Leadership & Management (DP IB Business Management: SL): Exam Questions

CityClean Waste Management is a medium-sized company responsible for waste collection and recycling services in several urban areas. The company has traditionally relied on an autocratic leadership style, where decisions are made solely by senior management. This approach has ensured strict adherence to schedules and safety protocols, which are essential in waste management.

However, CityClean has faced increasing complaints from employees about feeling undervalued and excluded from decision-making processes. Suggestions from workers about improving efficiency have often been ignored. Recently, the company missed key performance targets due to high turnover rates and low morale. Senior management is now evaluating whether adopting a more democratic leadership style could improve engagement and performance.

CityClean Waste Management is a medium-sized company responsible for waste collection and recycling services in several urban areas. The company has traditionally relied on an autocratic leadership style, where decisions are made solely by senior management. This approach has ensured strict adherence to schedules and safety protocols, which are essential in waste management.

However, CityClean has faced increasing complaints from employees about feeling undervalued and excluded from decision-making processes. Suggestions from workers about improving efficiency have often been ignored. Recently, the company missed key performance targets due to high turnover rates and low morale. Senior management is now evaluating whether adopting a more democratic leadership style could improve engagement and performance.

FreshHarvest Organic Farms is a family-owned agricultural business specialising in organic fruit and vegetable production. The company has used a paternalistic leadership style for decades, with the owner making all major decisions while taking responsibility for employee welfare. Workers are provided with benefits such as housing and healthcare, which has fostered loyalty and low turnover.

However, as the company grows, employees have expressed concerns about the lack of opportunities for professional development and input in decision-making. FreshHarvest’s management team is considering introducing a more situational leadership approach to address these concerns while maintaining their emphasis on employee welfare.

FreshHarvest Organic Farms is a family-owned agricultural business specialising in organic fruit and vegetable production. The company has used a paternalistic leadership style for decades, with the owner making all major decisions while taking responsibility for employee welfare. Workers are provided with benefits such as housing and healthcare, which has fostered loyalty and low turnover.

However, as the company grows, employees have expressed concerns about the lack of opportunities for professional development and input in decision-making. FreshHarvest’s management team is considering introducing a more situational leadership approach to address these concerns while maintaining their emphasis on employee welfare.

Regal Hotels is a chain of luxury hotels with a focus on delivering exceptional customer service. The company employs a democratic leadership style in its operations, involving employees in decisions about service improvements and workplace practices. This has fostered a strong culture of teamwork and creativity.

However, the company is experiencing slower decision-making processes as it expands into new regions with diverse cultural expectations. Additionally, some employees feel that constant consultation is time-consuming and reduces their ability to focus on their core responsibilities. Regal Hotels is considering whether elements of laissez-faire leadership could help improve efficiency in its creative departments.

Regal Hotels is a chain of luxury hotels with a focus on delivering exceptional customer service. The company employs a democratic leadership style in its operations, involving employees in decisions about service improvements and workplace practices. This has fostered a strong culture of teamwork and creativity.

However, the company is experiencing slower decision-making processes as it expands into new regions with diverse cultural expectations. Additionally, some employees feel that constant consultation is time-consuming and reduces their ability to focus on their core responsibilities. Regal Hotels is considering whether elements of laissez-faire leadership could help improve efficiency in its creative departments.

EcoDelight Cafés Ltd is a rapidly expanding chain of environmentally conscious coffee shops focused on sustainability, innovation and ethical business practices. Founded five years ago by Sarah Patel, the business emerged to address a market gap for eco-friendly cafés. Sarah’s vision was inspired by her frustration with the coffee industry's lack of environmentally conscious options. Starting with a single café in her hometown, Sarah grew the business into a nationwide brand with 25 locations, with plans to open ten more in the coming year

A cornerstone of EcoDelight’s success is its strong unique selling proposition: promoting sustainability at every level of its operations. This includes sourcing coffee beans exclusively from fair-trade certified farms, using biodegradable packaging and incentivising customers to use reusable cups through a popular loyalty rewards programme. Additionally, the café interiors feature educational displays about green farming and recycling practices. These efforts resonate particularly with millennials, who make up 65% of EcoDelight’s customer base and have helped build a loyal following in a competitive market

Corporate social responsibility (CSR) is at the heart of EcoDelight’s mission. The company donates 2% of its annual profits to environmental causes, such as reforestation projects and ocean clean-up initiatives. Employees are encouraged to participate in these initiatives through paid volunteering days. These efforts have not only contributed to a positive brand image but have also fostered community engagement. A recent survey found that 75% of customers are aware of EcoDelight’s CSR activities, and 80% stated that these efforts influence their decision to choose the brand over competitors

Sarah’s leadership has played a key role in the company’s growth. In the early years, her autocratic style allowed for quick decision-making and clear direction during the start-up phase. However, as the business grew, Sarah adopted a more democratic and situational leadership style to manage a larger and more diverse team. Employees have shared mixed feedback on her leadership, with many appreciating her consultative approach, while others sometimes feel decisions take too long. Insights from staff feedback are detailed in Table 2

Looking ahead, Sarah is considering introducing a range of organic snacks, including granola bars and vegan pastries, to complement the coffee offerings. Preliminary sales forecasts (Table 1) suggest that these snacks could significantly boost revenue, but they also highlight potential challenges, such as demand variability and increased ingredient costs. To make informed decisions, Sarah is exploring a more structured approach to sales forecasting, recognising its importance for managing cash flow and inventory

As EcoDelight continues to grow, operational challenges have emerged. Maintaining service quality across all locations has been difficult, with staff turnover reaching 25%, significantly higher than the industry average of 15%. Qualitative feedback from employees reveals that while many value the company’s ethical focus, others feel overburdened due to rapid expansion. Sarah is now considering implementing more robust training programmes and recruitment strategies to ensure that EcoDelight’s high standards of service are upheld across all locations

Table 1: Sales forecast for organic snacks (next six months)

Table 2: Employee feedback on Sarah's leadership

Regal Hotels is a chain of luxury hotels known for excellent customer service and premium guest experiences. The company operates 50 locations across Europe, employing over 4,000 staff. It has a strong reputation for teamwork and innovation. Its democratic leadership style encourages employees to participate in decisions about improving services and workplace practices, fostering a culture of creativity, engagement and collaboration

As Regal Hotels expands into culturally diverse regions, its leadership style has faced challenges. Decision-making processes have slowed, with some initiatives taking up to four weeks due to extensive employee consultation. For instance, a plan to introduce localised room designs faced delays as input was gathered from multiple teams. Managers and regional directors expressed frustration about how these delays affected the company’s ability to stay competitive

Some employees value the democratic leadership style, saying it makes them feel involved and appreciated. However, others find it overwhelming, particularly in departments where consultation disrupts daily workflows. One manager noted, “I love being asked for my opinion, but the time spent in meetings leaves me behind on my core responsibilities”

To address these challenges, senior management is exploring whether elements of laissez-faire leadership could be applied in creative departments, such as marketing, events and design, to provide teams with greater freedom to innovate and act quickly. However, there are concerns about how this change might affect service consistency and accountability, which are central to the Regal Hotels brand

To prepare for potential leadership changes, Regal Hotels has increased its training budget by 15%, focusing on leadership development and conflict resolution. The company has also started conducting regular employee surveys to gather feedback on workload, leadership support and satisfaction. Early survey results show that while 80% of employees value inclusiveness in decision-making, only 50% feel that decisions are made quickly enough to meet customer demands

Table 1: Regal Hotels – Leadership and operational metrics (2023 vs 2024)

Table 2: Employee feedback on leadership styles