To What Extent Does Leadership Influence the Market Performance of Companies?
Impact of Leadership on Market Performance of Companies
To what extent does leadership influence the market performance of companies? To answer this question, explore the Business Review Weekly magazine’s Fast 100 companies list for 2013. The list is available here: https://www.brw.com.au/lists/fast-100/2013/. By researching and analysing some (or all) of the companies in the list, determine the extent that leadership is responsible for market performance. Must be at least 15 academic journal article sources. Please make sure to read the instructions carefully and follow them. Please set up an argument and clearly mention it in the introduction. Also, please write about your hypothesis and findings in the conclusion. You can choose the top 3 companies, middle 3 companies and bottom 3 companies from the Business Review Weekly magazine’s Fast 100 companies list for 2013 and you will have to do sufficient research on them and their leaders and use that to answer the question and to support your findings and opinions. Below are a few articles you can use but you will have to do further research on your own. Reference – Harvard, Reference Count – 20, Word Count 2500 Words.
In a firm’s performance, leadership plays a very important role for its survival (Asghar, 2011). Leaders in the organisation play a very crucial role in the marketing decision making process as well as in the adoption of the marketing strategies for the company in order to market the products and services of the business (Timothy, 2011; Jaroslav, 2013). The restrictive executive choice of leadership helps companies to achieve outcomes related to environmental, legal, organisational and other constraints. Leadership plays a symbolic and substantive role in overall firms’ performance. In relation to impact of leadership on the marketing performance of the companies, a hypothesis is developed for the given paper as follows; Whether, the leadership practices play a crucial role in enhancing the marketing performance of firms or not? In order to address this hypothesis, examples of several firms have been taken from the Business Review Weekly List of 2013 companies. From this list, top, middle and bottom ranked companies are selected to evaluate impact of leadership on their marketing performance.
Role of Leadership in Marketing Performance of Companies
In today’s scenario, the success of various companies for the best marketing performance in the market is admired due to leaders act as a role model in that companies. In these companies the leaders are the assets and accepted due to their balanced ethical behavior. In case of marketing performance of the company, the leaders have certain roles to direct their employees and managers. These roles provide setting up of the same or common goal for the company and their employees.
The leader should support and buy-in with his/her partner at work place for the better coordination. The leader should always encourage others for doing work ethically to enhance the quality of the work. The leader always directs its followers for the optimum utilization of the present resources which are obtainable to them. Lastly, the leaders always become happy in doing their job with full dedication, commitment and passion and positive attitude for the work (Ferrell, and Hartline, 2012).
The quality of the leadership explains the level of organizations performance. The effective leadership has for main components stated by the sustainable marketing leadership model (Yang, 2008). These components are strategic vision, managing the performances of the employees and managers, integrated planning and controllership that can direct and restrain the marketing decisions. There are various factors which helps them in doing these roles. These factors include their apparent strategy of functioning, innovation, the favorable outcomes financially, their vast knowledge and experience related to the market and products.
Moreover the knowledge of market positioning is also a key factor in the role of effective leadership regarding marketing and performance of the organiation (Samanta, 2014).
There are many factors which affect the leadership and make it ineffective. The example of these factors includes lack of strategic clarity of future goals that affects their performance. Moreover, dishonesty is also a trait of the ineffective leadership. Lack of knowledge of markets and its positioning, failure to adopt the business changes and many more other factors are responsible for the poor performance of the organization (Kouzes and Posner, 2009).
Impact of Leadership on Marketing Performance of 3 Top Companies
AussieCommerce is one of the largest e-commerce brands and acquired the prestigious position of being the fastest growing company in Australia according to BRW after posting $43.1 million revenue in 2012-13 financial year which is almost double the previous year’s $ 24.3 million (BRW Fast 100 2013, 2014). The remarkable growth and marketing performance of the company is the result of the business leadership endeavours made by the company’s CEO, Adam Schwab. Under his leadership the company has acquired the luxury online retailer brands exclusive from APN News & Media for $42 million in cash and 8% stake in AussieCommerce early this year (Pell, 2014). This has largely enhanced the market value of the company as this new site will add about 2.4 million new customers and about $40 million in its annual revenues.
The sales for the company have been increased from $43 million to a forecasted $165 million and it continues to innovate. It will also reduce reliance of the company on group-buying deals, through Cudo from Mi9; it had bought in the previous year. This acquisition has been the fourth acquisition and seventh e-commerce website for AussieCommerce in the recent years. Also, considering the recent floats by the rival retailers DealsDirect and iBuy, the company also aimed at public listing (Hutchiston, 2014). All these initiatives taken under the leadership of the company CEO have driven the company towards high growth and market performance.
Schnitz is the second largest company in Australia according to the list of BRM list of fast 100 companies. The company deals in accommodation and fast food was first started as a schnitzel restaurant in 1975. Under the leadership and management of the company CEOs’ Roman, Tom and Andrew Dyduk the inconspicuous restaurant has emerged as one of largest fast food chains in Australia (BRW Fast 100 2013, 2014). With 11 stores in Melbourne and group turnover of $16 million in the year 2012-13 financial year, which was five times more than the turnover in the previous financial year, the company aspires to run 500 outlets across Australia (Fast 100 2013: 2 Schnitz, 2014). The leaders make a comprehensive use of social networking sites and internet to build brand awareness and focuses on high quality and innovation to gain popularity among the customers and gain competitiveness.
It has been the efficacious leadership of the CEOs at Schnitz focusing on innovation and quality that has helped the company earn high market value. The consumers have developed an appreciation for the high quality food products offered by the company which is prepared considering nutrition and quality (Schnitz stands out in fast food market, 2014). The leader’s philosophy of offering handmade and hand cooked food has helped the restaurant to earn a high reputation in the market and appreciation from its customers. The leaders at Schnitz emphasise on right attitude, willingness to learn, a penchant for hard work, commitment and enthusiasm as the key drivers that has helped the company to prosper and earn high credentials in market performance (Schnitz stands out in fast food market, 2014).
Drilltechniques is the third highest performing company according to the BRW’s list of fastest companies in Australia. The company deals in manufacturing drilling equipments. The sector in which the company operates is most vulnerable during recession as during tough times exploration is the first thing to get shelved (BRW Fast 100 2013, 2014). However, in-spite of the difficult economic conditions and tough competition, the leadership of the company CEO, Cameron Gaylard’s leadership and entrepreneurial skills have not only enabled the company to sustain in the market but also remain a highly competitive and high performing company in the market.
The company earned revenue of $7.34 million in the year 2012-13, which exhibited a growth of 182% against the revenues earned in the previous financial year (Fast 100 2013: 3. Drilltechniques, 2014). The company has been able to survive during the tough times by diversifying into other areas of business such as selling imported grouting equipments, investing in oil and gas market and harvesting of resources along with deposit exploration. This has been the made possible because of the leadership and innovative skills of Gaylard (Fast 100 2013: 3. Drilltechniques, 2014).
Impact of Leadership on Marketing Performance of 3 Middle Companies
Jason Ashton is the CEO and Executive Director of BigAir Group Limited. He is one of the main co-founders of the company. The company was established in 2002 by Jason Ashton, who is also a subject matter expert on wireless broadband access networks. Since he started the company, it is growing and reaching new heights day by day. As per the market’s view, there are many other competitors too working in the same industry, therefore, it can be analyzed that the company is growing on a moderate rate (BigAir, 2014). It is slowly capturing the market as the products and facilities it is offering are offered by its competitor too. Therefore, it is growing at a moderate rate.
Jason Ashton is one such leader of the company that had taken several steps for the making the company grow and achieving high profits. Its biggest marketing policy is to provide fixed wireless broadband solutions for businesses and in campus environment of Australia. Another innovation is that it provides private data links to businesses that includes retailers and national organizations. In the latest news it was seen that for marketing innovation it also decided to outsource internet services in the tertiary student accommodation market (Yoo, 2014). As per these marketing innovations done by Jason, it can be depicted that the company will soon reach new heights with increased growth rate (Nguyen, and Johnsan, 2007).
Anthony Woodward is the CEO of the Bulletproof Group Ltd. He is one of leaders and co-founders of bulletproof networks. He is one of the leading leaders of the company and has contributed to a great extent in the growth and development of the company to a large extent. He has taken several steps in making the company reach new heights of success. The company had many competitors in the market that gives it a tough competition. Bulletproof is a normal company with no such exceptional marketing policies and products. Hence, the growth rates as well as the revenues generated are moderate.
The company is now planning to initiate several marketing policies that will help the company in increasing its growth rate and generating high profits. Bulletproof has decided to introduce a F5 application that will ensure fast, secure and always available application to its users. Investments on F5 will definitely prove to be a successful step taken by the company as none of its competitors have ever thought of introducing such step (F5, 2014). Hence, it can be seen that the step taken by Anthony Woodward in respect of improving market performance of the company would definitely help it out in increasing growth and revenue of the company.
Flexi Schools IntraPay
Geoff Austen is the managing director and CEO of Flexi Schools IntraPay. The company was initially started in 2005 and has been achieving success since then. Geoff Austen has worked a lot in achieving great success in the company. Being a managing director, Geoff had played a very important role in helping the company to reach new heights. The main problem the company is facing is that there are many competitors of the company within the same industry due to which the company is lacking success. Geoff had taken many steps regarding this and as a result of which the company is growing in the market and had captured the market share to some extent (Intrapay, 2014).
The growing rate of the company is comparatively low and in order to increase the growth rate Geoff had taken several steps. Among which some innovating steps taken by him are: improved security and reliability of technologies are increased, dedicated help desk i.e., a leading edge customer service interface is provided and a major focus is given on the environment making it a healthy one in order to attract new customers (Chandrakumara, Zoysa, and Manawaduge, 2011). The steps taken by Geoff will help the company to large extent in increasing the growth rate of the company and will also affect the profit rate of the company.
Impact of Leadership on Marketing Performance of 3 Bottom Companies
Green light is the corporation holding 99th position in the list of Business review weekly fast 2013 (BRW Fast 100 2013, 2013). The company was set up in 2007, it deals in business services with a total revenue if $19.93 million in year 2012-13 and is lead by Mr. Gary Hinsman (CEO). The Market performance adopted by the leader indicates that the organisation has been positioned in such a manner that the key information associated with the customer, competitors, industry influencers, distributors, government organisations etc is easily sourced and hence the full insight of the market potential is gained.
The cost effective research focus groups are facilitated by the company along with the research set up (Market Intelligence, 2014). The basic approach of the leader has been to establish the marketing parameters and then to identify and implement the most suitable communicational plans for the business. Through the adoption of all these strategies suggested by the leader the company has experienced a double as well as triple digit year on year growth since its inception (Professional Services Consultant, 2013). Yet, as compared to the top ranking company i.e. Aussie Commerce Group with a yearly growth rate of 276% the growth rate of the company i.e. 39% is extremely low.
Tyro Payments is the company led by Jost Stollsmann and was given a title of forth fastest growing organisation in the country for the year 2011. CEO of tyro payments has led the company to become one of the biggest banks in Australia. Furthermore, the organisation has lead to a change of face of both debit as well as credit card transactions in the country carried out by both the retailers as well as individual customers (Stollmann, N.d). A major decision regarding the change of focus of the company was undertaken towards the small and medium business market. This led to an increment in the revenue of the organisation by nearly 44% i.e. up to $19 million in the first half of the FY2013 (Tyro lift eftpos payment transactions, 2013). Yet, due to overall decrement in the financial sector and the resent deviation of the focus the growth of the organisation i.e. 40% was excessively less than that of the Aussie Commerce Group and Schnitz holding the top ranks in the BRW fast 100 2013 wherein Tyro payments holds a 96th Rank (BRW Fast 100 2013, 2013).
Atomic search is the organisation which was set up in 2008 in the field of advertising, marketing and media by James Dixon. The revenue of the company in 2013 was $2.42 million with a growth rate of 40%. James Dixon brought a stage for the company wherein the world around it considered it to be a pioneer of evolution (Dixon, 2012). Yet, in 2012, the company underwent certain serious alteration in its fundamentals which had affected the business both at the domestic as well as overseas level. These decisions undertaken by the CEO might bring in benefits to the organisation in future but it brought down the ranking of the company in the BRW Fast 100 2013 as it held 95th position in the list (BRW Fast 100 2013, 2013). Therefore, it has been derived that a leader plays an important role shaping the market performance of the company (Rowe and Nejad, 2009).
On the basis of the discussion it is concluded that in the changing marketing environment, leaders play a very crucial role in dealing with technical and environmental issues and changes that are faced by the organisation through adoption of the new innovations and changes. This can be evident that from the evaluation of different level companies that leadership plays crucial role in enhancing market performance of the business. On the basis of this fact the hypothesis can be re stated as leadership has played a crucial role in enhancing the marketing performance of firms”.
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