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

Assignment Brief

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

Sample Answer

International Leadership and Entrepreneurship: Developing from Entrepreneur to Global Business Leader

Introduction

Entrepreneurship plays a key role in launching new businesses, but long-term growth and sustainability demand leadership skills that evolve over time. According to Barringer and Ireland (2016), as a business passes through different stages of the organisational life cycle, from introduction to early growth and beyond, entrepreneurs must grow as individuals and adopt a more strategic leadership style. This essay will explore the mindset and skills needed for an entrepreneur to successfully develop into a business leader within an international context. It will also critique the Transformational Leadership Theory and examine its value in supporting global business growth and sustainability.

Task One: From Entrepreneur to Effective International Leader

The Organisational Life Cycle and the Shift in Leadership Needs

During the introduction phase, a business typically relies heavily on the entrepreneur. At this stage, the entrepreneur wears many hats, product development, sales, operations, and finance. The business has no formal structure, and the main goal is market entry and survival.

As the business moves into the early growth phase, its complexity increases. There may be more employees, larger customer bases, and new challenges such as international expansion, cultural differences, legal regulations, and managing supply chains. The entrepreneur can no longer manage every task personally. This is where the shift from an entrepreneurial mindset to a leadership mindset becomes essential.

Skills Needed to Transition into Leadership

To handle the changing environment, the entrepreneur must acquire several key skills:

1. Delegation and Team Building

   • The entrepreneur must stop micromanaging and begin trusting others to take ownership of tasks. Delegation is essential to scaling operations.

   • Recruiting, training, and retaining talent, especially in different global regions, is also vital.

2. Strategic Thinking

   • Leaders need to make long-term decisions based on data and trends. This includes forecasting, market analysis, and recognising international opportunities.

3. Cultural Intelligence

   • In a global setting, understanding cultural differences and managing diverse teams respectfully becomes crucial.

   • Miscommunication due to cultural insensitivity can damage business relations.

4. Emotional Intelligence (EQ)

   • Leaders need to inspire and motivate. EQ includes self-awareness, empathy, and the ability to manage stress and conflict effectively.

5. Formalisation and Systems Thinking

   • As the company grows, more formal structures must be put in place, written policies, workflows, and performance metrics.

   • The leader must think in systems rather than in individual tasks.

6. Adaptability and Learning

   • In the international landscape, change happens rapidly. A successful leader must be open to learning, innovation, and continuous improvement.

Mindset Shifts Required

The entrepreneur must let go of control and shift their mindset in the following ways:

• From Doer to Enabler: Rather than doing everything, the leader must focus on enabling others to perform at their best.

• From Reactive to Proactive: In the early stages, entrepreneurs often respond to problems as they arise. A leader must anticipate challenges and act ahead of time.

• From Local to Global Thinking: Managing an international business means thinking beyond local markets and adapting strategies to suit different cultures and economies.

In summary, evolving from entrepreneur to international business leader requires more than just new skills, it requires a change in mindset, habits, and priorities.

Continued...