The Practice Of Leadership Commerce Essay

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Denis Hennequin was born in the year 1954 on 8th June. He graduated in a economies and he has gained masters degree in private international and social law from Pantheon Assas university Paris, France. About his private life Hennequin passionate to ride motorcycle and love to listening rocks music and he has wife with three children. At the age of 30 (In 1984) he begin is career as an Asst. Director in McDonald's which is a Paris based Restaurant after he gained the position of Restaurant Manager. He also moved on to other position in the organization. He extended position such as training and recruitment consultant, Director of Authorizing, Field Service Specialist, District Manager and Director of Operations for Paris and surrounding suburbs. After years of Experience and Hard-Work in 1996, he became President and Managing Director of McDonald's France. (Accor. 2011)

At a time when McDonald's in France was unacceptable for the French to bring to a brand which strongly symbolized U.S. fast food culture where as the French , very traditional and culturally very exclusively. So Hennequin took a bold step in launching a successful "Born in the USA, Made in France" public relation campaign assuring the French that the franchise are completely owned by the French and employee only French people and use 80% of French produced. He also dedicated resources into re -imaging or renovating 70% of the divisions in France so that it fit's better in the European context, it also included hard wood floors; upholstery seating, attractive cover-up's and also gas fire places. Hennequin was the first non-American who hold the post of a President of McDonald's Europe. He served for 5 years as a President from the year of 2005 to November 30th 2010. As a President of McDonald's Europe Limited and was responsible or in charge for 6,600 restaurants in 40 countries After USA in 2007 France became maximum earning market for McDonald's.

Denis Hennequin current age is 52, and he is holding a position of Chairman and CEO of Accor hotels. Hennequin joined as an independent Executive in 2009 and in January 2011. He replaced gills pelission as a CEO. He reveled his plans to take Accor to different heights with economy brands and introduce group's new signature. "Open new Frontiers in hospitality". Today Accor groups has large number of hotels in France, which includes low, medium and high range prize in Paris and across the country. (Wikimedia 2012)

Accor is a French hotel group it's a part of CAC 40 index, main headquarter is in Paris, France its operated in 91 country and owns, franchises in 4,426 hotels ranging from budget to luxury on the five Continents.

Information of Leadership

"It is the social factor which fixes a group organized and encourages it towards goals. Leadership is the skill to encourage other to seek defined purposes enthusiastically".

Leadership is a method by which an executive can monitor, direct & encourage the performance and work of others towards achieving specific goals in a given condition. It also brings out the motivation in people to achieving this specified goal. Leadership is the potential to influence behavior of others. It is the ability of a leader to induce the subordinate to work with passion and confidence. Leadership is a method of social influence in which one person can enlist the aid and support of others in the achievement of a common task. It can also be an act of leading the others, to Do; what they say "easier say that done". Leadership means providing direction, implementation plans and motivation of the symbolizes a few qualities to be present in a person who comprises of personality, maturity and intelligence. Leadership is situation bound. It depends upon tackling with the situation. (Davis, K. 2008)

Role of Leader in Management

Roles are situations that are defined by a set of expectations about performance of any job responsibility. Roles have a powerful effect on behavior for several reasons, to include money being paid for the performance of the role, there is prestige attached to a role and a sense of challenge. Each role has a set of task and responsibilities that may or may not be spelled out. (Dr. Nail H. 2011)


Decision-making style:-

For making decision leader essentially follow three kind of style depending on the employees, educational status and complexity of decision. These three kinds of style are mentioned here.

From a very strict autocratic approach to a very popular participative approach there are always different styles needed for different situation and specifics a good leader needs to know when to use which style approach in different situations. Because "not everything old is bad similarly as not everything new is good" a good leader may adopt any of these styles in making him and his teams achieve the organizations goals or objectives.( Saxena, S. Awasthi, P. 2010)

Autocratic leadership style:-In an autocratic style a leader uses the classical approach in retaining as much power and authority in the decision making process as possible without consulting his subordinates nor allowing any input and expects them to obey his commands without any question. His ruling also consists of the method of reward and punishments. These are some negative effects of Autocratic leadership style: - my following this leadership style it also makes his subordinates feel, somewhere down the line that their superior does not trust them, so most of them or all of them clam up in situation like these preventing any or no creative input from their side in achieving the goals their leader wants them to. Like mentioned earlier in this article not everything could be bad about autocratic style it is purely situational in certain or many situational. It is the most effective style to use for example:- in situation where the new staff has not received any "on hand" training or know which procedures to follow it only helps when detailed orders and instruction are provided. In another type of a situation where a disgruntled staff refuse to respond to any other leadership style and the manager s' power is challenged by his arrogance or insubordination. (Pauling, L 2008)

There are also situations where time is of essence and work needs to be co-ordinated with another department. Now we do not want to create a situation where the staff or subordinates become fearful or resentful an its adds up to low staff moral absenteeism or work stoppage.The staff depends on their management to make all their decision but at the same time would want their opinions heard and thus make them more creative in their work. These are some of the reasons where a good leader has to adapt or adopt different leadership style to get the max potential out of his staff.

The world order has changed after the millennium turned. A lot of other things have changed where people today thrive on free thinking at a global scale and open markets our world is truly shrinking and progressing at a faster pace with new innovations and ideas born every-day. The people have started working collectively as teams even the smallest input from an individual makes a difference. All said and done no matter how much we work together unless we have a direction we are lost, it's like they say "too many cooks spoil the broth". (William, S. 2009)

So effective leadership is very essential but due to the democratic nature of our working the leaders need to be a little more participative than autocratic.

(b) Participative leadership style:- When you as leaders are autocratic or command any in your approach work habits form in your subordinates. Those are hard to break, especially if and as they are no longer useful in today's fast progressive world.

The staff also loses interest in their jobs fast because it becomes monotonous and repetitive. They start doing only what's required of them and no more. So innovation and change which is a major part of today's world fails. So as leaders one has to be democratic in their approach. The only ways to achieve that is, stop commanding and start participating. Participate and Debate with your staff encourage them to be a part of the decision making also keep the staff informed at all times as a result or effect of their input of their work. Make them participate in problem solving by taking however small their inputs and putting a sense of added responsibility and sharing in the decision making.(Johnson, R 2012)

The leader ultimately always has the final say but gathers all input from his subordinates before taking a decision that makes the staff fell more important and participative. The production goes up for long periods and effective high quality work and the staff like the trust they receive and the sense of responsibility and importance given by their leader. So respond with equal co-operation in a spirit high moral thus a new solid participative team is born. (Paul, A. 2009)

We have previously talked about leadership and different styles of leadership and also spoken extensity about an interesting person Denis hennequin. Who exemplified all the qualities and styles of good leadership through the numerous years in his career in the fast food giant McDonald's which spanned almost 20 years and then with the Accor group one of the largest hotel industries in the world. Through his long tennurs in these companies he came across many hurdles and challenges which he overcame and made every business into a success story. If one recalls his achievements of bringing McDonald's a localized brand adaption to consistency in his country. He tried to use the same strategies for Accor.

The impact of the economic crisis in Europe & US during the 2009 took its toll on the travel hospitality industries. It was a difficult year for Europe & US. Countries of Asia pacific performed better. The year 2010 & 2011 were slightly better. India was the new battle grounds outside saturated western markets. Europe's Accor hotel which hennequin was heading had already invested 1125 crores in India. Riding on a strong domestic demand Sofitel in Mumbai & Pullman in Gurgaon were launched India being a market of great potential. By the end 2012 thirty hotels have opened up and by 2015 up to 90. Hennequin showed results as early as 2011.The heart of his strategy was strong powerful brands in today's highly competitive global environment from luxury to economy. He was interested in growing markets in all segments differentiate brands.

(a). Novotel: - a mid-scale contemporary brand in terms with less local touch an flavor Mercure: - Is how ever more localizable in the economy segment. (b). Formula 1 & IBIS: - full sense hotels with restaurants. (c). Sofitel: - with luxury and style which combine French culture with local culture. (d). Pullman: - on the other hand is upscale hotel for business class traveller.

His major aspects of branding were:-

Word by mouth

Customer satisfaction with innovations

Patient in terms of execution and development and using versatile leadership qualities.

It was different in India because. A lot of approvals permission are needed which take time and the construction industries in this part of the world is not that well developed (Hennequin, D. 2011)

Attracting and retaining talent. Being the largest hotel operations in the world Accor group gives a chance to their employees to move from one brand to another. Thus innovating and enchasing different leadership skills. Accor also proposes to invest in tanning through a programmed called Accor Academy in India by 2012. Those were some of the Hennequin crisis management and strategic of his leadership styles. He moved to Accor after spending two decades with the fast food giant McDonald's, learning. Some of which were adopted and adapted of brand consistency that brought in success with a solid financial performance in 2011 Accor reoffend the clear rebound in their business under the leadership of Hennequin their revenue increases by 5.2% to 6,100 million euro led by sustain growth in all market segments.


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The word crisis itself invents from the Greek Krisis which means to sift or to separate. As crisis has a potential to divide an organization's past from its future or to replace security with in-security. (Dr. Reese. 2008)

Crises have no boarder or boundaries they can happen any-time any-were to any organization. The global economy and its political realities can create a rippling effect and magnify it to terrific proportion. A crisis affecting a business can amongst other things creates layoffs, lockouts; bring about a loss of the investors' confidence causing a dip in the stock market. The recent economic crisis faced by the US and some Europeans countries between the 2009 to 2011.

Leaders of such organization have to face these situation in some points in their lives during their careers such crisis of negatively affect people in an organization but they can act to reduce the negative impact of these crisis by addressing the human element of a crisis before or after it occurs. The crisis could be of many kinds as faced by the organization and carries a potential for extremely negative result that can lead to a business shutdown or downsizing. .(GENE, K. Apr 2003)

Many crisis are generated due to emergency or a natural calamity or a disastrous a sudden condition or state of affairs that calls for immediate action although crisis come in different types no two are alike for example it is not usually expected or planned for it generally comes as a bomb shell that frightens and stuns or those on whom it falls. The elements of shock and even terror can be result of extreme. This terror quotes the international incident of the attack on the hotel and public places by Pakistan terrorist. When large organization wants into shock on terrible crisis and took a long time to resolve not only economically but also physically & emotionally. There are internal crisis in organization where the key leader in occurred of sexual harassment or racial misconduct or over action taken by the organization that can damage the environment these are Level 1 crisis faced. Level 2 of crisis is where due to non-safety measures there are accidents possible loss of life these tend to damage the company's reputation an came long terms set-backs in business


Economic recession oil prices are the chief reasons why the businesses are suffering a major crisis in today's world. The developed countries are facing more trouble because of out-sourcing and unemployment. The hospitality and the travel industry are suffering the most. Today due to globalization and open markets people need to travel more and also require their lodging needs to be met. All of which are hit due to energy problems. Different business have formed different ways to handle these crisis with good leadership and strong policies of sustainable development we are facing not only an economic crisis but so many different aspects to it. Eg: - labour or employment crisis cultural or social crisis there are educational crisis and most recent the ecological crisis. Employment crisis is age old, it could be anything from the welfare of the employee to his salary financial crisis in a business requires austerity measures to be taken that could effect in drop of incentives to the employees which could lead to a work slowdown and in turn create a production crisis. (Singh, N. 2010)

An educational crisis deals with the modern high tack life we live in as we had discussed in earlier articles of how the world and its hospitality industries have advanced in technology. Well if there is high technology there have to be higher education levels too. In order to understand the working and operation of modern education the employees who were earlier trained hand on with practical training have to undergo academics and courses on advance technology in order to upgrade themself to the job demands. A good leader can always deal with all kinds of crisis that could arise due to various reasons like there were earlier solutions to economic crisis by differentiating brands to cater to different types of consumer like Accor group used many different types of branding in their hotels like the Pullman hotel for the business class and Mercury Hotel that catered to the economic segment and was easily localizable, Sofitel hotel were intercultural and luxury Ibis or Formula 1 were traditional and full service hotel for the rich and elitist. In this way the business could be not expanded globally but also solve the employment or production crisis to some level for instance. Like I said before having a good crisis leadership management can solve these issues Accor group did this with segregation their business to different brands which dealt with different strata of customer. This could be less cumbersome to meet monitor needs of the employee of their welfare being, for eg: - u can easily train or facilitate educating the staff to a higher degree so that u can Tran fare or up great them to your more effluent branches or brands of hotel to meet there monitor or welfare needs without causing unnecessary labour unrest. ( Logos Institute. 2006)

Social crisis deals with outsourcing when an outsources his business he has to employ locally that creates a problem in the parent country by unemployment or jobs being taken away by foreign nationals or expatriates any country or state letting foreign business to come in would want local employment and if you required especially skilled personal for the requirement it becomes a crisis because it takes time and money to train the locals. Then there is the cultural business crisis to highlight this issue. I would like to mention about the ugly incident some years ago between the local political and the fast food giant McDonalds. The issue was that the French-fries that were served through the outlets were coated with beef extracts before frying to keep them crisp and beef is resented by the Hindu dominated public because cow is sacred to their religion, so they had to find alternate methods to avert this cultural crisis in business.

New challenges facing the hospitality industries due to crisis today are top issues that will impact the worldwide hospitality industry year ahead. (WANG J. Z. & WANG, J. December 2009)

Types of crisis with solution

Green hospitality, labor cost and welfare problem, multicultural issues operating issues marketing and economic issues, technical and higher educational issues identified key trends that will face the hospitality structure and take us towards a sustainable development, Going green is the most important because it's a people's issue they have changed the perception of going green from a fringe movement to main stream if sustainable solution are to be formed the basis of which is a 3 part balance and expressed as "profit, people and planet". Sustainable green hospitality development programs thus becomes eco-friendly to the environment and economically viable as well as beneficial to the community.

Labor cost remains the largest style expense items for hospitality managers accounting roughly 44.6% of the operating cost. Due to the even changing economic situations labor cost issues have always consumed a substantial portion of the time and efforts of hospitality managers now with news of union contract negotiations, and also changes to immigration laws due to the insecure environment. While managing labor expense is important because employees are an integral part of the lodging experience. The interaction between the guest and the employee has a dramatic effect for the customer and the success of the business operation, therefore a fine balance is needed between the cost control and guest satisfaction. Multicultural issues bring in new crisis and issues with the development of globalization. To bring far corners of the world together is a part and parcel of what does hospitality structure. Blending amenities to cater to the needs of the world's different cultures is important to make a success of international hospitality chains for example in Asian culture, eye contact is not sought as it makes the guest feel uncomfortable while western tradition is equated to openness.( James.E.H. and wooten.L.P. 2011)

Higher education has become criteria in the hospitality Industries because of rapid growth and advancement in the technical field which possess a new challenge for education systems to change curricula and new learning materials marketing issues. Again due to globalization new markets open and competition becomes a front and calls for innovations and strategic thinking in the market segment. Some industries think of expanding their brands to create a niche market for their consumers because consumers have become more sophisticated and as a result so have the types of products and explain further it's just not the lodging part today like olden himes but amenities like business centers exercise and recreational facilities guest room innovations all these are carefully selected and integrated into hotels today and at the same time to keep the cost down. Technological issues like smart/keys cards etc. are some of the challenges keeping up with the fast pace of technology this is also difficult and cost oriented. Survey in the United States alone shows currently 20% of all hotel reservations are done online and these percentages increase every year. With such a lot of business coming from the internet source the hospitality industry cannot afford not being connected. Thus the globalization impacts the lodging industry tremendously because it influences the extent of which people travel both within the country and around the world. To deal with the day today functions of the hospitality industry in today's times with the challenges of the trends we face today it is the well balanced decision and the actions going wrong that forms the basis of most modern day crisis not external threats or act of god as we most frequently to be. (Jim, P. 2012.)


Crisis leadership is the ability to lead under extreme pressure and with experience and grate precision. The rippling effects of any crisis being inevitable some may be avoided some may be managed well enough to limit long term damages but in the end every organization and every nation will experience crisis of some magnitude. It often happens that handling if the crisis leads to more damage than the crisis events itself. So the hallmark of crisis leadership mindset involves much more than good communication and public relation it is a continuous process that involves a developed mindset for reflecting, adapting and learning from the crisis situation and it's after math. This requires the ability to strategically scan the environment of knowledge acquired, Demands the leader to make quick and ethical decisions to establish trust amongst his people. (Venette, S. J. 2003)

The growing complexities of the customer and worker relationship by the fast pace technology of the information age is in-turn changing the face of human resources needs of the future. The customer armed with full knowledge of the information and technology will expect the same from the staff of hospitality industries. So having a low skilled or underpaid staff without any cultural diversity will mar the vision of the future forces evolving in the hotel industries, it will be hard for the business to adapt to the rapid change across the traditional function of management.