Exemplary Leadership, Article Critique Example

This paper presents critique of the articles from the Wall Street Journal that cover the topic of leadership peculiar to the area of organizational management. The aim of the present paper is to analyze the examples of successful leadership. The chosen articles will reveal the nature and details of exemplary leadership, and will address the corresponding theories and schools of leadership. The analysis of the articles will provide a solid basis for the discussion of leadership examples’ application to the past, present, and future of the health care industry. In addition, the opinion about the Wall Street Journal as a reputable source of information relative to health care industry will be presented. Overall, the critique of the articles will reveal the most notable examples of effective leadership that should be followed to increase the organizational performance.

The first article covering exemplary leadership is written by Hudson (2012). The author presented recent corporate news concerning the launch of fitness-oriented hotels in the US by the UK-based InterContinental Hotels Group (IHG). The chain is meant to provide room-in extras (for example, coat racks) and larger fitness centers. The well-considered venture will take about $150 million spent on buying 100 hotels in major US cities, and transforming them into the new brand called Even Hotels to underline its health focus (Hudson, 2012, para. 2). The new hotel chain promises to highlight the competitive advantage of IHG in the saturated US market over the rival brands (for example, Starwood Hotels & Resorts Worldwide Inc.) expanding overseas. According to Hudson (2012), the Even brand will bring new profit opportunities, higher visit rates, and will create value for hotel owners. The Even hotels will have large-sized fitness centers, rooms with corresponding equipment and more open space (for example, mats for physical exercises), health-conscious café menus, naturally lighted bathrooms, and other facilities. At the same time, IHG expands in other countries (for example, in China), and never stops improving its brand hotels (Hudson, 2012). Overall, Hudson’s (2012) article suggests that IHG’s fitness-oriented chain is one of the best examples of leadership in the hotel business based on a thoughtful organizational strategy.

The first example of effective leadership introduces the Strategic Management concept discussed by Ansoff and Ouchi (in Smart, 1999). Strategic management supposes initiatives, and involvement of resources to enhance the organizational performance in the external environment (Smart, 1999). As one may see, the large hotelier IHG is focused on positioning itself relative to environment; moreover, it is competitive enough to ensure survival and achieve the set objectives. The organizational success of IHG lies in the chosen effective strategy aimed to attract more clients; moreover, the hotelier is aware of a positive response of the environment to the innovation.

The second article considered in the present work is the one written by Warner and Talley (2012); it is dedicated to the leadership success of Michael Kors Holdings Ltd. expressed in increased profit for 2012. This company is involved in designing, marketing, distributing, and retailing women’s and men’s apparel and accessories bearing the name of Michael Kors. His organizational management has resulted in the increased company’s revenue ($373.6 million) (Warner & Talley, 2012, para. 1). The authors mentioned, its “fiscal third-quarter earnings rose 47% as demand grew in all segments of its luxury business, including retail, wholesale and licensing” (Warner & Talley, 2012, para. 1). The company’s share increased 27 % in composite trading at New York Stock Exchange (Warner & Talley, 2012, para. 2). The article proves that the success of the 30-year-old brand is explained by the company’s chosen strategic course, along with Michael Kors’ correct financial forecasts. For many years, Michael Kors Holdings Ltd. has been expanding its branded areas, boosting global sales. Its wholesale net sales rose due to the effective leadership policy applied in North America, Europe, and Japan. The company’s Chief Executive claimed, “we believe that we are uniquely positioned to continue to build our global luxury lifestyle brand and that we have a tremendous opportunity for growth” (Warner & Talley, 2012, para. 8).This way, Warner and Talley’s (2012) article indicated that the profit-oriented reputable company expects its continuing growth, since there is no sign of profit decreasing; moreover, the increased business opportunities expressed in its expanded market promise prosperity for the company in the future.

The present article provides the idea that the expansion of the specific market and effective organizational management lead to better business performance. Michael Kors and his company carefully selected an appropriate strategy that allowed them to achieve success increasing the profit. In other words, Michael Kors Holdings Ltd. managed to incorporate the ideas of the Strategic Management School into its strategy; this way, the organizational positioning as a high-quality designer, and a supplier of luxury products found its response in the corresponding environment.

Osawa’s (2012) article needs to be analyzed as well, since it shows another experience of exemplary leadership. The author noted that “Tokyo – Yahoo Japan Corp. freshened up its management team” that will allow the corporation “to stay competitive in the fast-moving Internet industry” (Osawa, 2012, para. 1). Currently, Yahoo Japan Corp. is the operator of the most popular national portal that increases its potential. In addition, it is a part of the US giant, Yahoo Inc. As one may see from the article, the increased global use of social media and smart phones greatly stimulates the corporation. Yahoo Japan expects to advance the rivals (for example, Softbank Corp.) maintaining the active spirit of management. The corporation members believe that “it is important for management to stay young” (Osawa, 2012, para. 6). With a younger leader who is not afraid of destroying what the corporation has built, Yahoo Japan aims to offense rather than defense. Osawa (2012) suggests that the chosen aggressive position and the 16-year-old continuing organizational success will help to increase the corporation’s profit in the future.

The successful leadership discussed in Osawa’s (2012) article results from the implementation of the ideas provided by the Scientific Management School. According to its fundamental principles, such elements as unity of command, delegation of authority, span of control, a right leading person, etc. are extremely important to ensure leadership effectiveness. As one may see, self-assured Yahoo Japan follows its path of success relying on its young management; its rational goal model approach consists in the organization’s effort to increase its productivity to accomplish the set goals (Needle, 2004).

In his short article, Nicas (2012) reported that American Airlines is adding roomier seats to the front of the company’s economy-class cabins. The fact is that the company mimicked “the strategies of its two biggest competitors who have boosted revenues and engendered customer loyalty by offering similar service” (Nicas, 2012, para. 1). Although extra space (at the expense of removed rows of seats) will increase customers’ charges, this way, the AMR Corp. hopes to improve its revenue through adding some new seating space, increasing the number of flights, and restructuring initiatives. The corporation merged with continental Airlines, and now it is called Delta Air Lines Inc.; their united efforts will increase business performance, and will ensure success in the future (Nicas, 2012).

The effective organizational management of American Airlines is the practical realization of the principles provided by Strategic Management Theory and Resource Dependency Theory. According to the latter theory, the organization needs to apply Continuous Quality Improvement and Total Quality Management principles to enhance its attractiveness and value. The former theory provides the idea that American Airlines’ selected strategy, and its rival position will ensure its survival (Hillman, Withers, & Collins, 2009).

Chon and Scism’s (2012) article demonstrates another example of successful leadership and effective organizational management. According to the recent global financial news, John Paulson conducts pressure on Hartford Financial Services Group Inc. to split the firm in two. At the same time, Paulson & Co. is going to combine two types of insurance business. Paulson claimed, “shareholders are entitled to expect the management and the board to show leadership by moving beyond the current phase of identifying potential challenges to working actively to address them” (Chon & Scism, 2012, para. 3). In other words, Paulson urged to “do something drastic” to increase its stock price. The article suggests that the fresh look on the business (expressed in the upcoming split) addresses the future challenges. This objective and pragmatic decision is made for the sake of the profitability of these insurance business companies (Chon & Scism, 2012).

The analyzed article presents the concept of Transformational Leadership. The concept refers to the enhancement of the morale, motivation, and performance of the followers through changes and adaptation to the environment (Hacker & Roberts, 2003). In the context of Chon and Scism’s (2012) article, the upcoming split of the company is a strategic vision that will help insurance business to survive.

Worthen’s (2012) article is dedicated to the new move of Hewlett-Packard Co. that “dives into new printer markets” (para. 1). The famous company is going to rebuild its balance sheet through targeting at commercial printers (for example, Courier Corp.) dealing with digital presses that open new business opportunities and perspectives for development. For Hewlett-Packard Co., “digital presses are in the area of biggest growth” (Worthen, 2012, para. 16). The article suggests that the company’s strategy helps to outperform the company’s competitors on the market, to increase the investments, and to raise its revenue.

The new policy of Hewlett-Packard Co. represents the Strategic Management Theory, Transformational Leadership Perspective, Open Systems Model, and Resource Dependence Theory (Hillman et al., 2009). The combination of these management concepts provides the company with the strategic advantage. Continuously interacting with its environment, the company follows the chosen strategy aimed at adaptation and innovation; new markets promise the organization to survive and prosper, but it still remains dependable on its resources needed to be secured for the sake of the company’s growth.

References

Chon, G., & Scism, L. (2012). Paulson gives activism a go. Wall Street Journal. Retrieved from http://online.wsj.com/article/SB10001424052970204062704577223562391058658.html

Hacker, S., & Roberts, T. (2003). Transformational Leadership: Creating Organizations of Meaning. Milwaukee, WI: ASQ Quality Press.

Hillman, A.J., Withers, M.C., & Collins, B.J. (2009). Resource dependence theory. Journal of Management, 36(6), 1404-1427.

Hudson, K. (2012). Check in to work out. Wall Street Journal. Retrieved from http://online.wsj.com/article/SB10001424052970203833004577249522164830322.html

Needle, D. (2004). Business in Context: an Introduction to Business and its Environment (4^th ed.). London, UK: Cengage Learning.

Nicas, J. (2012). American Airlines adds some leg room in coach. Wall Street Journal. Retrieved from http://online.wsj.com/article/SB10001424052970203753704577255312409073878.html

Osawa, J. (2012). Yahoo Japan’s Younger Look. Wall Street Journal. Retrieved from http://online.wsj.com/article/SB10001424052970204571404577254941589114010.html?mod=asia_home

Smart, J.C. (1999). Higher Education: Handbook of Theory and Research (vol. XIV). Bronx, NY: Agathon Press.

Swayne, L.E., Duncan, W.J., & Ginter, P.M. (2005). Strategic Management Of Health Care Organizations. New York, NY: John Wiley & Sons.

Warner, M. & Talley, K. (2012). Results lift stock of Michael Kors. Wall Street Journal. Retrieved from http://online.wsj.com/article/SB10001424052970204883304577223041317393660.html

Wolf, J.A., Hanson, H., & Moir, M.J. (2011). Organization Development in Health Care. Charlottem NC: IAP.

Worthen, B. (2012). H-P dives into new printer markets. Wall Street Journal. Retrieved from http://online.wsj.com/article_email/SB10001424052970204062704577221524133038012-lMyQjAxMTAyMDEwMzExNDMyWj.html