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How to Change Your Leadership Style and Adapt to the Changing World

leadership style

How to Change Your Leadership Style and Adapt to the Changing World

A scholar in Nova Southeastern University by the name of Chien presented executives with a correlation between leadership effectiveness of different leadership styles adopted by executives in international companies. Although this empirical study was primarily designed to investigate global leaders and in this case Taiwan, there are kernels for all executives to learn from. For example, there was a strong positive correlation between the effectiveness of leaders and adopting a transformational leadership style at the highest organizational levels.

Executives began to listen and respond to the plethora of information in the form of articles and books attempting to provide transformational leadership as an adaptable and applicable leadership style to help impact not only the productivity and profitability of the organization but also the competitive advantage. One example is the concept of intellectual stimulation which is another important aspect of transformational leadership. Intellectual stimulation positively impacts the effectiveness of leadership in building learning through facilitating knowledge sharing by all leaders and followers of the organization. Executives require people who are engaged and inspired to meet the demands of day-to-day operations.

Transformational leadership also suggests that executives inspire their followers. Ergo, transformational leadership is a suitable leadership style to analyze leadership in international companies. By adopting a transformational leadership style, executives are able to answer the questions necessary to apply leadership without having to delve through all the leadership styles to find what works well for them and what does not. To prove the correlations between transformational leadership and the effectiveness of leadership in global environments today, I take a further look at new industry researches so that executives can see the correlation and application.

An Industry Task Force on Leadership and Management Skills found relevant information that may help leaders embrace transformational leadership. The task force first critiqued top managers and found them to be inadequate effective leaders. The report illustrates the weaknesses of leaders, such as failing to develop a clear vision for the future of their organization. Similarly, a more recent report on Management Matters illustrated that top managers in the manufacturing sector scored the least in the very important organizational behavior tenet of people management when compared to two other areas of operations- and performance management. This particular report highlighted that companies need to enhance leverage on human assets in order to achieve sustained competitiveness.

In both cases, companies have been ranked low in almost all dimensions of people management. After careful review of these findings for both case studies, the scholars recommend that companies must improve their human resource-related practices with a target of attracting, retaining, and promoting their human resources. This article goes further and suggests that the way for these managers and leaders, and leaders across the globe, to make the effective changes that are posited in the transformational leadership. The recommendations of transformational leadership are to focus on developing a strategic vision for their future strategic initiatives. When transformational leaders can generate a shared and inspiring vision for the future expansion into the global business environment, they will secure a foothold in the ever-expansive global marketplace. Thus, executives that act as transformational leaders are capable to overcome their deficiencies and lead better in our hypercompetitive environment of today.

These industry researches also identify the transformational leadership style as a primary driver of organizational competitiveness. Unfortunately, while the characteristics of transformational leaders are positively associated with the competitiveness of international companies, it is somewhat underutilized in organizations worldwide. This is suspect and alarming because numerous empirical studies have found that there is a direct correlation between transformational leadership and organizational competitiveness. Scholars highlighted transformational leadership as an enabler of organizational competitiveness. Therefore, leaders that may not be utilizing the transformational leadership style which has been posited as a managerial-based competency for organizations operating in today’s innovative business environment can now explore the virtues of using this leadership style to improve competitive advantage.

In conclusion, executives in international companies can now take a new view of managerial decision-making and leading – transformational leadership. Transformational leadership lies at the focal point of executive success. Therefore, I suggest that these executives embrace transformational leadership. This leadership style influences some of the spans of control of executive responsibility. For the scholar’s corner, I place a great deal of emphasis on the literature on transformational leadership as a significant indicator for business success. Scholars see that I expand upon the subject matter of transformational leadership. Through articulating the impacts of transformational leadership on the competitiveness of international companies, I add to the current and extant literature. Organizational competitiveness is essential for business growth and prosperity in today’s global business environments.

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References

[1] Chien, HJ 2001, A comparison of leadership characteristics in public and large and small private organizations in Taiwan, Nova Southeastern University.

[2] Report of the Industry Task Force on Leadership and Management Skills 1995, Renewing Australian’s managers to meet the challenges of the Asia-pacific century.

[3] Management Matters in Australia: Just how productive are we? 2012, Department of Innovation, Industry, Science and Research, Australia.

Tobacco Market

Global Unmanufactured Tobacco Market – Exports form Brazil Declined for the Sixth Year in a Row to $1.9B in 2018

IndexBox has just published a new report: ‘World – Unmanufactured Tobacco – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

Brazil, the world’s largest supplier of tobacco, is plagued by falling demand. Exports from this country have been steadily declining for six consecutive years, from $ 3.2 billion in 2012 to $ 1.9 billion in 2018.

From 2007-2018, the global market rose at an average annual rate of +2.0% to reach $24.6B. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price).

Consumption by Country

China (2.2M tonnes) remains the largest unmanufactured tobacco consuming country worldwide, accounting for 35% of total volume. Moreover, unmanufactured tobacco consumption in China exceeded the figures recorded by the second-largest consumer, India (565K tonnes), fourfold. Brazil (321K tonnes) ranked third in terms of total consumption with a 5.1% share.

From 2007 to 2018, the average annual rate of growth in terms of volume in China was relatively modest. In the other countries, the average annual rates were as follows: India (+4.3% per year) and Brazil (+2.8% per year).

Exports 2007-2018

In 2018, approx. 2.5M tonnes of tobacco (unmanufactured) were exported worldwide; reducing by -1.7% against the previous year. Overall, unmanufactured tobacco exports continue to indicate a relatively flat trend pattern. The growth pace was the most rapid in 2012 when exports increased by 6.6% against the previous year. The global exports peaked at 2.8M tonnes in 2009; however, from 2010 to 2018, exports stood at a somewhat lower figure.

In value terms, unmanufactured tobacco exports stood at $11.4B (IndexBox estimates) in 2018.

Exports by Country

In 2018, Brazil (449K tonnes), distantly followed by Belgium (228K tonnes), China (203K tonnes), India (186K tonnes), Malawi (173K tonnes), Zimbabwe (172K tonnes) and the U.S. (153K tonnes) were the main exporters of tobacco (unmanufactured), together achieving 63% of total exports. Italy (75K tonnes), Mozambique (70K tonnes), Turkey (68K tonnes), Argentina (64K tonnes) and Germany (59K tonnes) occupied a minor share of total exports.

From 2007 to 2018, the most notable rate of growth in terms of exports, amongst the main exporting countries, was attained by Belgium, while exports for the other global leaders experienced more modest paces of growth.

In value terms, Brazil ($1.9B), Belgium ($1.2B) and the U.S. ($1B) appeared to be the countries with the highest levels of exports in 2018, together comprising 36% of global exports.

Belgium experienced the highest rates of growth with regard to the value of exports, in terms of the main exporting countries over the period under review, while exports for the other global leaders experienced more modest paces of growth.

Export Prices by Country

The average unmanufactured tobacco export price stood at $4,582 per tonne in 2018, therefore, remained relatively stable against the previous year. Over the last eleven years, it increased at an average annual rate of +2.8%. The pace of growth appeared the most rapid in 2008 when the average export price increased by 15% against the previous year. Over the period under review, the average export prices for tobacco (unmanufactured) reached their peak figure at $4,874 per tonne in 2014; however, from 2015 to 2018, export prices remained at a lower figure.

Prices varied noticeably by the country of origin; the country with the highest price was Germany ($7,076 per tonne), while India ($3,249 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by Italy, while the other global leaders experienced more modest paces of growth.

Source: IndexBox AI Platform

trading market

Modern Tendencies of Global Trading Market

The world is now a global village. Hence, globalization is a concept that has affected every aspect of human existence. The exchange of goods and services across nations and individuals, regardless of geographical limitations, is becoming increasingly seamless.

A Brief History of Global Trading Market

If you take a trip down memory lane, you’ll notice that global trading has come a long way. The origin of international or global trading dates back to the 19th century after the French war. The trade relations among nations increased significantly from 1865 to 1913, just before World War I broke out.

When WWI broke out, global trading fell rapidly. There was a massive dip in the export market. As it is with war, arms sales enjoyed enormous proliferation.

After World War I, things began to fall back to normal. It took a while for global trade volumes to rise to the peak reached before 1914.

The most significant rise in global trading came after World War II. In 1947, the General Agreement on Tariffs and Trade (GATT) was signed in Geneva by 23 nations. It marked a new dawn for global trading markets.

However, to better understand the modern tendencies in the global trading market, we need to look at the industrial revolutions that have happened over time. We can then link them to how they affect the global market in recent times.

Global Industrial Revolutions

There is an age-long relationship that exists between industrialization and globalization. The global industrial revolution that started in the late 18th century ushered in an abundance of raw materials. Industrialization led to the creation of new products and markets.

The products and raw materials that came, as a result of industrialization, needed to reach consumers across the world. That’s what led to the expansion of global trading markets.

Products were made in Europe from American raw materials and exported to Asia for consumption. A consequence of this affair between industrialization and globalization was the creation of trade routes. These trade routes connected America to Europe, Europe to Asia, and other continents of the world that needed the products.

We can talk about the early days of global trading markets without the pros and cons of globalization. The good that happened to the world was that manufacturers had more markets to sell their products. On the flip side, it created the opening for Europe to colonize the world.

The Journey from Then to Now

At this point, it’s safe to look deeper into how the industrial revolutions changed the course of global trading markets.

The First Industrial Revolution (1760 to 1830)

This is the period when Britain dominated and monopolized the global market. At the time, they had control of machinery, manufacturing techniques, and skilled laborers. Knowing that they were ahead of the world in industrialization, they kept everything within the confines of the British territory.

The embargo on the exportation of the industrialization that gave Britain a huge advantage didn’t sit well with some British businessmen. These folks began to seek more significant market opportunities outside Britain.

In 1807, two Englishmen took the industrial revolution to Belgium. The revolution further expanded global markets at the time.

Though it took a while for other countries to get on the wagon, it eventually happened after almost over a decade of British Monopoly. European countries like France and Germany came on board the ship to industrialization.

When the United States came into the picture, they gave the Britons a good run for their money’s worth. America became an industrial giant in the late 19th century.

Other countries that joined the industrial revolution at the time were Japan, the defunct Soviet Union, China, and India.

The Second Industrial Revolution (1870 to 1914)

While the first phase of industrialization focused on machinery and skilled labor, the next step introduced the manufacturing of more natural and synthetic products. It was in this era that synthetic materials like plastics began to flood the global market. Global trading expanded as a consequence.

The expansion in marketable products demanded a more straightforward way of doing business. Hence, this era brought computers into the fold. These computers now gave rise to what was called automatic factories.

With the global market expanding, governments began to get more involved. Economic policies came into play to establish checks and balances. Hence, averting an impending global financial and market crisis due to laissez-faire ideas that were at play at the time.

World War I marked the end of the second industrial revolution. Global markets were on shutdown as trade routes were either closed or manned by warring nations.

The Third Industrial Revolution (1990 to Present)

The advent of the internet marked the beginning of the third industrial revolution. The global market has shifted from the exchanges that took place at country borders to a peer to peer market setting.

With the world dealing with a myriad of global issues like natural disasters in, overpopulation, and poverty in some of the most populated cities of the world, there was the need to make the world a global village.

Trade deals can go on from anywhere in the world. People now have access to computers and the internet. It doesn’t matter if you’re a college drop out or a graduate from some of the best universities in the world, you can be a part of the global trading market.

In the first and second industrial revolutions, skilled labor was an exclusive reserve of a few countries that dominated industrialization. Today, remote workers can come from anywhere in the world, thanks to the advent of the internet.

For instance, you can hire labor remotely over the internet. An example is getting content writers from content review websites like Pick The WriterWriting Judge, and so on. The global market has now become more internet and remote-based.

However, the third industrial revolution has its significant cons. One of which is cybersecurity. With a lot of data shared over the internet, there are concerns about the unauthorized use of personal information for fraudulent activities.

With small businesses increasing, the dependence on the internet of things is increasing, thereby posing further cybersecurity challenges in the global trading market.

Statistics available shows that 43% of cyber attacks are targeted at small businesses. Sadly, over 60% of these small businesses go out of business within six months of the attack.

What’s The Way Forward?

As we gradually move from the third into the fourth industrial revolution, we expect that some of these cybersecurity challenges will reduce. Each industrial era comes with its pros and cons. However, the higher we go, the better we get – and the global trading market isn’t left out.

Already, technological advancements like Artificial Intelligence (AI), are with us. We are getting ready for an industrial revolution that will completely alter the way we live and do business. Industries are shaping up for what is coming with this technological revolution.

One sure thing is that the global economy will improve and life will be better for many people all over the world. Most bottlenecks in living standards and business opportunities will disappear to a large extent.

We envisage an era where technology will make life a lot easier. Trading platforms like crypto will make massive inroads into the global market systems. It’s a progressive world, and all we can do is get ready for the imminent.

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Anna is a specialist in different types of writing. She graduated from the Interpreters Department, but creative writing became her favorite type of work. Now she improves her skills while working as a freelance writer for Pick The Writer, Writing Judge to assist a lot of students all over the world and has free time for another work, as well. Always she does her best in the posts and articles.