Organizational Leadership in Retail Sales and Marketing

 

This research paper is aimed at highlighting leadership theories that enable organizations expand in retail sales and marketing. The paper examines the effectiveness of the theories in seeing to it the organization is run properly as well as the stakeholders’ unique roles in the decision- making process.

Our Organization was established two years ago with its main activities being selling detergents to the local community and the whole nation at large. Its main objective was to maximize profits and achieve a large market share just like any other business’s objective (Pandey, 2011).

Due to high levels of competition in the market, the organization had to come up with strategies in order to get a large market share in the local market as well as the National market. One of such strategies was to aggressively engage in retail sales and marketing. An additional selling cost would be incurred since the organization had to employ a sales and marketing team to increase sales volume. The organization would continue to engage in the sales and marketing activities to remain competitive since there was enormous potential to increase company profits by improving its sales performance (Hindman etal, 1992).

The organization had to devise ways to enhance its activities in the market besides achieving its ultimate goal of maximum profit levels. Following are the main theories of leadership that have enabled our organization grow to its current size both in the plant size as well as its production capacity. Firstly, according to the trait theory of leadership, a successful leader is one who possesses certain traits or qualities.These traits can be deduced by analyzing the personality of successful leaders in different walks of life. There is a belief that leaders are born not made, but some researchers believe that these traits can be acquired through training and experience. The trait theory was widely accepted because various studies of successful leaders indicated the presence of similar traits to some degree.The trait theory,however, is not sufficient due to the fact that it does not consider the whole environment of leadership rather, it only considers personal traits which are only one part of the environment (Drucker, 2001).Our organization emphasizes on personal qualities; such as intelligence, self confidence, maturity, vision, and creativity among others besides training and experience.The organization’s sales and marketing department respects the importance of individuality, and as such has created a situation where individuals with relevant skills and  leadership traits undertake duties that they are best suited for. This has enabled the organization to experience rapid growth in the last one year largely due to a very effective sales and marketing team.

According to situational theory, leadership is a function of the situation in which a leader emerges and works.The behavior of the leader is determined by the demands of the situation at hand. Our sales and marketing department has well laid out mandates whereby each employee properly knows his or her duties. The leaders know all the duties assigned to them by the head of department and therefore they have to work as per the department’s demands, although the set up created is one that allows for structured leadership. This is in the sense that in cases where the in charge is not readily available a clear chain of command exists, allowing for the department to deal with any situations that may arise. This has enabled the team to grow and thus experience high output levels and thus higher sales volumes as the structure ensures all relevant tasks are undertaken at the right time regardless of whether or not the overall in charge is on duty (Drucker, 2001).

The behavioral theory of leadership is based on the assumption that leadership effectiveness depends on the leader’s actions. A good leader uses his or her skills to exercise influence and modify the behavior of his followers.The behavioural approach is useful to  the  organization to the extent that it suggests favourable leader behavior to inspire and guide subordinates.The leaders in the organization are required to portray good behavior at all times and also carry out their duties professionally so that their surbodinates can follow suite.This has enabled all departments  move in the same direction hence making it quite easy to achieve the organization’s objectives, this is more so evident whenever as mentioned earlier, the head of marketing is not available (Drucker, 2001).

The organization was able to achieve its objectives within a span of one year, as it had adequate resources both monetary and human to run properly. Later however, the organization realized that it could achieve its goals even faster if it involved other bodies collectively known as stakeholders. The stakeholders’ aim would be to see to it that the entire establishment benefits the society at large. In order to achieve this objective, certain virtues are crucial in any organization including; transparency, accountability, fairness and responsibility just to mention a few, with stakeholders playing a key role in ensuring that these virtues are upheld. The stakeholders include; the owners, government, financial institutions as well as buyers and creditors (Pandey, 2011).

Our organization has a number of stakeholders who assist it to adequately achieve its goals. The owners are a very important, as they provided capital to start and run the business besides making decisions concerning the very initial operations of the business. Most organizations collapse due to poor decisions by the owners. Appropriate decisions are likely to lead to the well being of an organization (Gordan, Oakes, Humphreys & Miller, 2011).

The government plays a very crucial role in the normal running of the organization.It provides public utilities essential to private investors including water,transport,sewerage,power and communication just to mention a few.It would quite difficult to transport its product to the market using poor road networks.The organization also, needs electricity in the production process.In addition,the government institutes regulations to shield the local industries from foreign competition.Our organization has not been able to reap such benefit(government regulation) fully,but when it extends its market to other countries,it will be able to get more benefits from the government(Gordan et al, 2011).

Financial institutions (Commercial Banks) have played a very crucial role in assisting the organization grow. Most of these institutions receive deposits from the public and use the deposits to advance loans to individuals and companies for short and long periods.The loans have assisted the organization to expand its investments hence higher profits (Drucker, 2001).

Buyers and creditors also form part of the stakeholders.The debtors buy the organization’s products whereas the creditors supply the inputs to produce the products.The two bodies,therefore play a crucial role in the proper running of the business.The organization is able to maintain desirable stock level that will enhance profitability both in the shortrun and in the longrun(Sangster, 2008).

In conclusion, the research paper indicates that an organization has to follow some or all the leadership theories  in carrying out its activities (depending on the type of the organization) in order to achieve one or all its objectives.Further,the organization has to engage other stakeholders in carrying out its routine duties.

 

 

 

 

 

References

Drucker, P. (2001). The Essential DruckerIn One Volume the Best of Sixty Years of Peter   Drucker’s Essential Writings on Management. HarperBusiness

Gordan, L., Oakes, E., Humphreys, J., & Miller, M. (2011). Employee Development: Big   Business Results on a Small Business Budget. Landrum Human Resources.

Pandey, I. M. (2011). Financial Management. (pp. 7-9). MUMBAI: Vikas Publishing House. Sangster, F. W. (2008). Business Accounting 1. London: Pearson Education Limited .

 


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