Transformational Leadership
Edexcel Business A level - 3.6.1 Causes and effects of change

This revision video focuses on the theme of transformational leadership from unit 3.6.1, "Causes and Effects of Change", of the Edexcel Business A Level course. Our case study centres on Adena Brands, particularly the impact of Nick Stowe's leadership style on the company's performance. The key task is to assess whether Nick Stowe's transformational leadership is the main cause of Adena Brands' performance, a question that carries a weight of 12 marks.

Transformational leadership is defined as a leadership style where leaders inspire their teams to identify and implement necessary changes, thereby enhancing motivation, morale, and performance through strategic vision and collaborative efforts. In the context of Adena Brands, Nick Stowe's approach to restructuring and his ongoing investment in technology and product quality showcase typical traits of a transformational leader. His vision seems geared towards long-term stability and improved organisational performance.

However, the question's hook is "performance," so it's vital to connect leadership effects to Key Performance Indicators (KPIs) from the case study. Examples of these KPIs include the year-on-year group sales figures, operating costs as a percentage of sales, and the impact of external economic factors like inflation and the national living wage on the company’s financial health. Defining these terms, we look at how these metrics offer a measurable reflection of the company's performance, providing a clear view of external influences and internal management effectiveness.

Although transformational leadership is significant, for this 12-mark essay, it is crucial to demonstrate an understanding that Stowe's leadership, while influential, operates within a broader spectrum of external factors, such as market conditions and economic pressures, which have also significantly impacted the company's performance. These include challenges such as the cost-of-living crisis and unseasonable weather, which have affected consumer behaviour and sales.