Hospitality involves being in constant contact with customers. Many different aspects of leadership often come to play in these instances. Good leadership is founded on the concept of talent, culture of an organization as well as ethics. An individual’s talent needs to be developed to enable one perform leadership roles appropriately. First, one needs to acknowledge their strengths, which will play a vital role in ensuring they acquire the necessary knowledge and skills for the business. To achieve good leadership, individuals need to work with what they are good at. This helps minimize the weaknesses and add to the strengths (Drucker, 1966).

The culture of an organization, which is often evidenced by the values of individuals mostly from their interaction with other people, is another aspect of leadership. This can be changed and manipulated to work in favor of the organization. However, it is often challenging to design a culture that can be followed by others. Therefore, being able to successfully establish a feasible culture for an organization is a major aspect of leadership. This is because leaders formulate the culture to which the rest should adapt. Aditionally, it helps to identify the type of leadership being exercised (Kim, 2012).

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On the other hand, the conduct of individuals is vital for leadership. It usually constitutes the honorable virtue of doing what is considered right and appropriate. There are a number of theories identified that evaluate the importance of ethics in leaders. Among this is the Utilitarian theory, which advocates that ethics requires the practice of the greater good for the greatest number. This is said to lead to morality, which is vital for leadership. An individual’s mode of conduct majorly affects the way people respond to the organization they lead or represent (Kim, 2012).

Answer Two

Based on Sonic Company, which owns a number of drive-in restaurants, the major risk is fierce competition. This industry has many competitors, which affects pricing, location, and nature of the services offered, resulting in decline in profit and number of customers. Competitors have more restaurants and are financially stable. If the services, quality of the products, and other factors are not improved, it will be difficult to survive (Annual Report- Sonic Corp, 2011). The competitors have improved their marketing strategies and directed many resources in this field.

There is also fear that catastrophic issues may interfere with the business operations. Such unforeseeable events as war, terrorism acts, international quarrels, epidemics or natural disasters may interfere with its operations. These issues will directly affect the customers; hence, the products’ demand will reduce. Company’s reputation could also be damaged if food offered will be poisoned, which may be caused by terror (Annual Report- Sonic Corp, 2011). There are also changes in customer tastes, yet the company has not conducted a thorough research in this field. The company’s profitability will, therefore, decrease.

Competition will have the greatest effect because it is continuously hitting the company because of changes in economic conditions. The competitors have invested much in marketing, due to which the company risks losing customers. Global issues are not very likely to cause serious effects because the government has taken enough measures to guarantee public safety.