Collaborative leadership plays crucial role in any success of any organization as it helps in collective efforts channelized effectively for improving the firm’s productivity (David Chrislip, 2002). Leadership is required for providing right direction for the business house. It may be strategic or collaborative or both depending upon the circumstance. It has to consider the problems of the organization in carrying its daily trade and identify the challenges or threats and formulate the strategies for addressing these problems. Collaborative leadership also provides enough scope for the prioritization of opportunities and making all possible efforts for making it a successful venture in future.
In the present case study, Intercargo is a big shipping logistics company located in Hong Kong with more than 20 years of experience. It has the capacity to ship more than one million packages and more than 30,000 pallets per month and more than 1400 different shipping optimizations. It also claims that it has a right fit for all their customers’ products and shipping logistic needs as well as the expertise to save the customer’s time and money. It also offers service direct to consumer (B2C) or business-to-business (B2B) or both as its shipping logistics experts are able to help with all facets of your shipping needs. More over, it has experience in less than truckload (LTL), full truckload (FTL), common carrier (USMAIL), importing, and international shipping. But the main challenge faced by Intercargo is how to improve the service efficiency in future in the required rate. Moreover, it has to face a tough competition in the future due to several global changes. It makes its job complex in serving as a third party shipping logistics, and to secure all their customer’s products for their shipping in time and with accuracy. The enhanced competition also requires it to expand its service area to air shipment, customs clearance, and etc. Hence, collaborative leadership has to be applied successfully to meet all the objectives of Intercargo. It should provide strategic thinking and decision making for addressing the challenges and for formulating ideal management strategies.
It forms the action plan in the form of following objectives:
1. To identify the problems faced by Intercargo at all levels
2. To identify the opportunities for its business expansion in future.
Collaborative leadership mainly concentrates on problem identification. Intercargo faces the following nature of problems:
1. Severe competition
It is well accepted fact that increased competition affects the productivity of any business enterprise. Intercargo is not an exception. It faces tough competitionfrom different shipping companies in terms of commodity trade. Hence collaborative leadership concentrates on this problem and formulates necessary strategy.
2. Changing global environment
People’s consciousness over the quality of the products has witnessed tremendous change. They are particular about the good quality but in reasonable costs. In case of China, the articles are being produced cheaply but the poor quality made the customers dissatisfied. Hence the export of goods from China to USA declined in the recent years. Similarly, the export of goods from USA to Asian and European nations increased considerably resulting higher cargo traffic in this direction. Keeping these changes in mind, the collaborative leadership would try to formulate its business plan in expansion to new sea routes.
At the same time, the sea trade witnessed change of direction in recent years due to differential economic growth rates of various nations. For example, the USA has been witnessing slower economic growth rate and several Asian and European nations are exhibiting higher economic growth rate. US dollar has become weak accordingly. This resulted in higher exports from USA to Asian and European nations and hence the change of trade direction has to be followed thorough by Intercargo, other wise it results in a problem of slow business outlay. Some political problems are also cropping up due to more restrictions for antidumping products in China.
3. Environmental problems
The identification of trends and implications is most crucial component of collaborative leadership. As far as possible, come up with specific sector wise identification of problems. Consumer’s Needs and Implications have to be outlined. The change of consumer interests and the style of business operations followed by its competitors for addressing the consumer needs have to be thoroughly studied and anlysed. Another problem faced by Intercargo is to supply good quality commodities at a cheaper rate according to customer’s choice Moreover, provision of more secure services and monitoring mechanism requires additional cost and the company has to face tough liquidity situation under this circumstance.
4. Organizational problems
The major problems related to competence of Intercargo would be known if the organizational assessment is properly conducted. There may be shortages in terms of resources required for meeting the global demands in future. Liquidity problem may arise due to financial crunch at the moment. The devaluation of US dollar may result in severe cost of transport in sea trade. Problem in continuing the stabled contracts with customer and vendors may arise in future. Inadequate supply of resources to expand its overall sales and to find more competitive vendors is another main concern.
5. Other problems
There has been lot of change in technological aspects which may pose threat to Intercargo if it doesn’t have access to the similar information. There are a lots of shipping company now provide complete online services and Government requires electronic submission for paperless customs clearance. Hence the Intercargo has to understand the necessity of upgrading its systems.
If the above mentioned problems are not addressed in proper and timely manner, the productivity of Intercargo would be severely lowered in the coming years. Hence, the collaborative leadership gives higher emphasis to these problems and necessary business strategies would be formulated by bringing team spirit and motivation among the functionaries of Intercargo.
Based on the environmental aspects the following threats may be listed out.
1. Its online access system has to be operation quickly, other wise it faces tough competition from some logistics companies which already provide complete and updated online services.
2. Some times, the wholesome control of trade may not be in its hands. For example, carriers control the shipping schedule and rates.
3. Lack of government support as required in effective dealing of gas price crisis.
It also provides the scope for identification of following opportunities.
1. Intercargo provides capable and suitable services to its existing customers.
2. It can utilize the opportunity of upgrading its system with complete real-time online services.
3. It can find opportunity in expanding the business to import and air shipments.
Similarly, based on the organizational assessment following threats and opportunities have been identified.
1. it was observed that the performance level of contract or part time employees is very poor and it has to be improved tremendously by collaborative leadership.
2. The efforts for exploring more resources are still inadequate posing it as major threat for expanding its services.
1. Unlike, contract employees, its full-time employees have been performing well and they have to be fully utilized for enhancing the business opportunities by effective collaborative leadership.
2. Intercargo doesn’t have any obligation of debts and its financial condition is very stable. This gives immense scope for collaborative leadership to flexibly formulate future plans.
3. it also has good opportunity in the form of stable contracts.
Intercargo should concentrate on collaborative leadership which facilitates better environment for generation of new ideas to transport more sources at lower prices and it would also help in upgrading the system to arrange faster services.
Similarly, the accurate study and analysis of nature and extent of competition generated by other ventures would be thoroughly facilitated by collaborative leadership. It rather allows all the functionaries to develop awareness about all elements of competition through training programmes and encourages collective decision making to formulate desirable strategies.
In case of change of financial scenario, it should concentrate on the change of direction and it should perceive it as an opportunity for better trade. The higher trade direction from USA to Asian nations has to be utilized for its future expansion in this area and the decision must be made quickly so that it would avail the benefit of early bird syndrome. The increase in petrol and diesel prices at international arena has also to be capitalized well by entering in this are faster than other key players. Collaborative leadership plays vital role in inspiring all the functionaries to formulate necessary plans for better trade of Intercargo.
It is also observed that some international changes can be utilized well for higher business expansion of Intercargo. Hence, collaborative leadership should concentrate on the improved relationship between China and USA. It should also take advantage of easier and quicker customs procedure. Lastly. It should also upgrade to online access system immediately to promote its business operations in future.
David D. Chrislip. (2002). The collaborative leadership field book. Jossey Bass publication. P: 304. ISBN-10: 0787957194