Strategic Leadership In A Changing World Essay Example | Topics and Well Written Essays - 2000 words

Strategic Leadership In A Changing World - Essay Example The paradox that exists between the market environment and the resources that are available to the organization are evaluated by strategic leaders as a basis upon which they select the most appropriate model or strategy for the organization. The most important consideration however is the role of the strategy in allowing the organization to meet its objectives and goals in an effective and efficient manner. It is in line with this that this essay gives a critical analysis and discussion of the Gary Hamel and Michael Porter’s approaches to strategic management with an aim of illustrating how the circumstances within an organization and the market environment influences the choice of strategic managers for either of these approaches in their leadership role within illustrated organizations. The essay focuses on strategic management within the changing world which is characterized by a diverse workforce and application of information and communication technologies for competitive advantage and business success. According to the generic strategies for leadership and management that were proposed by Michael Porter, the attractiveness of a market is the core determinant of the profitability of an organization (Colvin, 2012, p. 70). It is in this regard therefore that strategic managers of companies which require internationalizing their business activities strategize for market entry modes for an attractive market with high demand and more business opportunities. Therefore Porter’s approach to strategic leadership is important in making market choices for expansion. For example the growth of Apple into a multinational company was motivated by strategic leadership which targeted the most attractive markets for their smart phones and Mac computers. Gobble, Petrick & Wright (2012, p. 63) however argue that in the selection of strategic markets, leaders must put into consideration of the resources available to the organizations such as capital for internati onal expansion of the business and the forces within the new market environment such as political, economic and social cultural factors. Porter, in his generic strategy further points out that the position of a company within a specific market or industry is the second most vital element that determines it profitability and performance (Pathak, 2012, p. 154). It is through effective strategic management and allocation of resources that leaders of an organization are able to enable them to become market leaders. For example effective strategic marketing which fits the changing market environment such as online marketing communication are applied by effective leaders to make their organization to climb the competitive ladders within the market or industry (Foss, 2006, p. 10). This can be illustrated by the market leadership of Coca-Cola within its world markets. This company achieved this leadership in the market through proper allocation of resources for marketing, innovation and mot ivational compensation of its workforce by its strategic leaders. Moreover the company invested in market research which allowed it to determine the characteristics of the market and the changing trends of business operations (Saeidinia, 2012, p. 7). It is through this that the company became a leader within the soft drink industry and as a result gaining from huge profits. Gary Hamel views strategy within any organization as a