Significance of effective leadership within the 21st century business Assignment

Significance of effective leadership within the 21st century business context - Assignment Example Significance of effective leadership within the 21st century business context It is in this context that various challenges and shortcomings are witnessed in relation to the strategies developed for effective organizational management which further requires greater degree of rationality among the leaders. An illustration of a practical scenario shall be quite helpful to describe the significance and criticality of effective leadership within the 21st century business context. With this concern, this discussion will intend to describe, analyze and subsequently understand the effectiveness of leadership in Ford Motor Company. Notably, the company had to witness serious obstacles recently before the occurrence of 2008 economic crisis when the strategies implemented by the Corporate Executive Officer (CEO) Mr. Alan Mulally proved to be quite helpful in redirecting the organization towards a healthier growth. However, the current situation is also not without any challenges for the company which indicates towards the necessity to reconsider the business strategies practiced by the company. Ford is renowned as one of the leading brands in the international automotive industry which is engaged with manufacturing and distributing a wide range of automobiles and accessories. Ford is universally well-known having its manufacturing and distributing branches located all over the world. There are currently altogether nearly 90 manufacturing and distributing plants located in globally. ... Ford also relates with the financial services industry being associated with rendering loan and vehicle insurance facilities to its customers worldwide. Working in such versatile environment, Ford was able to successfully secure a leadership position within the global automotive industry obtaining sustainable profits over the years. However, it had to witness severe crisis situation during the early decade of the 21st century, incurring a record debt in its history depicting a position of financial instability and limited sustainability. Contextually, to rule the market once again and to regain its sustainability, Ford had to overcome number of challenges over the recent decades. In order to overcome such a crisis situation, Ford had to consider drastic changes in its operations being largely focused on its consumer needs and wants. It was during this period, that the organization witnessed a leadership change, where the then newly recruited Corporate Executive Officer (CEO) Mr. Alan Mulally implemented drastic financial and managerial strategies which ultimately assisted the organization to recover from the situation. This particular scenario can be regarded as quite illustrative too reflect upon the significance of organizational leadership to secure competitiveness, sustainability and growth of the company in today’s 21st century context (Hitt, Ireland & Hoskisson, 2009). Being a global and hugely diversified organization, Ford has a large number of primary stakeholders which include customers, suppliers, dealers, employees’ communities and investors or shareholders. Ford has been significantly focused on its brand recognition and reputation amid its stakeholders. For instance, the