Evaluate the extent to which leadership contributed to BV's effective strategic management between 2009 and 2022.

Mark scheme

Marking points from the official mark scheme (May/June 2023). The mark or mark type is shown in brackets.

1. Leadership: the purpose of leadership, leadership roles in business (directors, managers, supervisors, worker representatives), the qualities of a good leader.
2. Theories of leadership: key leadership theories: trait, behavioural, contingency, power and influence and transformational.
3. Emotional intelligence: Goleman's four competencies of emotional intelligence: self-awareness, social awareness, self-management and social skills.
4. Transformational leadership – an approach to leadership to manage change for employees and businesses. It creates positive change in the business. The aim is to identify needed change, create the change objectives and inspire individuals and groups to execute the change. To align internal stakeholder objectives with the organisational change objectives.
5. Motivation theory: McGregor, Maslow etc.
6. Management styles: autocratic etc.
7. Strategic management is the management of an organisation's resources to achieve its goals and objectives.
8. Strategic management – involving all the steps of strategic management, analysis, choice and implementation.
9. Owner, Rohit: entrepreneur with social awareness (link to Goleman); spotted gap in the market for vegan food; his vision to have a BV in every major city, as a household name.
10. Growth: currently over 100 restaurants and 50 franchised in 2023, 3 restaurants in first two years, another 13 restaurants by 2014 – growth becomes more rapid.
11. Sale of 45% of BV to a venture capitalist: Rohit maintains control, but loss of ownership. Value of company set at $2.2m at this point (1/0.45 = $2.2m).
12. IPO in 2015. 90% of company sold off to public (5% left to Rohit and 5% to venture capitalist).
13. New organisational structure in 2016: traditional hierarchy; four layers – no franchises at this point – how do they fit in with structure?; separation of restaurant from business functions – centralised structure.
14. Decision to use a franchise model. Common in restaurant industry. Each franchise needs a leader. Traits include: Adaptability; Intelligence; Ability to work in a dynamic business; Strict corporate culture; Social skills (Goleman)
15. Global pandemic in 2020-21 – crisis/contingency management/leadership.
16. Decision made to enter into a joint venture with a global delivery business.
17. Decision to grow between 2021 and 2022 with a focus on franchise growth as opposed to BV owned restaurants.
18. Arguments that effective leadership has (and has not) contributed to the growth and development of BV may include: Leadership has allowed BV to maintain its core values and brand – this is likely to have been important as it grew, especially for franchise growth to keep the brand focus.
19. When Rohit sold 45% of BV to the venture capitalist, he would have needed to convince that he could be a transformational leadership and grow the business in this competitive market.
20. To attract new franchise owners a very competitive industry so BV will need to have clear leadership to attract new franchise owners who want to 'buy' the BV brand.
21. BV has been through rapid growth during this period – without effective leadership the stakeholders may not be focused on the business's objectives.
22. A service centred business – many employees are customer focussed so they need to be inspired to maintain standards and sales.
23. Significant disruption in 2020 with global pandemic – many employees, managers and franchise owners will need guidance and control from the leadership of BV to focus on the business's survival.
24. As BV changed from a private limited company to a public limited company, the leadership of BV (Rohit) becomes answerable to the shareholders. Must present the business at AGM.
25. BV's share price will reflect the confidence that the market has in the leadership of BV. Could lead to a hostile takeover if the share price falls too low (Rohit and venture capitalist only own 10% between them).
26. The restaurant industry is very competitive and by using veganism as a USP, Rohit will need to enforce strict standards and quality control or face legal issues and poor reputation.
27. Not just about Rohit's leadership – franchise owners will have needed effective leadership to be allowed to own a BV franchise and to run it effectively within the strict corporate culture of BV.
28. Organisational structure may have been effective in 2016, with a clear hierarchy and responsibilities, however there is no scope to add the franchise owners into the structure. May lead to a disconnect between the leadership of BV and the BV franchises. BV needs close control over these franchises to maintain the brand.
29. Evaluation will largely depend on the points raised in the analysis. Rohit is unable to lead each restaurant, so the brand identity and marketing may have been more important that the leadership during this time of growth.
30. Each restaurant manager will lead in their own style which works in that location. This may be more important that centralised effective leadership of BV.
31. The quality of service and meal may be more important than the transformational leadership in this competitive market, especially with a USP of veganism.
32. Crisis management in 2020–21 is likely to have been more important than transformational leadership to cope with the pandemic.
33. As BV expands overseas, many of the restaurants are unlikely to be influenced heavily by Rohit's transformational leadership - focussed more on the market where they are, not on the brand as a whole.
34. Weighing up of the arguments about the importance of effective leadership for BV between 2009 and 2022.
35. Overall judgement required about the importance of effective leadership for BV between 2009 and 2022.