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 Identify one leadership theory that assists the development of a sustainable global enterprise

Module Title: International Leadership and Entrepreneurship


Professors Barringer and Ireland (2016) discussed the consequences of many businesses that are tested by the challenges involved with growing and managing their companies. As a business increases its sales, its pace of activity quickens, its resources need increasing and the founders often find that the demands of the business are unrelenting. As a business grows the demands on management become more complex, requiring the entrepreneur to change and adapt their management approach. Moreover, evidence shows that the majority of businesses go through a discernible set of stages, often referred to as the „organisational life cycle‟. These stages are described as introduction, early growth, continuous growth, maturity and maybe decline. The personal qualities and skills needed to manage a business through these stages will alter and therefore the entrepreneur must successfully develop and adapt into a business leader with the ability to transform the way the organisation operates.


Task one:

With respect to the „organisational life cycle‟ the introduction phase is where a business determines what its strengths and core capabilities are and starts to sell its initial product or service. The business at this stage is typically non-bureaucratic with few, or no, written rules and procedures. The main goal of the business is to commence trading and gain traction in the marketplace. A business‟s early growth stage is characterized by increasing sales and heightened complexity. For a business to succeed in the early growth stage the entrepreneur must transform from their role as the hands-on supervisor of every aspect of the business to a more managerial and leadership role, where increased formalisation must take place. Outline and evaluate the precise skills and mind-set needed to develop and mature from an entrepreneur into an effective leader, within an international business environment.

Task two:

Identify one of the following leadership theories and critique how it would support the growth and sustainability of a global business organisation.

 Trait theory

 Behavioural theory

 Contingency, or situational theory

 Transactional leadership theory

 Transformational leadership theory

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