The paper "To What Extent Does Leadership Influence the Market Performance of Companies" is a great example of management coursework. In today’ s business environment, many things have changed requiring organizations to develop managers with the right leadership skills to push organizations forward and to improve their market performance. One of the major features of the current global business environment is increased competition from various companies that offer similar products and services. Hence, in order for a company to be successful in this kind of market, it needs leadership that has skills in the area of developing corporate strategies aimed at giving an organization competitive advantage over the other rivals.
It is not possible for a firm to record good performance in the market unless it has the right marketing, production and other related strategies. At the center of corporate strategic planning is leadership, therefore, it is hard to ignore company leadership when looking at the market performance of the company. Therefore, there is a direct relationship between company leadership and its performance in the market (Fiedler, 2000, p. 276). Leadership determines the level of growth of the Fast 100 companies, with those recording the highest and lowest growth attributed to the type of leadership approaches embraced by their leaders.
This paper seeks to look at the ways in which organizational leadership influences its market performance by focusing on how various leaders within the Fast 100 companies listed in the Business Review Weekly magazine’ s 2013, influenced the market performance of their performance by looking the growth their recorded and the nature of leadership within the companies. Leadership Influence on the Market Performance of Companies Leadership is a very vital area in a company, and it plays a key role that influences the company’ s performance in the market.
The skills, values and traits that are acquired by those in the leadership positions in any company will be a very essential factor in the performance of that given company (Fiedler, 2000, p. 194). For instance, the traits of AussieCommerce Group chief executives played an important role in ensuring that the company recorded the highest growth in the Australian market in 2013. The company leadership embraces the value of ethical leadership, thus, ensuring that their employees conduct themselves in an ethical manner.
Additionally, being the chief executive, they are are the major decision-making unit in the organization with regard to the manner in which the organization is to be run and the market practices that are to be embraced in the marketing of its products. Hence, since the company started in 2010, Adam Schwab and Jeremy Same have embraced the culture where corporate values of creativity (Hurley 2013). Different companies have embraced different types of leadership that have different impacts on market performance.
In the democratic type of leadership, leaders are able to give the other employees and other people in the leadership positions a chance to make a decision on their own (Wright, 2012, p. 35). This type of leadership also enables the leaders to have feedbacks and other information that is crucial towards the performance of the company in the market. For example, the leaders of Planet Innovation Pty Ltd (Stuart Elliott), embraces the democratic leadership, thus allowing employees to implement their creative as well as innovative ideas, some which have enabled their companies to record the highest growth (Thomson 2013).
In this case, leadership affects the general performance of the company depending on the type of leadership that different leaders choose to put in place in their time of governance for the company. A company’ s leadership style may result in poor performance in the market as it may have different impacts on the relationship between the employees and those in the areas of management. Dictatorial leadership will result in employees being unmotivated, thus, producing products that do not meet the quality required.
The volume of output in the company is also likely to reduce thus failing to meet the market demand for their customers. This, therefore, results in poor performance of the company.
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