Mercure Sydney Hotel: Leadership and Management Case Analysis

This case study provides a comprehensive analysis of the Mercure Sydney Hotel, examining its organizational structure, leadership styles, and company culture. The report delves into the hotel's departmental structure, including the executive management, functional, and administrative groups, highlighting their roles and responsibilities. It explores the significance of leadership qualities in enhancing management effectiveness, emphasizing the need for adaptability and understanding of cultural diversity. Furthermore, the analysis discusses the company's culture, focusing on its commitment to providing excellent service and prioritizing customer satisfaction. The study references key elements of the hotel's location, performance, and internal structure, offering insights into its operational strategies and approaches to brand loyalty. The study also discusses various leadership styles and the impact of cultural diversity on leadership within the organization.

Running head: MERCURE SYDNEY- A CASE ANALYSIS
MERCURE SYDNEY- A CASE ANALYSIS
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1MERCURE SYDNEY- A CASE ANALYSIS
Executive Summary
The globalization has led to changes in the taste and preferences of the consumers worldwide.
In order to cope up with the changes multinational corporations were set up in order to fulfill
the demands of the clients around the globe. This report analyzes a service providing
company, the Mercure group of hotels, situated in Sydney. This report aims at discussing the
elements that the company undertakes, the structure of the organization and the culture that it
inherits. The report closely discusses the internal organizational structure of the company and
helps in determining the effectiveness of its managerial structure.

2MERCURE SYDNEY- A CASE ANALYSIS
Table of Contents
1 Introduction.............................................................................................................................3
2 Overview of the company.......................................................................................................3
2.1 Location............................................................................................................................3
2.2 Performance.....................................................................................................................4
2.3 Structure of the company.................................................................................................4
2.3.1 Departmental structure of the hotel...........................................................................4
2.3.2 Leadership.................................................................................................................7
2.4 Culture..................................................................................................................................8
References................................................................................................................................10

3MERCURE SYDNEY- A CASE ANALYSIS
1 Introduction
The fast developing world and the emerging trends have given rise to the
multinationals all around the world. In order to cope up with the changing tastes and
preferences of the people, the companies have developed a lot. The luxurious lifestyle that the
people prefer has given rise to the hospitality management and the service providing sectors.
The main objective of this sector is to provide service and see to the needs and preferences of
the consumers in order to gain their sustenance (Ye, Wang and Law 2014).
The report concentrates on analyzing the structure and the culture of the Mercure
Sydney, a group of hotels situated in Sydney, determining the growth of the sector in the
recent years. The facilities that the hotel accommodates for its guests and the employment
option in the hotel and the major structure of their business and the type and extent of
services they provide in order to suffice their client s is the point of discussion on which this
report revolves.
The report aims at discussing the various aspects of management of the concerned
service providing company and the structure that it follows. It also emphasizes on the
discussion on the strategies that the group of hotels undertake in order to retain the brand
loyalty of the consumers. It makes us of the internal departments in order to make arguments
on the proper managerial systems that are prevalent in the company.
2 Overview of the company
2.1 Location
Mercure Sydney, the group of hotels is situated at the most convenient location in the
region as the major attractions of Sydney can be located at a convenient distance from the

4MERCURE SYDNEY- A CASE ANALYSIS
hotels (Molina et al. 2015). Moreover, the hotel provides the clients with the utmost comfort
and leisure keeping up to the expectations of the clients. It is a place both for travelers and
for undertaking board meetings as the hotel provides the clients with proper accommodation.
The convenient location of the hotel facilitates the growth as the major attractions of Sydney
like the Darling harbor, the Capitol Theatre, Chinatown and the Sydney Entertainment Centre
and the others are situated at a walking distance from the group of hotels. Moreover, the hotel
is even close to the Central train Station, which helps the travelers to plan the shortest route
during the check-in or the checkout or meagerly in order to plan a trip.
2.2 Performance
The success story and the performance of the hotel are determined by the services that
the hotel provides to its clients and customers and thereby successfully retains the brand
loyalty. The brand loyalty plays a major role in upholding the performance of the hotel and
helps in making a gradual progression (Taylan Dortyol, Varinli and Kitapci 2014). The hotel
aims at delivering the best kind of services relating to the delivery of the quality food and
beverages and by proper maintenance and monitoring actions undertaken in order to refine
the services that are being delivered to the customers. The determining factors that denote the
progress of the company in the particular service providing industry is set on the parameters
of the extent of satisfaction that the customer derives from the services that are being
provided to them by the organization (Walker 2016).
2.3 Structure of the company
2.3.1 Departmental structure of the hotel
The group of hotels in Sydney has an internal organizational structure, which helps
ion the proper management of the functions and which facilitates the proper allocation of the
works depending on the expertise of the people working in the organization. The structure

5MERCURE SYDNEY- A CASE ANALYSIS
makes the management more comprehensive and effective and helps the manager in
managing and monitoring over the activities of the groups and the functions they perform in
the hotel.
Depending on the functions, the work is being allocated and departments have been
formed so that the client interests are taken care of in the best possible manner that brings
goodwill for the organization. The basis on which the departments are being formed in this
particular service providing sector is based on the type of service the members are capable of
rendering and on the expertise of the members of the groups. The departments in this
company are divided into three major groups, namely- the executive management group, the
functional group and the administrative group (Robinson et al., 2016). They are supposedly
the internal departments of the organization who takes care of the smooth working of the
organization in achieving the common goal of providing efficient service to the clients.
The opportunities have to be properly utilized by the company as to raise their income
along with analyzing the new opportunities of business in the competitive industry. There can
be threats in the industry that has to be analyzed by them in the increasing competitive
market, as this will help them in providing guidance in improving the infrastructure of the
organization (Ruetzler et al. 2014).
The executive management group consists of the people looking after the business
and the processes undertaken by the functional group. This group includes the manager of the
organization or the hotel particularly and the assistant manager (Mok, Sparks and
Kadampully 2013). The manager monitors the activities and functions and looks after the
grievances of the employees and the guests at the same time. The assistant manager helps and
assists the manager in the proper and efficient monitoring of the processes of the functional
group and the whereabouts of the hotel. The manager is responsible for the proper

6MERCURE SYDNEY- A CASE ANALYSIS
functioning of the hotel. It is also the prime responsibility of the manager to look after the
issues that the client is facing due to mismanagement and by the services being offered by the
organization.
The functional group includes the front office executive or the receptionist, the house
keeping department and the food and beverage departments. The departments are arranged in
such a manner that the efficient management is not compromised. The quality of the service
being provided to the client is an important aspect that is considered through this
departmentalization. The reception department or the front office takes care of the enquiries
that the guest might have in accordance to the service they are going to derive from the
hotels. It is the prime responsibility of the receptionist to coordinate between the functions
and responsibilities of the other departments and undertake the functions effectively.
The housekeeping department looks after the guests with the services that are
promised by the organization (Gummesson 2014). The house-maids, the floor attendants and
the cleaners looks after the needs and requirements of the clients and tries to solve their
problems accordingly. This particular department attends the room services and the other
needs and requirements of the clients.
The food and beverage management department takes care of the quality of the foods
and beverages that are monitored (Font 2017). The careful management of the food and
beverages is an important part, which helps in maintaining the brand name of the
organization. Moreover, the food and beverage management team also maintains a record of
the movement of the stock. The basics of the hotel industry are being covered by this sector
as it helps in managing the differences in accordance to the change of tastes and preferences
of the clients. The food and beverage department also helps in maintaining the standard of the
hotel in order to keep up to the brand name of the organization.

7MERCURE SYDNEY- A CASE ANALYSIS
The administrative group takes care of the administration of the hotels, which helps in
maintaining the benchmark of the standard that has been set by the owners of the hotel
(Buhalis and Crotts 2013). The team focuses in achieving the common goal of the
organization. It does not deals with the clients directly, as the other group does, but it tries
and resolves the internal issues and factors that might be the cause of a discrepancy in the
management of the organization. It undertakes activities like sales promotion or monitoring
of the services that are being provided by the staffs in the hotel. It formulates plans and
programs in order to undertake smooth business operations.
2.3.2 Leadership
Leadership qualities help in enhancing the management of the firms. Every business
organization requires a leader to lead the business organization (Benavides-Velasco,
Quintana-García and Marchante-Lara 2014). In order to undertake effective leadership the
leader must have certain qualities, which can not only influence the employees but also make
them follow the instructions of the leader willingly.
The concerned company for this report being a service providing company adheres to
the proper management of the organization in order to achieve the long-term goals of the
organization (Brown, Arendt and Bosselman 2014). Moreover, in order to make the
management system more comprehensive the leader must take steps for making the
management transparent and clear. The concerned company has several branches all around
the globe. Therefore, the motivators and the leaders are innumerable and the leadership styles
vary extensively. The leadership style depends on certain factors that influence the type of
leadership that the leader adopts for the respective organization. The communicational trends
that the organization adopts and the nature of the employees determine the style that is
required to be taken in order to undertake proper management (Deery and Jago 2015).

8MERCURE SYDNEY- A CASE ANALYSIS
The cultural diversity also is an influencing factor that determines the leadership style
that the leader chooses for the organization. A leader must understand the situation and based
on the situation the leader must formulate plans for the betterment of the management
functions. Suppose an employee has been transferred from a branch of the hotel top another,
he might face difficulty in adapting with the leadership style due to the certain change that
took place. The cultural diversity and the change in the structure of the hierarchy determine
the effectiveness of the leadership that has been implemented on the employees at large.
2.4 Culture
The culture of the company states the kind of service they are going to provide to their
clients. It determines the effectiveness and the motivation with which the company works.
The culture of the company extensively makes it a point as to the betterment of the
company’s profile and in maintaining the brand name of the organization respectively. They
are the service providers and they look after the welfare of their guests. They believe that
taking care of the needs and requirements of the clients, keeping them satisfied in every
possible manner is the utmost responsibility of the organization, and they have absorbed it as
the culture of the organization (Dedeoğlu and Demirer 2015). The services that are being sold
by the company depend on the likes and preferences of the people attending for their services.
The question of need is less viable than the question for the desire of luxury. People readily
spend millions of dollars in order to receive that level of comfort. Therefore, the company
makes it a point to serve the customers in the best possible way. Their history reflects their
culture and heritage that they retain.
The growth drivers needs to be adopted by the respective hotel as this will help in
discovering as well as rising the indices of stock as well. It is linked with the tourism industry
that will help in helping and boosting the tourism and travel in the entire industry (Browning

9MERCURE SYDNEY- A CASE ANALYSIS
and Sparks 2013). The respective restaurant needs to analyze the opportunities that are
required by the hotels in order to provide the investment opportunities that will help in
increasing the brand name and goodwill of the restaurant as well. There are different skills
that will help in making the personality of the hotel more cheerful in nature. Proper interest
has to be shown by the respective hotel in order to attract more customers and this will help
them in implementation of both outgoing as well as friendly deposition. The good
communication along with interaction skills are necessary that has to be properly
implemented by the respective restaurant as this will help them in providing cheerful and
pleasant personality to the individuals or the visitors who will be visiting their
restaurant/hotel. The hotel officials need to have proper and accurate abilities of organizing
the individuals and this will help them in understanding the market players in the competitive
industry as well.

10MERCURE SYDNEY- A CASE ANALYSIS
References
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management, corporate social responsibility and performance in the hotel
industry. International Journal of Hospitality Management, 41, pp.77-87.
Brown, E.A., Arendt, S.W. and Bosselman, R.H., 2014. Hospitality management graduates’
perceptions of career factor importance and career factor experience. International Journal of
Hospitality Management, 37, pp.58-67.
Browning, V., So, K.K.F. and Sparks, B., 2013. The influence of online reviews on
consumers' attributions of service quality and control for service standards in hotels. Journal
of Travel & Tourism Marketing, 30(1-2), pp.23-40.
Buhalis, D. and Crotts, J., 2013. Global alliances in tourism and hospitality management.
Routledge.
Dedeoğlu, B.B. and Demirer, H., 2015. Differences in service quality perceptions of
stakeholders in the hotel industry. International Journal of Contemporary Hospitality
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Deery, M. and Jago, L., 2015. Revisiting talent management, work-life balance and retention
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Font, X., 2017. Sustainability in the hospitality industry: Principles of sustainable operations.
Gummesson, E., 2014. Productivity, quality and relationship marketing in service operations:
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11MERCURE SYDNEY- A CASE ANALYSIS
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