The success of the company also relies on the leadership style within the company. This leadership style is oriented towards developing self-managed teams. This is another strategy used by companies in order to increase their decentralization level. This helps them increase the flexibility of the company. Flexible companies are more successful because their organizational structure allows them to easier identify environmental factors that are likely to affect their activity, and to counteract their effects.

Transformational leadership

Another interesting company is represented by Ford motor company. The competitive environment in the automotive industry has determined the companys managers to develop innovative strategies that helped Ford create competitive advantage. The companys CEO is Alan Mulally, one of the most visionary leaders in the world. Ford had to deal with numerous problems determined by environmental factors. But Mulally managed to develop strategies that made Ford one of the most attractive car makers on international level.

The clothing producer Zara is one of the most important players in this industry. Same as in the case of other companies, Zara benefitted from the support of innovative leaders that significantly influenced its success. In order to improve the companys situation on the market, its managers have developed a system where they identify and analyze customers needs and preferences regarding clothes, and produce clothes based on these needs, in comparison with competitors that prefer to develop other trends.

Nestle is another successful company that had to deal with a competitive environment. The companys intention of addressing the international market was supported by the strategic thinking of its managers. Their strategy is based on transforming the company by strategic acquisitions in different countries.

Conclusions

The leadership style within companies is one of the most important factors that can influence their success. There are numerous types of leadership, each of them with advantages and disadvantages, but it is difficult to determine which one is the most efficient style.

This can be determined by analyzing the situation of each company. This is because the different characteristics of companies require them to address different leadership styles.

It is important to take into consideration the situation of employees when determining which leadership style to address. This refers to their needs and motivational level. It is important that employees work with strong leaders that can improve their morale and that can increase their motivation. Such situations are best to be addressed by transformational leaders. Therefore, companies should increase their investments in developing a leadership style that can be used in their situation. This is intended to help them address numerous problems that can influence these companies.

Reference list:

1. Chapman, A. (2009). Leadership. Retrieved November 12, 2011 from http://www.businessballs.com/leadership.htm.

2. Bass, B. & Riggio, R. (2006). Transformational Leadership. Lawrence Erlbaum Associates, Inc. retrieved November 13, 2011 from http://books.google.ro/books?id=EIXoPPZkd1wC&printsec=frontcover&dq=transformational+leadership&hl=ro#v=onepage&q&f=false.

3. Hacker, S. & Roberts, T. (2004). Transformational Leadership: Creating Organizations of Meaning. American Society for Quality. Retrieved November 13, 2011 from http://books.google.ro/books?id=c_Bed — PyOAC&printsec=frontcover&dq=transformational+leadership&hl=ro#v=onepage&q&f=false.

4. Bass, B. & Avolio, B. (1994). Improving Organizational Effectiveness through Transformational Leadership. Sage Publications, Inc. Retrieved November 13, 2011 from http://books.google.ro/books?id=_z3_BOVYK-IC&printsec=frontcover&dq=transformational+leadership&hl=ro#v=onepage&q&f=false.

5. Lang, M. (2010). Transformational Leadership: Fundamentals, Models, Differences, Impact on Employees. Retrieved November 13, 2011 from http://books.google.ro/books?id=NRyhpx1VzrEC&printsec=frontcover&dq=transformational+leadership&hl=ro#v=onepage&q&f=false..

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