Warren Buffett

 

 

Bus 1210 Individual Research Paper

 

 

Warren Buffett Oracle of Omaha

 

 

 

 

Submitted
By: Amritpreet Singh

 

 

Course
Name: Management Essentials

 

 

Submitted
To: Gary Sveinson

 

 

Submission
Date: Jan 25, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table
of Contents

 

 

Introduction………………………………………………………………………………………3

 

Topics of research…………………………………………………………………………………3

a.    
Leader’s views on
Corporate Social Responsibility

b.   
Leader’s impact on
Corporate Culture

c.    
Leader’s Strategy
and Decision-making techniques

d.   
Leader’s
Motivation Techniques

e.    
Leader’s
Communication style and Power

 

Conclusion………………………………………………………………………………………………..4

 

Reference…………………………………………………………………………………………5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Warren Buffett is a legendary investor from the North
America who donated his eighty-three percentage of savings to the Bill and
Malinda Gates foundation (Admin, 2010). He is the current CEO and Chairman of
Berkshire Hathaway, he believes that without the smart delivery, even the
smartest idea can fall (Wart, 2017).

Warren Buffett follows the Benjamin Graham school of value investing (Staff, 2017). He invests in those
companies with a concern of how company make money and make sure securities and
shares of the company reach to its intrinsic worth (Staff, 2017) and every shareholder
each dollar worth the value (Staff, 2017). He maintained the
balance between company and its investors by make sure both succeed (Staff, 2017).

 

His
impact of Leadership style brings the dynamic change, he makes his employees
believe in themselves, be confident in what they doing and boost their
motivation level to work more than they think, they do and provides the full
autonomy to his managers and that’s the one of the main reason behind his
success  (5031, 2013).He gives the independence to the managers, let them
run the subsidiaries by themselves, without supervising and monitoring to any
degree which gives them the attitude of maintaining a business like an owner (5031, 2013).

 

Berkshire’s
culture is start from the CEO as Buffett do, it should be consistent and has to
be rewarded if followed and punished if not to maintain the curriculum in the
company values and ethics. Berkshire acquire the companies at lower price then
rivals because of its culture and especially the value of permanence and
autonomy which makes business sellers undeniably take it as a valuable part of
what they revive (Weverbergh Raf, Kristien
Vermoesen, 2016) on the sale (Weverbergh Raf, Kristien Vermoesen, 2016).

 

He
maintains the reputation of the Berkshire by believing on his employees
which doesn’t brought that many scandals so far and Buffett neither believes it
will be more ever he micromanage his reputation and follows exact opposite approach
in managing the business he installed and run companywide culture of integrity (STEPHENSON , 2015). He put very
trustworthy people at the right places and the company trust those people a lot
There’s so much self-respect you get from being trusted and being worthy of the
trust that the best compliance cultures are the ones which have this attitude
of trust (Weverbergh Raf, Kristien
Vermoesen, 2016).

 

Warren
Buffett put the ethics ahead of the profit for him his reputation of work is
more valuable than the money in the business he is ready to lose money but not
a reputation. He opens to the public and his shareholders that if you believe
somewhere something wrong or not going well give him a call (STEPHENSON ,
2015).

 

Warren
Buffett follows the long term prospective in making the decision and in
planning techniques (Staff, 2017). he makes sure that
company should consistently performed well and he check by return on equity = net
income/shareholder’s equity (Staff, 2017).He also keeps check
on the debt of the company that should not be excess by calculating debt equity
ratio equal to total liabilities/shareholder’s equity (Staff, 2017).

 

His strong decision-making quality
makes his investment worth it, he learned a lot from his mistakes as he started
learning in this industry from age 11 (Murcko, n.d.). He also believes
that invest only in that which you understand, which itself shouts at you to
take me without using calculator itself financials are not going to help anyone
to make the business deal worth (Lewis, n.d.). his goal is straight
forward, acquire the business at a reasonable price, with excellent economics
and honest management (Lewis, n.d.).

He knows how to catch the opportunities and he believes
they are like rain it’s better to put out the bucket to save them instead of
thimble (Lewis, n.d.).Moreover, Even for
the good cause he knows how to make people listen or follows to him he has
motivated more than 160 billionaires to give away their at least half of the wealth
for the philanthropic causes and did a $1 million bid just to have lunch with
them. He believes in the innovation and the productivity (Scott, 2016).

Warren Buffet is a skilled communicator in all
aspects of life. Communication is the real key of leadership (Admin, 2010).Warren Buffet is experienced at positioning
himself at the right place at the right time. He has the understanding of the
people he is trying to reach and what he can and cannot hear from the people (Admin, 2010). Knowledge of
audiences’ needs and wants gives the orator the ability to listen. Warren
Buffett is an excellent listener with the ability to convey his understanding (Admin, 2010).
Warren Buffett adopted the democratic style in
managing his employees (Cheah, 2013).Warren Buffett learned from his mistakes and turned
his mistakes into a positive thing (Admin, 2010).

 

 

 

Conclusion

 

Warren buffet make us think on the culture of the
business and rethink on the micromanaging the business and maintaining the
reputation like pride He brought the culture of integrity as the commitment for
the success of the business and his values towards the corporate social
responsibility and ethics made him the biggest investor of the history.

 

He always guides the newcomers to save the money
before spend and never rely on the one source of the income make the profit to
grow to invest and he never forgets to help the society he donated as much he
can and give justice to all the shareholders that every dollar worth it.

 

He emphasized more on the communication skills
for make anyone grow he listen the people and people love to listen him he doesn’t
need any source or median to spread his message, He believes in the innovation
and production and culture of the company start from CEO.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reference:

Bibliography
Stephen, Coulter, Mary. (2014). Management
(Vol. 11). Toronto, Ontario, canada: Pearson.

5031, n. (2013, November 10). laissez-faire-leadership-and-warren-buffett.
Retrieved January 24, 2018, from psu.edu:

Laissez-Faire Leadership and Warren Buffett


Admin. (2010, August 07). Warren Buffet. (WordPress,
Editor) Retrieved January 24, 2018, from Influentialleadership:
http://influentialleadership.com/warren-buffett/
Cheah, A. (2013, November). Management style.
Retrieved January 2018, from blog:
http://agnescheah.blogspot.ca/p/blog-page.html
Lewis, M. (n.d.). Warren Buffett Makes Decisions.
Retrieved from moneycrashers:
https://www.moneycrashers.com/warren-buffett-decisions-secret-investing-success/
Murcko, T. (n.d.). Investing lessons.
Retrieved from BusinessDictionary: http://www.businessdictionary.com/article/896/investing-lessons-of-warren-buffett/
Scott, B. (2016, August 11). Warren Buffett on
Reading, Innovation and Productivity. Retrieved January 24, 2018, from
inc.com:
https://www.inc.com/bartie-scott/warren-buffett-politico-playbook-interview.html
Staff, I. (2017, August 30). article 71801.
Retrieved January 24, 2018, from investopedia:
https://www.investopedia.com/articles/01/071801.asp
STEPHENSON , M. (2015, June 25). Value of
Corporate culture. Retrieved January 24, 2018, from smgrp:

The Value of Corporate Culture


Wart, M. (2017). communication tricks Warren
Buffett and other successful leaders use. USA: CNBC.
Weverbergh Raf, Kristien Vermoesen. (2016, August
11). Warren Buffett on reputation. Retrieved January 24, 2018, from
Finn: http://www.finn.be/warren-buffett-reputation-berkshire-hathaway