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  • Subject Name : leadership

Leadership and Development of Leadership strategy 


Option- 2 




Option- 2

Developing a leadership strategy


In today's world, the business environment is constantly evolving and innovating to participate in global market. International market has put a lot of pressure on leaders in organisation to keep working in this competitive environment. The competitiveness in global market has made the organisation to hire leaders who are able to formulate a plan and vision for the organisation. The objective of this essay is tocomprehend the context of leadership, various leadership styles and how management and leadership are interdependent. The essay also reflects on developing a leadership strategy for Wal-Mart. This leadership strategy is based on the innovative approach for creating value and leadership in the organisation and the tools and resources required in the implementation of the new strategy.Leadership plays a crucial role and is a primary requirement for the success of the business globally.

Transformational and transactional leadership style has been discussed in the essay as they are enabling the organisations to implement an innovative approach towards the global competition. These leadership styles have been adopted by Wal-Mart for the development of the company. The essay also explores the context and culture of Wal-Mart and how it influences the leadership style and provides justification regarding the leadership style chosen for the organisation. Leadership is asignificantfeature of the functioning and success of the organisation. It can be well-defined in various ways depending upon the perspective of the leadership required by the organisation. It is a pre-requisite for the organisation and plays avital role in creating a dynamic environment in the organisation. 

Leadership is very critical for the innovation in the organisation because leaders construct the environment which facilitates the innovation and they motivate and develop problem-solving skills in the organisation (Yadav, 2015). They directly manage the critical activities in the organisation and are responsible for the allocation of resources depending on the requirement. Leadership strategy can be defined capability of the leaders to meet short term and long term needs of the organisation. An effective leadership strategy includes four element which includecompetenciesrequired for success, enough supply of resources as a part of the strategic planning process, ensuring the process alignment of leadership process and computing the influence of leadership on performance and potential (Pasmore, Lafferty, & Spencer, 2009). Leadership style is explained as the way and approach of providing direction, motivating the people and implementation of the plans. It also includes the implicit and explicit action taken by the leaders. There are several types of leadership styles used by the leaders; the suitable leadership style is determined by on the leaders as required by the problem present.

The leadership styles consist ofauthoritative leadership, autocratic leadership, Laissez-faire leadership, facilitative leadership, transformational leadership, transactional leadership,democratic leadership,and charismatic leadership.Leadership has a great impact on the innovation process of the company and its performance level. It is important to develop and select the correct leadership style for the organisation success (Day &Dragoni, 2015). The organisational structure determines the business activities and leadership strategy to be implemented. The organisation structure also sets the limits in addressing the organisation problem. The leadership style for the organisation includes transformational leadership and transactional leadership. Here, the proposed leadership style for the Wal-Mart is transformational and transactional leadership strategy. 

Transformational leadership in an organisation refers to the leadership approach which describes the changes in an individual person and social systems.It helps in creating the positive change in the work atmosphere with a goal to develop followers into leaders.This leadership also illustrates the transformation brought by the leader through practice in the lives of employees and customers (Nguyen, Mia, Winata, & Chong, 2017). It explains the significant changes in the lives of people through better and effective leadership. It put emphasis on the approval of needs and desires by providing new and creative solutions in the workplace. The leader also forms an innovative strategic vision and ideological aspect of work exhibited by transformational leaders. They also communicate and demand high expectations from the workers and also possess immense confidence in their own and team strengths. Under this type of leadership the customers and employee builds a sense of trust, loyalty, admiration, and respectTransformational leadership has a positive relationship with innovation in large firms, product and service innovation, innovation in research and development, exploratory and organisational innovation, team and technological innovation (Ghasabeh, Soosay,&Reaiche, 2015). 

The four important dimensions of transformational leadership include idealised influence, individualised consideration, intellectual stimulation, and inspirational motivation. Idealised influence helps in providing a role model for ensuring good ethical behaviour, and instils the pride. It helps in gaining the respect, trust and loyalty of the customer. Transformational leaders possess a charismatic personality which helps them in creating the vivid imagination and develop a meaning to the project. They also inspire value, respect and confidence in the team. It helps in developing innovative and strategic and is sensitive regarding environmental change. It builds self confidence and trust in the team. Individualised consideration explains the leader flexibility to satisfy the needs, demands and concerns of each customer. It helps the leaders in caring, coaching, advising and provide attention to each members present in the team. It promotes the interactive process and believes in gaining mutual respect.

It develops a respectful attitude towards subordinate ideas and feelings and provides coaching and advising to the employees. Intellectual stimulation illustrates the challenges faced by the leaders to take assumptions, and help in taking risks and solicit the followers and customers ideas and views. It is also capable in promoting the rationality in workers, brainpower, decision making abilities and problem solving character in the team. It promotes knowledge sharing, rationality, acquisition and support and enhances problem solving skills. Inspirational motivation refers to a degree up to which the leaders are able to form a vision which is appealing and inspiring to the followers (Yadav, 2015). Transformational leaders help in increasing the prospects in the team and communicate plans and objectives by using simple and plain methods. It helps in developing the future prospect, simplifies the important and difficult objects and inspires the workers through functional and behavioural traits. 

Transactional leadership is based on the occurrence of multiple transactions between leaders and subordinates. It depends on the response of the leader which may be a reward or punishment based on the employee's performance and contribution. This leadership depends on the slight improvement and management of the quantity of performance by the employees (Holten& Brenner, 2015). The leaders explain the goals, objectives, task requirements to the employees and demand the results from them. This type of leadership helps in increasing the compliance, reduce the resistance, reward the employees and also support the mutual dependency. Various studies depict that transactional leadership also induce innovation. It is based on the short term fulfillment of the objectives. This leadership style supports the exploitative type of innovation in the organisation. The various types of transactional leadership include contingent reward, management by exception, leader-member exchange, and clear structure.

Contingent rewardincludes the rewarding the employees on following the orders and giving out punishment for not following the order. It also focuses on incentivising the short term goals of the organisation.Management by exception requires no attention but the performance is expected from the employees. Rewards and praise are given to the employee exceeding the performance. Corrective action and punishment are employed for underperforming employees. Leader-member exchange includes the development of an exchange program with each other's employees. The employees are given a salary and other benefits. Clear structure and communication are necessary for the organisation (Northouse, 2018). It also helps in clearing the chain of commands and procedures to achieve it. It also sets discipline standards for the employees in organisation. 

Wal-Mart requires both types of leadership styles for the proper functioning. Transactional leadership helps in the management of daily transactions and transformational leadership style help in giving a vision or direction to the company (Choi, Kim, & Kang, 2017). The work culture in the transactional leadership is very formal in nature in which the employees receive the instruction which is to be followed by them. For the implementation of leadership style successfully in the organisation design thinking and system thinking methodology is adopted which helps the leaders to work as a single unit. Design thinking focuses on the integration of design, social sciences, and businesses which can help in the production of innovative products and services. It is a toolkit that helps leaders for continuous innovation in the organisation.

The rules of design thinking involve human rule, ambiguity rule, redesign rule, and tangibility rule. System thinking can be understood as the ability of the leader to work as a single unit for the development of a product. It enables leaders to think creatively and compassionately. The thinking tools utilized by leaders include interconnection, synthesis, emergence, feedback loops, casualty, and system mapping. The leaders also adopted a blue ocean strategy for further marketing and development. Blue ocean strategy refers to the creation of new demand in the market and organisation develops market space without tough competition (Mi, 2015). It includes a complete set of tools for formulating and executing a strategic move which involve value innovation, strategic canvas, and frameworks.

For the effective relationships in the organisations there are various key factors and tools are available to achieve it. These factors include communication, dialogue, and sense-making of the leader. The other tools include strategic thinking, decision-making capabilities, team building activities, delegation skills, mentorship programs, and innovation. The two techniques used in the implementation of these tools include appreciative inquiry, the most significant change technique. Appreciative Inquiry is a model engages the employees in self-determining change within the organisation. This is based on strength strengths and aspects. It helps in the identification of the opportunities and exploration of new possibilities. It also provides a pathway for relational leadership and it is based on collective sense-making which is explored strength-based perspective (Antonakis& Day, 2017).

It is ethical, collaborative and relational in nature. Most significant change (MSC) technique was designed to meet the challenges that are linked with the evaluation of complex participatory development programs. It is also focussed on the evaluation of results and forms a collaboration and engagement of all stakeholders in all processing positions for a distributed leadership. It is also based on strength-based practice and is people-oriented, ethical and collaborative in nature.

The organisational structure of Wal-Mart is suitable for the global scope of operations by increasing the managerial control and influence using corporate structure. The organisation improves its performance by applying the beliefs and values in the context of organisational culture (Iqbal, Anwar, &Haider, 2015). The organisation prioritises the customers in its operations and also recognises the contribution of employees to the success of the business. The organisation also aims to gain excellence in the performance of workers, teams and the entire organisation. It also promotes the virtues of honesty, fairness, and impartiality in taking a decision regarding the company.

The organisation culture helps in determining the response of people towards the problem. The organisational structure interacts with the organisation culture to maintain a competitive advantage over other organisations.Culture and values are the foundation of the organisation through which good customer service is delivered. It helps in creating a positive work environment and improving the performance of the organisation. The organisation believes in continuous better performance and to uphold the values. 

Wal-Mart believes in four values which include Service to Customer, Respect for Individual, Strive for Excellence and Acting with Integrity. Service to Customer includes listening, serving and anticipating customer needs and demands. It also believes in supporting and empowering the customer by being creating and taking the smart risk. Respect for Individual involves being visible and available to customers also taking positive feedback from them. It also includes leading the organisation with example by being humble and trustworthy. The organisation is also receptive to embracing and seeking differences in people ideas and experiences.Strive for Excellence refers continuous performance by setting high but achievable goals and objectives. It believes in taking responsibility for the decisions taken and results of the decision in the near future. The organisation is also strategic in nature which helps it in making choices, anticipating the changing conditions and making plans for the future(Clinton, 2018).Acting with Integrity includes being fair, honest, trustworthy and courageous towards the customer and employees. 

Transformational and transactional leadership style has been adopted by Wal-Mart which has contributed to the success and development of the organisation in various ways. These strategies focus on corporate culture as a key business activity for development and innovation and help in building a positive work culture. This leadership style engages the leaders to support and build the culture of the organisation and believes in leading by example (McCleskey, 2014). It helps in maintaining the consistent global communication of its culture and values and it emphasises on integrating the innovation culture for the development of the organisation.

Developing a leadership strategy will help the organisation to become global, innovative and customer focused. It helps in investing in high end opportunities and aims to become more efficient. The challenges faced by Wal-Mart include lack of digital services, and ineffective price compared to competitors. The leadership strategy developed aims to resolve these challenges. The goal of the company is to build a digital market as effective as offline stores. The strategy has various implications involving requirement for good cultural services, representation of various geographies, increasing global assignment and understanding local laws and regulations(Day et al, 2014).

The vision of the strategy is to become global recognised online platform and mission is to create more employment opportunities and providing products and services at low pricing. The leadership impact is measured using company performance, external and internal perception of leadership, and succession planning measures. The leadership competency model is developed which is focused on mind-set, discipline, composure and teamwork of the organisation. And continuous review and meeting with ley stakeholders of the company can help in reviewing the strategy and make necessary changes. 


From the essay, it can be concluded that effective leadership is necessary for the success of the organisation and leadership style also plays an integral role in the success. It is very critical for continuous innovation in the organisation as the leaders facilitate the innovation process. Leadership style is a manner that helps in providing direction to the people and organisation. Transformational and transactional leadership style is here used by the Wal-Mart for the development and innovative approach. Here the transformational leadership style helps in providing the direction and vision to the company and promotes innovation while transactional leadership maintains the functioning of the organisation. Both leadership style is required by the organisation for maintaining the culture and values of the organisation. For the implementation of these leadership styles, the leaders adopted design thinking, system thinking and blue ocean strategy which helps them to maintain their culture, values and also provides space for innovation.

The tools and resources utilised by the organisation include communication, dialogue, and sense-making of the leader, strategic thinking, decision-making capabilities, and team building activities.Culture and values are the foundation of Wal-Mart through which good customer service is delivered and it also helps in creating a positive work environment and improving the performance of the organisation.These leadership styles have been adopted by the organisation which focuses on the corporate culture as a key business activity for development and innovation and helps in building a positive work culture. It also engages leaders to support and build the culture of the organisation and believes in leading by example.


Antonakis, J., & Day, D. V. (Eds.). (2017). The nature of leadership. Sage publications.

Choi, S. B., Kim, K., & Kang, S. W. (2017).Effects of transformational and shared leadership styles on employees' perception of team effectiveness. Social Behavior and Personality: an international journal, 45(3), 377-386.

Clinton, R. (2018). The making of a leader: Recognizing the lessons and stages of leadership development. Tyndale House Publishers, Inc.

Day, D. V., &Dragoni, L. (2015). Leadership development: An outcome-oriented review based on time and levels of analyses. Annu. Rev. Organ. Psychol. Organ. Behav., 2(1), 133-156.

Day, D. V., Fleenor, J. W., Atwater, L. E., Sturm, R. E., & McKee, R. A. (2014). Advances in leader and leadership development: A review of 25 years of research and theory. The Leadership Quarterly, 25(1), 63-82.

Ghasabeh, M. S., Soosay, C., &Reaiche, C. (2015).The emerging role of transformational leadership. The Journal of Developing Areas, 49(6), 459-467.

Holten, A. L., & Brenner, S. O. (2015).Leadership style and the process of organizational change. Leadership & Organization Development Journal, 36(1), 2-16.

Iqbal, N., Anwar, S., &Haider, N. (2015).Effect of leadership style on employee performance. Arabian Journal of Business and Management Review, 5(5), 1-6.

McCleskey, J. A. (2014). Situational, transformational, and transactional leadership and leadership development. Journal of Business Studies Quarterly, 5(4), 117.

Mi, J. (2015). Blue ocean strategy. Wiley Encyclopedia of Management, 1-1.

Nguyen, T. T., Mia, L., Winata, L., & Chong, V. K. (2017).Effect of transformational-leadership style and management control system on managerial performance. Journal of Business Research, 70, 202-213.

Northouse, P. G. (2018). Leadership: Theory and practice. Sage publications.

Pasmore, W., Lafferty, K., & Spencer, S. (2009). Developing a leadership strategy: A critical ingredient for organizational success. Greensboro: Center for Creative Leadership.

Yadav, R. S. (2015). Linking various leadership styles to organizational innovation: A theoretical approach. Indore Management Journal, 5(2), 30-42.

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