1) BackgroundThe terms leadership and change management are interrelated. Leadership directs the company to reach the destination. Ultimately, it involves formulating the business strategies necessary to transfer to a new state to achieve the company's objective (Hayes, 2010, p.159). Kotter (2011) explains that leadership acts as a driving force throughout the change process, driving, controlling and managing rapid and effective evolution. According to Northouse (2013), “leadership is a process by which an individual influences a group of individuals to achieve a common goal.” Change management is associated with the processes and mechanisms envisaged to initiate change within control (Kotter, 2011). It involves decision making to set a goal, develop the necessary process, and allocate available resources to achieve that goal through effective planning and costing (Hayes, 2010). Therefore, change management focuses on the entire business process and leadership directs the company towards its vision.2. Importance of Leadership and Change Management The Auto Company is the global leader in the manufacturing and distribution of auto diagnostic solutions for automobile manufacturers. It was famous for its diagnostic solutions and its target market is limited to a particular market segment. In the last two to three years, its sales have been declining due to high competition and many new leading companies are introducing high-tech devices for diagnostic solutions. Example: Electronics giant Samsung introduced innovative mobile technology to the automobile industry. Which is newest in design, user-friendly and more convenient to diagnose vehicle problems (Samsung, 2014). Today's market is tough...... middle of paper ......e, 5th edition, London: SAGE Publications, Inc. Northouse, PG (2013) Leadership: Theory and Practice, London: SAGE Publications Ltd. Researchomatic Ford Motors Company, [Online], available: http://www.researchomatic.com/Ford-Motors-Company-83636.html [March 25, 2014]. Sabri, EH, Gupta, AP and Beitler, MA (2007 ) Purchase Order Management Best Practices: Managing Process, Technology, and Change, Fort Lauderdale: J. Ross Publishing, Inc. Samsung (2014) Samsung Smart Driving, [Online], available: http:// www.samsung.com/uk/business/solutions-services/mobile-solutions/automotive/samsung-smart-driving [March 25, 2014].TheTimes100 (2014) Using a Range of Management Styles to Run a Business, [Online ], available: http://businesscasestudies.co.uk/enterprise-rent-a-car/using-a-range-of-management-styles-to-lead-a-business/democratic-style.html#axzz2z8hIEv69 [ April 17 2014].