Leadership


WeWork leadership has been a controversial topic with co-founder and first CEO Adam Neumann being notorious for deceitful leadership style. In fact, leadership style at WeWork under Neumann is used as a case study in business schools worldwide for its inefficiency at various levels.  The long list of wrongdoings by Neumann includes engaging in insider dealings, burning cash recklessly without a path to profitability, systematically exercising poor executive judgement and allowing discrimination and harassment at the workplace.     Neumann had contemplated and it was written in initial company IPO filings that in case he died    his wife Rebekah, the co-founder and the chief brand and impact officer of WeWork, would be responsible for appointing a successor. This scenario reminded some business analysts Game of Thrones show. Neumann also engaged in non-standard financial dealings that caused conflict of interest. For example, he was borrowing money from WeWork at a little or no interest to privately buy properties and then lease them to WeWork. Similarly, Neumann registered “The We Company” as a trademark under his name personally and sold it to WeWork for USD 6 million. Other unacceptable behaviours by Neumann include brining weed on a private jet, organizing notorious parties with free beer on tap and promoting the work culture of discrimination and sexism. These and other WeWork leadership issues emerged  when the workspace provider was scrutinized when preparing for IPO in 2019 and the company had to delay the public listing until October 2021. Due to the mounting pressure from investors and other stakeholders following the revelations Adam Neumann had to resign on September 24, 2019. Co-CEOs Artie Minson and Sebastian Gunningham took over leadership at WeWork until Sandeep Mathrani became CEO in February 2020. Sandeep Mathrani has an impressive track record as turnaround master and he has led five different…


February 19, 2023
By John Dudovskiy
Category: Leadership

Howard Schultz has been at the helm of Starbucks leadership for more than two decades in total. He is rightly credited for making the business the world’s largest coffee retailer with 17133 company-operated stores and 16700 licensed stores in 84 markets employing 254,000 people.[1] On June 2000 Howard Schultz stepped down and assumed a new position as chief global strategist to focus on international expansion in general and expansion in China in particular. New internally promoted CEO Orin Smith oversaw store count to increase to 10000 locations with more than USD 5 billion annual sales. However, at the same time Starbucks market share at US decreased due to increased competition from McDonald’s, Dunkin’ Donuts and other competitors.     Schultz returned at the helm of Starbucks leadership as CEO on January 2008 in the middle of global financial crisis to replace Jim Donald, who had succeeded Orin Smith in 2005. After a series of massive changes such as closing many underperforming stores, re-training employee and enforcing fair trade in coffee supply-chain, Schultz stepped down as CEO for the second time and became executive chairman. Kevin Johnson was appointed as a new Starbucks CEO effective from April 2017. Kevin Johnson admitted having ‘venti-sized shoes to fill” referring to successful leadership by Howard Schultz.  At the same time, the new CEO stated “I’m not going to fall into the trap of trying to be Howard. I’m going to be authentic to who I am as a person and who I am as a leader”[2]. Howard Schultz returned for his third stint as CEO on April 4, 2022. This time the role was interim CEO until more suitable person is found. The main reason for his latest return was to actively block attempts by baristas to form unions. In September 2022, former CEO of Reckitt Benckiser…


October 4, 2022
By John Dudovskiy
Category: Leadership
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The current IKEA leadership practices and patterns are based on leadership principles and life philosophy of its founder Ingvar Kamprad. Known to practice transformational and charismatic leadership styles, Ingvar Kamprad had been a driving force for many decades behind the phenomenal success of the home improvement and furnishing chain.  Ingvar Kamprad founded the furniture retailer in 1943 and after leading the business for 70 years, he handed over control to his three sons. Nevertheless, work principles of the founder associated with frugality and effectiveness continues to serve as a basis for IKEA leadership practices in modern days.     In 2017 Jesper Brodin became President and CEO of IKEA Group, INGKA Holding B.V. and its controlled entities. He is only the 6th CEO in The Swedish furniture chain’s history of more than 75 years.  Mr. Brodin has worked as an assistant to founder Ingvar Kamprad and it is widely believed that IKEA CEO will not change the strategic direction set by the founder of the business. The CEO of Inter Ikea that manages company’s brand and concept Mr. Jon Abrahamsson Ring has also served as founder’s assistant for many years. It has been noted that “former assistants of Mr. Kamprad have had a near monopoly on the leadership of the two main companies in the furniture empire in recent times”[1].  Apart from two executives mentioned above, former Ingka CEOs Peter Agnefjall and  Anders Dahlvig were also former assistant to Mr. Kamprad. IKEA leadership principles are based on the following pillars: 1. Leading by example. It is difficult to contain IKEA leadership style into a single classification due to a unique nature of the business in more than one ways. Perhaps, leading by example, may the most closely characterise leadership practices at IKEA. The famous quote by IKEA founder Ingvar Kamprad…


August 14, 2022
By John Dudovskiy
Category: Leadership
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McDonald’s leadership team is headed by the President and CEO, who is aided by nine senior managers, each overseeing a specific aspect of the business. [1] The previous President and CEO Mr. Steve Easterbrook took the helm in 2015 and he was widely considered as an effective leader until he was fired for having consent sexual relationships with subordinate employees. During his leadership tenure Mr. Easterbrook was credited with turning around the company and reviving its falling stock price. Most prominent changes introduced by Easterbrook include reducing costs, introducing touch-screen ordering and establishing all-day breakfast. The new President and CEO Chris Kempczinski has also proved to be effective business leader. Under the new leadership McDonald’s has emerged as a clear winner during the pandemic. Mr. Kempczinski has channelled his energy and focus on digital, drive thru and delivery to adjust the business model to the pandemic environment. McDonald’s leadership is currently faced with a serious challenge. In recent years the fast food chain has faced many lawsuits and claims involving sexual harassment and racial discrimination. The former President and CEO Mr. Easterbrook being found violating company code of conduct is the evidence of severity of the issue. One of the important tasks for the new leader Mr. Kempczinski is to create a corporate culture where sexual harassment and racial discrimination is not tolerated in practice. McDonald’s Corporation Report contains the above analysis of McDonald’s leadership. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on McDonald’s. Moreover, the report contains analyses of McDonald’s business strategy, organizational structure and organizational culture. The report also comprises discussions of McDonald’s marketing strategy, ecosystem and addresses issues of corporate social responsibility. [1] Annual Report…


June 20, 2022
By John Dudovskiy
Category: Leadership
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Amazon leadership style has been classified as pragmatist. Pragmatist leaders “set high standards and unapologetically expect those standards to be met by themselves and by their employees”[1] The company’s founder and first CEO, Jeff Bezos is an exceptional and proven business leader. Bezos efficiently exercises visionary and servant leadership styles and places exceptional customer service at the core of Amazon’s business practice. Moreover, Jeff Bezos leadership style is unique in several ways. For example, it has been noted that “while you might find other internet firms focusing on a fun, relaxed atmosphere for their employees, no-frills Bezos is proving the potency of another model: coddling his 164 million customers, not his 56,000 employees.”[2] Jeff Bezos’ leadership style can be analysed through the prism of contingency leadership theory. According to contingency leadership theory, “leader’s effectiveness is contingent upon with how his or her leadership style matches to the situation.”[3] Jeff Bezos leadership style has been characterized as harsh, cutthroat and demanding.[4] It can be argued that such a leadership style fitted the situation on the onset of the business, when the company had to strengthen its position on rapidly expanding industry. In July 2021 Jeff Bezos stepped down as CEO and assumed the role of company’s executive chairman. Andy Jassy CEO of Amazon Web Services became the new CEO of the online retail behemoth. At has been noted that although Andy Jassy values Bezos leadership style the new CEO is “more mild-mannered, soft-spoken and less prone to angry outbursts compared to Bezos”[5] Nevertheless, Mr. Bezos will continue to yield an immense influence on the business and Amazon leadership style for the foreseeable future. This is because his new role executive chairman grants his involvement in strategic decision making and Mr. Bezos remains as the largest shareholder of the e-commerce giant. Amazon…


March 22, 2022
By John Dudovskiy
Category: Leadership
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Efficiency of Square leadership is one of the competitive advantages of the business. Jack Dorsey, Square co-founder, President, and Chief Executive Officer, also serves as Chief Executive Officer of Twitter, Inc. The payments company Board of Directors comprises strong business leaders such as former CFO of PayPal Roelof Botha, CEO of Shake Shack Randy Garutti and former CFO of Goldman Sachs David Viniar. Square leadership style integrates the following two principles: 1. Purpose-driven leadership. Leadership style practiced by Jack Dorsey can be classified as a purpose-driven leadership. This type of leadership can be defined as “prioritizing purpose and people over profit and greatness over growth.”[1] For Square leadership the prioritized purpose is making easier for everyone to participate in the economy. The payments company attempts to achieve this mission through developing an ecosystem of financial products and services that are greatly simplified versions of banking services. Moreover, the purpose serves as a compass for long term decision making for Square leadership team. 2. Focus on team effort and appreciation of teamwork. At Square great emphasis is placed at teamwork and decision-making at strategic level reflects inputs from teams. It has been noted that “whether he is discussing Twitter or Square, Dorsey gives most of the credit to his team.”[2] Such an approach encourages team members at all levels to feel the ownership of the company with positive implications on their work performance. Currently, Square leadership is faced with a challenge of sticking to its leadership principles and maintaining organizational culture amid an extensive growth of the business in an international scale. Taking into account successful leadership experience of Dorsey at Twitter, which is a truly global business, it can be expected that senior management at Square can deal with this challenge in an appropriate manner. Square Inc. Report contains the above…


September 26, 2021
By John Dudovskiy
Category: Leadership

Uber leadership style was authoritative with co-founder and first CEO Travis Kalanick attempting to micromanage the company. The global transportation technology company had to face a leadership crisis due to incompetency of Travis Kalanick. Mr. Kalanick’s leadership style was criticized as ‘one-man-show’[1]. Moreover, it has been noted that “the sexual harassment claims, the bullying, the intellectual property lawsuit – are attributable to former leader Travis Kalanick’s brash take-no-prisoners, admit-no-errors leadership style.”[2] Scandals at the global taxi technology company escalated to an extent where Kalanick was pressured by investors to step down as Uber CEO in June 2017. The search for new CEO by the Board of Directors took two months and experienced leaders such as former CEO of HP Meg Whitman and former CEO of General Electric Jeff Immelts were shortlisted as potential heads of new Uber leadership. Expedia CEO Dara Khosrowshahi was chosen as a person to lead Uber effective from August 30, 2017. Dara Khosrowshahi was CEO of Expedia for 12 years and has proved himself as an effective business leader. Expedia’s stock has climbed more than 500% since the 2005 spinoff under the leadership of Khosrowshahi.[3] New Uber leadership is faced with a set of complex challenges that include improving organizational culture, building gender-balanced senior management team and improving relationships with drivers.[4] Changes made by Mr. Khosrowshahi so far include securing USD 7,7 billion investment from Softbank[5], emphasizing diversity and inclusion, acknowledging and apologizing for past misdeeds by the company.[6] At the same time, certain aspects of Khosrowshahi’s leadership of Uber have been subjected to criticism. First of all, Uber initial public offering (IPO) which took place on May 2019 has been rather unsuccessful. Shortly after the IPO, shares of the ride-hailing giant dropped by 11%, which was the biggest IPO first-day dollar loss in US history.[7] Moreover, certain analysts note…


July 17, 2021
By John Dudovskiy
Category: Leadership

Tesla leadership is frequently a topic of heated debates. Tesla CEO and co-founder Elon Musk is a controversial figure. At the same time he is admired worldwide for his entrepreneurial and leadership skills. Elon Musk is a successful serial entrepreneur with a reputation as a creative genius who founded PayPal, Space X and the Boring Company. Each of these companies has become highly successful in its respective field in the global scale. Musk also has been a driving force behind the rapid development of Tesla, assuming the roles of CEO and Product Architect with the company.  He was considered as an effective visionary leader credited with the successful launch of Tesla Roadster in 2018, the first electric car to use lithium-ion battery cells. Later, Musk oversaw the launch Model S, Model X and Model 3 electric vehicles and acquisition of Solar City Corp. for USD 2,6 billion in stock. The company’s board of directors comprises 10 people, including experienced and accomplished business leaders such as Oracle founder Larry Ellison and former 21st Century Fox CEO James Murdoch. It can be argued that one of the major issues with Tesla leadership is micro-management by CEO Musk and a wide range of roles within the company Musk attempts to perform at the same time. In an interview in August 2018, Elon Musk complained about exhaustion taking a toll on his physical health, working up to 120 hours a week and about times he has to spend three or four days at the factory without going outside.[1] Tesla Inc. Report contains the above analysis of Tesla leadership. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Tesla. Moreover, the report contains analyses of…


April 22, 2021
By John Dudovskiy
Category: Leadership
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During Steve Jobs era that covers the period 1997 – 2011, Apple leadership was autocratic with Steve Jobs micro-managing a wide range of business operations. It has been noted that “when Steve Jobs was in charge, everything flowed through him.”[1] Apple leadership practices have changed dramatically under Tim Cook. Acknowledged as the World’s Greatest Leader by Fortune Magazine[2], Tim Cook proved to be effective from various perspectives. Moreover, Tim Cook has been praised by employees for inspirational leadership and helping his subordinates to become a better human being.[3] The multinational technology company is parting with perfectionism and autocracy elements of leadership that had prevailed under Steve Jobs. Apple leadership style integrates the following elements: Democratic leadership style. In contrast to highly autocratic leadership style of Apple co-founder and late CEO Steve Jobs, the current CEO Tim Cook exercises and promotes democratic leadership. For Cook, it is important to build consensus among senior management regarding strategic decisions for the business. Moreover, since assuming the top role, Cook granted greater autonomy to new product development team, decreasing the direct participation of the CEO in new product development process. “Quiet” leadership. Tim Cook has been praised for his quiet, yet effective leadership style. Nicknamed as “quiet leader” by some industry analysts[4], Cook is totally different from his charismatic predecessor, Steve Jobs. At the same time, Tim Cook is occasionally criticized by analysts and industry watchers for the lack of ambition and vigour, his predecessor Steve Jobs had. For example, according to a report by BGC financial services firm, “under Cook, Apple has been cautious about entering new product categories. The Apple Watch, launched in April 2015, is the No. 1 smartwatch, but overall sales have disappointed. Apple Music, which debuted in June 2015, has grown rapidly to 15 million subscribers, but it’s seen as a…


February 2, 2021
By John Dudovskiy
Category: Leadership
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Airbnb leadership practices are contradictory to leadership principles taught in famous business schools worldwide. Nevertheless, the global success of the peer-to-peer lodging company is an undisputed indication of high level of efficiency of Airbnb leadership by CEO Brian Chesky. Airbnb leadership style is integrates the following elements:   1. Going to the source. Airbnb founders Brian Chesky, Joe Gebbia and Nathan Blecharczyk had little or no traditional management experience when they founded the global hospitality service brokerage company. Particularly, Brian Chesky had no business or entrepreneurial experience whatsoever. He dealt with the challenge using the method he calls ‘going to the source’ that is getting advice from top experts in the field. Sources for Airbnb CEO included the likes of Mark Zuckerberg, Reid Hoffman, Marc Andreessen, Jeff Weiner and Jony Ive. Going to the source remains a popular practice at Airbnb to these days and is likely to remain so for the foreseeable future.   2. Managing by visibility. Hands-on approach can be specified as one of the main aspects of Brian Chesky management style. For example, CEO is known to send emails to all employees each Sunday with “whatever is on his mind, which leads to staff replying to him and opening dialogues about various elements of the business”[1] Immersing himself into important details of various business processes allows Chesky to address root causes of the problem and to find innovative solutions to them.   3. Not leading in consensus during the crisis. In 2011 a female host’s apartment was destroyed, the renter took her valuables, and stole her identity while she was travelling for business.[2] While the Chesky gave a response to the incident, the host rebutted in a blog post his claims that the company had done everything it could to help her[3]. Opinions differed within Airbnb senior…


September 3, 2019
By John Dudovskiy
Category: Leadership
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