The process of leadership is not homogenous in all contexts i.e Essay - 2

The process of leadership is not homogenous in all contexts i.e. industry, country - Essay Example The process of leadership is not homogenous in all contexts i.e. industry, country As the world’s largest beverage market, the size of the U.S carbonated soft drink industry stood at more than $60 billion towards the departure of the twentieth century.The key issue with regards to the American beverage industry is that of the unparalleled level of concentration which is enjoyed by PepsiCo and the Coca-Cola Company within the market. Liu (2012, p. 119) understands that the fundamental characteristics of the carbonate soft drink industry necessitate that competitors should have the capital to launch extensive marketing campaigns, maintain cost-efficiency and invest in technological advancement to successfully compete in the industry. However, the presence of these elements can be categorized as a barrier to entry in the industry as smaller companies do not have the means to approve massive investments. This observation can be identified as one of the key reasons behind the dominance of companies such as PepsiCo and the Coca-Cola Company within the U.S beverage industry. The aspect of competition with regards to the beverage industry is closely linked with the dynamics of the external or macro environment in which the firms operates however, several other features of this environment have the capability to influence organizational activities and managerial decision making. . For example, the harmful effects of carbonated soft drink consumption have often come into question by researchers for promoting health related issues and obesity. In addition to this observation, the U.S beverage industry has also addressed several scandals that have emerged from the very beginning. From the accusation regarding the presence of aborted fetus cells as an ingredient of Pepsi to the alleged presence of chlorine content in Coca-Cola, the multi-billion dollar beverage industry in the United States is marked by a plethora of issues, accusations and critics of the product that it promotes and sells to consumers belonging to every age-group. However, the foc us of these issues is towards addressing the needs of the modern, health-oriented and aware consumers who demand products that can minimize health risks and promote their well-being. Given the dynamics of the U.S beverage industry, it is most appropriate to examine the notion of leadership as an ongoing and comprehensive process. According to Northouse (2010, p. 5); â€Å"The process viewpoint suggests that leadership is a phenomenon that resides in the context of the interactions between leaders and followers and makes leadership available to everyone†. In the present scenario, the foremost challenge of the U.S beverage industry is that of innovation, which in a broader sense is not linked with new product development but the formulation of effective strategies and frameworks that can allow leaders to respond to â€Å"†¦the demand of competitive pressure to fast-changing consumer needs and trends†¦Ã¢â‚¬  (Isaken and Tidd 2006, p. 265). As stated previously, the b usiness model on which the beverage industry is based on a concept that does not support the presence of small companies who cannot invest in the development of brands in addition with the launch of marketing campaigns to attract a large customer base. Therefore, the beverage industry in the United States is dominated by two key players who engage in fierce competition to deter the absolute dominance of the other. In order to cope with the scale of the industry’s operations and the issues that it faces, the process of leadership is marked by the