business management assignment 1

Alan Michael Sugar is one of the most successful businessmen in Britain. He managed from a modest origin to establish a capital over 730 million. He was born in 1947. The nature of his success lies in his lack of fear. He built an empire through creative thinking and business vision. His achievement is due to a persistent personality and a natural instinct to obtain profits from n ew opportunities arising from flexible markets and customer needs. In addition his media involvement is notorious as well as his political interest. In 2009 he became part of the Lords Chamber . At the age of 21 in 1968 he set up a company called Amstrad (acronym for Alan Michael Sugar Trading). The company sta rte d as a sma ll bussin es, but it soon bec ame an int ernati onal electronics and telecommunications group. Amstrad was run through an autocrat management style, where decisions were taken almost exclusively by Sugar and very few decisions were taken collectively or in a committee. This style of leadershi p expec ts a strict autho rity over empl oyees and to obtain outst anding performance from controlling rather than empowerment. Although his model was highly criticized by his employees and the general public, working with less middle management layers helped the company to reduce costs undoubtedly and to improve the speed of the decision making process. Autocratic leadership is proven to be beneficial in roles that require quick decisions or sections of organisations lacking direction; thus improving departments or companies were the job nature is fixed. Lack of change in job design can lead employees to lose motivation and task commitment, and overall effectiveness in their performance. However, in most cases, nowadays it is seen as something that is undesirable for most of the economist. Autocratic leadership style leads to lack of internal communication and innovation. Wi thout employee empowerment and participa tio n organi sat ion s are losing vision and opp ortunities tha t can dif fer ent iate them fro m their rivals. Emp loy ee commi tment and tas k ownership can only be reached if they are included in the process. One of his most successful produ cts was called PCW , a new home compu ter availabl e to all budgets. His strategic objective was to produce a unique good affordable for all customers. He analyzed the industry and effectively noticed a new opportunity to satisfy customer demands. The cr eati on of a di ff erent and more economical pr oduct gave hi s company an outstanding competitive advantage over his competitors. The product differentiation strategy made Amstad to gain a leading position in the PC market. Sugar is responsible for all aspects of managing Amstrad: planning, organizing, leading and controlling. He controls all steps, as the strategy to follow to achieve company’s goals, the tasks to be don e and by who m, the produc ts’ desi gn and mar ket ing strat egy . He mon ito rs the performance against goals previously established and resolves any conflict that may appear. Des pit e his succes sful car eer he had als o busine ss fai lur es. In his amb iti on for pro duct differentiation he attempted to launch unsuccessfully new products related to the video game industry. However, he has never surrendered and today he owns an enormous fortune. In addition he acts as government advisor and sets an example of a p roductive business model. Also, echoing his versatility and tireless, he participation in the BBC’s TV show ‘'Apprentice'' whose reputation is indisputable.

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Page 1: Business Management Assignment 1

8/3/2019 Business Management Assignment 1

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At the age of 21 in 1968 he set up a company called Amstrad (acronym for Alan Michael Sugar Trading). The company started as a small bussines, but it soon became an internationalelectronics and telecommunications group.

Amstrad was run through an autocrat management style, where decisions were taken almostexclusively by Sugar and very few decisions were taken collectively or in a committee. This styleof leadership expects a strict authority over employees and to obtain outstanding performancefrom controlling rather than empowerment.

Although his model was highly criticized by his employees and the general public, working withless middle management layers helped the company to reduce costs undoubtedly and to improve

the speed of the decision making process.

Autocratic leadership is proven to be beneficial in roles that require quick decisions or sections of organisations lacking direction; thus improving departments or companies were the job nature isfixed. Lack of change in job design can lead employees to lose motivation and task commitment,and overall effectiveness in their performance. However, in most cases, nowadays it is seen as something that is undesirable for most of theeconomist. Autocratic leadership style leads to lack of internal communication and innovation.Without employee empowerment and participation organisations are losing vision andopportunities that can differentiate them from their rivals. Employee commitment and taskownership can only be reached if they are included in the process.

One of his most successful products was called PCW, a new home computer available to allbudgets. His strategic objective was to produce a unique good affordable for all customers. Heanalyzed the industry and effectively noticed a new opportunity to satisfy customer demands. Thecreation of a different and more economical product gave his company an outstandingcompetitive advantage over his competitors. The product differentiation strategy made Amstad togain a leading position in the PC market.

Sugar is responsible for all aspects of managing Amstrad: planning, organizing, leading andcontrolling. He controls all steps, as the strategy to follow to achieve company’s goals, the tasksto be done and by whom, the products’ design and marketing strategy. He monitors theperformance against goals previously established and resolves any conflict that may appear.

Despite his successful career he had also business failures. In his ambition for product

differentiation he attempted to launch unsuccessfully new products related to the video gameindustry.

However, he has never surrendered and today he owns an enormous fortune. In addition he actsas government advisor and sets an example of a productive business model.Also, echoing his versatility and tireless, he participation in the BBC’s TV show ‘'Apprentice''whose reputation is indisputable.