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Analysis*
Seema Gupta1
Abstract
The Indian Television industry is going through turbulent transformation. Companies are relooking at
their strategies and are desperate for growth. The entrenched position of the Indian market leaders in
CTVs’ like Videocon, BPL and Onida has been challenged by the MNCs such as LG, AIWA, Akai,
Panasonic, Samsung, Sony, Philips and Sharp; some in a perceptible way and others threatening to do
so. The changing environment demands fresh thinking to gain the cutting edge advantage. This paper
attempts to look at the various macro and micro environmental factors operating in the industry using
the model of strategic analysis by George Day, i.e. to analyse the bargaining power of buyers and
suppliers, the threat of new entrants, threat of substitutes, intensity of rivalry, impact of technological
changes, growth and volatility of the market and the influence of government and regulatory interventions.
These variables affecting the industry have been categorised as favourable or adverse depending on the
influence on the profitability of the industry. Some strategic initiatives, which can be adopted, to leverage
the favourable forces and prevent the adverse ones have been identified.
Porter’s framework, however, does not of the onslaught from the Korean majors,
address three important variables- though profits have suffered. Other large
Government and Regulatory Indian companies in the top of the list are
Interventions, Technological Changes, Mirc Electronics. While Mirc Electronics
and Growth and Volatility of Market is managing to hold its share by adopting
Demand. These variables have been value for money strategy, BPL is facing
included in the model proposed by tough time, experiencing drastic decline
George Day (Day, 1990), which evolved in market share. Sony, Philips, Akai,
from Porter’s model and have been Sansui, Aiwa, Toshiba and now Hyundai
analysed in this study (Exhibit 2). are the other foreign brands in the market.
3.1 Degree of Rivalry The industry is based on numbers game
and companies will have to maintain a
Degree of rivalry denotes the intensity of fine balance between catering to lifestyle
competition within the industry. LG is the requirements and meeting the needs of
market leader with 26% market share average consumer. The sales value of the
followed by Samsung and Onida (Exhibit top six CTV players (Exhibit 3) has
3). Although LG is the market leader, its increased more than proportionately to
average realisation is lower than the the corresponding increase in their market
industry average due to competitive shares. Although the top players have
pricing. India is one of the biggest global drastically reduced prices, they have
markets for LG, therefore its strategies are gained more volume due to increasing
much more aggressive to ensure huge market size and higher penetration levels,
growth. On the other hand, Samsung is coupled with conscious shift towards flat
far stronger than LG globally, and while colour televisions (FCTVs).
India is a key market, there is no crushing
need to ensure immediate big growth 3.1.1 Competitor Analysis
numbers. The company expects the Indian A detailed analysis of some of the major
arm to contribute 10% of the total players is done below:
worldwide turnover by 2010. According
LG ELECTRONICS
to Crisil, the company has been growing
at CAGR of 24% between 2001 and LG Electronics rightly understood the
2004.The Company sells a large portion consumer motivations to create magnetic
of its wares on a cash-and-carry basis, and products, price them strategically,
has a return on capital employed of 43%. position them sharply and keep making
Despite being big in size, the company is the magnetism more potent. Having
operating in a tough market, which understood the finer differences in
explains why it has a net profit margin of consumer motivations, it opted for sharp-
only 5%. Videocon, another major player arrow ‘reasons-to-buy’ differentiation
has managed to hold its own in the midst over the ‘blanket-all approach’ taken by
198 Vilakshan, XIMB Journal of Management
point. This has led to a state of diffused sectors, a GDP growth of 7% could take
positioning for its brands. It has also led the CTV demand in 2010 to 20 million. The
to a cannibalisation of sales among these report also assumes that economic
brands. The flagship brand Videocon has expansion will lead to increase in
lost market share due to the presence of prosperity levels down the income strata
Sansui in the same segment. Because of and the technological advances in
reduction in import duties on CPT the cost transmission, reception etc. will compel
advantage of Videocon is also on the replacement (Financial Express, 2001).
decline. Hence it is facing rough weather
The entry of Star TV, Zee TV, BBC, CNN
and also trying to boost exports.
among a host of other private channels has
3.1.2 Industry Growth given choice to the consumer.
The industry has been witnessing robust Proliferation of niche as well as mass
demand; fuelled by revival in economy, entertainment channels has led to the
increase in individual disposable income purchase of multiple television sets per
and liberal incentive schemes by banks household. World cup and cricket
and financial institutions. The demand for tournaments are key drivers in the
CTV grew at 15% during 1985-89 but increase of CTV sales. Host of cricket
witnessed a slump from 1990-94. With the tournaments like Series with Australia
entry of MNCs and thereby aggressive and Pakistan, Mini World Cup, World
marketing, the period between 1995-96 to Cup are a major attraction for cricket
1999-00 saw a surge in growth rate to 29%. crazy India and companies are tapping
Thereafter the market has been growing this opportunity by sponsoring cricket
but at a decreasing rate due to increasing related events and running promotions
penetration and near saturation in urban around them.
households (Exhibit 4). This is in spite of 3.1.3 Concentration and Balance
the fact that CTV penetration in India is
as low as 23%, more so in rural markets The Herfindahl Index of concentration is
and hence has potential for growth 0.092 for the year 2002-03, which means
(Exhibit 5). According to the Francis Kanoi that the market share is dispersed and
report “CTV in India in 2010”, the possible there is low concentration. Hence many
demand for CTVs in India in 2010 is likely rivals none of whom has a significant
to be at least 18.2 mn or 12 mn in the worst market share characterise the industry.
scenario. This figure is not very far from (The index takes values between 0 and 1,
that in Europe with a market size of 30 where 0 indicates no concentration at all
mn sets and China at 24 mn sets as of 1999. and 1 indicates monopoly) This means
It has been further predicted that if power that the industry is not disciplined and
ceases to be an impediment in the growth has high degree of rivalry (CMIE-
of CTV market, especially in the rural Industry: Market size & shares, 2004).
200 Vilakshan, XIMB Journal of Management
firms will exit the market, thus restoring sales per dealer and hence gain crucial
the market equilibrium. Barriers to entry competitive advantage over their rivals.
arise from several sources: 3.2.2 Brand Salience
3.2.1 Access to Distribution Channels
With little product differentiation and
A strong distribution network is parity products, it is imperative that
absolutely essential to compete in this distinct images are created in the minds
industry. Not only does it guarantee a of consumers through positioning and
country wide reach for a company’s brand building. MNCs have been able to
products but is also necessary for compress the cost of brand building by
providing good after sales service. LG amortising the cost of sponsoring
Electronics sells in 1800 towns and cities international events across a larger
with a population of 1,00,000 and above. footprint straddling multiple countries.
Samsung also has a widespread service LG sponsored ICC World Cup 2003 along
network, which includes 123 exclusive with Pepsi and Hero Honda and got
service centres and 200 distributors in any tremendous mileage in terms of increased
town with more than 1 lakh population. sales and brand building. Similarly
All BPL dealers are linked via VSAT Samsung sponsored the Indo-Pak series
nodes, ensuring online availability of in 2004. Domestic players are constrained
information on inventory status and sales in their brand building due to not being
movement. Videocon has implemented global in their operations.
ERP system, which helps in integrating 3.2.3 Capital Investment and
the manufacturing, marketing, Economies of Scale
procurement and distribution services
with the corporate office. BPL’s Television industry is capital intensive
distribution network is a combination of and players have made huge investments
37 C&FAs, 33 Branch Offices, above 300 in putting up state of the art
Service Centres with 400 sales personnel manufacturing facilities. Sony India had
across product groups working to reach a production capacity of 300,000 CTV sets
over 2500 dealers and distributors. with capacity utilisation of 66%. But since
Distribution hence is difficult and costly the demand for its products in India was
as established firms dominate much less than the plant capacity, Sony
distribution. Large incentives are required finally closed down its plant. Samsung is
to gain entry into the distribution investing $4 mn to expand its CTV
channels and further gain manufacturing capacity at Noida to
recommendation to retailers from the 800,000 units per year. The existing
dealers. As exhibit 7 shows, market capacity of the plant is around 600,000
leaders LG and Samsung have highest units. Other players like Videocon, Mirc
202 Vilakshan, XIMB Journal of Management
at 22 per cent. LG and Samsung have been to lowering of import duties and other
engaged in competition for numero uno liberal measures. The television industry
position for LCD TV, which has also been appears to have two clearly differentiated
growing significantly. For the next few segments. The MNCs have an edge over
years, the markets for high-end televisions their Indian counterparts in terms of
will continue to grow phenomenally and technology, aggressive marketing
it is estimated that by the end of 2007 the strategy, economies of scale in branding
market for high-end TVs would cross through international events and
100,000 units milestone. associations combined with a steady flow
of capital. The sale of TVs also tends to be
In view of the higher technical nature of
event driven. During the Cricket World
television and rising expectations of
Cup in 1999, CTV sales recorded a
consumers in general, marketers now
phenomenal rise of 40-50% after which the
need to strengthen the service network
industry has grown at around 10-12%.
since there is a paucity of service facilities
Rural market is expected to grow by 25%
and consumer dissonance is built around
service facilities. Most Indian consumers compared to expected growth of 7-10%
for urban area. One of the notable
are techno phobic and are uncomfortable
with instruction manuals. Thus assurance developments have been that the rate of
of comprehensive service to these growth in production has been more in
consumers is a strategy that a number of terms of quantity or in volume terms
these marketers use effectively to sell. rather than the growth in value terms.
This has happened because of the
6. GROWTH AND VOLA TILITY OF MARKET constantly falling prices over the years
The last few years have seen a quantitative due to competition among major players,
and qualitative change in TV technology aggressive marketing strategies and
and software. With the advent of several declining import tariffs. With penetration
local and foreign satellite channels, levels being deplorably low, the industry
demand for CTVs has seen a rise. Exhibit is focusing on semi urban and rural
12 shows the increase in sales value for segment for scaling up demand. For basic
CTVs over the years. Aggressive and models, the market is reaching saturation
innovative marketing strategies and limit in urban market, and hence value
technological advances have led to strong addition, differentiation and superior and
brand differentiation and prices. In the new product introduction only can bring
process the industry has evolved with high growth in urban areas. Exhibit 13
products available at different price indicates market segmentation region
points at all levels. This process was also wise. Despite the robust volume growth
facilitated by growth in production in the expected over medium to long term, the
organised segment and domestic profitability of CTV players is likely to
availability of multinational brands due remain strained. The reduction in raw
Gupta, Indian Television Industry... 209
material costs, the declining CPT prices pull the consumer up the value
and chassis costs will be partially offset escalator. A good fraction of sales if
by the increase in selling costs resulting come from high margin products as
from the intense competition. flat TVs and projection TVs would
7. CONCLUSION improve profitability of companies.
Sharply differentiated products with
The variables affecting the industry with effective communication on a
regard to each of the five forces have been continuous basis would be the key for
categorized as favourable or adverse
future. Challenge lies in creating
(Exhibit 14). Favourable variables have
higher order universal benefits and
the potential to improve profitability,
sensitising the larger audiences to it.
while adverse variables reduce
LG and Samsung are likely to retain
profitability of the industry.
top positions
Some strategic initiatives, which could be
• Buyers are easily swayed by costs,
adopted to leverage the favourable forces
and protect themselves from the adverse which are also verified by the
ones, are as follows: presence of large number of product
offerings. Focus would be on
• R&D and Marketing will have to providing value for money to the
work closely together. R&D will have consumer, with more brands in the
to play a role in cost innovation, economy segment. The challenge
which can cut component cost and before marketers is to span out, and
raise performance. The number of address a wider set of needs. They
defectives has to be reduced at will have to identify segments not
negligible levels. The quest should be addressed by them so far and also
to do even better. Each assembly line introduce low price-point products
can be made to compete with the aimed at rural markets. For instance,
other. LG has launched Cineplus, a low
• Vital to the spread out is the re-haul priced TV to compliment its brand
of distribution network. Home Sampoorna in the same category.
appliances have necessitated separate • Besides catering to the cost conscious
dealers, many of them specialists. For segment, marketers need to segment
sharper focus on all categories the market on the basis of
individually, the market has to be psychographics, which will help in
opened wider. inducing brand loyalty through
• Brand building will be important, so lifestyle and experiential marketing.
as to ensure brand preference. LG has attempted it by sponsoring
Marketers will have to strategise to ICC Cricket World Cup 2003.
210 Vilakshan, XIMB Journal of Management
EXHIBIT 1
Consumer Electronics Industry Performance
Chart 1: Debt/Equity
2
Debt/Equity
1.5 1.64
1.19 1.18 1.35
1 1.14
0.5
0
1998-99 1999-2000 2000-01 2001-02 2002-03
Years
15
PAT/Net Worth
10 10.3 10.2
7.3 7.6
5
0
1998-99 1999-2000 2000-01 2001-02 -3.3
2002-03
-5
Years
10
Net Sales
7.8 7.2
6.6 6.4
5 4.4
0
1998-99 1999- 2000-01 2001-02 2002-03
2000
Years
1.3 1.27
Assets
1.2 1.22
1.16 1.13
1.1 1.09
1
1998-99 1999- 2000-01 2001-02 2002-03
2000
Years
Gupta, Indian Television Industry... 213
EXHIBIT 2
Industry Analysis Model
Threat of New
entrants
Bargaining Bargaining
power of power of buyers
suppliers
Threat of substitutes
Growth & Volatility of Market
(Source: Day, G S, 1990, Market-Driven Strategy: Process for creating Value, Free Press: NY)
EXHIBIT 3
Realisation and Sales Value Market Share (2005-06)
EXHIBIT 5
Penetration of CTVs (per 1000 households)
Urban Rural
1992-93 16.0 1.6
1995-96 21.2 2.6
1999 23.5 2.9
2003-04 Composite-110
Target 2008 Composite 225
(Source: Economic Times 28 April 2001: NCAER for first two rows, ORG-MARG for third
row and ISI Emerging Markets for last two rows; figures not strictly comparable)
EXHIBIT 6
Cost Structure of Television Industry (Rs Crore)
1998-99 1999-00 2000-01 2001-02 2002-03
Net Sales 7885.0 8783.4 10809.2 10947.3 12472.8
Raw Material & Stores 5907.9 6562.5 7974.0 7723.2 8934.4
Power & Fuel 55.2 55.0 59.9 60.4 82.3
Wages & Salaries 276.9 298.3 359.0 360.9 403.9
Interest 358.9 407.1 434.5 512.4 535.1
Depreciation 217.2 209.0 240.9 313.8 629.6
Value added 1921.9 2165.9 2775.3 3163.7 3456.1
Fixed Charges 853.0 914.4 1034.4 1187.1 1568.6
FC/VA 44.4 42.2 37.3 37.5 45.4
Selling Costs 567.0 614.6 1130.9 1096.9 1517.7
(Source: CMIE Industry: Financial Aggregates & Ratios May 2004)
EXHIBIT 7
Dealer Efficiency of key CTV Players EXHIBIT 8
(2004-05) Size Variation
Players Sales per Dealer Type Share (%)
14” 21
LG 1182
Samsung 809 20” 33
Onida 547 21” 42
Videocon 391 25” 2
Sansui 379 29” 2
Sony 372
Philips 305 (Source: Centre for Industrial and Economic
Research (CIER) and INTECOS (2002), Market
Source: CRIS INFAC Colour Television Annual Forecast and Indicators: emerging market in
Review, 2006, CRISIL Product & Services India 2002-2012)
Gupta, Indian Television Industry... 215
EXHIBIT 9 EXHIBIT 10
Player-wise focus on Price CTVs: Price vs Demand
Low Medium High Nominal Demand
LG Y Y - Price* (Rs) (million units)
Samsung Y Y - 2000-01 12,200 5.1
Onida - Y -
2001-02 10,000 5.4
Videocon Y Y -
2002-03 9000 7.3
Sansui Y Y -
Philips - Y Y 2003-04 8500 6.7
Sony - Y Y 2004-05 8000 7.8
2005-06 7500 8.4
Source: CRIS INFAC Colour Television Annual
Review, 2006, CRISIL Product & Services *Nominal Price is the street price of 21” CTVs
Source: CRIS INFAC Colour Television Annual
Review, 2006, CRISIL Product & Services
EXHIBIT 11
Trends in Market Shares: 1997-2001
Television Picture Tubes (per cent)
1998-99 1999-00 2000-01 2001-0
Samtel Color 32.95 30.59 29.71 31.62
L G Hotline CPT 17.85 17.75 20.05 20.26
BPL Display Devices 7.62 11.51 13.07 17.91
JCT Electronics 13.08 19.05 18.37 11.26
Hotline Teletube & Components 2.70 2.02 2.06 3.20
Samtel (India) 5.35 3.55 2.79 2.97
Prakash Industries 4.79 3.09 2.47 2.50
Rama Vision 2.42 2.05 1.87 1.68
Bestavision Electronics 1.29 0.50 0.15 0.16
Import 9.93 9.89 9.44 8.45
Herfindahl Index of Concentration 0.170 0.178 0.181 0.189
Source: CMIE, Industry: Market Size & Shares, August 2003)
EXHIBIT 12
Sales Value for Television including Spares & Kits
(Rs. Crore)
Year Sales Value
2000-01 7500.0
2001-02 7500.0
2002-03 8000.0
2003-04 8500.00
2004-05 9000.00
(Source: CMIE, Industry: Market Size & Shares, Feb 2006)
216 Vilakshan, XIMB Journal of Management
EXHIBIT 13
Market Segmentation
Segment Share (%)
North 28
East 17
West 29
South 26
Rural 40
Urban 60
(Source: Centre for Industrial and Economic Research (CIER) and INTECOS (2002), Market
Forecast and Indicators: emerging market in India 2002-2012)
EXHIBIT 14
Forces acting on Industry Favourable Adverse
Degree of Rivalry • Healthy growth rate • Fragmented industry
• High brand identity • High fixed cost/ value
added
• High Corporate stakes
Threat of Entry • Low economies of scale • Limited access to
• Brand salience distribution channels
• High capital investment • Liberalization
Threat of Substitutes • Unique infotainment • Low switching cost
Buyer Power • Fragmented buyers • High price sensitivity
EXHIBIT 15
CTV Industry Composition- Conventional CTVs v/s Flat CTVs
Conventional CTVs Flat CTVs
(per cent) (per cent)
2001-02 97.3 2.7
2002-03 92.4 7.6
2003-04 85.9 14.1
2004-05 71.4 28.6
2005-06 53.1 46.9
Source: CRIS INFAC Colour Television Annual Review, 2006, CRISIL Product & Services
Perspective
Abstract
Life cycle metaphor has been extensively used to describe the birth, growth, maturity and eventual
decline of organisations. The life cycle model identified in this paper has four stages - inception, growth,
maturity and elaboration\renewal. In each of these stages organisational priorities are different. Leadership
roles and competencies need to evolve to match organisational priorities in each of the evolutionary
stages. These priorities lead to different leadership roles for each stage. Four roles are identified:
entrepreneur, coordinator, integrator and visionary. Competencies are attached with each of these roles.
The competencies are divided into strategic\ transformational and operational competencies. A leadership
development approach to developing these competencies is suggested. The main contribution of this
work is to link literature from organisational life cycle, leadership competencies and leadership development
streams. The framework developed here would be especially useful in fast evolving organisations. Given
that competencies have a learned element, leadership development can play a major role in helping
organisations to have effective leadership in evolving conditions.
making (Mintzberg, 1973) and opportunities. This is the time for change.
administration (Adizes, 1979). Here The leadership role required here is that
coordination between continuing on the of a change agent and a strategist. The
path of growth and developing an overall role is that of a visionary who can
efficient organisation would be required. handle the ambiguity of this phase and
Some of the roles defined in the literature provide forward looking vision.
are: Enterpreneur-Administrator (Adizes,
4. ORGANISATIONAL LIFE CYCLE:
1979); Coach (Gailbraith, 1982) and
LEADERSHIP COMPETENCIES
Planner (Mintzberg, 1973). In sum, the
role seems to be that of a coordinator. “Competencies consist of knowledge,
skills and other behavioural dispositions
In the maturity stage the growth slows
necessary to reach desired standards of
down, the firm starts to operate in a very
job performance, and these are developed
competitive market and the slack
through formal education and training or
disappears (Smith et al, 1985). The focus
informal work experience” (Nybo, 2004).
then turns to efficiency. The key
Organisations can also have competencies
organisational prioties at this point are:
in terms of abilities or capabilities. If a
Integration (Adizes, 1979; Greiner, 1972);
competency view of leadership is taken,
efficiency through planning and control
leadership becomes a wholly learned skill
(Smith et al, 1985) and administration
(Kroek et al, 2004). This brings leadership
(Adizes, 1979). The leadership role here
development to the centre of leadership
is to deliver efficiency by integrating
in organisations. Competencies can be
various systems, processes and strategies
then matched to leadership roles and
to discover synergies. The roles that the
programmes put in place to develop
literature describes in this stage are:
them. This is where this paper seeks to
Administrator-Integrator (Adizes, 1979)
contribute.
and Strategist\ manager (Gailbraith,
1982). Overall, the role here is that of an There is a lot of literature on leadership
integrator. competencies. However the challenge is
In the renewal stage the firm faces crisis to identify competencies that will allow
the leadership to play the role required
of survival. Growth slows down or starts
to decline. The organisational priorities at in each stage of organisational
development.
this stage are: Domain expansion,
renewed adaptability, environment Competencies both in the technical area
monitoring (Quinn & Cameron, 1983) and and leadership competencies are seen as
innovation (Miller and Friesen, 1984). The important ingredients of leadership
challenge here is of two kinds, to be able (Moqvist, 2002). The leadership
to maintain the current business and run competencies identified by Moqvist (2002)
it efficiently while looking for new are communication ability, delegation
222 Vilakshan, XIMB Journal of Management
R e n e w a l \
Inception High Growth Maturity Elaboration
Characteristics
Growth Inconsistent but Rapid Positive Slowing S l o w i n g \
improving (Smith (Smith et al, 1985) Declining
et al, 1985)
Processes
Informal
(Adizes, 1979 Moderately formal; Very Formal; C o n s e r v a t i v e
(Smith et al, 1985) systems & planning & (Miller and
procedures (Smith control (Smith et Friesen, 1984)
et al, 1985) al, 1985)
People Generalists (Smith Specialists (Smith et S t r a t e g i s t s \ Status Quo
et al, 1985) al, 1985) planners (Smith et seekers (Adizes,
al, 1985) 1979)
Structure No formal Centralised formal D e c e n t r a l i s e d
structure (Smith et (Smith et al, 1985) Bureaucratic
formal (Smith et (Miller and
al, 1985; Miller and al, 1985)
Friesen, 1984) Friesen, 1984;
Adizes, 1979)
Organisational Creativity & entre- Coordination Integration Domain expan-
Priorities preneurship (Smith et. al. 1985); (Adizes, 1979; sion, renewed
(Quinn & commitment and Greiner, 1972); adaptability, en-
Cameron, 1983; cohesion (Quinn & efficiency vironment moni-
Adizes, 1979); cre- Cameron, 1983), t h r o u g h toring (Quinn &
ating products & systematic deci- planning & Cameron, 1983),
markets (Greiner, sion making control (Smith et Innovation
1972), acquisition (Mintzberg, 1973); al, 1985); (Miller and
of resources administration administration Friesen, 1984)
(Quinn & (Adizes, 1979) (Adizes, 1979)
Cameron, 1983),
effiency (Smith et
al 1985)
• Self Help activities like practitioner “There are many topics that could
books, video tapes and interactive advance our knowledge of leadership
computer programmes. development, but one of the most
intriguing is whether managers and
The role of experiential development
executives can develop a leadership
programmes is seen as the most important
capacity for great versatility in style or
(eg. Day 2001; Pernick, 2002). Training is
approach. In other words, can managers
seen as a backup to on the job vary their leadership styles significantly
development to provide experiences that given changing circumstances? Or is
an organisation cannot easily provide leadership style such a product of
(McCall, 2004). The next section personality and ingrained behaviours that
specifically looks at these leadership variations in style are confined to
development techniques in the context of incremental changes?” (Conger, 2004)
a fast evolving organisation. An approach
to leadership development is put in place. However, there is some evidence that
Leadership Development programmes
6. ORGANISATIONAL LIFE CYCLES A N D have a positive impact on competencies
LEADERSHIP DEVELOPMENT (Krejci and Malin, 1997).
Fulmer and Wagner (1999) believe that The other big problem is that the
leadership development should have a clear organisation is itself in a state of evolution.
link to organisational strategy and priorities. To simplify things let us consider an
This is of great importance as far as different organisation that is in a single line of
life stages of the organisation is concerned. business that is evolving. Now the problem
Fulmer (1997) sees leadership development is that the organisation cannot provide
making the move from being an unique online experiences for leadership roles
event to being an ongoing process. Fiedler required in the subsequent stages. This just
and Macaulay (1998) as also Fiedler (1972) leaves out the options of formal training
have propounded that leadership situation and self help activities as the mainstay for
keeps on changing and leadership training leadership development. The only option
needs to reflect that. open for the organisation for live
experiences is to outplace employees to
There are two problems with the companies that are going through the next
leadership development approach using phase of organisational development or do
organisational life cycles. The one big an inter-company coaching or mentorship
challenge that is would be faced in the programme. The menu that an evolving
process of leadership development for organisation can use for leadership
different lifecycle stages in the development is as follows:
organisation would be that of making
people effortlessly change from one set of • Formal Training: Simulation of
roles to another. Conger (2004) has consequent life stages, Management
grappled with the same dilemma: Games, behaviour role modelling,
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