The paper “ WRSX - Strategic Choices for Growth and Creation of Shareholder Value” is an affecting variant of case study on management. The way of doing business has recently changed, more so due to recurrent recessions. In addition to that, competition in both local and international markets has remarkably increased rendering traditional ways of doing business totally invalid. Stakeholders are now regarded as the lifeblood of an organization as the company’ s survival is directly dependent on them. As such, companies are beginning to refocus on growth as well as creating value for their stakeholders.
Delivering profitable growth and creating value for stakeholders is, however, a major challenge for many companies in the current volatile world of business. Customer behavior and needs have changed substantially; they are looking for more distinctive, tailored products and services, are more interested in value-oriented offers and they have become more price sensitive. Even so, companies have a range of strategic choices to choose from in order to maintain their competitive edge. WRSX will apply the strategies discussed below to ensure sustainable profitable growth and creation of maximum value for its stakeholders. Leadership strategyStrong leaders are becoming increasingly important with the increasing volatility and uncertainty in the world as well as the need to make difficult decisions.
To ensure rapid response to changing competitive circumstances and customer needs, managers need to empower front line employees by making them critical decision-makers so that they can be held accountable for results. In more robust definitions, leadership includes both formal and informal leaders. Practical leadership across organizations rarely occurs in the tidy and neat as presented in the organizational chart. Collaboration, influence, and communication occur across, up and down the organization as though the organizational chart did not exist.
Bleak and Fulmer (p. 307) state that having an organizational chart where all leadership positions are filled is not the surest way to become successful. What matters is the way people relate with each other within the organizational structure. A comprehensive leadership strategy states clearly what kind of leaders are required, behaving with what fashion, with what skills and how many leaders are required to spur the company to success. Essentially, WRSX should apply a leadership strategy based on a thorough analysis of the prevailing situation and informed insight into the future of the company.
The strategy will, therefore, attempt to reconcile the gap between the desired future and current situation. Strategic leadership basically entails managing strategy-making procedures in order to increase the performance of the company hence increase the value of the company owners or shareholders. Leaders are the lynchpin in these processes as they are responsible for the formulation of strategies to drive good performance. Wal-Mart is a compelling example of the important role played by managers in ensuring success.
Sam Walton and his managers were solely responsible for choosing strategies that made Wal-Mart so successful. By way of thorough recruitment procedures, WRSX should ensure it has selected all its managers including the corporate level, business level and functional level who uphold a high degree of all the characteristics of strategic leaders: emotional intelligence, astute use of power, ability to empower and delegate, informed, committed, articulate business models, consistent, eloquent and visionary.