Evaluate these two options and recommend which option might be preferred by Morrison’s shareholders - Edexcel - A-Level Business - Question 1 - 2017 - Paper 2

In evaluating the two options related to David Potts' transformational leadership, we see significant potential for positive impact due to his management style. Transformational leadership is characterized by the ability to implement a clear vision and inspire meaningful change within the organization, which Potts seems to exemplify.

His replacements of directors could bring forth fresh ideas and approaches, as seen with the introduction of the 'I’m cheaper' campaign, which aims to make Morrisions more competitive in the market. This strategic shift demonstrates a willingness to adapt to consumer demands and market conditions, potentially improving customer retention and attracting new shoppers.

Conversely, one must consider the external factors influencing Morrison's performance; consumer confidence has improved, which may have led to increased spending at supermarkets as a whole. Additionally, economic factors such as low interest rates could have contributed to improved disposable incomes, resulting in greater spending on groceries. Thus, while transformational leadership likely plays a role, external economic factors are also important to consider.