Contemporary Issues on Business Management - Analysis of Stakeholders and Solutions

This report analyses the contemporary issues faced by Tesco in the marketplace and their implications. It includes an in-depth analysis of stakeholders and their power and interest, linking them with contemporary issues to determine best solutions.

Contemporary issues
on management

EXECUTIVE SUMMARY
In the functioning of a business, the contemporary issues are considered as most
important issues which creates hurdles and obstacles for company. In this project there is a brief
discussion on different types of contemporary issues which prevails in business maintenance. In
this report analysis of stakeholders is performed along with their power and interest. This project
will include explanation of government and board of directors as a stakeholder. The project will
also focus in linking the key stakeholders of an organisation with the contemporary issue in order
to determine best solutions. The main focus of the report will be to analyse the importance of
stakeholders for a business entity.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................5
The organisation which is chosen, market in which they are operating, their turnover, The
company's market size and share............................................................................................5
Contemporary issues in management and their impact on organisation................................5
A brief description of stakeholders and key difference between external stakeholders ........6
Mention different stakeholders in your company have different power/interests) and “discuss
the level of strategic directions of/on the organisation”. .......................................................7
Government as stakeholder and its importance with power and interest...............................8
View of board of directors as stake holder and their power and interest...............................9
Contemporary issues faced by management of organisation with involvement of government
..............................................................................................................................................10
Overview of customers as a stakeholder linking with contemporary issue and their importance
..............................................................................................................................................11
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
The contemporary issue related to business impacts its functioning and also has a
significant impact on employees (Andreeva, Epifanova, and Orobinsky, 2018). According to
(Data on United Kingdom's Covid Situation, 2022), Covid-19 pandemic has serious impact on
all major business operations and also led to major loss of companies in United Kingdom. Covid-
19 pandemic has created a devastating impact on all major organizations and also created major
loss in their revenue and profitability. The furlough situation also arise in the economy due to
weak economic conditions created by Covid-19. Furlough situation impacted on employment of
youth as well as of experienced employees in United Kingdom. The social distancing rules that
were created by government also impacted on business organisations by decreasing their sales
turnover (Government measures for Covid-19 pandemic in UK, 2022). Government of United
Kingdom has also taken major steps to deal with pandemic in order to provide full support to
different companies. It is also one of the key role of UK government to provide support to
companies in order to move ahead of competitors. In this project example of Tesco company is
taken into consideration which is a British multinational retail company. Company was
founded in the year 1919 and has its headquarters in London, United Kingdom. This project
will cover brief analysis of contemporary issues faced by a company. This report concludes
importance of strategic actions which are to be taken by a company to lead competition. The
report will include focus on impact of contemporary issues on a business in order to lead the
competition.
The report will include an in-depth analysis of contemporary issues which are linked with
functioning of Tesco company along with their implications.

MAIN BODY
The organisation which is chosen, market in which they are operating, their turnover, The
company's market size and share
Tesco is one of the major companies in retail industry which operates all over the world.
The Tesco company is one of the most famous company in global marketplace and is famous for
its top quality products. Management of Tesco is professional enough to handle major
contemporary issues in order to lead the marketplace. The Tesco is one of the finest retail
company which performs major operations in 11 countries all across the globe. In the United
Kingdom, Tesco is the leading grocery retailer with a consistent share of over 27 percent of the
market share. In its 2021/2022 financial year, Tesco's annual revenue amounted to more than 56
billion British pounds in the United Kingdom and the Republic of Ireland (Tesco Turnover and
profitability, 2022).
Contemporary issues in management and their impact on organisation
The contemporary issues in management are related to key current happenings which
impact on its functioning. It is also main role of a business to face the current issues in a
significant manner in order to develop focused approach (Bratton, Bratton, and Steele, 2021).
Contemporary issues are also essential to be identified in order to maintain competitive growth.
The key contemporary issues which are faced by Tesco in the marketplace are mentioned below:
 Change management- The change management is one of the key approaches which
helps a business entity to deliver major practices related to change. It is major role of a
business to take assistance of change management in order to perform key operations.
 COVID- 19- In the recent times, COVID-19 is considered as one of the key factors
which has impacted deeply upon functioning of an organisation. The pandemic created a
situation of financial crisis in many of the industries of United Kingdom. Tesco company
was also majorly hit by the pandemic and suffered economic loss. All the major functions
of Tesco regarding supply and circulation of goods and services were impacted. Situation
of lockdown after Covid-19 also put a major question mark on trading of goods and
services by shutting down Tesco stores all over the world.
 Motivation- In the recent times due to increased competition between different
companies, it is essential focus on productivity of employees (Chuang, and Graham,

2020). Motivation is one of the major factors which is necessary to develop productivity
and output of employees. Motivation is one of the major factors which needs to be
developed in employees in order to develop emotional intelligence in them.
A brief description of stakeholders and key difference between external stakeholders
The stakeholders are major interest holders in a company, they also have main concern
over each and every activity in the business (Stakeholders and their role in a business entity,
2022). Major stakeholders and their demand should be taken into consideration by a business in
order to lead the competition. If the business is unable to maintain competitive advantage in the
contemporary business environment, it needs to fulfil wants and needs of the customers. The
main view of stakeholders is to get assurance from a business in terms of perfect delivery of
goods and services with optimum quality. Major stakeholders of a business should be handled
with responsibility and ethics in order to achieve set targets and objectives (Hamilton, Mitchell,
and Mangan, 2019). The major stakeholders of Tesco are mentioned below in order to develop
key difference between them:
 Customers- The customers are one of the major stakeholders of a business who helps it
gain growth. Customers are the final purchaser of goods and services, who helps in
increasing revenue and profitability. The main role of a business is to serve customers
with essential duties and functions in order to maintain effectiveness and efficiency.
 Employees- In the functioning and development of a business, employees are termed as
major stakeholders for a business. In the era of stiff competition between different
companies, it is necessary for a business to focus on employees by fulfilling their wants
and needs. The business must focus on creating employee satisfaction as unsatisfied
employees can make complaints on social media which can be harmful to the goodwill
and reputation of a company (Lansbury, Johnson, and Van den Broek, 2019).
 Government- The government is one of the major stakeholders in a a business and plays
an important role in regulating it. It is compulsory for a business entity to serve the
government as a stakeholder in order to increasing chances of stability. Government of
United Kingdom and corporate laws formulated by it are the major rules which are
followed by Tesco to conduct ethical business. The corporate laws formulated by
government should be followed by a business entity in order to develop legal business
(Corporate laws of United Kingdom, 2022).

Shareholders- Shareholders are the half owners of a business, who buy shares of a company and
support it to grow. The financial help is provided by stakeholders as they purchase ownership in
a business. For Tesco, shareholders are one of the major owners of a business entity and they
provide source of capital. Shareholders in a company are people who owns a portion of a
company as formal shares. If the corporation has multiple owners, then it has likely been split
into shares. By contrast a partnership, sole proprietorship or even a company with just one owner
does not have shareholders. Shareholders are stakeholders, because they have a financial interest
in the corporation’s performance. They have a capital interest, because they have invested capital
in the corporation and own a percentage of it (Shareholders as key interest holders and their
explanation, 2022).
Mention different stakeholders in your company have different power/interests) and “discuss the
level of strategic directions of/on the organisation”.
It is essential for a business entity to know the power and interest of key stakeholders in
order to maintain effectiveness in key operations related to provide stakeholders benefits. This is
one of the most essential role of a business to develop effectiveness in key operations by
analysing interest and power of stakeholders (Mikuła, 2018) This will help company to develop
strategic directions of the organisation. Major stakeholders along with their power and interest
are mentioned below in context of Tesco:
 Management- Management is one of the most crucial bodies which helps and supports
an organisation to perform its key functions. Management of Tesco is considered as
major stakeholders who is dedicated to provide key and main solutions to main problems
of the organisation. The management have high power and interest in an organisation to
perform key functions with more stability.
 Customers- Customers are considered as one of the major stakeholders in the business
who are to be served with professionalism (Nawaiseh, 2021). Customers have low power
and high interest in the business. So, customers should be served with crucial functions of
a business entity in order to develop market stability.
 Society- The society is another stakeholders in a business entity which should be served
with effectiveness. In order to serve the society, a business entity like Tesco should focus

on understanding their traditions and cultures. In order to main effectiveness in business,
it is very much important to take care of contemporary environment related to the society.
Government as stakeholder and its importance with power and interest
The different organisations will say that different stakeholders have different power of
interest. The government for a public organisation (National Health Service) may have more
power and more interest, so they might be in the top right corner and which is not organisation is
not a public company, for example, they have high power. A private organisation have high
power but they have low interest (Understanding government as a stakeholder, 2022).
The government is one of the most crucial stakeholders in a business, which needs to be
taken into consideration by business entity. Tesco is always dedicated to obey all the rules and
regulations of government in order to gain competency edge. The government of United
Kingdom is also a major interest holder as after Covid-19, government has supported all major
companies to revive. The government has although high power and low interest in the
functioning of Tesco. It is major role of a business to support its development by focusing on
government and its various dimensions (Nikolaou, 2018). The main points which highlight
importance of government as a stakeholder are mentioned below in context of Tesco:

 Rules and regulations- In the functioning and development of a company, government
play a major role as a stakeholder. It is major responsibility of government to control
major business entities in the economy by formulating major rules and regulations.
 Corporate laws- The corporate laws are considered as major legal regulations which are
developed for conducting legal business in the country. After the Brexit, it is essential to
support the functioning of all companies with stability. The level of suppliers in the
economy related to finished goods faced a downfall after Brexit. This created major crisis
in the corporate world related to most of the essential factors. Government of United
Kingdom then made a key step in order to protect companies by formulating laws and
policies.
 Business financial support- The government of United Kingdom is always helping
business organisations to develop effectiveness in major operations. Financial support
provided by government is essential in making companies more advanced and ethical.
The business financial support is also provided by government in order to protect
functioning of business entity (Parsons, Maclaran, and Chatzidakis, 2017). This is one of
the major roles of government to also provide subsidies to business organisations. This is
one of the main and important task of the business entity to pay taxes to government from
time to time to support economic development.
View of board of directors as stake holder and their power and interest
The board of directors are amongst most crucial stakeholders of a business, who play an
important role in decision making. All the superior actions taken and developed by board of
directors helps a business entity to lead the competition. In the recent times, it is main role of
Tesco's board of directors to provide essential support to business in tough times. It is also major
role of board of directors to also develop investment opportunities which are essential for
business development. The key stakeholders of a business are also playing an important role in
overall development. Board of directors includes professional employees who are well
experienced to handle majority of tasks and functions. The board of directors has high power and
high interest in a business entity which makes them more liable for any step or function by the
business. In order to gain competitive growth at the marketplace, it is essential for government to
provide development based solutions. The board of directors and their interest is essential for a
business entity to be developed in order to lead the competition (Pham, 2018). The high power

and high interest makes them more liable and feasible according to the business development. It
is also one of the necessary role of a business to fulfil wants and needs of board of directors by
providing them key salary and perks. The board of directors of Tesco should perform key
functions with professionalism in order to gain efficiency in majority of operations.
In order to deal with the issue of Covid-19, the board of directors of Tesco company to
develop major strategic choices. It is also one of the major roles of a company to develop
systematic approach in managing all operations with taking care of stakeholders. Main role of a
business is to increase chances of stakeholders participation with stakeholder analysis. In order to
gain competitive advantage, it is major role of the Tesco company to take into consideration
application of set targets and approaches. The business entity should also deal with Covid-19
pandemic with help of strategic choices. Board of directors took crucial steps related to Covid-19
pandemic and its related business operations in a well defined manner. Main function of a
business entity is to analyse key external and internal factors which are supportive for growth
and expansion.
Contemporary issues faced by management of organisation with involvement of government
The contemporary issues are the main problems which directly impact on functioning of
a company. It is major role of a business to support contemporary issues with stability in order to
perform business development (Phillips, and Moutinho, 2018). In the recent times, government
of major countries are also playing an important and systematic role in providing relief to the
company. This is one of the key role of government to facilitate major business operations of a
business in order to deal with major contemporary issues. The main contemporary issues which
are faced by and organisation along with role of government are mentioned below:
 Covid-19- The Covid-19 is considered as major pandemic which created a tough
situation of every business organisation of United Kingdom. The government was in a
tough situation post pandemic and it was unable to provide full support to the business
organisations of country. Pandemic also created a situation of lockdown in which all
main companies of United Kingdom faced huge loss. Covid-19 pandemic created a major
turning point of for all the organisations including Tesco. Main task of government was
to develop key advantage for companies so that they can survive at the marketplace.
Government took essential steps to deal with Covid-19 with the help of planning and
strategic framework. In order to lead the competition, it is essential for the business entity

to follow all the guidelines issued by government. The pandemic and its recovery will
take time and support of government in a precise manner.
 Regulation and compliance- Key regulations and compliance of company must be
followed by Tesco in order to conduct ethical business. The main task of the business is
to implement all the compliance related tasks in a well defined manner. Main role of a
business entity is to support regulation following with major focus on growth and
development opportunities (Preston, 2021). The business entity like Tesco is taking into
consideration application of major rules which are formulated by local authorities in
order to perform legal business. In order to achieve competitive growth in a short period
of time, it is essential for the business entity to take support of following compliance in
order to set effective preferences. The regulation and compliance formulated by legal
authorities and ministry of United Kingdom also play a major role in leading the
competition.
 Revenues and taxes- The taxes and revenues is one of the key concerns which is one of
the major factors to be considered by a company. Main task of a business entity is to
focus on fulfilment of revenue duties and taxes (Roper, Prouska, and Ayudhya, 2019).
After Covid-19, many companies are facing a challenge to pay taxes according to latest
policies. The government of United Kingdom provided benefits to all national companies
of UK by relaxing the tax rates.
Overview of customers as a stakeholder linking with contemporary issue and their importance
The customers are major stakeholders of a company who play an important role in
increasing the chances of systematic growth. It is the ethical duty of whole business management
to develop key approach in managing customers for focused development. In order to satisfy
major customers, it is necessary for the company to follow ethical approach. The customer
relationship management is one of the key approaches which should be followed by a business
entity to serve customers with more development based approach. The importance of customers
is they are the final users of good and services which are produced by the company. After Covid-
19 pandemic, Tesco is focusing on the concept of total quality management in order to lead the
competition (Rosenbach, 2018). The Main function of a business to lead the competition with
help of managing Covid-19. In order to fulfil demand of major customers and lead the
competition, Tesco has followed the system of online delivery.

The company is also involved in development of major functions and tasks on the basis
of wants and needs of customers. Main perspectives of customers should be analysed by
company in order to increase their satisfaction. Customer analysis is also one of the key
approaches which should be followed by a business in order to maintain competitive advantage.
The contemporary issues in business management should also identified to perform business
operations according to current scenario. It is recommended for the Tesco company to take
assistance of market survey and research to develop focused approach in managing key
customers. All major global and domestic companies including Tesco should develop a key
approach to deal with Covid-19 pandemic. The main task of a business entity is to analyse
competitive growth based factors and approaches to deal with business development. It should be
taken into consideration by a company, the main elements of customer service in order to
perform majority of operations (Yang, Liu, and Chu, 2018). The business should also focus on
analysing scope of customer service and also take regular feedbacks from them.

CONCLUSION
From the above analysis it can be concluded that in order to perform business operations
according to contemporary business environment, it is important for the company to identify
issues and challenges. This project concludes that contemporary business issues should be
handled and evaluated by a business in professional manner to increase business strengths. The
analysis concludes that it is key role of strategic and top level management of a business to
develop planning and strategic framework to deal with major challenges. This analysis also
concludes that stakeholders and their demand should be fulfilled by a business entity in order to
gain desired success.

REFERENCES
Books and Journals
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Bratton, J., Gold, J., Bratton, A. and Steele, L., 2021. Human resource management. Bloomsbury
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Chuang, S. and Graham, C.M., 2020. Contemporary Issues and Performance Improvement of
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Hamilton, L., Mitchell, L. and Mangan, A. eds., 2019. Contemporary Issues in Management: A
Critical Management Approach. Edward Elgar Publishing.
Lansbury, R.D., Johnson, A. and Van den Broek, D. eds., 2019. Contemporary Issues in Work
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Mikuła, B., 2018. KNOWLEDGE MANAGEMENT SYSTEM IN THE ENTERPRISE AND
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Nawaiseh, H., 2021. The effect of COVID-19 pandemic on SMEs management in
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Management: Contemporary Perspectives. Red Globe Press.
Rosenbach, W.E., 2018. Contemporary issues in leadership. Routledge.
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Yang, D., Liu, Q. , and Chu, W., 2018. Contemporary issues and current challenges. Maritime
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