LEADERSHIP CHALLENGE

Leadership Challenge



Introduction1

Discussion1

(Part A) Synopsis of a Challenge1

Price Wars with Competitors2

Stemberg's Leadership was Failed2

(Part B) Change Leadership Challenge for the Company3

Invisible Office Supplies Industry3

Financial Challenge Faced by Staples3

Providing Training to Employees for using Technical Information Systems4

Managing Suppliers5

Concept of Customer Oriented Products5

(Part C) My Role as CEO5

Transformational Style of Leadership6

(Part D) Learning as a Change Leader11

Conclusion12

References14

Appendix:Case Study Staple 200916

Leadership Challenge

Introduction

The current global economic slowdown has nothing to do with the global crisis in the business world. Innovations and introducing new technologies have been fasten up the pace with the increasing demands of the consumers. Technology has made everything easier to get on the door step. However, generating new ideas and bringing a change in the environment has always proved to be challenging for the leaders of the organizations (Friedman, M. J.1970, pp 53). The courage to face the change resistance has made successful leaders with amazing new ideas.

In this report, we are going to discuss the leadership challenge faced by the Staples Incorporation to introduce the idea of a retail store for office supplies in United States for the first time in the history of retail business.

Discussion

(Part A) Synopsis of a Challenge

Tom Stemberg found the passageway of the office supplies empty while he was interviewing for a job at Makro. An idea for the need of office supplies market arises in the mind of Stemberg. He realizes and understood that customers need the best possible bargain every day they can receive. Stemberg was working with Jewel Corporation previously, and meanwhile he was fired from there. He decided to involve Leo Kahn, his business rival, to help making his idea of introducing supplies market successful in the business world (Bridgette Alan, 2009, pp.1-9).

Idea of Super Retailing Store only for Office Supplies Serves as a Challenge

Price Wars with Competitors

When staples started to focus on the price of products, the performance of the company started coming down. The strategy of focusing on prices rather than the customers did not work for the staples. In California, the top executives including Stemberg, started the price wars with their competitors. He realized that focusing on customers has made them better off than focusing on price. Staples understood that if they can provide what actually customer need, customers will pay the prices no matter what it was.

While they were busy in the price wars, they had to end up changing their hub of the business. This proved to be the great fall of the Stemberg's leadership at staples. Staples had to pay for this strategy a big price. As staples were failed with their strategy, they slipped from their main focus. They cut their profit margin up to 8% in order to give competition to their competitors, which did not work in staple's best interest.

Stemberg's Leadership was Failed

In 2003, announcement was made, and Stemberg was asked to step down as CEO of the staples. As the leadership was changed, the company had to go through many ...