There are many ways to define leadership. One of them is where an individual (or more) encourages or imposes employees to effectively contribute to an organisation. Melissa Li is not a transformative leader and may have to change herself and the organisation to ensure that she becomes an effective transformative leader. Melissa does not have all the competencies of being an effective leader. An effective leader should be extroverted or have some of the characteristics of one, such as being outgoing and sociable, in the case we cannot see if she is an extrovert or not. They also must have a strong belief in their leadership skills to be able to meet the business’ goals, we can see that Melissa does not have that as she is contemplating whether she is the right person to lead TWL. She is however driven as she was given the grant to further her ideas in radar technology. We cannot see if she has integrity or not. One key competency that she is lacking is her ability to motivate her employees due to them not having faith in her, this must change if she is to be an effective leader, in the case her employees are silent in their meetings together. She has an abundance of knowledge about the business, which is one of the competencies (McShane, Olekalns, Newman, Travaglione, 2016). She can solve real-life problems as she developed a radar which assisted police officers. Suggesting that she was able to fix a real-life problem and will be able to solve future problems. Also, she has emotional intelligence due to her ability to read her engineers’ body language and able to see that they lack faith in her. All these examples show that she is currently not an effective leader, but she has the potential to become one if she worked on her motivational skills and becomes more confident in herself.Leadership comes in two ways, one is the implicit leadership theory which states that people will assess a leader based on what they think an ideal leader is from their preconceived beliefs. The other is explicit in which someone has received a title in an organisation in which they have been given authority over others. Being the founder, Melissa has the position of being a leader but not necessarily the implicit leadership theory in the minds of her employees because they do not think that Melissa is an effective leader since she does not fit the mould of an effective leader and herself which comes from a lack of confidence.Transformational Leadership is a form of leadership where leaders see what changes need to be made in the future, this can be done by sitting with their respective employees to work together to identify on something that they would like to change. One of the challenges for Melissa would be to make herself a transformational leader. A transformational leader is someone who has an “idealized influence, inspirational motivation, intellectual stimulation, and individual consideration over her employees” (Dhingra, Gupta, Gupta 2013). Currently, we can see that she is not one, as in the case we are not shown whether she is a role model, it shows that she is not an inspirational motivator as she is unable to win over her engineers’ trust which is a prerequisite to being able to motivate your workers. It is obvious that she is intellectually stimulated as she is an “‘innovative pioneering engineer”. She seems to be the decision maker and not an advisor due to the board of directors wanting more control and authority, to grow the business even more.For TWL to change into a more effective business, the employees will have to change, for that to occur Melissa will have to first gain their trust as they are doubting her abilities to be a leader. She should create smaller groups which will make it easier to follow Tuckman’s model since it is in human nature to socialise. By doing this, the teams will inevitably have the 5 C’s of team member competency. In the stage of forming, they will have to communicate with each other to get to know each other. Also, conflict resolution will be taken care of in the stage of storming because different viewpoints are colliding, and they will try to make sure that it is settled. The stage of Norming will ensure that members will learn to comfort each other by building intimate relationships with their team members. Stage of Performing will cause cooperation and coordination among team members. She should also follow more of a human relations (HR) approach instead of the scientific management (SM) ideology. The HR approach would allow her to see her engineer’s concerns and come up with a solution with them. Transactional leadership or SM is based on “bureaucratic authority, focuses on task completion, and relies on rewards and punishments” (Stone 2004), this would not work well for TWL because they are focused on innovation and by punishing employees, they will feel demotivated because they are not at fault for the lack of engineering something new. The work should give them intrinsic rewards because even if the extrinsic rewards are good, employees may end up feeling demoralised. (Milne 2007)There are some challenges TWL can face in the future that Melissa should be careful about. One of them is the demoralising and reduction in job satisfaction of employees due to their inability to handle the additional workload caused by the business’ expansion. Another one could be experiencing diminishing marginal returns due to the rapid growth as costs per worker would exceed output per worker. TWL should implement the best strategy for a growing innovative international business, which would decide the structure that the business should follow. One possible strategy is being a prospector, by having fewer divisions of labour it enables employees to brainstorm new ideas for products, indicating that a vertical structure would be ideal for TWL as it has a lower division of labour.In conclusion, Melissa is not an effective leader nor a transformational one, but she can become both of those if she works on getting the competencies. She also needs to change her organisation structure to meet the strategy and make sure that TWL mitigates the possible challenges that they can come across. The creation of smaller teams and ensuring that her employees have the competencies can make TWL more efficient. Melissa also needs to make sure that she talks to her employees and the board to discuss the future of the business to decide whether they should maintain radar technology being their primary business or to expand the number of products they have.