The two retail companies picked are Walmart and Costco whose 2017 Financial statement links are provided below: WALMART https://www.nasdaq.com/symbol/ wmt/financials?query=income- statement COSTCO https://www.nasdaq.com/symbol/ cost/financials?query=income- statement Both organizations are well known brands and position themselves well with their customer base. Walmart’s value proposition is “We save people money so they can live better”. On the other hand, Costco’s value proposition is “All-in-one convenience and everyday affordability”. Both retailers focus on cost saving for their customers. Looking at their financial statements and by analyzing them a few key areas are evident when comparing the two organization. Looking at the current ratio and quick ratio we can determine the short-term solvency of each organization. The current ratio can be determined by dividing the assets by the liabilities. Walmart’s current ratio sits at 0.86 while Costco’s sits at 0.99. The quick ratio is c...
As discussed by Russell (2011), leadership has been a topic of hot debate due to the various approaches and theories on leadership. In this discussion I will outline which leadership theory I think is the most appropriate in today's global economy and briefly outline the aspects of the theory in describing leadership. A Leadership Theory For Today’s Global Economy Reflecting on the learning material, I believe that the most important leadership theory would probably relate to the situational leadership theory, where Russell (2011) describes the theory as one where the actions taken by a leader are based on a number of variables. The theory postulates that there is not one specific style or approach that can be used and that the approach should be based on both internal and external factors (Russell, 2011). In today's global economy, which can be characterized by its fast-paced nature and influenced by numerous disruptions including those brought about by technology, economics and politics and that leaders, more than ever, need to be adaptable to various situations based on the variables that they are confronted with. Aspects That Best Describe The Leadership Theory According to Utecht and Heier (1976), the effectiveness of a leader is dependent on matching the leadership style to the appropriate situation and that one leadership style is not necessarily appropriate, or effective in all situations. I think that this is a good description of leadership because, as previously stated, the fast pasted and ever-changing nature that we find ourselves in requires leaders to be able to adapt their styles based on changing variables. The theory states that leaders, according to the Blanchard and Hersey, would typically use different styles, such as telling, selling, participating and delegating (Russell, 2011) and would also consider the maturity level of followers in determining the appropriate style to be used (Deshpande, 2018). Sisk (2018) notes that the situational leadership theory has several positive aspects, such as it is a simplistic and intuitive model and it recognises that different styles are required for different situations but that may negatively impact focus on long term goals. According to Jago (1982), “the model challenged the naive assumption that there exists a one-best-way to lead and that the model provided a valuable first step toward conceptualizing leadership in terms of its situational dependencies” (p. 323). Conclusion Many leadership theories have been developed over the past decades. I believe many of then describe common aspects of human nature and that the various authors have tried to articulate the theory based on their context. Personally, I think the situational leadership theory is probably more appropriate in today's global economy, where leaders need to be adaptable based on a number of ever-changing variables. References Deshpande, N. B. (2018, April 29). Situational Leadership. Retrieved from Social Mettle: https://socialmettle.com/ Jago, A. G. (1982). Leadership: Perspectives in Theory and Research. Management Science, Vol. 28, No. 3 , 315-336. Russell, E. (2011, September 08). Leadership Theories and Style: A Transitional Approach. Sisk, A. (2018, November 28). Situational Leadership Pro & Cons. Retrieved from BixFluent: https://bizfluent.com/info- Utecht, R., & Heier, W. (1976). The Contingency Model and Successful Military Leadership. The Academy of Management Journal, Vol. 19, No. 4, 606-618. Retrieved from https://www.jstor.org/stable/ |
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