Leadership Skills Required For A Large Multi-Department Organisation Essay - 4

Leadership Skills Required For A Large Multi-Department Organisation - Essay Example To analyze the leadership response to trends and tensions, the paper looks at transformational and transactional leadership, and the leadership qualities needed to overcome changes trends and tensions. The skills to be analyzed will emphasize on building effective LMX, and becoming a transformational leader. The conclusion provides a logical summary of the contemporary leadership skills required for a transformational leader in a large multi-department organization. According to Halinen and Tornroos, the current business world has changed significantly compared to a decade or so ago. Furthermore, the aspect of new economy and globalization introduces continuous change, and this might indicate that organizations need to regularly monitor their strategies to incorporate change. Heller highlights that the new economy requires restructuring and reorganization of a former economy of primary extraction of resource and transformation of the industry. Leading within the environmental context characterized by globalization and a new economy, Brooks, reveals that leaders are expected to be swift in identifying resulting global and local tensions to avoid accepting a traditional isolationist status quo expecting success. Additionally, leaders must learn to balance their responsibilities within a global society with national and global interests. In this case, multi-department leaders are expected to simultaneously make long-term investments while continuously achieving short-term results. According to Phelps & Wood, global interests come with the integration of global economy which involves orchestration of business processes from above by an emergent transnational class which neglects autonomous involvements by sub-national opinionated coalitions reconciling between local and global welfare.

Choices for Capital Structure for Firms Undergoing Merger Essay

Choices for Capital Structure for Firms Undergoing Merger - Essay Example The essay "Choices for Capital Structure for Firms Undergoing Merger" discusses the importance given to the propositions made by Modigliani and Miller when there are instances, such as mergers and acquisitions between two companies, which require raising new capital or reshuffling the existing capital structure. The understanding of the propositions presented by Modigliani and Miller reveals that there are four different outcomes which resulted from continuous research conducted in the late 50s and early 60s. At the beginning, Modigliani and Miller presented the first proposition which established that in the presence of certain conditions the choice of the capital structure of a firm, which comprises of proportions of debt and equity, does not have any impact on the overall value of that firm. The next proposition, which is the second one, puts forward the idea that the extent to which a firm leverages its business does not affect the WACC (weighted average cost of capital) of that firm. In other words, this idea proposed that the cost of capital, i.e. the equity based capital, is directly related to a linear function to the capital structure of the firm, i.e. the debt to equity ratio. The third theorem or proposition established that whatever may be the dividend policy of a firm, the market value is not affected by it. Lastly, the fourth proposition holds that the shareholders of a firm are not interested in the financial policies of their firm. Therefore, think of the firm as a gigantic tub of whole milk... The understanding of the propositions presented by Modigliani and Miller (1958) reveals that there are four different outcomes which resulted from continuous research conducted in late 50s and early 60s (Modigliani and Miller 1958, Modigliani and Miller 1963). At the beginning, Modigliani and Miller (1958) presented the first proposition which established that in the presence of certain conditions the choice of the capital structure of a firm, which comprises of proportions of debt and equity, does not have any impact on the overall value of that firm (Villamil 2006, Modigliani and Miller 1958). The next proposition, which is the second one, puts forward the idea that the extent to which a firm leverages its business does not affect the WACC (weighted average cost of capital) of that firm. In other words, this idea proposed that the cost of capital, i.e. the equity based capital, is directly related in a linear function to the capital structure of the firm, i.e. the debt to equity ra tio. The third theorem or proposition established that whatever may be the dividend policy of a firm, the market value is not affected by it. Lastly, the fourth proposition holds that the shareholders of a firm are not interested in the financial policies of their firm (Villamil 2006, Modigliani and Miller 1958). In order to explain the concepts underlying the propositions, Miller (1991) presented a simple example for the purpose of explaining the same. As per Miller (1991), â€Å"Think of the firm as a gigantic tub of whole milk. The farmer can sell the whole milk as it is. Or he can separate out the cream, and sell it at a considerably higher price than the