Sustainable Enterprise, Leadership and Change in the Scandic Hotels Essay


Leadership is said to be about the creative activity of new worlds, and during the summer category the treatment focused on conveying in leading and alteration in order to accomplish a sustainable endeavor. In the seminar Professor Mcintosh and sing talkers discussed how administrations can and are being alteration agents by traveling towards a new world of making concern in a sustainable manner. This meant that administrations have to transform from the traditional ways of making concern towards a new kingdom of thought. But of class this transmutation is a difficult undertaking and will necessitate a batch of inspiration, energy, and accomplishments of more people than are presently engaged in the undertaking.

The message echoed once more and once more in category was that in order for administrations to be sustainable, leaders should get down thought and moving otherwise. However as we all know, alteration is non easy and it is besides true that a batch of organisations/ people are afraid and doubting of alteration. Most people and organisation thin towards certainty and they opt out instead than prosecuting actively in trying to alter the organisational civilization. Change threatens administrations with uncertainness and pandemonium. Therefore, it is so much easier to lodge to the traditional ways of making things and to accept the leading that does n’t dispute the traditional construct. Yet every bit much as the past ways of making concern are much safer, in footings of offering us security and certainty compared to the chartless hereafter, they are besides non sustainable.

Indeed, I agree with what Professor Mcintosh and other talkers have said that many of the past patterns are unsustainable. Therefore, if we want the universe we love to last – and for us as the human race to last excessively – we must alter. In this paper I will look at an administration that has taken the bravery and hazard to take towards alter – a alteration towards a sustainable endeavor. More specifically, I will be looking at how Scandic, a hotel concatenation caput quartered in Sweden, is implementing alteration towards an administration that is lending to a low C sustainable economic endeavor in the visible radiation of C pricing, consumer pick, political and regulative enterprises and market chances.

Scandic Background

The Scandic hotel ironss with their caput quarters in Sweden started off as a motel in 1963 in association with the US crude oil giant known as Exxon at the clip. Known as ‘Esso ‘ the motel construct was based on the thought to capitalize on the addition of auto travel for both concern and pleasance – piece moving as an debut to the American construct of a motor hotel to Europe. Three old ages after the first motel was opened, a 2nd hotel was opened up. By 1972 the company had started to spread out into Norway and Denmark, and a twelvemonth subsequently it was the largest hotel concatenation in Sweden, with a new name ‘Scandic ‘ .

However, this success came to an disconnected arrest between 1990 and 1992 as the Scandic concatenation had accumulated losingss of about Aus $ 55million at the clip. In response to this crisis the company hired a new CEO, Roland Nilsson, which created a new direction squad to cover with the Scandic crisis. The new squad came to a decision that the market topographic point that Scandic was runing in had changed significantly over the old ages, and that the former direction had lost touch with the altering values of the clients ( see Scandic Report ) . The new direction found that Scandic lacked a clear set of nucleus values and ends that unified them to their clients and employees.

Therefore cardinal to turning around the crisis the new squad had to alter the values and doctrines – with the company following a ‘profound caring ‘ as its value statement. This would be a value that the clients and staff would place with. It reflected a committedness to care for all major interest holders: clients, employees, stockholders, communities and the environment. As a consequence, environmental and societal duty became a cardinal focal point of the administration. In fact a corporate – broad programme, Natural Step, was instigated to instil the new values approach throughout the administration.

Scandic Hotel – Towards a Low Carbon Sustainable Economic Enterprise

Carbon Pricing – concentrations on substances extracted from the Earth ‘s crust

Energy is one of the most important resources used in the hotel industry, and the Scandic hotel group is no exclusion to this. As a affair of fact, hotel installations rank at the top when it comes to the ingestion of energy in the commercial sector. European hotels were estimated at utilizing 40TWh of energy in 2009 alone ( Energy Statistics 2009 ) . Sing that the primary beginning of energy in Europe is fossils fuels, the sectors part to environmental jobs like acid rain, clime alteration and planetary heating ca n’t be ignored. Indeed, harmonizing to recent surveies most of the energy used in the hotels was from coal and electricity – with the hotel industry in Europe accounting for 13.6 to 16.77 mega metric tons of C dioxide emanations. However it is besides believed that a batch of energy used in the hotels is wasted ; this means that there is considerable room to better the preservation of energy in this sector. In the visible radiation of C pricing ordinances by the authorities, this would be a good manner to guarantee that hotels are non fouling the environment, though this ordinance is yet to be imposed in the hotel industry.

Notwithstanding the absence of ordinance, the Scandic hotel group has taken their ain steps to cut down their dependance of fossil fuels. Scandic hotels have solar panels that are used chiefly during the twenty-four hours alternatively of electricity. The Scandic hotel group has besides pledged to half their C emanations by the terminal of 2011 and to be cut down their C emanations to zero by 2025. They besides have opted to utilize stuffs that are able to be broken down by the system, instead than those that harm as they can non be broken down by the environment. Thus Scandic hotels by 2009 has reduced their H2O ingestion by 13 per cent and energy by 24 per cent ( Scandic 2009 ) . In add-on, the Scandic hotel group has besides established a coverage system called the environmental index, which outlines the hotels environmental policies, every bit good as current ends and activities and what bench Markss need to be reached.

Consumer Choice

Consumers are a immense driver worldwide to alterations in virtually every sector. Yet possibly more than anyplace else have consumers driven environmental alterations in the Scandic hotel. Indeed as the times change, a batch of consumers are going aware of the environment and therefore they opt to remain in sustainable hotels or consume merchandises that do non harm the environment. This is another driver towards a sustainable endeavor. Scandic has made it a precedence to be crystalline and portion their environmental ends with their consumers and providers. Scandic has continued to be profitable as it offers a service that is rather rare unlike other hotels. They have information about their environmental ends in the hotel suites and in public working countries in the hotel and therefore they portion these with their consumers and employees. This enables the consumers to experience that they are a portion of the greater good. Furthermore, their staffs are trained about the environment and Scandic even owns their ain environmental school that staff can go to for farther preparation.

More specifically some of the things that Scandic hotels has achieved in being sustainable is the riddance of the traditional bars of soap that semen wrapped in plastic. It is estimated that a normal hotel invitee will merely utilize about 15 per cent of the soap and the remainder will travel to blow. This is the same instance for the shampoo and conditioner bottles that are used in the hotels. To work out this waste issue Scandic introduced the distributing bottle system that are manufactured by a German company and recycled by the same. The soap is made by a Belgium company that produces natural merchandises. This system has reduced one-year soap and shampoo waste by 40 metric tons and packaging by 11 metric tons, conveying about great nest eggs to the company in the procedure. When asked to rank their inducement of being environmentally witting on a 7-point Likert-scale, the hotel mentioned their clients, who demanded such alteration ( Natural Step ) .

Hence, due consumer demand and Scandic adhering to these alterations, Scandic has managed to remain above the curve when it comes to being a sustainable endeavor. They are so commanding new markets with an advanced merchandise and they are gaining important fruits from it.

Market Opportunities

As a affair of fact, Scandic hotels have managed to venture in to a niche market that might take other hotels a long clip to acquire into. They have become a leader of alteration in altering the traditional ways of making hotel concern, and therefore into new ways of caring for the environment and for their staff. This means that the hotel has been able to venture into different states in Europe due to their success. The hotel now has 24 eco friendly hotels all over Europe and has late looked besides at opening a Scandic hotel in Berlin, Germany. This growing has taken them near to 16 old ages which means that in order for an administration to concentrate on any alteration they must be willing to put for long term. Scandic has besides ensured that its vision and ends are shared by their providers, with merchandises on sourced from sustainable providers and therefore with end dribbling down the value concatenation. The providers are made to publish their corporate environmental policies to guarantee that their values are in line with those of the hotel. In add-on, the incorporation of assorted efficiency preservation steps into their day-to-day hotel operations i.e. utilizing the right providers and altering their merchandises steps has seen the hotel cut down significant operational costs.

In short, the Scandic environmental committedness has besides earned the group an added advantage in the market and given the administration a good imagine in the universe by being recognised as the most sustainable hotel.

Political and regulative enterprises

The political sector of the environment nowadayss existent and possible limitation on the manner an organisation operates. The political and regulative enterprises that fall within the hotel industry are chiefly the 1s that govern any concern administration. Therefore I would state that chiefly relates to the manner how a company acts while making concern in foreign states. Scandic is known to keep their values in all the Norse states that they are making concern. In add-on to this, Scandic has besides ensured that the stuffs that are used in the redevelopment of their hotel suites are good regulated and are reclaimable stuffs. This is in conformity with the political ordinances to guarantee that administrations try to understate their impact on the environment. Therefore, Scandic hotels have come up with eco suites where stuffs are used to build these suites are 97 % reclaimable, including wood furniture and floors, pure cotton or fabrics and limited sum of adjustments with, chrome, plastic or metal. At the minute they have close to 10,000 eco suites and 7 environmental hotels ( Scandic Report ) .


As mentioned earlier alteration is hard to instil as a batch of people are stiff to alter and would instead go on with the traditional ways of making things. As we have seen in this paper Scandic hotel has proven to be a alteration agent – they have moved towards being more environments friendly and a more sustainable endeavor. They started from within the administration by guaranting that their ends and visions were shared by the employees and subsequently by their consumers and providers. Bringing everyone along, they ensured that they have regular preparations for their employees, doing them besides change agents. Therefore Scandics environmental programme has enormously improved the quality of their employees ‘ working environment. They have besides managed to acquire a competitory advantage which continues to increase as it achieves its end as being the first international hotel to eco-certify its whole constitution.

Amidst all this, Scandic is doing the universe a better topographic point to remain for the current coevals and the others to come. This is the chief purpose of being a sustainable endeavor. This is in the hope that by being the alteration agent it is, other hotels will be able to follow in the same footfalls and guarantee that we do n’t consume the Earth ‘s resources and guarantee that they aim at breathing zero C to the ambiance. Besides, to guarantee that any waste is minimised and good disposed out. This will ensures that everyone is taking duty of taking attention of the environment. Scandic is so an illustration to follow.