, and their father has a role to play in the making of daily choices (Hurley, 2014). Andy and Paula run the business together, helping one another in balancing their work schedules, personal and family time. Without the cooperation of both parties, neither would achieve much. Both leaders involve their workers in the daily running of the enterprise. To give one-of-a-kind service to their customers, the Dyduks collaborate with their employees. Their goal is to cultivate loyalty, so people love both the food quality and friendly service. They also set long-term expansion goals for all of them to achieve, something that Van Eeden, Cilliers, and Van Deventer (2008) encourage in transformational leadership. A leader is successful in his or her efforts when subordinates support the business vision and direct their efforts toward achieving them. Bjugstad et.al (2006) defines followership as the ability of an individual to follow directives and support a leader’s efforts to build a structured organization. Goleman, Boyatzis and McKee (2013) are of the opinion that a leader has to appeal to the emotional needs of employees. Leaders who care are more effective than dictatorial managers so that employees working in friendly environments are very productive (Mendenhall & Osland, 2012, p.11). A leader focused on positive improvement will innovate, inspire, form long-term objectives and give meaning to them (Bjugstad et.al, 2006, p.304). From this, employees will administrate the necessary controls and create short-term tactics that help them achieve the overall objectives. Product pricing is one critical outcome of leadership decisions. When companies choose to differentiate their products, manufacturing costs rise, leading to higher prices for products (Holcombe, 2009, p.19). This outcome can either attract customers or drive them away. Both Bounce Foods and Schnitz charge relatively high prices for their items, and customers go for them all the time. It could be due to the importance that the companies attached to their products so that consumers feel they can pay anything to get them (Goleman, Boyatzis & McKee, 2013, p.255). Businesses that create such value for what they produce will record higher levels of success than those that use price as the differentiating factor. Aaker and Joachimsthaler (2012) note that a company focused on building their brand name incur extra costs that will inevitably reflect on their prices. However, they assure that powerful brands attract large numbers of customers regardless of the price they charge. To provide leadership that has constructive results, business owners, and managers have to combine strategically various leadership styles with their personal abilities and characteristics. It is important to do so while putting into consideration the outcome of every choice on employees, customers (both existing and potential), and shareholders. Depending on the market and the industry, globalization strategies will differ in their application and effect. Everywhere around us, researchers recognize the most influential leaders in their respective industries, as they try to explain what makes them stand out. Without a doubt, Bounce Foods and Schnitz are making their mark on the Australian market and the rest of the world. They are taking their businesses one step at a time, making the most of the opportunities available to them and staying true to their uniqueness. From their experiences and those of others, they learn from mistakes and improve on weaknesses. That is the reason their performance improves each year. References Aaker, D. A., & Joachimsthaler, E. (2012). Brand Leadership. Simon and Schuster. Pg. 34-51 Bjugstad, K., Thach, E. C., Thompson, K. J., & Morris, A. (2006). A Fresh Look at Followership: A Model for Matching Followership and Leadership Styles. Journal of Behavioral and Applied Management, 7(3), 304. Bounce. (2015). A Window into Bounce. [Online] Bounce Lifestyle. Available from: http://au.bouncelifestyle.com/our-story/ [Accessed: 16th September 2015] Bounce energy balls. (2015). Bounce Balls. [Online]. Available from: https://www.bouncefoods.com/uk/index.php?option=com_content&task=view&id=17&Itemid=78 [Accessed: 16th September 2015] George, B. (2012). New Era for Global Leadership Development. [Online] Bill George. Available from: http://www.billgeorge.org/page/global-leadership-series [Accessed: 16th September 2015] Goleman, D., Boyatzis, R., & McKee, A. (2013). Primal Leadership: Unleashing the Power of Emotional Intelligence. Harvard Business Press. Pg 192-220 pg. 255-256 Holcombe, R. G. (2009). Product Differentiation and Economic Progress. The Quarterly Journal of Austrian Economics, 12(1), p. 17-35. Hurley, B. (2014). Fast 100 2013: 2. Schnitz. [Online] Business Review Weekly (BRW). Available from: http://www.brw.com.au/p/entrepreneurs/fast_schnitz_L9QcXn1OkbPIFpV1pJyAPN [Accessed: 16th September 2015] James, C. (2015). Is Gourmet Schnitzel the Next Big Mac? [Online] Franchise Council of Australia. Available from: http://franchise.org.au/articles/is-gourmet-schnitzel-the-next-big-mac-.html [Accessed: 16th September 2015] Mendenhall, M. E., & Osland, J. (2012). Global leadership: Research, Practice, and Development. Routledge. Schein, E. H. (2010). Organizational Culture and Leadership (Vol. 2). John Wiley and Sons. Pg.199-235 Schnitz story. (2015). Schnitz, Homemade - Pan Cooked. [Online] Available from: http://schnitz.com.au/story/ [Accessed: 16th September 2015] Van Eeden, R., Cilliers, F., & Van Deventer, V. (2008). Leadership Styles and Associated Personality Traits: Support for the Conceptualization of Transactional and Transformational Leadership. South African Journal of Psychology, 38(2), 253-267. Read More