Price leadership

Examples of Price leadership in the following topics:

• Price Leadership

  • Price leadership is a form of tacit collusion that oligopolies may use to achieve a monopoly-like market outcome.
  • One way in which firms achieve this is price leadership, in which one firm serves as an industry leader and sets prices, while other firms raise and lower their prices to match.
  • The fact that a price change by one firm is follwed by similar price changes among other firms doesn't necessarily mean that tacit collusion exists.
  • The gas station that first raises its prices, and that the other two follow, is called the price leader.
  • Although companies cannot legally communicate to set prices, some accuse certain industries of using price leadership to accomplish the same goal.

• Collusion and Competition

  • As a result, price will be higher than the market-clearing price, and output is likely to be lower.
  • If oligopolists individually pursued their own self-interest, then they would produce a total quantity greater than the monopoly quantity, and charge a lower price than the monopoly price, thus earning a smaller profit.
  • In contrast to price-fixing, price leadership is a type of informal collusion which is generally legal.
  • Price leadership, which is also sometimes called parallel pricing, occurs when the dominant competitor publishes its price ahead of other firms in the market, and the other firms then match the announced price.
  • The leader will typically set the price to maximize its profits, which may not be the price that maximized other firms' profits.

• A Blended Approach to Leadership

  • The full-range leadership theory blends the features of transactional and transformational leadership into one comprehensive approach.
  • The full-range theory of leadership seeks to blend the best aspects of transactional and transformational leadership into one comprehensive approach.
  • Transactional leadership focuses on exchanges between leaders and followers.
  • Management researcher Bernard Bass developed the Multifactor Leadership Questionnaire (MLQ), consisting of 36 items that reflect the leadership aspects associated with both approaches.
  • Assess the intrinsic value of blending transactional leadership behaviors with transformational leadership behaviors

• Shared Leadership

  • Shared leadership means that leadership responsibilities are distributed within a team and that members influence each other.
  • Unlike traditional notions of leadership that focus on the actions of an individual, shared leadership refers to responsibilities shared by members of a group.
  • Shared leadership can involve all team members simultaneously or distribute leadership responsibilities sequentially over the group's duration.
  • Leadership roles may be assigned based on expertise and experience.
  • Team members consult each other in a group that employs shared leadership.

• Leadership Styles

  • Cohen, the senior vice president for Right Management's Leadership Development Center of Excellence, describes the engaging leadership style as communicating relevant information to employees and involving them in important decisions.
  • This leadership style can help retain employees for the long term.
  • Under the autocratic leadership style, decision-making power is centralized in the leader.
  • Bass used Burns's ideas to develop his own theory of transformational leadership.
  • Different situations call for particular leadership styles.

• Leadership Model: University of Michigan

  • The recognition of leaders and the development of leadership theory have evolved over centuries.
  • This theoretical evolution has progressed over time, from identifying individual personalities or characteristics to formal studies related to what constitutes leadership and why leadership is or is not successful.
  • Leadership research continues as scholars observe, identify, and promote the emergence of new leadership styles and behaviors in the 21st century.
  • The Michigan leadership studies, along with the Ohio State University studies that took place in the 1940s, are two of the best-known behavioral leadership studies and continue to be cited to this day.
  • Discuss the Michigan Leadership Studies generated in the 1950s and 1960s in the broader context of behavioral approaches to leadership

• Four Theories of Leadership

  • Theories of effective leadership include the trait, contingency, behavioral, and full-range theories.
  • For a number of years, researchers have examined leadership to discover how successful leaders are created.
  • The search for the characteristics or traits of effective leaders has been central to the study of leadership.
  • Fiedler's contingency model of leadership focuses on the interaction of leadership style and the situation (later called situational control).
  • The full-range theory of leadership is a component of transformational leadership, which enhances motivation and morale by connecting the employee's sense of identity to a project and the collective identity of the organization.

• The Energy Crisis

  • Independently, the OPEC members agreed to use their leverage over the world price-setting mechanism for oil to stabilize their real incomes by raising world oil prices.
  • The price of oil quadrupled by 1974 to nearly US$12 per barrel (75 US$/m3).
  • Some of the income was dispensed in the form of aid to other underdeveloped nations whose economies had been caught between higher prices of oil and lower prices for their own export commodities and raw materials amid shrinking Western demand for their goods.
  • Most notably, the Saudis acquired operating control of Aramco, fully nationalizing it in 1980 under the leadership of Ahmed Zaki Yamani.
  • This chart reveals the steep increase in oil prices related to the Energy Crisis of 1973.

• Transactional Versus Transformational Leaders

  • Leadership can be described as transactional or transformational.
  • While transactional leadership operates within existing boundaries of processes, structures, and goals, transformational leadership challenges the current state and is change-oriented.
  • This leadership style emphasizes leading by example, so followers can identify with the leader's vision and values.
  • Transactional leadership reacts to problems as they arise, whereas transformational leadership is more likely to address issues before they become problematic.
  • Transactional leadership is more akin to the common notions of management, whereas transformational leadership adheres more closely to what is colloquially referred to as leadership.

• Leadership

  • Leadership is the process by which an individual mobilizes people and resources to achieve a goal.
  • Leadership is the process by which an individual mobilizes people and resources to achieve a goal.
  • Some have distinguished among types of leadership such as charismatic, heroic, and transformational leadership.
  • The many dimensions of leadership indicate how complex a notion it is and how difficult effective leadership can be.
  • Abraham Lincoln is considered a model of leadership.