Analyse difficulties when an entrepreneur becomes a leader, including delegation, scale, formal management, employee relationships, vision and changing responsibilities.
Source for use with Extract A About Li-Ning Li-Ning is a Chinese sportswear and sports equipment business. It was started by entrepreneur Li Ning, who was a successful Chinese gymnast. He won 106 gold medals in his long gymnastic career. He lit the Olympic torch at the 2008 Summer Games in Beijing. Li started his business to provide Chinese athletes with sportswear for the Olympic games. The business developed to provide luxury sportswear to exclusive Chinese retailers. Under the leadership of Li, the business has grown rapidly and has begun to take market share in China from leading sportswear businesses such as Adidas and Nike. It advertises globally and sponsors several athletes and teams worldwide. Whilst the sportswear designs of Li-Ning aim to attract international customers, the business still focuses on retaining Chinese culture, heritage and traditions in its designs and marketing. It uses social media to gather feedback on its products. Product differentiation is key to the success of the business. Li-Ning employs a large team to develop new sports products using the latest technology. Through research and development, the business offers innovative and high-performance sports shoes, clothing and sports-equipment. Li-Ning designs and manufactures high quality, premium priced products for a range of sports, including: • Basketball • Badminton • Table tennis • Gymnastics • Running • Cycling • Pickleball 5 10 15 20 25
As the business grew, Li had to move from being an entrepreneur to become the
leader of Li-Ning.
Discuss the possible difficulties Li may have met as a result of this move.
Question
Discuss the possible difficulties Li may have met as a result of this move.
Indicative content
1(d)
Indicative content guidance
Answers must be credited by using the level descriptors (below) in line with the general marking guidance. The indicative content below exemplifies some of the points that candidates may make but this does not imply that any of these must be included. Other relevant points must also be credited.
Knowledge, Application, Analysis, Evaluation - indicative content
- An entrepreneur is someone who starts a business and takes risks. A leader is a person who inspires and motivates others to
meet objectives
- As an entrepreneur, Li founded the business by pursuing his own business idea to support the Olympic team. He may have found
it difficult to share decision making and control with others as the business grew
- Li was a gymnast for many years and so may have lacked the experience and qualities needed to lead a team in a business
- However, Li may have had the ability to delegate and trust other employees. Li-Ning employs a large team to take responsibility for research and development of innovative designs
- Li was likely to have shown characteristics such as resilience and
commitment as a gymnast. These same qualities are required to become a good leader
- There are similarities between entrepreneurs and leaders as they both have the inspiration and motivation to succeed.
Therefore, Li may not have encountered many difficulties when he became leader of the business
- Li-Ning is now a large successful business competing with major sportswear brands. This may indicate that Li overcame any
difficulties and has led the business effectively
Level
Mark
Level 0
Level 1
1-2
Level 2
3-5
Level 3
6-8
Assessment is balanced, well contextualised, using quantitative and/or qualitative information, and shows an awareness of competing arguments/factors.