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Assess whether the transformational leadership shown by David Potts is the main cause of Morrisons’ improved performance - Edexcel - A-Level Business - Question 1 - 2017 - Paper 2
Question 1
Assess whether the transformational leadership shown by David Potts is the main cause of Morrisons’ improved performance. Morrisons’ revenue and share price have in... show full transcript
Worked Solution & Example Answer:Assess whether the transformational leadership shown by David Potts is the main cause of Morrisons’ improved performance - Edexcel - A-Level Business - Question 1 - 2017 - Paper 2
Step 1
Assess whether the transformational leadership shown by David Potts is the main cause of Morrisons’ improved performance.
Answer
To assess whether David Potts' transformational leadership is the main cause of Morrisons' improved performance, we must explore several factors influencing this change.
Leadership Impact
David Potts took significant steps upon his appointment, implementing a clear vision to revive Morrisons. His decision to replace several directors and streamline operations suggests a commitment to creating a positive corporate culture and fostering accountability. This type of transformational leadership can inspire employees and help shift the company's trajectory.
Pricing Strategy
Critical to Potts' strategy has been the 'I’m cheaper' campaign, aimed at combatting competition from discount supermarkets like Aldi and Lidl. While leadership certainly plays a role, the effectiveness of these pricing strategies is also essential to the improved performance. Low prices have proven to attract customers, thereby enhancing revenue.
Overall Customer Experience
However, research indicates that customer experience remains crucial. Factors such as product range, quality, and service are significant in determining customer loyalty and spending patterns. Potts' vision likely goes beyond mere price cuts; it encompasses enhancing overall customer experience, which is crucial in a competitive market.
Societal Changes
Changes in customer demographics, such as an ageing population and shifts toward more frequent shopping trips, further complicate the landscape. Morrisons' performance also benefits from adapting to these changes, indicating that Potts' leadership may have prompted flexibility and responsiveness to market demands.
Conclusion
In conclusion, while the transformational leadership of David Potts has played a pivotal role in Morrisons' improved performance, it is one of several intertwined factors. Price strategies and overall customer experience also significantly contribute to the supermarket's resurgence. Therefore, attributing success solely to Potts' leadership would overlook the broader context of market dynamics and consumer behavior.