Leaders are expected to propose and implement specific strategies aimed at ensuring success in a competitive market. They have a significant impact on institutional performance and the employees’ willingness to implement a recommended plan. A leadership strategy outlines the number of managers needed within an organization and clarifies their roles in the pursuit of profit. In addition, it involves the making of decisions concerning the evaluation, selection, and compensation of other members of an institution. Strategic executives are focused on identifying mechanisms through which their companies can gain advantages over rivals in an era of consumer awareness and innovation. Despite the wealth of information on leadership and strategy, there are specific gaps in the literature. Future research needs to focus on the identification of the effects of indecision, reactive and proactive approaches, and the role of strategic leaders in the control of human capital.
The world’s constantly evolving environment forces organizations to adapt and cope with changing internal and external factors. Leadership is a group phenomenon that influences and inspires followers to achieve specific objectives (Agyepong et al., 2018). Leaders must adopt holistic approaches that engage employees in ethical, spiritual, and emotional dimensions (Eva et al., 2019). Moreover, they must model the path to be taken, challenge outdated processes and create an environment where followers can act (Dirani et al., 2020). Other strategies such as complexity leadership place emphasis on achieving a balance between formal and informal organizational structures (Bäcklander, 2019). Indeed, leadership has a significant impact on institutional performance and the employees’ willingness to implement a recommended plan.
The creation of a conducive work environment is critical in business. Leaders who are willing to serve positively influence organizational climate (Brohi et al., 2018). They must translate the firm’s vision into clearly outlined goals embedded in a specific strategy designed to achieve set objectives (Coetzer, Bussin and Geldenhuys, 2017). The proposed plan must satisfy emotional, social, and functional objectives while establishing new rules and metrics (Henry, 2018). However, Davis (2017) notes that servant leadership is tilted towards employee needs as opposed to stakeholder interests. Moreover, the autocratic leadership style encourages those in charge to make decisions on their own, which may hamper progress (Dyczkowska and Dyczkowski, 2018). Leaders shape methodologies and have the capacity to motivate subordinates (Luqman et al., 2019). According to Mjaku (2020), effective plans are implemented by strong and humble leaders. Therefore, an individual’s capacity to inspire followers is inextricably linked to the implementation of strategies that deliver desired outcomes.
The increasingly competitive business environment requires the application of strategic leadership skills in order to survive. According to Adzeh (2017), effective leaders have the capacity to solve complex problems by applying a high level of thinking. Lehto and Limnéll (2020) noted that strategic leadership is important because it coordinates, reconciles, and facilitates corporation between actors in a specific organizational effort. The creation of coherence and continuity is essential for the development of mutually beneficial relationships both within and outside the organization.
Organizations must focus on developing their leaders if emerging challenges are to be effectively addressed. Implementing strategies intended to improve performance and the quality of services offered should be prioritized (Roupnel, Rinfret and Grenier, 2019). Strategic leadership impacts organizations because the decisions made have far-reaching consequences. For instance, statements regarding achievements, innovation, and diversification determine the path the institution takes. Maintaining relationships outside the organization is an important strategy aimed at improving the firm’s image. These interactions have the capacity to deliver certain strategic advantages, such as the enhancement of the organization’s reputation and the provision of access to important resources (Samimi et al., 2020). In addition, the aforementioned relationships can help leaders navigate crises. The application of a well-thought-out strategy helps position a business favorably in a competitive environment.
Strategic leadership involves making decisions concerning the evaluation, selection, and compensation of other members of an institution. The emphasis on strategic human resource management systems influences an organization’s performance (Samimi et al., 2020). In addition, a leader’s behavior has the capacity to unify, encourage and motivate employees to pursue a specific strategic vision. The act of gathering, processing, and using available information to gain a competitive edge is an important strategic move. Controlling the flow and application of information within and outside an institution is also essential in view of the fact that it allows leaders to frame data based on identified interests (Samimi et al., 2020). Also, the application of specific communication tactics, timing, and the content offered to subordinates significantly impact stakeholders’ interests.
Various strategies are applied in the creation of organizational structures. These frameworks are meant to determine specific conditions that guide learning processes and staff monitoring criteria. A firm’s ability to adapt to changing environmental conditions is articulated in the management team’s ability to implement policies aimed at ensuring success. Leaders who embrace strategic thinking are capable of expediting growth by specifying the mechanisms meant to ensure beneficial outcomes (Jabbar and Hussein, 2017). These include the utilization and development of core competencies, nurturing human capital, maintaining a favorable work environment, and fostering ethical practice (Semuel, Siagian and Octavia, 2017). It is critical to ensure that the workforce promotes factors that are likely to improve overall productivity.
Types of Strategies
Competitive advantage is often seen as an accelerator for sustainability and growth for a variety of institutions. Strategic executives are focused on identifying mechanisms through which their companies can gain advantages over rivals in a period of consumer awareness and innovation (Jabbar and Hussein, 2017). In addition, they are focused on understanding changes in demand and how the implementation of specific policies impacts performance. A strategy is a framework through which a company affirms its commitment while identifying ways of settling into an environment for the purposes of gaining a competitive edge (Jabbar and Hussein, 2017). However, challenges arise when resource requirements for external and internal business development cause doubt (Masud et al., 2019). It is essential to consider all options at the development stage to ensure that the proposed initiative has a higher chance of succeeding.
Differentiation is a strategy many businesses use to distinguish their offerings from those of their competitors. This can be accomplished through the provision of innovative features, offering superior services, and building a reputable name (Semuel, Siagian, and Octavia, 2017). However, most institutions that adopt this option are often forced to offer higher prices to cater to the unique features, distribution channels, and timely delivery. It is worth noting that scarcity and the cost of imitation offer organizations sustainable competitive advantages (Semuel, Siagian and Octavia, 2017). Maintaining the lead against competitors through the implementation of well-designed plans ensures continued success.
Businesses are increasingly applying social media tools in their operations in an attempt to improve performance and attract new clients. Approximately 80% of chief executive officers in 50 of the world’s largest companies actively engaged consumers on digital platforms in 2015 (Auvinen et al., 2019). The internet is increasing the visibility of organizational practices leading to calls for transparency. As a result, the use of stories and narratives to project-specific institutional ideals has gained significant importance. These new avenues have prompted leaders to prioritize harmony building, encourage collaboration and recruit talent. However, some institutions are taking advantage of the new technologies reach to market lies and challenge their competitors. New advances in media and communication have made it easier for dishonest individuals to implement unfair strategies in an attempt to outsmart competitors.
Corporate social responsibility is viewed as a business strategy because it requires the allocation of resources and has the potential to enhance an institution’s reputation. Ethical responsibilities are progressively transforming into economic requirements that require the inclusion of stakeholder perspectives in strategic outlooks (Masud et al., 2019). The use of technological, financial, and physical resources as outlined in a strategic blueprint determines how an institution relates to its clients and the environment. Companies are prioritizing the preservation of the planet given the fact that the changing climate impacts a large portion of their consumers. The business environment is highly aware of the risk enterprises pose to the earth’s wellbeing. As a result, firms are using corporate social responsibility as a strategy to increase their visibility and appeal to the consumer market.
Reasons for Failure
Clearly formulated strategies may fail to achieve the desired outcome if poorly executed. The implementation of organizational plans is a constant problem in the contemporary business environment. Approximately 57% of European companies failed to implement strategic proposals over a ten-year period, as demonstrated by a study of 276 senior executives conducted in 2004 (Narikae, Namada and Katuse, 2017). There are a variety of reasons outlined to explain these failures. For instance, unforeseen market transformations, aggressive competitor responses, and inadequate resources are potential causes of failure. In addition, lack of support from management, poor communication, and ineffective business models contribute to the predicament. Plans that misrepresent the impact of demand on the market are likely to result in losses (Narikae, Namada and Katuse, 2017). Individuals tasked with facilitating the implementation of the change process determine the success of an institution’s strategic plan. Therefore, effective leadership is essential since it persuades followers to prioritize specific objectives meant to give the business a competitive edge.
Strategic leadership is essential for organizational success in a competitive market environment. Studies indicate that the application of well-designed mechanisms aimed at gaining an edge over opponents is essential for profitability. The increasingly competitive business environment requires the application of strategic leadership skills to survive. According to Adzeh (2017), effective leaders have the capacity to solve complex problems that arise in organizations by applying a high level of thinking. Strategic thinking is a cognitive process that highlights a person’s ability to identify opportunities, anticipate threats, analyze alternative options, and make decisions intended to ensure long-term competitive advantage (Adzeh, 2017). It is evident that organizations leverage competitive advantage to facilitate growth. It is a strategic executive’s primary role to identify techniques that can be applied to gain an edge over rivals. For instance, differentiation can be applied through the provision of superior service and innovative features.
The application of social media tools in business operations is becoming commonplace in many institutions as they clamor for new clients. Another strategy is corporate social responsibility which leaders use to improve their organizations’ image. This trend is driven by the progressive transformation of ethical responsibilities into economic requirements in the current business environment. An acute awareness of the institution’s impact on the environment is necessary because today’s consumers are focused on the earth’s preservation.
The world’s constantly evolving environment forces organizations to adapt and cope with changing internal and external factors. As a result, they adopt strategies that may fail to achieve the expected results if they are poorly executed. Unsatisfactory outcomes may occur due to unexpected market changes, extreme competitor responses, and limited resources. Additionally, communication challenges, the lack of support, and weak business models add to the problem. Organizational leaders must evaluate the evolution of demand and assess how it affects the organization’s performance. The individuals tasked with implementing the change process are the key determinants of a strategic plan’s success. Therefore, effective leadership skills are critical because employees need to be encouraged and persuaded to prioritize specific objectives.
However, the findings from the reviewed research provide little information on the impact of indecision on the strategic thinking process. Leaders sometimes delegate or delay specific decisions due to anticipated criticism or undesirable outcomes. The determinants of such behaviors and the manner in which they impact organizations remain unexplored. It is important to assess the evolving patterns of strategic decisions over time to facilitate a better understanding of strategic leadership. Research should also focus on understanding how strategic leaders engage both reactively and proactively in external strategic relationships. It is vital to establish the nature of actions required to succeed in each aspect and how specific individuals vary in their capacity to perform these actions. For instance, an exploration of how external leadership and strategy implementation varies among CEOs with respect to the benefits and areas of focus is critical.
A strategic leader’s role in the management of human resources needs to be explored further. While the management team is expected to set rewards or employ certain individuals for purposes of strategy implementation, such decisions may incentivize unhealthy competition between colleagues in an attempt to meet the outlined goals (Samimi et al., 2020). Future research should focus on identifying the effects of indecision, reactive and proactive approaches, and the role of strategic leaders in the control of human capital.
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