The term leadership and change management are interrelated between each other. Leadership direct the company to reach in the destination. Eventually, it is concentrate to formulating the business strategies require to transfer in new state to achieve the corporate goal (Hayes, 2010, p.159). Kotter (2011) explains that leadership is act as an engine on entire change process, that drives, controls and manages to move quickly in efficient way. According to Northouse (2013), “Leadership is a process whereby an individual influences a group of individuals to achieve a common goal.”
Change management is associated with processes and mechanisms envisioned to change initiation within the control (Kotter, 2011). It involves in decision making to setting up a goal, develop necessary process and assigning the available resources to achieve that goal by effective planning and costing (Hayes, 2010). Therefore, change management focuses on whole business process and leadership directs the company toward its vision.
2. Significance of leadership and change management
The Auto Company is the global leader in manufacturing and distributing the automatic diagnostic solutions to the automobile companies. It was famous for diagnostic solution and target market is limited to particular market segment. In the last two-three years it sales was consequently decreased because of high competition and lots of new high profile companies are introducing the high-tech devices for diagnostic solutions. Example: Electronic giant Samsung was introduced innovative mobile technology in automobile industry. Which is latest in design, user friendly and more convenient to diagnosis the vehicle’s problems (Samsung, 2014).
The current market is tough for Auto Company. It needs to bring changes in the management process or business process to compete with rivals. So the strong leadership is essential who can able to handle change management. The appropriate leadership styles help to engage the stakeholders in change process that minimize the resistance. The example given below clarifies how good leader initiates the vision and successfully execute the change. At Fuji-Xerox, Yotaro Kobayashi’s market position was decreased consistently; lack of new innovation, and customer’s criticized drives them to begin organizational change. Kobayashi leading the team with vision “ New Xerox Movement” by quality assurance. They set the objectives, develop all new infrastructure and address the customer’s need get back their position (Nadler and Tushman, 1994). Thus, the success and failure of change depends on visioning of leadership and effective planning.
3. Analysis of Macro Environment
Macro Environment is an external layer of organizational structure and beyond the control of Auto Company. According to Philip Kotler, Macro environment incorporates Political, economical, social, technological, environmental and legal factors which invents the opportunity and caution for...