Strategic Management Leadership and Organisational Strategic Change. Student XXXXX Student No. xxxxxxxxxx Module Leader: XXXXX Hand In Date: XXXXX Word Count. 3047 Contents Pages 1.0 Introduction ....................................2 2.0 Introducing Michael O’Leary and Stelios Haji-Ioannou ............2 2.1 Application of theory to O’Leary and Stelios analysis ............3 2.1.1 Philosophical strategic approach ............3 2.1.2 Leadership style ...............4 2.1.3 Attributes of leaders ...............6 2.1.4 Leadership traits ...............7 2.2 Leadership influence on strategic action ...............8 3.0 Conclusion ..........................10 4.0 Recommendations ..........................11 Bibliography . .............13 Appendices ..............16-17 1.0 Introduction The purpose of this report is to evaluate influence of leadership on organisational strategic change utilising a case study approach. Discussion of Michael O’Leary and Stelios Haji-Ioannou, leaders from the competitive European airline industry, will provide evidence for comparison and critical evaluation. Leadership is concerned with creating shared visions of where the organisation wishes to get to and ‘formulating strategies to bring about the changes needed to achieve this vision’ (Henry, 2008: 340). Strategic decisions help enable the airline organisations to achieve sustainable competitive advantage, providing the similar low fare short-haul flights in ways that create superior value perceived by consumers (Capon, 2008; Cashian, 2007). Initially the report will briefly introduce Michael O’Leary and Stelios Haji-Ioannou and their respective companies, then application of leadership theories and onto how their individual leadership styles influence strategic action. Finally there will be conclusion and recommendations to the findings. 2.0 Introducing Michael O’Leary and Stelios Haji-Ioannou Ryanair was established in 1985 first operating flights from Dublin to London. Michael O’Leary has served in Ryanair since 1988, appointed Chief Executive Officer (CEO) in January 1994 (Ryanair, 2011). Ryanair (2011) is the European market leader for low fare flights announcing a 26% rise in profits beginning 2011 with passenger numbers up 8% to 72 million, despite adverse effects of the economic climate and volcanic eruptions of 2010. Michael O’Leary himself is the now the public face of Ryan, known to be an innovative success and ‘sometimes controversial’ (Business and Finance, 2011). Stelios Haji-Ioannou founded easyJet, part of easyGroup, in 1995 to offer low-fare flights in Europe, beginning with London Luton to Scotland (easyJet, 2011; Mail Online, 2011). EasyJet (2011) report to be ‘Europe's leading airline, operating over 580 routes’ with passenger numbers up 11.8% to 54.5 million ending 2011. The airline states strong performance is due to firm control of costs, the strength of easyJet’s network and focus on customers. Stelios Haji-Ioannou is known for charismatic entrepreneurial skills launching 17 ventures under the easyGroup brand (Pro-motivate, 2011). However, he resigned from the carrier’s board in May 2010 in a row over strategy, although his family still own 38% of the airline (Mail Online, 2011). 2.1 Application of leadership theory to O’Leary and Haji-Ioannou analysis 2.1.1 Philosophical strategic approach Whittington (2001: 2) describes four generic perspectives on strategies that vary according to beliefs in ‘outcomes of strategy and the processes by which it is made.’ Figure 1 displays the two key dimensions on continuums to portray the inclinations of the four strategic approaches; appendix 1 further discusses the Whittington’s (2001) generic perspectives on strategy concerning the two leaders. Michael O’Leary is classical strategist whereby his strategies are product of deliberate calculation and implementation; his initial strategy to make Ryanair a low-fare budget airline in 1994 is the primary vision achieved and continuously pursued to date (De Wit and Meyer, 2010: 115; Ryanair, 2011). Under Michael O’Leary profit maximisation has been ultimate long-term objective, exploiting customers with extra service charges to increase revenue and operational cost cutting (Collinson, 2011). Stelios Haji-Ioannou similarly appears a classical strategist, relentlessly engaging in profit-making activities, launching 17 ventures and always seeking the next to add to his fortune (Pro-motivate, 2011; Reece, 2004). However the entrepreneur is a processual inclined strategist, although Stelios Haji-Ioannou deliberately focuses on developing the easyGroup brand he keeps his ‘eyes open’ acknowledging strategy is realised as opportunities emerge (De Wit and Meyer, 2010; Reece, 2004). Stelios Haji-Ioannou perceives plural strategic outcomes, concerned with customer and broader societal interests, learning and strengthening the easyGroup brand; he even advises entrepreneurs ‘must be willing to end up poorer’ than when starting if not successful in ventures (Reece, 2004). Figure 1. Generic perspectives on strategy (Whittington, 2001: 3) 2.1.2 Leadership Style Leadership styles generally focus upon the leader’s attitude towards people and the resulting behaviours exhibited in day-to-day dealings with others. Table 1 discusses the associations of transformational and transactional leadership styles. Transformational leadership focuses on change and the importance of developing a sense of direction and commitment, the approach is considered to indicate a democratic leader (Linstead et al, 2004: 239). Stelios Haji-Ioannou exudes a democratic leader through his successful efforts launching easyGroup ventures; his strategic role is to develop strong teams that have the initiative and motivation to drive the businesses forward once they have entered the growth phase (Pro- motivate, 2011). Rayner and Adam-Smith (2009: 58) suggest this is Stelios Haji- Ioannou’s ‘champion’ leadership style prepared to fight for enterprises on a variety of fronts; strategically utilising his branding skills in related easyGroup ‘no frills’ diversification. However, Stelios Haji-Ioannou heated resignation from the easyJet carrier’s board in 2010 due to a row over strategy; suggesting when truly passionate about his strategic vision and wishing to implement change Stelios Haji-Ioannou may benefit from autocratic power in new enterprises (Mail Online, 2011). Table 1. Transformational and Transactional Leadership (Sources: Jones and George, 2003: 460-63; Linstead et al, 2004: 339) Transactional leadership assumes legitimate authority and focuses on ‘fine-tuning’ what goes on in the organisation, negotiating appropriate behaviours through legitimate reward and punishment (Jones and George, 2003: 463; Rayner and Adam-Smith, 2009:59). Since being appointed CEO Michael O’Leary’s primary strategic change, transforming Ryanair to a low-fare budget airline, has been uncompromisingly pursued, in all his business interactions, to date. Even to the extreme in cost cutting strategies such as banning employees from charging phones on site (Clark, 2009). Michael O’Leary’s autocratic leadership is evident when stating he will retire when it is time to ‘Tesco-ise Ryanair’ replacing him with someone more suitable for a larger, more sedated operation (Clark, 2009). Michael O’Leary favours the authoritative position over the smaller less autonomous workforce, enabling him to command strategic efforts to meet objectives of profitable expansion for the competitive Ryanair (Burns, 2005: 92). Fiedler’s contingency model further applies to Michael O’Leary’s leadership style, focusing on his description of the task-oriented leader whose ‘primary concern is to ensure that subordinates perform at a high level’ (Jones and George, 2003: 453). Clark (2009) accounts Michael O’Leary requires a team to provide two reports everyday to assess performance, paying close attention to achieve higher standards from his employees. Rayner and Adam-Smith (2009: 56) highlight the situational relevance in the contingency theory adds a third dimension as Michael O’Leary is Transformational Leadership Transactional Leadership Leadership gives high priority to visionary leadership. Leaders are charismatic. Leaders intellectually stimulate subordinates to work for both personal growth and good of company. Leaders actively engage in developmental consideration. Engages the principle of exchange by motivating through rewarding high performance and reprimanding low performance. Leadership relies on position of authority bestowed upon them by the organisation. Leadership focuses on supporting, directing and coordinating work efforts towards an identified goal or purpose. successful in task-orientation achieving cost-reduction objectives of the organisation, while creating the value for money low-fares airline demanded in the current economic environment. On measuring leadership style Fiedler asked leaders about perceptions of the ‘least preffered co-worker’ (LPC) and task-oriented leaders tend to describe the LPC in negative terms as concern for task accomplishment causes task-oriented leaders to think badly of those making it difficult (Jones and George, 2003: 453). Michael O’Leary displays extreme task-orientation as a proponent of classical profit-maximisation objectives; hence his negative observation of customers being ‘wrong’ and employees being the ‘biggest cost’ (Clark, 2009). 2.1.3 Attributes of Leaders Current thinking suggests leaders with high emotional intelligence can effectively utilise emotions in service of organisations, for example consciously channelling positive emotions enhances creativity in formulating strategic visions (Jones and George, 2003, 86; Linstead et al, 2004). Figure 2 displays Goleman’s (1998) components of emotion intelligence, combining self-management capabilities and abilities for managing relationships with others (Henry, 2008: 350). Figure 2. The Goleman framework of emotional intelligence (Henry, 2008: 349) !" "# #$!" $! "$" "$$ $ "$"" " ""$$$# !"!$!! "! !! $!"" $" On initial evaluation it would appear Michael O’Leary has poor emotional intelligence in his social skills. Clark (2009) reports Michael O’Leary expressing his openly unregulated discontent for customers being ‘usually wrong’ and employees’ not being an asset but his ‘biggest cost!’ Highly motivated by his classical profit maximisation approach, suggests his emotionally guided vision is limited to financial strategic development. However, Clark (2009) acknowledges entrepreneurs’ ‘talent for doing their own PR’, Michael O’Leary deliberately partakes in the ‘pantomime villain’ relationship with the media for free Ryanair publicity. Although it is essential Michael O’Leary holds a basic level of empathy as unregulated expressions or extreme cost-saving strategies could ultimately destroy any positive consumer associations with Ryanair. In contrast Stelios Haji-Ioannou’s notable emotional intelligence, specifically his empathy in relations with others, is observed through his profound involvement in Stelios Philanthropic Foundation supporting education, entrepreneurship and the environment for the underprivileged (Stelios, 2011). Stelios Haji-Ioannou’s strategic visions are motivated by a desire to continuously achieve and wanting to make a difference to peoples’ lives highlighted in his new easyCar venture (Reece, 2004). The business model proposes to be greener than traditional car hire as community-based sharing could get ‘10 cars off the road for each vehicle contributed’ to the scheme; while consumers will benefit from cheaper car hire and local convenience (King, 2011). Analysis indicates effective leaders purposefully use emotional intelligence to inspire strategic visions, or can alternatively manipulate select emotional intelligence components to build deliberate consumers relations. 2.1.4 Leadership Traits The trait approach to understanding leadership originally derives from the belief excellent leadership exists in the natural abilities of certain individuals (Linstead et al 2004: 327). Burns (2005: 19) propose specific characteristics or traits, individual personality, shapes leaders’ vision and strategic decisions to engage in business activities. The trait theory is criticised due to difficulties in discerning whether traits are natural or acquired, while analyst cannot agree on a definitive list of important traits required to be effective leader in all situations (Linstead et al, 2004; Smith, 2009: 584). Both Michael O’Leary and Stelios Haji-Ioannou possess leadership traits, discussed in appendix 2, sharing self-confidence in their expertise and proactive motivation in desire for achievement; however guiding very different strategies. Furthermore there is a fundamental difference in personality of the two leaders driving strategic change. Freud’s psychoanalytic motivation theory puts forward ideas about personality and identifies three basic structures of the mind shown in figure 3; Id, Ego and Superego (Craig-Lees et al, 1995; Evans et al, 2006). Gillette (2010) states Michael O’Leary is the ‘Id of the airline business’ allowing his dominant instinctive survival impulses to determine strategy formulation, evident in his extreme proposals of ‘standing cabins and pay toilets’ on flights. Stelios Haji-Ioannou’s Superego conscience is strongly influenced by personal easyGroup (2011) values of wanting to make a difference to stakeholders and more value for less, while instinctively he admits to a very low boredom threshold; evident through strategic diversification ventures embracing corporate social responsibility such as easyGym and easyCar (Reece, 2004). Figure 3. The Freudian motives see-saw (Evans et al, 2006: 12) 2.2 Leadership influence on strategic action Strategic change is about changing the way in which the organisation interacts with its external environment; finding a fit between resources and capabilities and changing competitive environment (Henry, 2008: 319). Inspiring change and laying out the direction for change are essential leadership activities in dealing with change. However Michael O’Leary and Stelios Haji-Ioannou are very different types of leader, so their approach to strategic change will vary accordingly. !" ! #$%" % &$%" ’ Stelios Haji-Ioannou is a transformational leader who actively seeks to engage in opportunities for strategic change. Motivated by his ‘low boredom threshold,’ stakeholder empathy and work ethic drive for achievement, the entrepreneur has successfully built the easyGroup empire through related diversification (Rayner and Adam-Smith, 2009). The ‘no frills’ business model present in all easyGroup ventures highlights the focus of providing ‘more value for less’ as Stelios Haji-Ioannou is passionate about making a difference to peoples’ lives (Stelios, 2011). Therefore, success for the entrepreneur is mainly determined by non-financial measures, such as customer satisfaction, reputation and even learning from less successful ventures (Jones and George, 2003). Stelios Haji-Ioannou goes as far to advise entrepreneurs ‘must be willing to end up poorer’ than when starting if not successful in ventures indicating he will potentially invest in financial high risk strategic change (Reece, 2004). Stelios Haji-Ioannou incorporates a deliberate strategic approach by utilising his cognitive leadership skills, lying in his branding expertise and energetic drive for entrepreneurship, to develop innovative ideas (Pro-motivate, 2011). However, however the process relies predominantly on emergent strategy as opportunities arise, such as having the personal capital to set up easyJet in 1995 (easyJet, 2011; Reece, 2004). Through being open to opinion in his democratic leadership style Stelios Haji-Ioannou has created a visionary organisation through easyGroup, the corporate company is able to simultaneously manage continuity and embrace change (Henry, 2008: 327). Stelios Haji-Ioannou’s current strategic role is as a champion leader discovering enterprises and developing teams that build initiative and motivation to drive the businesses forward once they have entered the growth phase (Rayner and Adam-Smith, 2009: 58). Michael O’Leary is a transactional leader focused on his only transformational strategic change of profit maximisation through cost leadership; pursuing incremental changes focused on cutting cost. The only time Ryanair strategies align with consumer service interests is as a consequence Michael O’Leary’s selective visions for cost leadership, such as improving check-in processes. Henry (2008: 327) states leadership directs strategy implementation through developing appropriate organisational culture, establishing core values and purpose of the company can manage and embrace change. Michael O’Leary’s initial classical strategy to make Ryanair a low-fare budget airline in 1994 is the primary vision achieved and pursued to date through transactional leadership, thus creating a strong cost leadership rationale, a culture valuing profit maximisation and higher resistance to change (Ryanair, 2011). This classical strategic approach ‘no frills’ business mode; embedded in the organisation has proved successful even in times of adverse effects of volcano eruptions, snow disruptions and a general lack of consumer confidence, Ryan reports a 26% rise in profits in March 2011 (Business and Finance, 2011). However, strategic drift occurs where original long-term objectives are no longer clear or relevant, often the case when implementing incremental change in a strong culture (Linstead et al, 2004: 518). If the economic climate deteriorates or even remains the same while airline costs, such as fuel, increase Michael O’Leary’s cost leadership model would become obsolete. Ryanair needs remain aware and open to their constantly changing environment developing alternative competitive sources of advantage to avoid radical strategic change being required realign their strategic fit. As Michael O’Leary is identified as the autocratic decision-maker driving Ryanair forward in an ever more challenging industry (Clark, 2009; Business and Finance, 2011). Although a classical strategist Michael O’Leary effectively responds to the emergent external environment to ensure profitability, evident when deciding to slow growth from 15-20% per year to 5-10% over next 3 years (Annual Report, 2010). Michael O’Leary is decidedly less of a risk strategist as financial performance is the fundamental organisational purpose. However, it is Michael O’Leary’s frugality, financial expertise and blunt personality that will make him difficult to replace in Ryanair’s current phase of growth. 3.0 Conclusion It is evident through the application of leadership theory to Michael O’Leary and Stelios Haji-Ioannou that leadership is highly influential where authoritative leaders direct strategy. Both the leaders discussed lead companies which reflect their own leadership approach, traits and attributes. Stelios Haji-Ioannou’s leadership is reflected in the easyGroup brand, which promotes corporate social responsibility, allowing flexibility to embrace strategic change through new enterprises with customer value focus (easyGroup, 2011). While Michael O’Leary’s leadership is reflected in Ryanair’s ambition to be the largest lowest-fare airline, maximising profits through cost leadership and eliminating waste procedures (Ryanair, 2011). However, it is also evident similar traits and motivations in leaders can guide very different strategic behaviours to obtain the same effects. Both the leaders have a high work motivation for sake of achievement and challenge; however Stelios Haji- Ioannou embraces diverse strategic change and opportunity to discover new innovative enterprises, while Michael O’Leary is motivated by challenge of growth within the highly competitive airline industry. Both leaders gain satisfaction through achievement and even strive to apply similar ‘no frills’ business model, but fundamentally are working to different means according to their strategist perspective. Leadership most importantly influences the scope of strategy and openness to strategic change. Stelios Haji-Ioannou at one end of the continuum is a processual strategist flexibly utilising his expertise in branding to experiment and learn, taking advantage of emergent opportunities to ultimately embrace entrepreneurship (De Wit and Meyer, 2010). Stelios Haji-Ioannou is actively seeks opportunities for strategic change as it has successfully allowed him to build the easyGroup brand and engage in more philanthropic work important to him. Michael O’Leary at the other end of the continuum is a classical strategist committed to deliberate profit-maximisation, utilising his expert technical skills to predominantly drive focused strategy in the European airline industry (Whittington, 2001). Clark (2009) reports Michael O’Leary stating ‘business should be simple’ so he is not open to strategic change beyond cost leadership as this model of business is very successful for Ryanair. 3.0 Recommendations In the current climate with economic and environmental concerns, for example in fuel costs and emission levels, it would be advantageous for Michael O’Leary to make a conscious effort to develop a visionary organisation, such as Stelios Haji-Ioannou’s efforts (Henry, 2008). This would enable Ryanair to continue with cost leadership strategies, but would create a flexible culture open to embrace change towards alternative sources of competitive advantage such as customer service. Future analysis into Stelios Haji-Ioannou’s ventures could focus on how to further add value for customers. Bibliography Annual Report (2010) Ryanair. [Online] Available at: http://www.ryanair.com/en/investor/investor-relations-news (Accessed: 09 January 2012). Burns, P. (2005) Corporate Entrepreneurship: Building an Entrepreneurial Organisation. Hampshire: Palgrave Macmillan. Business and Finance (2011) ‘Business person of the month: Michael O’Leary, CEO Ryanair’, June. [Online] Available at: http://www.businessandfinance.ie/index.jsp?p=950&n=933 (Accessed: 02 January 2012) Capon, C. (2008) Understanding Strategic Management. New York: Pearson Education Limited. Cashian, P. (2007) Economics, Strategy and the Firm. Hampshire: Palgrave Macmillan. Clark, P. (2009) ‘Lunch with the FT: Michael O’Leary’, Financial Times, 18 December [Online]. Available at: http://www.ft.com/cms/s/2/073c8d40-e9ca-11de-ae43- 00144feab49a.html#axzz1e3S8NE8m (Accessed: 15 November 2011). Collinson, P. (2011) ‘Ryanair – the not-so-low-fares airline’, The Guardian. 7 November [Online]. Available at: http://www.guardian.co.uk/global/blog/2011/nov/07/ryanair-theairlineindustry (Accessed: 15 November 2011). De Wit, B. & Meyer, R. (2010) Strategy Process, Content, Context: An International Perspective. 4th edn. Andover : South-Western Cengage Learning. easyGroup (2011) Available at: http://www.easy.com/ (Accessed: 29 December 2011). easyJet (2011) Available at: http://corporate.easyjet.com/about-easyjet.aspx (Accessed: 29 December 2011). Gillette, F (2010) ‘Ryanair's O'Leary: The Duke of Discomfort’, Bloomberg Businessweek. 2 September [Online]. Available at: http://www.businessweek.com/magazine/content/10_37/b4194058006755.htm (Accessed: 02 January 2012). Henry, A. (2008) Understanding Strategic Management. Oxford: Oxford University Press. Jones, G. & George, J. (2003) Contemporary Management. 3rd edn. New York: McGraw-Hill. King, M. (2011) ‘easyJet founder launches scheme to let people rent out their cars’, The Gaurdian. 12 December [Online]. Available at: http://www.guardian.co.uk/money/2011/dec/12/easy-jet-founder-car-club (Accessed: 29 December 2011). Linstead, S., Fulop, L. & Lilley, S. (2004) Management and Organization: a critical text. Hampshire: Palgrave Macmillan. Mail Online (2011), ‘Budget battle: easyJet founder Stelios set to launch new airline’, 27 September [Online]. Available at: http://www.dailymail.co.uk/travel/article- 2042484/easyJet-founder-Sir-Stelios-Haji-Ioannou-launch-new-airline.html (Accessed: 15 November 2011). Pro-motivate (2011) ‘Stelios Haji-Ioannou: Easy Jet Founder and Globally Recognised Entrepreneur’ Available at: http://www.pro-motivate.com/Stelios_Haji- Ioannou/speaker_profile (Accessed 02 January 2012). Rayner, C. & Adam-Smith, D. (2009) ‘Managing and Leading People, 2nd edition: a sample chapter’, CIPD. [Online] Available at: http://www.cipd.co.uk/Bookstore/_searchResults.aspx?g=0&e=0&q=managing%20a nd%20leading%20people&c=Bookstore (Accessed: 02 January 2012) Reece, D. (2004) ‘Stelios Haji-Ioannou: The rebel who wants much more than an easy life’, The Independent. 14 August [Online]. Available at: http://www.independent.co.uk/news/business/news/stelios-hajiioannou-the-rebel- who-wants-much-more-than-an-easy-life-6163912.html (Accessed: 02 January 2012). Ryanair (2011) Available at: http://www.ryanair.com/en (Accessed: 29 December 2011) Smith, B (2009) ‘The 1968 E.W. Hancock paper: Leadership in management-the elusive element’, Production Engineer, 47 (12), pp579-592 IEEE Xplore [Online]. Available at: http://ieeexplore.ieee.org/Xplore/ (Accessed: 02 January 2012). Stelios (2011) Available at: http://www.stelios.com/ (Acessed: 29 December 2011) Whittington, R. (2001) What is Strategy: and does it matter? 2nd edn. London : Thomson Learning. Appendix 1 Classical Michael O’Leary is classical strategist whereby his strategies are product of deliberate calculation and implementation; his initial strategy to make Ryanair a low-fare budget airline in 1994 is the primary vision achieved and continuously pursued to date (De Wit and Meyer, 2010: 115; Ryanair, 2011). Under Michael O’Leary profit maximisation has been ultimate long-term objective, exploiting customers with extra service charges to increase revenue and operational cost cutting (Collinson, 2011). Stelios Haji-Ioannou similarly appears a classical strategist, relentlessly engaging in profit-making activities, launching 17 ventures and always seeking the next to add to his fortune (Pro-motivate, 2011; Reece, 2004). Evolutionary The evolutionary approach is also focused on profit-maximising, but thinking is toward a more emergent process. Not all deliberate plan will succeed in implementation, therefore new contingency plans must be made becoming realised strategy (De Wit and Meyer, 2010). Michael O’Leary engages in evolutionary processes to achieve cost leadership strategies, such as moving airport check-in processes online and taking advantage of technological advancement (Ryanair, 2011). Michael O’Leary priority is profit maximisation, so in taking advantage of technology could be also be perceived as a deliberate act. Systemic The systemic approach believes in deliberate processes to achieve plural outcomes suggesting strategy is shaped by the social systems as outcomes relate to stakeholders (Whittington, 2001). Stelios Haji-Ioannou shows systemic thinking as his strategic ventures are influenced by cultural interests of a broader society, thus seen in his easyCar scheme providing value for the consumer and contributing to reducing emission in theory (King, 2011). Processual Stelios Haji-Ioannou is a processual inclined strategist, although the entrepreneur deliberately focuses on developing the easyGroup brand he keeps his ‘eyes open’ acknowledging strategy is realised as opportunities emerge (De Wit and Meyer, 2010; Reece, 2004). Stelios Haji-Ioannou perceives plural strategic outcomes, concerned with customer and broader societal interests, learning and strengthening the easyGroup brand; he even advises entrepreneurs ‘must be willing to end up poorer’ than when starting if not successful in ventures (Reece, 2004). Table 2. Generic perspectives on strategy (Whittington, 2001: 3) Appendix 2 Trait Michael O’Leary’s Emotional Intelligence Stelios Haji-Ioannou’s Emotional Intelligence Self- confidence Both Michael O’Leary and Stelios Haji-Ioannou are high profile leaders in the airline industry confident in managing perceptions others through their own PR. Stelios Haji-Ioannou wearing orange jumpsuits for easyJet and Michael O’Leary playing the pantomime villain in the media, with his harsh outburst (Clark, 2009) Knowledge of the business Michael O’Leary has very industry specific knowledge, it is necessary he knows the processes to implement his cost leadership strategies. He acknowledges he doesn’t know anyone outside of European airline industry (Clark, 2009). Stelios Haji-Ioannou has developed his expertise in branding and thus setting up innovative enterprises is where his knowledge lies and in his own easyGroup company. Leadership Motivation Michael O’Leary is motivated by challenge of leading Ryanair through growth within the highly competitive airline industry. As an autocratic leader he is willing to assume responsibility to achieve profit maximisation goals (Linstead et al, 2004). Stelios Haji-Ioannou is charismatic and energetic individual, socially motivated to inspire others to achieve outcomes. He has a ‘champion’ leadership style prepared to fight for enterprises success through to growth(Rayner and Adam-Smith, 2009: 58). Cognitive ability Micheal O’Leary is known for his frugality; prudence in avoiding waste. He utilises his technical and analytic skills with finance find appropriate cost strategies, maximising performance (Business and Finance, 2011). Stelios Haji-Ioannou uses his ability to engage and perceive others to identify potential ventures and innovative ideas. He also has good branding know-how (Pro-motivate, 2011). Drive Both Michael O’Leary and Stelios Haji-Ioannou are driven by their ‘No-frills’ business model optimised in their respective airlines. However, Michael O’Leary favours towards pure financial value in the basics budget provision, while Stelios Haji-Ioannou favours more value for less principles of the easyGroup incorporating a customer service focus too (easyGroup, 2011). Table 3. Common leader traits (Adapted from Linstead et al, 2004: 328) General Comments Your work is very well written and is evidence of a comprehensive knowledge, understanding and skills appropriate to analyse the strategic leadership area that you have addressed. There is also excellent evidence that all the learning outcomes and are satisfied and that at this level your assignment is excellent in the majority of the categories cited in the marking criteria. A really good piece of work, well done An excellent analysis of the two leaders.