AINUN NAHAR RASHMA_ASSIGNMENT 1

Submitted by
Ainun Nahar Reshma

Sub: Strategic Management

Course Title: Level 7 Diploma in Business strategy and Enterprise

AINUN NAHAR RASHMA_ASSIGNMENT 1

Introduction
Strategic management and leadership is becoming growing concern for an organization to
compete in the current diverse, complex and competitive business environment. Strategic
management is the approach of an organizations strategy development and implementation
for the purpose of achieving goals and objectives of the organization (Sadler, 2003). He has
noted that strategic management is key concern that helps the organization to identify and
analyse some of the major issues and concerns, including investigation of strengths,
weaknesses, opportunities and threats; the extent of strategic direction; ability to implement
strategic change; and so on. Leadership is an approach by which employees are managing or
leading by a person, known as manager or leader. In recent times, leadership is becoming an
important concern for the organization to motivate employees and thus increase
organizational performance (Northouse, 2010).
This assignment has been designated in such a way that will cover all of the learning
outcomes of the developing strategic management and leadership skills module. There will be
discussion and explanation of all these tasks through providing a real life example, Virgin
Group, UK.
Thus, the author would like to mention that this assignment will be able to improve
knowledge and understanding of the strategic management and leadership skills both from
academic and organizational perspective.

AINUN NAHAR RASHMA_ASSIGNMENT 1

Task 1
1.1. Discussion on the link between strategic management and leadership: According to
Maccoby (2000), leadership is an approach in which the leader who is responsible to lead the
organization and people in order to operate and manage the business. He has mentioned that
the strategic management is the process of managing functions and activities while leadership
is the process of managing people and organization itself to achieve organizational goals and
objectives. He has also mentioned following link and/or difference between the strategic
management and leadershipTable: 1.1. Link and/or difference between strategic management and leadership
Strategic management
Leadership
To plan something for the organization by the To select talent or skilled people to complete
strategic manager.
a particular task by the leader.
To make budget for the organization by the To motivate people by the leader.
strategic manager.
To evaluate the actions and activities of the To provide support and coaching to the
organization by the strategic manager.
people by the leader.
To facilitate particular activities and tasks by To build trust and strong relationships among
the strategic manager.

the people by the leader.

Source: Maccoby, 2000.

Thompson and Martin (2010) have noted that to explain the link between strategic
management and leadership, Sir Richard Branson, the founder of the Virgin Group, and its
strategic management is the great example in the world. They have mentioned that the name
of Branson and Virgin Groups activities and businesses are closely associated and linked that
represent the strategic management and leadership. They have also mentioned that over many
years, Branson has successfully marketed a range of products and services by systematically
applying the Virgin brand name with the development and implementation of effective and
appropriate strategies as well as most relevant strategic management with the effective and
efficient leadership.

Strategic management and leadership is an interconnected and interlinked approach within an

organization that has great influence and impact on the operations and management of the
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AINUN NAHAR RASHMA_ASSIGNMENT 1

organization (Thompson and Martin, 2010). They have stated that strategic leader, a person
who is involve in strategic management of an organization has following key roles and
responsibilities within the organization

To manage the business on behalf of all the stakeholders;

To provide direction in the form of mission or purpose;

To formulate and implement changes to corporate strategies;

To monitor and control the operations with special reference to financial results,
productivity, quality, customer service, innovation, new products and services, and staff
development; and

To provide policies and guidelines for other managers to facilitate both the management
of operations and changes in competitive and functional strategies.

Thus, it can be said that strategic management and leadership is closely linked with each
other in relation to achieve organizational goals and objectives through creating,
implementing and monitoring of strategies.

1.2. Analysis of the impact of management and leadership styles on strategic decisions:
Burton and Obel (1998) have noted that leadership style can be described by how the leader
makes decision, handles information, builds relationships with other people, and motivates
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AINUN NAHAR RASHMA_ASSIGNMENT 1

and controls subordinates.

They have described that the impact of management and

leadership styles on strategic decisions can be assess through following informationprocessing and decision-making dimensions

Preference for delegation;

Level of detail in decision making;

Reactive or proactive decision making;

Decision-making time horizon;

Risk preference; and

Motivation and control.

Based on the management approach and leadership styles, the strategic decisions are made
within the organization. For example, in Virgin Group, the founder, Branson is always willing
to hear from other employees as well as ensuring appropriate people with having devolved
and informal culture for the purpose of focusing on customers and services provided by the
organization (Thompson and Martin, 2010). They have also noted that Branson has always
made sure that he is approachable and the employees with new ideas is given encouragement
and development within the organization and thus make strategic decisions within the Virgin
Group.
Thus, it can be said that management and leadership styles have significant impact on the
strategic decisions within the organization.

1.3. Evaluating how different leadership styles can be adapted to different situations:
According to Lussier and Achua (2010), leadership style is the combination of traits, skills,
and behaviours leaders use as they interact with followers. Although, leadership style is based
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AINUN NAHAR RASHMA_ASSIGNMENT 1

on the traits and skills, the important component is the behaviour, because it is relatively
consistent pattern of behaviour that characterizes a leader. They have mentioned that there are
following leadership styles Autocratic leadership style- the autocratic leader makes the decisions, tells employees
what to do, and closely supervises workers. This leadership style is very important in
highly commanded organization.
Democratic leadership style- the democratic leader encourages participation in
decisions; works with employees to determine what to do, and does not closely supervise
employees. This leadership style is very important in service-oriented and customerfocused based organization.
Job-centred leadership styles- the job-centred leadership style has scale measuring two
job-oriented behaviours of goal emphasis and work facilitation where the leader closely
directs subordinates with clear roles and goals. This leadership style is very important for
the production and manufacturing organization.
Employee-centred leadership style- the employee-centred leadership style has scale
measuring two employee-oriented behaviours of supportive leadership and interaction
facilitation where the leader is sensitive to subordinates and communicates to develop
trust, support, and respect while looking out for their welfare. This leadership style is very
important for non-profits organizations as well as employee based organization.
Thus, it can be noted that different leadership styles can be adapted based on the different
situations.

Task 1
2.1. Reviewing the impact that selected theories of management and leadership have on
organizational strategy: Olum (2004) has stated that management is one of the most
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AINUN NAHAR RASHMA_ASSIGNMENT 1

important human activities within an organization and hence theories of management and
leadership is becoming crucial aspects in relation to develop and implement organizational
strategy. Management is the process of designing and maintaining an environment in which
individuals, working together in groups, efficiently accomplish selected aims (Koontz and
Weihrich 1990). In addition, Olum (2004) added that management covers several things
within the organization, including- planning, organizing, staffing, leading, controlling etc. as
well as to increase effectiveness and efficiency of the organizational performance. So, it is
clear that theories of management and leadership have great impact on organizational
strategy. On the other hand, leadership is also an important aspect to lead people and thus
increase organizational performance through developing and implementing effective and
appropriate organizational strategy (Olum, 2004). He has noted that leadership involves
motivation, leading approaches and communication system by the leader(s) that has
significant impact on the development and implementation of organizational strategy.
Several authors and scholars have developed different theories of management and
leadership. Among them McGregors theory of X and Y; Maslows theory of hierarchy needs;
Kotlers 8 step change theory; and Herzbergs motivation and hygiene theory etc. are the
most appropriate and effective in relation to develop organizational strategy. The author
would like to represent the impact of theories of management and leadership on
organizational strategy as followsi. McGregors theory of X and Y: The X theory is known as authoritarian management style
and the Y theory is known as participative management style. According to theory X, the
averages people dislikes work and will avoid it he/she can; most people be forced with the
threat of punishment to work towards organizational objectives; and the average person
prefers to be directed, to avoid responsibility, is relatively un-ambitious, and wants security
above all else. On the other hand, theory Y depicts that effort in work is as natural as work
and play, people will apply self-control and self-direction in the pursuit of organizational
objectives, without external control or the threat of punishment, and people usually accept
and often seek responsibility etc.
ii. Maslows theory of hierarchy of needs: Maslows theory of hierarchy of needs is
considered as the father of modern management and leadership through motivating employee
as well as developing and implementing organizational strategy. As a result, for adequate
workplace motivation, it is important that leadership understands which needs are active for
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AINUN NAHAR RASHMA_ASSIGNMENT 1

individual employee motivation. In this regard, Abraham Maslow's model indicates that
basic, low-level needs such as physiological requirements and safety must be satisfied before
higher-level needs such as self-fulfillment are pursued.
iii. Kotlers 8 step change theory: According to Kotlers 8 step change theory, identifies and
analyse some of the key aspects that have significant impact on the organizational strategy.
The 8 step include- creating urgency; forming a powerful coalition; creating for a vision for
change; communicating the vision; removing the obstacles; creating short-term wins;
building on the change; and anchoring the change in corporate culture. So, this theory is very
effective to ensure appropriate management within the organization through developing and
implementing organizational strategies.
iv. Herzbergs motivation and hygiene theory: This theory is mainly based on the
identification and analysing of the factors that lead to employee satisfaction and
dissatisfaction within the organization and thus develop organizational strategy to improve
employee performance and organizational performance. For example, motivation factors that
deals with the job content and leads to job satisfaction and hygiene factors that deal with the
job content and lead to job dissatisfaction. Thus, with identifying job satisfaction and
dissatisfaction factors, the organization be able to develop and implement organizational
strategy.
Thus, the author would like to mention that all of these theories of management and
leadership are playing significant roles to develop and implement organizational strategy to
achieve goals and objectives.

2.2. Creating a leadership strategy that supports organizational direction: Pasmore

(2009) has developed following framework in relation to create a leadership strategy-

Analysis of
required current
and future
leadership
capabilities

Leadership
development
strategy

Strategic
executions,
business results,
leadership
culture, bench
strength

AINUN NAHAR RASHMA_ASSIGNMENT 1

Business
strategy

Leaders
hip
strategy

Analysis of
required current
and future
leadership culture

Talent acquisition,
talent
sustainability,
leadership
practices

Figure: 1.1. Creating a leadership strategy that supports organizational direction (Source:
Pasmore, 2009)
Based on the above framework of creating leadership strategy, it is clear that leadership
strategy supports organizational direction. For example, business strategy that lead to analysis
of required current and future leadership capabilities and culture and thus on the basis of
identification of leadership capabilities and culture, the organization be able to lead people
within the organization. So, it can be said that leadership strategy can supports the
organizational direction.

Task 2
3.1. Evaluation of the current leadership requirements in chosen organization: The
leadership and management tactics of the company are often covered by the media for its
track record of success and efficiency. The Virgin brand was founded in 1968 and is now
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AINUN NAHAR RASHMA_ASSIGNMENT 1

recognized worldwide for its success in many different industries. Sir Richard Branson is the
current chairman of the company and is well known for his colourful yet competitive
leadership style. Many scholars and business analysts attribute the Virgin Groups success to
the innovative leadership style of Branson. He often took on risky business ventures in an
attempt to diversify and add value to the company. His business plan is to focus on very small
segments of a particular market and doing a high quality job at providing the product or
service. Transformational leadership comes from the top managers and executives within the
company. Richard Branson along with other company executives has set many common goals
for the company to achieve as a whole. These ambitious goals include expansion into
international markets, utilization of new technology, loyalty among customers, and joint
ventures with other companies.
In summary, there is a lot to be learned from the management and leadership of Virgin Group
Ltd. Chairman Richard Branson has created a unique management formula that has
contributed to the long term success of the company. Although there is a clear distinction
between management and leadership, the company has been able to integrate a blend of each
in many aspects of the business. The transformational leadership has proved to be a valuable
tool for executives, managers, and workers alike. Employees within the company have a
willingness to work together to expand and improve the company in order to reach their own
personal success in life (UPX Success, 2012).
Thus, it can be concluded that current leadership requirements of the case studied
organization, Virgin Group is very appropriate to achieve organizational goals and objectives.

3.2. Developing a plan to deal with future situations requiring leadership: The author
would like to represent a developing plan to deal with future situations requiring leadership as
followsTable: 2.1. Development of a plan to deal with future situations requiring leadership
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AINUN NAHAR RASHMA_ASSIGNMENT 1

Development priority
Key development actions
Improve the overall standard of The organization needs to improve the overall standard
leadership

qualities

behaviours
Develop current

leaders

and of leadership qualities and behaviours to ensure better

leadership within the organization.
and The organization needs to develop current leaders and

teams
teams of each department of the business.
Ensure the supply of future The organization needs to ensure appropriate supply of
leaders
Drive broader cultural change

future leaders.
The organization should drive cultural change in relation
to develop and implement relevant and appropriate

Establish corporate governance

leadership approach within the organization.

The organization needs to establish corporate governance
that will develop most effective and efficient leadership
within the organization.
Source: Authors analysis

Task 2
4.1. Discussion on how to develop leadership skills in chosen organization for specific
requirements: The author would like to mention following steps for the purpose of
developing leadership skills for the specific requirement such as good relationship with
employees by the leader within the Virgin Group-

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AINUN NAHAR RASHMA_ASSIGNMENT 1

To communicate effectively: The Virgin Group has been communicating effectively with
its stakeholders by developing most appropriate leadership skills.

To encourage enthusiasm and a sense of belonging: The Virgin Group should

encourage enthusiasm of the employees and then there should be great effort by the
organization to create sense of belonging by the employees towards the organization.

To keep everyone working toward agreed upon goals: There should be more focus by
the organization in relation to informed every employee of the target goals and objectives
of the organization through motivating them by the leadership approach.

To get to know the people around the organization: To develop leadership skills, the
organization should know the surrounding business environment as well as the nature of
market competition by the other businesses.

To treat others as individuals: The employees are the most valuable and important
resources for the organization, so the organization should respect them and treat them as
individuals by the leader to develop effective leadership skills within the Virgin Group.

To accept responsibility for getting things done: In order to develop appropriate

leadership skills, the leaders of the Virgin Group should create such an environment
where all employees will be responsible to complete their particular tasks and activities
within the organization.

To solve problem in a step-by-step way: The organization may face so many problems
or challenges due to several reasons and thus the organization should solve the problem or
challenges in step-by-step process by the leaders to develop leadership skills within the
Virgin Group.

4.2. Evaluation of the usefulness of the methods used to develop leadership skills: The
development of leadership skills may require using some methods within an organization. For
example, Adair (2009) has mentioned that there are several methods that can be used for the
purpose of developing leadership skills within an organization and the most common and
effective methods include- i. To define the task of the leader; ii. To make planning to
complete the tasks; iii. To brief the details of the tasks towards the team members or
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AINUN NAHAR RASHMA_ASSIGNMENT 1

employees; iv. To set up control measures; v. To evaluate the results or outcomes; vi. To
motivate the team members or employees; vii. To organize the tasks in most appropriate and
structured ways; and viii. To set an example by doing tasks by himself or herself. So, it can be
said that all of these methods have great usefulness to develop most effective and appropriate
leadership skills within the organization by the leader and/or manager.
The author would like to evaluate the usefulness of the methods used to develop leadership
skills as followsTable: 2.2. Evaluation of the usefulness of the methods used to develop leadership skills
Method used to

Evaluation of the usefulness of the methods used to develop

develop leadership

leadership skills

skills
To define the task

This method can make clear concepts by the employees about the
tasks that they are going to do under the supervision of the leader.
So, to make clear and simple this method is very useful to develop

To make plan

leadership skills.
The planning is very crucial to ensure better participation as well as
budget in relation to finance and time by the leaders and other
employees to complete a particular task. So, this method is useful to
ensure appropriate plan for the completion of tasks and thus to

develop most effective leadership skills.

To brief details of the This method is useful to provide overall job details and roles and
task

responsibilities of each employee and thus do best to complete the

tasks. Thus, it is very crucial to develop leadership skills within the
organization.

To set

up control This method is very important to control the employees as well as

measures

the activities and thus help the leader to show his or her efficiency

and effectiveness as leader within the organization.

To evaluate results or This method is very important to evaluate the results and/or
outcomes

outcomes through the completion of tasks within the organization

and thus help to develop most appropriate leadership skills within

the organization.
To motivate members The motivation by the leaders plays crucial and significant roles and
or employees

thus represents the nature of the leadership and so this method can be
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AINUN NAHAR RASHMA_ASSIGNMENT 1

considered as most important to develop leadership skills within the

organization.
To organize tasks in This method is useful to make sure all tasks and activities are wellappropriate ways and organized and well-defined by the leader and thus considered as vital
structured
To set an example

to develop leadership skills within the organization.

This method is most useful to develop leadership skills because to
helps the leader to be an example or first performer to do tasks and
activities within the organization.
Source: Adair, 2009.

Conclusion
Developing strategic management and leadership skills is becoming vital issue and concern
for an organization to compete in the current diverse and complex business environment as
well as to achieve organizational goals and objectives through increasing competencies of the
employees by adopting effective leadership and most relevant and appropriate strategies
within the organization. The organization may needs to consider several things for the
purpose of developing leadership skills and thus ensure most effective strategic management
of the organization.
This assignment has been discussed and explained some of the major issues and concerns of
the strategic management and leadership skills, including relationship between strategic
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AINUN NAHAR RASHMA_ASSIGNMENT 1

management and leadership; application of theories of management and leadership to support

organizational direction; the assessment of the leadership requirements; and the development
of leadership skills within an organization and other related issues and concepts with
providing information of a real life organization, such as Virgin Group.
In conclusion, the author would like to opine that this assignment was able to cover all of the
learning outcomes through answering relevant questions of each task as well as to improve
knowledge and understanding of the developing strategic management and leadership skills
both from academic and organizational perspective.

List of references
Adair, J. (2009). Effective leadership: how to be a successful leader. London, UK: Pan
Books/Pan Macmillan Ltd.
Burton, R. M. and Obel, B. (1998). Strategic organizational diagnosis and design: developing
theory for application. 2nd edition. Massachusetts, USA: Kluwer Academic Publishers.
Lussier, R. N. and Achua, C. F. (2010). Leadership: theory, application, and skill
development. 4th edition. Mason, USA: South-Western Cengage Learning.
Maccoby, M. (2000). Understanding the difference between management and leadership.
Research Technology Management; Volume 43. No. 1. January-February, 2000. pp
57-59.
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AINUN NAHAR RASHMA_ASSIGNMENT 1

Northouse, P. G. (2010). Leadership: theory and practice. 5th edition. California, USA: Sage
Publications, Inc.
Pasmore, W. (2009). Developing a leadership strategy: a critical ingredient for
organizational

success

[Online].

Available

at:

http://www.ccl.org/leadership/pdf/research/LeadershipStrategy.pdf [Accessed date 14 June

2012].
Sadler, P. (2003). Strategic management. 2nd edition. London, UK: Kogan Page Limited.
Thompson, J. and Martin, F. (2010). Strategic management: awareness and change. 6th
edition. Mason, USA: South-Western Cengage Learning.
UPX Success (2012). Management and leadership of Richard Branson at Virgin Group Ltd
[Online].

Available

at:

http://www.upxsuccess.com/leadership_richard_branson.html.

[Accessed date 14 June 2012].

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