June'18

The IUP Journal of Business Strategy

Focus

Leaders managing organizations face many challenges. Increased complexity of business makes their job even more demanding as they pursue a relentless journey in taking the organization forward. In this quest, some fall apart, while some succeed despite hurdles and obstacles. A classic example in recent times is the reign of Sir Martin Sorrell who resigned after serving for 33 long years at the world's leading ad agency WPP. The legendary and historic turnaround of General Electric under Jack Welch too is well documented for posterity. We learn through these two examples how individuals thrive and succeed in highly challenging and evolving environments, a trait difficult to possess. In recent times though, the concept of servant leadership has emerged as a more popular alternative compared to the prevalent styles (e.g., autocratic). According to Kouzes and Posner, "Leadership makes a significant difference in levels of engagement and commitment and is perhaps the most important asset in every organization, yet recent research points to a shortage of leaders. It is a serious global concern". On the other hand, it is also observed that modern organizations are expected to be socially responsible and cannot take business decisions in isolation. Social responsibility of business is mandated by law now in many countries. In this issue, the first paper, "Service-Oriented Leadership Style for CSR: A Perceptions-Based View" by Jaideep and Sunita Singh Sengupta, looks at the influence of service-oriented leadership behaviors on socially responsible business decisions. The authors have conducted a perceptions-based study of employees working in different public sector undertakings in India. The results of the study reveal the existence of a positive relationship between servant leadership dimensions and socially responsible behaviors.

The impact of Merger and Acquisition (M&A) announcements on share price is well documented in literature. It is a wellknown fact that shareholders of the acquired company benefit from M&A. The motivation behind such activities lies in the underlying premise that mergers help exploit synergies. M&A also have an impact on employees of both firms. The second paper, "Amazon's Acquisition of Whole Foods: A Case-Specific Analytical Study of the Impact of Announcement of M&A on Share Price" by Diwahar Sunder Nadar, is a qualitative investigation of the acquisition of Whole Foods by Amazon. The authors report related literature from the M&A area and analyze the outcomes of the acquisition. Important outcomes of the analysis are presented in brief ranging from impact of acquisition on brand equity to corporate culture alignment, HR issues, synergies and valuation challenges. An interesting feature of the acquisition was Amazon's recourse to using debt instead of cash to fund the buying despite availability of cash. Amazon also benefitted due to its large customer base of Prime customers who are not subscribers to Whole Foods products.

The third paper, "Implementing Green Management in Business Organizations" by Jose Mathews, looks at a very important area of green management. In the human quest for development, environment has been largely ignored. Flora and fauna have been systematically decimated in our hunger for urbanization and industrial development. The damage in many cases is irreversible. It has dawned on organizations, although belatedly, that we must save the planet for our future generations and cannot continue inflicting further damage. The concept of green management incorporates principles of environmental sustainability in every decision that is taken by organizations. Examples of such practices involve responsible use of non-renewable resources, minimization of pollution and saving flora and fauna, to name a few. Emerging nomenclature in green management includes practices such as corporate environmental citizenship, green HRM, and eco-centric and eco-efficient organizations. According to the author, green management must be viewed, defined and measured as any other variable related to organizational behavior. Green management, in the paper, is also defined as the organization-wide process of applying innovation to achieve corporate sustainability and corporate environmentalism that bestows the organization with a competitive advantage through the effective utilization of different organizational and managerial mechanisms pertaining to material use, organizational learning and culture and human resources.

-Venu Gopal Rao
Consulting Editor

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Article   Price (₹) Buy
Service-Oriented Leadership Style for CSR: A Perceptions-Based View
50
Amazon's Acquisition of Whole Foods: A Case-Specific Analytical Study of the Impact of Announcement of M&A on Share Price
50
Implementing Green Management in Business Organizations
50
       
Contents : (June'18)

Service-Oriented Leadership Style for CSR: A Perceptions-Based View
Jaideep and Sunita Singh Sengupta

Since the time of the Industrial Revolution, managers have tended to view people as tools, while organizations have considered workers as cogs in a machine. In the past few decades, we have witnessed a shift in that long-held view. In countless for-profit and nonprofit organizations today, we are seeing traditional, autocratic, and hierarchical modes of leadership yielding to a different way of working—one based on teamwork and community, one that seeks to involve others in decision making, one strongly based in ethical and caring behavior, and one that is attempting to enhance the personal growth of people while improving the caring and quality of our many institutions. This emerging approach to leadership and service began with Greenleaf. A particular strength of servant leadership is that it encourages everyone to actively seek opportunities to both serve and lead others, thereby setting up the potential for raising the quality of life throughout society. The purpose of this study is to analyze the relationship between servant leadership dimensions of employees and their perceptions on social responsibility implications. The scale developed by Laub (1999), which is based on 6 different dimensions, was used to measure servant leadership. Corporate Social Responsibility (CSR) scale used in the study was developed by Carroll (1999) and has four dimensions—economic, legal, ethical, and philanthropic. Differences based on select demographic variables too were assessed. By understanding this relationship, certain practical recommendations are presented. These recommendations are especially important and shed light on the impact of servant leadership dimensions on social responsibility practices and thus help bridge individual level perceptions to firm level implications.


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Article Price : Rs.50

Amazon's Acquisition of Whole Foods: A Case-Specific Analytical Study of the Impact of Announcement of M&A on Share Price
Diwahar Sunder Nadar

Previous studies have proved that the announcement of an intended merger or acquisition has an impact on the share prices of the companies involved. Market share price has therefore been a key indicator of understanding the market sentiments about the merger or acquisition. This study is with specific reference to the Amazon-Whole Foods deal in which the share price of both the companies increased after the announcement, which is a unique phenomenon. This qualitative study tries to understand the factors of the deal that could have affected the market sentiments and thereby impacted the share price. The study employs various literature for identification of the factors and FCFF model for valuation. With the aid of the literature studied, the factors identified were synergy, payment methods and cultural compatibility, amongst others. The study will provide a holistic understanding of the dynamics that caused the increase in share prices following Amazon's acquisition of Whole Foods Market.


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Article Price : Rs.50

Implementing Green Management in Business Organizations
Jose Mathews

Green management essentially implies the integration of the principles of management and environmental management that develops into a seamless relationship between the environment and management. In the componential view, green management is not a unitary construct as it entails a number of components which are interrelated and intertwined with environmental and managerial processes. Green management begins with incorporating the green principles into the mission and vision of the company and translating the same into specific organizational and managerial processes. In the actual operations, the management gives equal attention to organizational goals and environmental goals so that development becomes sustainable in the long run. The geographical features of the land are green and the nature that human beings are confronted with is green. Man's quest for wealth and material development however has brought about destruction on the green planet, and the very lives of human beings are also endangered in this process. The prudence and wisdom of man warns against the reckless use of nature, and now science tells us that unless preventive and corrective measures are taken, the human beings are in for a bleak future that is not sustainable. It is also recognized by managers that the corporations across the world have an obligation to save the lives of the future generation by going green. The traditional management, as it is practiced, is unfriendly to nature and is against sustainability principles, and it is to be revamped along the lines of environmental management principles. This is the case for green management. This paper examines the different components that constitute green management.


© 2018 IUP. All Rights Reserved.

Article Price : Rs.50