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Leadership
SBS MBA/MSC
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Total
Marks: _______ / 40
CASE STUDY
Please read the case study and answer all the questions.
Vodafone has one of the world’s largest mobile communications
networks, with 83,900 employees serving over 370 million customers across more
than 30 countries. With 2,200 retail stores and a further 10,300 branded
franchises throughout the world. Vodafone products include messaging services
for businesses and consumers, smartphones, mobile handsets and tablets. . Its
current strategy is aimed at increasing the ‘average revenue per user’ through
offering more and more added value mobile services.
Detlef Schultz, winner of the 2011 Procurement Leader Award, was
brought in to be the Global Supply Chain Management Director and chief
executive officer of the Vodafone Procurement Company. His role was to not only
manage the complexity of the procurement and supply chains for both goods and
services but also fundamentally transform several fragmented supply chains into
a single global function.
The Vodafone Procurement Company was set up in 2008 with its
headquarters based in Luxembourg. Through ‘lean’ procurement techniques it was
expected to achieve efficiencies and substantial savings on products such as
handsets, network equipment, marketing and IT services. It also runs a China
Sourcing Centre in Beijing, with a stated objective of 8% year-on-year cost
reduction.
Detlef Schultz, who joined Vodafone in March 2003, has 26 years
experience in supply chain management, with previous roles in supply chain,
planning and operations management in Germany, the UK, Singapore, Korea and the
US. He has also appreciated diversity in his teams and knows how important
communication, information sharing and empowerment are to success. When Schultz
joined staff were uncertain of the impact he would have, the changes that would
be made and whether their jobs would be secure.
To bring about the
transformational change required, Schultz used an inclusive process, which
involved holding workshops with procurement and supply chain staff as well as
consulting with key internal stakeholders across the organisation. He used his
natural influence, persuasion and well-developed communication skills to gain
consensus and buy-in for his plans across the whole procurement and supply
chain.
Schultz and his team’s
efforts resulted in Vodafone taking full advantage of its global scale and
achieving ‘world-class’ savings and efficiencies across its business
operations. Other benefits include a significant improvement in Vodafone’s
working capital position, technology standardisation and policy development for
global travel and labour.
One of the key drivers behind these successes has been Schultz’s
interpersonal skills. The 2011 Procurement Leader award submission referred to
Schultz’s ’inclusive and inspirational leadership style‘ and how it had been
one of the critical success factors of the projects he led.
However, in accepting the award, Schultz said ’I’m very proud, this
is a great recognition for the achievements of the entire Vodafone SCM team. At
Vodafone we aim to be ambitious and competitive and getting this kind of
recognition is a great motivator,’. This was deserved praise for a
hard-working, committed and enthusiastic team he had built up from a small
group of 30 to a team of 170 (from 24 countries), based at head office and localized
procurement sites.
Related
Questions
a. Propose
an appropriate leadership style that Schultz would have needed to adopt when
transforming Vodafone’s global supply chain function. (20 Marks)
Answer: Visionary
This style is
most appropriate when an organization needs a new direction. Its goal is to
move people towards a new set of shared dreams. “Visionary leaders articulate
where a group is going, but not how it will get there – setting people free to
b. Outline
an appropriate range of leadership skills that would have been required by
Schultz to make the supply chain transformational project at Vodafone a
success. (20 Marks)
Answer: Honesty
Whatever ethical plan she holds herself to, when she was responsible
for a team of people, she raises the bar even higher. Her business and its
employees are a reflection of herself, the honest and ethical behavior a key
value, her team was follow suit.
Dear
students get fully solved assignments
Send
your semester & Specialization name to our mail id :
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or
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