Report: Creative and Ethical Leadership Analysis of Hertz Rental Car

This report provides an in-depth analysis of Hertz Rental Car, focusing on creative and ethical leadership principles. It begins with an introduction to the company and its background, followed by a case study examining the impact of the COVID-19 pandemic and subsequent bankruptcy. The report delves into industry analysis using Porter's Five Forces model to assess competitive dynamics. It also includes a risk management analysis, identifying key challenges such as cybersecurity, booking complexities, and brand image. The report then explores the application of creativity to overcome these challenges, suggesting innovative strategies for improvement. Finally, it highlights the demonstration of advanced information skills used in the analysis and concludes with a summary of findings and recommendations. The report is a comprehensive assessment of Hertz's leadership and operational challenges.

Creative And Ethical
Leadership

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY .................................................................................................................................1
About the company.....................................................................................................................1
Case of company.........................................................................................................................1
Industry analysis..........................................................................................................................2
Risk management analysis..........................................................................................................4
Application of creativity to overcome.........................................................................................5
Demonstration of advanced information skills...........................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Leadership is considered as ability or skill of a person through which they can effectively
manage their work as well as organization operations. It is essential for a company management to
have effective leadership skill as that will help in conducting working operations in best manner
for attainment of desire goal (Ali and Yildiz, 2020). Organization selected for respective report is
Hertz rental car which is operating in car rental and leasing industry. The founder of respective
company is Walter L. Jacobs and its head office is located at the Estero, Florida, United State. The
owner of this firm is Hertz Global holding, Inc. Topics included in respective report are
background of firm, case of company, industry analysis, risk management evaluation, application
of creativity to overcome risk and demonstration of advance information skill.
MAIN BODY
About the company
The Hertz corporation is known as the subsidiary branch of Hertz Global Holding, Inc. It
is a American car rental firm that based in Estero Florida which operate with nearby 10200
corporate as well as several franchisee location at international level. It is famous as second
largest United State rental company of car. The location which is covered by Hertz rental car are
North America, The Caribbean, Latin America, Africa, Europe, Australia, New Zealand and many
more. The respective corporation mainly own vehicle leasing for 24 * 7 as well as their business is
nested at the international market. Moreover, in order to attract their customers respective
company provide different offers such as Hertz Gold Plus Reward and many more.
Case of company
Due to pandemic of COVID 19 Hertz rental car experienced several issues or problems as
during this no one want to travel with the used car as there is huge chance of infection. So while
the pandemic take place respective company experienced huge decrease in business sales as well
as it also lead situation of bankruptcy (Why Hertz landed in bankruptcy court when its rivals
didn’t. 2020). This situation mainly take place when Hertz rental car not able to pay $ 400 million
to its lenders, it generally occur because due to COVID 19 financial situation of company get
decreased. On the other hand, Hertz rental car competitor Avis and Enterprise suffer with
decrease in demand but not faced situation of bankruptcy. So respective company management
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want to do analysis so that they can improve situation of their business and get overcome from the
bankruptcy situation by enhancing their sales.
Industry analysis
Industry analysis is considered as market evaluation tool which is used by a company or
analysts in order to understand competitive dynamic of a specific industry. Through this they
mainly get to know what is happened in industry such as demand supply statistics change or so
on. It mainly include major three elements i.e. underlying forces at the workplace, overall
attractive factor of industry as well as critical factor which determine an organization success in a
specific industry (Amayreh, 2020). There are several methods which a company many adopt for
conducting industry analysis. In respect of Hertz rental car they are conducting industry analysis
so that they can determine risk which is related to bankruptcy situation due to COVID 19. In
respect of this, respective company is adopting porter's five force model for the industry analysis
which is explained below:-
Porter's five force model – Porter's five force model is determined as model which identify as well
as analyse main five competitive force which shape whole industry as well as it also aid in
determining a specific industry strength as well as weakness. According to which management of
an organization can develop strategies and plan which help in attaining the objective of business
growth successfully. In respect of Hertz rental car they are operating in car rental industry which
is highly impacted due to the COVID 19 situation. Due to respective pandemic respective
company experienced bankruptcy situation. Below explanation of respective industry analysis
model is given :-
 Bargaining power of customer – By this it element power of customer or buyers can
determine according to which an organization can develop strategies. If the power of
customers is high then it directly impact on the pricing decision of a company as they need
to offer product at low price and visa versa (Brackett and McKnight, 2020). In respect of
car rental industry currently in the pandemic situation bargaining power of customers is
high so due to this companies operating in same industry need to offer services at the low
prices. This will help them in sustaining in market in the specific situation.
 Bargaining power of suppliers – The respective factor help in understanding the power of
suppliers. In respect of this, if the power of suppliers is high then they may ask for
premium price for the low quality products. This is generally take place when there is less
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suppliers of specific product in the marketplace. In respect of car renting industry, there
are numbers of suppliers of resources which are used at respective industry such as car,
fuel, skilled drivers, technology product, car accessories and many more. On the other
hand according to the situation of COVID 19 there are very limited suppliers of some
resources or the suppliers also increase their price of product. So according to both the
situation the bargaining power of the suppliers is moderate.
 Competitive rivalry of industry – In respect of this element of the respective model of
industry analysis, degree of competition in specific industry can be determined according
to which companies can develop their decision or plan (Hamad Aldoseri, 2020). If there is
huge competitive rivalry in the specific industry then it directly impact on the profit of
firm. In respect of car rental industry the competitive rivalry is high because there are
numbers of companies who offer their car for the rent to potential customers. The
companies operating in respective industry are Meru cabs, Hertz rental car, Avia and
Enterprise, Ola cabs, Uber cabs and many more.
 Threat of substitutes – According to this element of industry analysis model, it can be
determine that is there is some other companies who are offering same products and
services at the similar industry. If there is high availability of substitute products then
company need to develop new strategies or adopt innovation in order to attract more and
more customers as compare to competitor. In respect of car rental industry there are
numbers of companies operating in such as Meru cabs, Hertz rental car, Avia and
Enterprise, Ola cabs, Uber cabs and many more. This show that there is high availability
of the substitutes which leads to high competition.
 Threat of new entry or exit – According to this element of the porter's fiver force model, it
help in determining the ratio of new companies come in and go out from the specific
industry (Keck and et.al., 2020). Through this, they able to develop strategies and plan for
sustaining in market at the long time. In respect of car rental industry the threat of new
entry or exist is moderate because there are several small companies who offer same
services at market. On the other hand there are few companies who are operating in car
rental industry at the internation level. Due to which big companies may experienced
moderate issues or competition in respective industry.
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Risk management analysis
Risk management analysis is considered as method which is comprises of series through
that risk can be determined and develop strategies to overcome it in effective manner. Moreover it
is a method which help in determining the risk and identifying how to overcome so that firm can
attain its objective successfully (Midgen and Theodoratou, 2020). In order to conduct risk
management a company need to adopt several steps such as planning, organizing, directing as
well as controlling. Through risk management a company able to determine different kinds of risk
such as process risk, personal risk, system risk, external event risk and many more. Below some
of the main risks which are experienced by companies working under car rental industry like
Hertz rental car are given below:-
 Ensuring all driver are follow guidelines – In current time related to pandemic of COVID
19 it is one of the main issue which is experienced by a car rental industry as to ensure that
all drivers are following the guidelines related to COVID or not. Due to this situation
people or potential customers not able to feel confident that the car which they are hiring is
fully sanitised and for safe during this pandemic situation. This will decrease in sales as
customers are not able to trust on the company as well as it also leads Hertz rental car to
bankruptcy situation.
 Complex booking and pricing management – In respect of this risk or issue a it is difficult
to manage as well as keeping the booking data. It is generally take place when a company
rent car on some offer or discount as well as it is also difficult when a firm is managing the
record in manual way (Osunka and Unachukwu, 2020). In respect of Hertz rental car, they
rent cars for 24 * 7 and there are some customers who provide in appropriate information
or apply some discount coupon with some inappropriate source. This will leads to
complexity during price management. On the other hand, all the booking of Hertz rental
car are generally done on car rental management software but sometime software not work
properly during which customer experienced complexity in booking.
 Improving brand image – In respect of this risk, it is essential for a company to improve
the brand image as that will help them in attaining the desire goal in successful manner.
Company generally experienced issues in enhancing brand image as it is not easy to gain
or regain the trust of customers. In respect of Hertz rental car, they are going through
situation of bankruptcy because people are not using rental cabs due to security issues
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related to COVID 19. It is so because customers are not ensure that drivers are following
all guidelines of the COVID 19 developed by government. This will impact on the brand
image of a company negatively and it is essential for firm to improve it effectively.
 Cybersecurity – It is another major risk or issues which is experienced by a company
related to cybersecurity according to which personal as well as private information or
customers or employees are not safe (Prastio, Indradew aand Syah, 2020). It is risk
because cyber hacker can use personal or private information of a person in illegal
activities. In respect of Hertz rental car, they ask customers their personal detail during log
in as well as they also have data of employees. So it may leads to issue related to
cybersecurity in which information can be used for inappropriate activities. Moreover
during booking car customer also fill their bank details which can also be hacked as well
as it also leads to stolen of money from customer bank account.
These are some of the main issues or risk factors which are experienced by Hertz rental car
in order to conduct their work in effective and appropriate manner. Moreover it is essential for
them to overcome these issues in order to overcome from the bankruptcy situation successfully.
Application of creativity to overcome
There are several methods or strategies which a car rental company may adopt in order to
overcome their issues or problems. In respect of this an organization management may adopt
several creative ideas because through they can develop most effective and innovative strategies
or plans successfully. In respect of Hertz rental car they also need to adopt several creative
methods or strategies in order to overcome risks mentioned above:-
 Develop creative software – According to this strategy for overcoming issues a company
operating in car rental industry need to develop more innovative software because that will
help in managing data in effective way. In respect of this, Hertz rental car also develop a
software through which they can ensure that their employees are following all the
guidelines or not (Radwan, 2020). In respect of this, company nay develop creative
software which include a phase in which drivers need to do video call to customer whom
they take ride and show whole process of sanitizing the car and also measure their
temperature. After that it will be depend on the customer that they are taking the ride or
not as they are satisfy with process of driver or not. Moreover customer may also ask for
do sanitisation process again when driver come to location.
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 Adopt cloud software – In order to overcome issues related to cybersecurity or theft of
information Hertz rental car may adopt creative option of cloud software. Through this
they able to store information in safe as well as secure manner (Romano, 2020). This will
also help in managing the data in proper way which save time. It is secure to use because
this can only be access by those who have log in password.
 Improver booking software – In respect to resolve issues related to booking and pricing
management a company may conduct in their booking system. In respect of Hertz rental
car they may adopt advance feature which help in managing the booking system properly
as well as they also use technology so that when there is more traffic on software it not get
hand.
Demonstration of advanced information skills
For every company it is essential to overcome issues or risk as that will help them in
conducting their work in effective manner. Moreover it also improve the working of the company
as through that management can conduct operation properly as well as it also reduce errors
effectively (Thanh and Van Quang, 2020). There are several information skills which are used in
order to implement strategies and overcome issues. Below demonstration of some advance
information skills related to related to case of Hertz rental car are given below:-
 Problem solving skill – by this management able to showcase their problem solving as that
will help in determining the risk which are experienced by Hertz rental car.
 Research and analysis skill – this will also help in demonstrating the research and analysis
skill through which creative ideas and thoughts are develop to overcome issues
successfully.
CONCLUSION
By conducting evaluation of above mentioned topic it can be summarised that for every
company, leadership is essential because through that they able to ensure that their work will
conducted in best manner. Moreover effective leadership also help a company in determining risk
so that they can develop strategies accordingly. In order to determine risk or issue it is necessary
for a company to conduct industry analysis as well as for that they can adopt different methods or
theories such as porter's five model. In addition to this, through effective leadership a company
can apply creativity to overcome issues as well as they also need to demonstrate advanced
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information skills. This all will help a management in taking effective decision for the attainment
of desire goal as well as objectives.
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REFERENCES
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pharmaceutical organizations in Jordan. Management Science Letters,. 10(10). pp.2371-
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Brackett, H. and McKnight, E.D., 2020. 4. Healing the Ethical Cleft: Phronesis and University
Ethical Leadership. Philosophy and Theory in Higher Education. 2(1). pp.69-89.
Hamad Aldoseri, A. R., 2020. The Impact of Ethical Leadership on Employee Performance in the
Hotel Industry in Bahrain: The Mediating Effect of Employee Voice.
Keck, N. and et.al., 2020. When do followers perceive their leaders as ethical? A relational
models perspective of normatively appropriate conduct. Journal of Business
Ethics,.164(3). pp.477-493.
Midgen, T. and Theodoratou, T., 2020. EthicalSelfhoodand TeamAwareness: The Role of
Reflexivityin Leadership. Leadership for Educational Psychologists: Principles and
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PRINCIPALS’TRANSFORMATIONAL AND DIRECTIVE ETHICAL LEADERSHIP
BEHAVIOUR AND TEACHERS’JOB RELATED STRESS IN SECONDARY
SCHOOLS IN ENUGU STATE, NIGERIA. European Journal of Education Studies.
Prastio, D., Indradewa, R. and Syah, T. Y. R., 2020. Ethical Leadership Effect Trust in Leader,
Work Engagement and Burnout Over Turnover Intension. Journal of Multidisciplinary
Academic. 4(5). pp.283-288.
Radwan, H. R. I., 2020. Leadership Styles in the Hotel Sector and Its Effect on Employees’
Creativity and Organizational Commitment. International Journal of Social and Business
Sciences. 14(3). pp.169-179.
Romano, D. R., 2020. Correlational Study Examining Ethical Leadership, High School
Graduation Rates and Statewide Goals (Doctoral dissertation, Grand Canyon
University).
Thanh, N. H. and Van Quang, N., 2020. Requirements for developing ethical leaderships in
Vietnam. International Journal of Research in Counseling and Education. 4(2). pp.82-
91.
Online
Why Hertz landed in bankruptcy court when its rivals didn’t. 2020. [Online]. Available
through:<https://www.cnbc.com/2020/08/17/why-hertz-landed-in-bankruptcy-court-
when-its-rivals-didnt.html>.
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