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Leadership and Strategic Change - Lack of Leadership

Both divisions are lacking with proper leadership. As Saunders has help organisation to grow however if we consider growth of water division in last 5 years, water division hasn’t expand and has slow development ratio where as in solution division was able to merge back 4 subsidiaries, this show the development of solution division. Saunders is lacking leadership in context of expressing its view and demanding investment for water division, being a leader of water division he could have asked Billing to invest money in water division or more resources for development of water division, if he would have communicate to employees that why Billing is unable to invest money in water division then he could have kept the moral of employees. Other side in solution division Suarez lacking leadership in terms of allocating proper systems in division, some subsidiaries have more resources then to other and this has created the problem of have and have not in division. Billing himself failed to provide proper leadership to organisation although he has raise the profitability of firm and has introduce new innovation strategy and created lots of subsidiaries, he has only focus on development of subsidiaries and introduction of new products by using water division as cash-cow however he didn’t concentrate on water division and this has created problem in water division. Due to lack of resources and planning water division failed to produce quality products, lost relationship with loyal customer and this has brought down moral of the employees. Best online assignment service UK 

 

Execution of Innovation strategy: To introduce innovation in organisation Billing used innovation strategy and use of water division as cash cow become main strategy for business expansion. He signed contract with small subsidiaries for successful products developments which was necessary however the incentive paid out is improper as if subsidiaries do come with successful products then officer get high income in terms of incentives. Billing used water division as cash cow for initial subsidiaries was ok however later he had to issue new share to brings funds in organisation in order to finance the new subsidiaries even the success of subsidiaries wasn’t clear. He spent around $750 Millions on subsidiaries and this investment have not paid back to company which has created conflict in water division as water division employees work hard to increase the profitability and end of the day water division not receiving incentives or any opportunity for development which has clearly reflect the dissatisfaction in employees. Billing failed to explain why he is investing such huge amount in subsidiaries and how these subsidiaries will help organisation in long run to water division, at the same time using innovation strategy just for solution division is another reason for development of negative attitude towards subsidiaries. Get coursework help uk 

 
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