Analysis of Leadership and Trends in the Hospitality Sector - IHG

This report provides a comprehensive analysis of leadership within the hospitality industry, with a specific focus on the Intercontinental Hotels Group (IHG). It explores various leadership styles, including autocratic, situational, transformational, and democratic approaches, assessing their applicability and effectiveness within IHG. The report critically evaluates organizational responsibility and responsible leadership, examining how these elements contribute to IHG's competitive advantage, considering employee and customer perspectives. Furthermore, it assesses the benefits, risks, and impacts of social media on the firm, including strategies for addressing these. The report also includes an in-depth analysis of Corporate Social Responsibility (CSR) and how it delivers benefits to IHG and the wider community. The report concludes by synthesizing these insights to offer a holistic understanding of leadership and strategic management within the dynamic context of the hospitality sector.

EMERGING
TRENDS IN
HOSPITALITY
INDUSTRY

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
Critical Analysis and Application of Leadership Style for Intercontinental Hotels Group. . .1
LO 2.................................................................................................................................................4
Critical Assessment of Organisational Responsibility and Responsible Leadership.............4
LO 3.................................................................................................................................................6
Critical Evaluation of how Corporate Social Responsibility delivers Benefits to IHG.........6
LO 4.................................................................................................................................................8
Critical Judgement on Benefits, Risks and Impact of Social Media......................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Hospitality industry refers to the one which is inclusive of organisations with a range of
services such as accommodation, lodging, food, transport and travel. In addition to this, there are
different services, along with the existing ones which are offered by these companies, such as
recreation and entertainment. Furthermore, the industry is currently experiencing a certain level
of transformation due to different emerging trends that has been taking place throughout the
sector (Jones, Hillier and Comfort, 2016).
Therefore, in regards to this, the report below is based on emerging trends in hospitality
industry and would be undertaking a detailed analysis on Intercontinental Hotels Group, which is
one of the biggest and most recognised organisations within the United Kingdom. Hence, the
assignment covers critical analysis and application of an appropriate leadership style with a
proper and detailed justification in relation to the choice. Furthermore, the report also covers
critical assessment of how organisational responsibility and responsible leadership could lead to
corporate leadership systems to build or enhance their competitive advantage. Moreover, this
assignment is inclusive of critical evaluation of how Corporate Social Responsibility delivers
certain benefits to IHG, as well as to the wider community. Additionally, critical judgement on
the benefits of social media, its related risks and impact on the firm is also included in the report,
along with analysis of strategies for addressing the same.
LO 1
Critical Analysis and Application of Leadership Style for Intercontinental Hotels Group
Leadership refers to the act of guiding, as well as leading a company towards achieving
their corporate and business objectives. It is a highly imperative task which includes setting up
several performance standards, along with effective monitoring and supervising the same so that
the output from the employees is managed and maintained in an appropriate manner (Zaitseva
and et. al., 2016).
Within the hospitality industry, where there are daily targets to achieve, it becomes
imperative to work with a range of different leadership styles. However, an organisation within
the sector is required to choose a particular style which benefits them in each and every aspect of
the business. Therefore, below are certain leadership styles for Intercontinental Hotels Group that
are critically analysed to determine the best approach that could be used by the firm:
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 Autocratic Leadership:
This is one of the most frequently chosen styles within the hospitality sector, which is
associated with the fact that the power and authority within the organisation is not shared by all,
rather just remains by a single or handful of individuals within the company. The approach
includes giving direct orders and instructions to the subordinates which they are required to
follow. Moreover, the company’s strategies and decisions are taken with limited or no
consideration of the viewpoints of the employees. Intercontinental Hotels Group could
appropriately and effectively apply the same through providing daily briefings in precise format
for each employee to understand, as well as to work towards. Moreover, clear deadlines could
also be set by the firm, so that each task is accomplished within stipulated timeframe.
However, in terms of analysing the same, there are various advantages and disadvantage
related to the same. As for the former, this leadership approach is apt towards taking decisions in
a quick and effective manner, due to lesser distribution of power and limited mindsets framing
the decisions. Moreover, it also limits the scope for conflicts as the ultimate decisions lies with
the upper management. However, this approach soon de-motivates employees, due to the fact
that their point of view or their consideration is limited, which leads to disengagement from the
employees which have a negative and direct impact upon their performance.
 Situational Leadership:
The principle on which situational leadership works is based on the fact that there is no
definitive style of leadership which could support a company in different scenarios. Hence, this
theory suggests that a leader within an organisation must adopt their leadership styles based on
the situations that are currently prevailing within the organisation. In relation to IHG, the leaders
within the firm could adopt this leadership by practising different leadership approaches within
the organisation, such as adopting autocratic at times of emergencies or spontaneous decision
making, or democratic approach when employee benefits are needed to be considered.
An advantage related to this approach is that it allows enhancing flexibility within the
company through adoption of accurate and effective leadership approaches. In addition to this, it
enables the firm to keep up with the consistency no matter what the situation arises. However,
one big disadvantage of using this approach is that it requires a leader which is highly expert in
almost every leadership style, which is quite difficult to find. Furthermore, this approach focuses
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on the short term needs of the firm, which does not allow the company to take a long-term
approach.
 Transformational Leadership:
This leadership style is the one which allows leaders within the organisation to create a
vision within the company and provide effective motivation to the individual towards the same.
Moreover, this also needs individuals towards working in an appropriate manner for bringing
change within the organisation through ensuring consistency in motivating and providing
additional benefits to the employees (Boella and Goss-Turner, 2019).
An advantage in context of this leadership is that it allows the company towards adapting to
the changes happening within the market. Moreover, it also reduces turnover due to higher
motivation and better growth opportunities. In context of its disadvantage, transformational
leadership tends to impose pressure on employees, because there are regular incentives and
motivational benefits which could be gained by the individuals that require them to achieve their
targets in a better way each time. Moreover, its success is highly dependent upon the fact that
constant communication is maintained at all levels within the company to ensure that the vision
is being effectively followed by the employees.
 Democratic Leadership:
Within this approach, effective authority and power is exercised by the employees towards
taking decisions, along with how to perform their respective duties. Moreover, the workforce is
taken into effective consideration when there are decisions to be made, along with sharing and
discussing those decisions with the employees is also an imperative and regular practice. The
notion upon which this leadership approach works is related to the fact that employees are the
support systems of the company and it is the duty of the organisation to take their viewpoints
into account and enhance their personal and professional satisfaction in an appropriate manner.
In relation to IHG, they can adopt this leadership approach is by enhance employee involvement
into decision making, along with acquiring their feedbacks with respect to the current operations
of the hotel (Timothy, 2014).
A major advantage which lies within this approach is that it enhances the loyalty and
commitment of the employees within the company. Moreover, it also leads to higher productivity
effectively. However, within this approach, the decision making takes a lot of time due to
inclusion of subordinates in the process too, which could be inappropriate in case of
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contingencies. In addition, it also enhances conflicts amongst the employees due to
contradictions in opinions.
Therefore, all these approaches are quite effective for Intercontinental Hotels Group to
follow (Abraham and Kumar, 2014). However, one particular approach which must be applied
by the firm is Situational Leadership. The reason for the same is that hospitality industry is
highly dynamic and there are different trends within the market which requires the company to
adapt. This approach would enhance the flexibility and receptiveness of individuals towards
change which is a prominent factor in relation to applying this effectively.
LO 2
Critical Assessment of Organisational Responsibility and Responsible Leadership
Each organisation is required to work towards effective and sustainable competitive
advantage, which is associated with excelling in every field of competition and performing better
from other similar companies in the marketplace. Moreover, it is necessary to ensure that the
actions and leadership approaches which the firm implements are the ones which are
contributing towards enhancement of responsibility within the company (Cheng and Wong,
2015).
Intercontinental Hotels Group is known to be one of the most prestigious and preferred
organisations within the UK and beyond. Moreover, the company is known to be responsible
towards its activities and accountabilities towards its stakeholders. Hence, below is the analysis
and critical assessment of the firm’s responsibility and responsible leadership that is leading to
corporate leadership systems to facilitate competitive advantage:
 Consideration of Employees:
The very first way through which the firm’s responsibility and responsible leadership leads to
competitive advantage is by considering the benefit and growth of employees. They are the
supporting pillars of a hospitality sector business and their appropriate and the success and
sustainability of a company is dependent upon employees’ work and wellbeing. A responsible
leadership in this context would be the one which allows the employees to enhance their creative
and intellectual capability while working for the company. Moreover, the leadership must also be
appropriately and effectively subjected towards bringing innovation and high end technologies
within the company which provides the employees with ample opportunities for career growth.
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In relation with Intercontinental Hotels Group, its employee reviews are quite positive
when it comes to providing them with career opportunities and listening to their demands for
better working environment. However, in terms of innovation, the company works with high end
technologies, but is yet to transform its working systems effectively (Patterson and Balderas,
2018). This is because the company has been adopting a sequential approach towards adoption of
latest techniques without causing much disruption in the hotels’ status quo. Therefore, in order to
lead towards better and more competent competitive advantage, the hotel group is required to
instil and induce a culture of innovation that would lead towards enhancing the productivity and
performance level of employees. At the same time, new methods, tools and techniques would
enable the organisation towards achieving better outputs form the employees working in each of
its hotels.
 Consideration of Customers:
When it comes to responsibility within a hospitality organisation, customers are one integral
stakeholder group which are required to be considered and responsibly managed. Therefore, it
needs an organisation towards providing better services, effective security and commitment from
the staff and employees which make the employees feel welcomed within the organisation and
experience a tremendous customer service. Pleasing a customer within the hospitality industry
and assuring their revisiting is a prominent factor towards gaining a competitive edge through
customer retention.
With respect to the Intercontinental Hotels Group, it is an exceptional case which is related
the fact that it includes a diverse range of services for individuals to make their travelling,
tourism and hospitality experience quite effective with respect to the organisation. This is
because each and every need of customers is taken care of by the hotel group. Moreover, the
leadership of the company is quite effective in providing clear instructions to employees, along
with necessary training of how the customers and their effective needs are to be addressed in an
appropriate manner (Min, Swanger and Gursoy, 2016).
However, the firm’s leadership has been quite ineffective in considering a prominent
responsibility towards gaining competitive edge. For instance, quite recently, more than 1000
hotels of the company were affected through ineffective data breach within the company, which
led to safety of a lot of customers into jeopardy (Credit card breach at InterContinental affected
over 1,000 hotels, 2020.). Therefore, in order to regain the competitive edge in this manner, the
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firm is required to improve its security systems which enhance the scope of competitive
advantage by reassuring the customer groups towards maintaining their safety and integrity in an
effective way. Therefore, in this regard, the leadership approaches adopted within the company
must be in regards with ensuring effective measurements and tools that enhances the capability
of hotel group towards the protection of safety of individuals in the company (Morris and Kazi,
2014).
Therefore, in terms of critical assessment, Intercontinental Hotels Group is very effective
when it comes to practising responsible leadership towards gaining competitive advantages.
However, it must also be focusing on maintenance of safety within its integrated and
technologically advanced systems that is imperative for its long tern sustainability and
competitive edge.
LO 3
Critical Evaluation of how Corporate Social Responsibility delivers Benefits to IHG
Corporate Social Responsibility refers to a business model and practice which is self
regulatory and requires a company to be socially accountable. This needs an organisation to
work in a manner which is contributing towards themselves and their growth, but at the same
time contributes to all the stakeholders, as well as to the wider community.
With rise in social awareness and requirements to work on these ends, companies in every
sector are required to function in an effective yet accountable manner (Kriechbaumer and
Christodoulidou, 2014). In addition to this, Corporate Social Responsibility is now being an
emerging need for the firms towards gathering support from their respective governments, as
well as increase their competitive edge in the marketplace.
In context of hospitality industry, the whole sector is required to deal with different
customers each day, along with having a wide range of stakeholders, such as communities,
governments, employees, shareholders and so forth. This results in emerging of the need to
follow CSR within their practices to ensure that each stakeholder is appropriately and effectively
served.
Moreover, there are certain benefits which Corporate Social Responsibility delivers to
Intercontinental Hotels Group as well as to the wider community. Some of these benefits are
explored as under:
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Benefits for IHG: Operational Efficiency:
CSR could actually contribute towards enhancing the operational efficiency within the hotel. The
reason for the same is that it contributes towards sustainability within operations which allows
the resources to be used optimally which leads to better efficiency (Takupiwa and Sibanda,
2015). For instance, CSR would require the organisation towards enhancing the work-life
balance programmes for individuals working within the company. This would lead to reducing
the absenteeism rate within the firm, along with boosting their performance within the tasks. In
addition, this would also be improving the retention rate of customers which would be saving a
lot of money for the firm to hire and train new employees.
 Brand Image:
One of the most crucial benefits which CSR provides this organisation with is its brand
image. Hospitality sector requires its companies to perform in a responsible way which would be
helping the firm towards satisfying each and every stakeholder associated with the company. For
example, IHG has several sustainable functions, such as effective waste management and
effective cleanliness within its hotels, which allows it to be ethical and responsible in terms of
taking care of the customers, as well as the environment (Santeramo and et. al., 2018). Hence,
this has successfully caused the increase in the company’s brand image through successful
implementation of corporate social responsibility within its operations. Risk Management:
This benefit of the CSR is related to effective and essential risk management within the
company which is associated with maintaining and managing the contingencies that could arise
during the functioning of the company. This is because it ensures that the company has taken
consideration of each and every operation and related risks, which is effectively planned and
monitored. In addition to this, if an organisation is indulging in effective volunteering, which
allows the stakeholders to witness these aspects actually happening, then it contributes more
towards building a stronger brand image of the company within the market. In relation with IHG,
while it has appropriate and effective risk management towards its operations, it does not
appropriately and effectively invites public volunteering very much through these programmes.
In place of that, it adopts the method of auditing. However, to enhance more benefits in relation
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to the same, the company must ensure development of such programmes for better risk
management within its functioning.
Benefits for Wider Community:
Apart from the organisation, CSR also benefits the wider community in a number of
ways. Some of these ways are explored and evaluated below: Improvement in Community Life:
One of the major benefits of CSR towards community is related to the improvements which
it causes to the community life (Valva, 2014). The reason for the same is that CSR encourages
the companies to indulge in some effective practices and contributions towards the weaker parts
of the community, which allows them to prosper and get an opportunity to thrive towards
developing a better standard of living.
 Personal and Psychological Development:
Appropriate implementation of Corporate Social Responsibility within companies of the
hospitality industry allows individuals to have a psychological and personal recreation through
acquisition of the services provided by the businesses. For instance, IHG involves certain
essential services and activities that are for families, solo travellers, married individuals and so
forth, which allow them to spend more time with their peers and ensure psychological
satisfaction, which again is an imperative benefit of these practices over the community.
LO 4
Critical Judgement on Benefits, Risks and Impact of Social Media
Social Media is a combination of a range of web portals which allows individuals from all
over the world to connect with one another through internet. It is an impeccable source of
networking and allows individuals, groups and organisations to communicate in a creative and
spontaneous manner. There are different portals in this context, such as Facebook, Instagram,
Twitter and YouTube, all of which are used by billions all over the world. Organisations use
Social Media as one of the prime modes of promoting and advertising their services to their
target audience as part of their digital marketing strategy. Moreover, hospitality sector are using
latest and more effective technologies towards attracting and interacting customers worldwide
towards using their services (Rao and Prasanth, 2020).
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However, there are various benefits and risks of social media which organisations are
likely to know to ensure its ethical and effective use without landing the company into any sort
of trouble. Therefore, below are these factors, along with the impact they impose on
Intercontinental Hotels Group, as well as the strategies which the organisation could use to deal
with the risks.
Benefits of Social Media Monitoring Behaviour of Audiences:
One of the most prominent ways through which social media benefits IHG is that it allows
the company to monitor behaviour of audiences towards its services (Willer and Lernoud, 2019).
This is because all the portals within social media provide the facility to customers to share their
views on the information provided by the company, along with appropriately comment on what
they have liked and disliked. Hence, these elements could be quantified and used by the
organisation to map the positive and negative behaviour of individuals that will help them to
improve their services.
 Customer Relationship Management:
Another way through which social media help the firm is that it allows in maintaining, as
well as improving its customer relationship management. This is achieved through establishing a
constant communication channel with customers. Social media allows in communicating
instantly with one another which provides the firm with an opportunity to answer every query
and curiosity of individuals for their surety towards adopting the services of the company.
Moreover, it also allows them to acquire spontaneous and real time feedbacks, which enhances
the scope of the company towards maintaining better customer service.
 Customer Attraction:
Social Media in past decade has turned into a hub for promotions and advertising for
organisations all around the world. Therefore, it provides a medium to this organisation to
communicate, promote, as well as advertise their offerings and different range of services
through compelling videos, posts, advertisements and so forth. Moreover, the firm could also use
VR gadgets for individuals to view their bookings on time with real time experience through the
technology on social media. This has helped the organisation into attracting a lot of customers in
recent years (Ryan, 2015).
Related Risks of Social Media
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 Negative Brand Image:
A risk related to social media is that it might lead the company towards gaining bad image
within the marketplace through negative feedbacks. This is because with right to post anything
users wish to, they might provide a feedback which could be scandalous, as well as devastating
for the firm’s image within the marketplace. Moreover, this could also lead to bad publicity
which could disrupt the reputation which the company has gained all these years.
 False Information:
Another inappropriate risk which the firm is likely to suffer is associated with false
information (Cooper, Vafadari and Hieda, 2015). With immense access to internet services in
farthest ends of the world, false information could travel immensely and get viral within
fractions of minutes or hours. This would lead to in appropriate disturbance within the company
would then be required to clarify to a lot of customers. This risk could be lethal towards
customer retention and acquisition.
 Competitive Disadvantage:
While social media acts as an effective portal for organisations to promote and attract
customers, it also exposes their content and strategies to the competitive organisations, which
could use the information against the company in any manner they please.
Strategies for Addressing the Risks Tracking:
One way through which the organisation could deal with the above mentioned risks is that it
could keep a track on the negative publicity which it is acquiring through tracking certain key
words or phrases within the firm. Moreover, this would also allow them to remove scandalous
remarks or even report the users who are spreading fake information about the organisation.
 Confidentiality:
Another way through which these risks could be handled by Intercontinental Hotels Group is
that they must secure the confidential data about their strategies or posts to a limited amount of
people, who would have access to view the same or who could be restricted from, the same. this
would allow the company to keep its strategies discrete from the competitors and maintain a
competitive edge within the marketplace (Rao, 2014).
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CONCLUSION
Thus, it is concluded by the report above that the emerging trends within hospitality
industry are quite imperative to be understood, as well as to be mapped in order to ensure
competitive edge and sustainability in the market. Out of all the prominent leadership styles, it is
necessary that transformational leadership is opted by the firm in order to manage change in
accordance to these emerging trends. Moreover, it is imperative that organisational responsibility
and responsible leadership is critically assessed to determine the scope of competitive edge
within an organisation. In addition to this, critical evaluation of how CSR delivers benefit to the
company enables the firm to incline towards good and sustainable practice. Lastly, it is crucial
for the firm to use Social Media as per the current marketing trend, however, it must undertake
analysis of its several risks, along with certain strategies for dealing with the same effectively.
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Online
Credit card breach at InterContinental affected over 1,000 hotels. 2020. [Online] Available
Through: <https://www.foxnews.com/travel/credit-card-breach-at-intercontinental-
affected-over-1000-hotels>
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