Contemporary Issues in Business Management and Leadership

This report discusses contemporary issues related to business, management, and leadership, with a focus on the impact of globalization on organizations. It critically analyzes the challenges faced by organizations in terms of cost, price, capital, expansion, and more. The report also evaluates the impact of contemporary issues on organizations, such as the diversity of the workforce, technology, innovation, low cost for products, outsourcing, and more. Asda, a British supermarket chain, is used as an example throughout the report.

Contemporary issues
on business
management

Table of contents
Introduction .....................................................................................................................................1
Main body........................................................................................................................................1
(1) Critically analyse contemporary issues in the field of business, management and
leadership................................................................................................................................1
(2) Identify and critically evaluate the impact of contemporary issues on organisations......5
(3) Analyse critically the impact stakeholder views have on approaches taken by
organisations...........................................................................................................................7
Conclusion.......................................................................................................................................8
References .......................................................................................................................................9

Introduction
Contemporary issues refers to the issues that is related to the present day and have
implication, applicability, relevance and significance. These issues are considered as the
problems and the opportunities that may assist in shaping our society with the contribution of the
organisations. As these issues may be related to the climate change, technological change social
change and many more(Preston, 2021). Theses issues provide wider understanding to the
managers and encourage them to think critically in order to solve these problems. In this report,
the organisation that has been taken into consideration is Asda which is a British supermarket
chain with headquartered in UK having a retail business. The repost will discuss the
contemporary issues related to the business, management and leadership. Further, it will identify
the impact of the contemporary issues on organisation. In addition to this, it will explain the
impact that are viewed by the stakeholders on the approaches taken by the organisation.
Main body
(1) Critically analyse contemporary issues in the field of business, management and leadership.
There are many contemporary issues which are faced by the organisation for which they
have to take various decision in order to deal with such issues. The contemporary issues that are
considered in the present time for the organisation are the globalisation, innovation and
technology. However, the focus has been given upon the globalisation by considering the current
situation. The globalisation has a great impact on the business of organisation, management and
leadership because the environment is getting changed due to the change in external factors such
as political, social, technological, economical and so on. Therefore, an administration has to
adapt with the changing environment in order to remain in the competition. It enables the
organisation to solve the economic problems by providing jobs and access to the lower cost and
resources to the countries. Since the globalisation has emerged, it provides assess to the foreign
capital and technology however, it lowers the living standard of the people because when the
organisation outsource their operations to overseas for low cost so it leads to the elimination of
jobs and increase unemployment (Swindell and Wright, 2022). With reference to Asda, a
business concern also has to face many problems due to the globalisation that profoundly impact
the business of a concern. Therefore, by adopting various changes and improvement, an
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organisation can be competent to gain the competitive advantage and overcome the barriers to
the globalisation. The issues of the globalisation are discussed as under:
Contemporary issues of globalisation
Globalisation enables the organisations to spread their ideas, knowledge, goods and
services across the borders. It encourages the organization in the countries by making
interconnection to produce the goods and services in which they have good knowledge and gain
the competitive advantage. However, it has negatively impact the nation because it destabilizes
the market became people moves across the borders in search of the higher pay jobs or
companies. It also impact the environment due to the transportation of the goods due to which
the greenhouse gas generated. It also increase the likelihood of the pandemics such as Covid 19
due to the increase in travel. There are some issues of globalisation such as cost, price, capital,
expansion and so on which affect the organisation at some level which are described as under: In business: The globalisation encourages the business organisation to the increase
competition in the market that can be related to the cost, price, response of the company.
The customers have wider choices in the market to get the products of their desire. The
want products that are of high quality and reasonable prices which can satisfy their
expectations. The organisation have face problem in recruiting the employees due to the
globalisation of the business because it has to know the market demand for the for the
salaries and benefits to overcome the competition. Globalisation impact the organisations
in terms of tariffs and export fees because when products are sale in abroad so they can
be expensive depending on the market. The companies may be impacted by the ever
changing labour laws of the other countries when expanding its business in new
countries. The organisations are required to have cheap labour in order to reduce cost and
gaining the competitive advantage and increase the profitability. Due to this, the local
labour have to lose their job as the companies moves their operations to the countries in
order to save labour cost. In this way the business can be impacted by the globalisation as
the company must be ready to accept the needs of the market to gain the competitive
advantage. In management: The globalisation impact the management as the employee are
encouraged by the organization to transfer to the international location for proper
management and elective communication. So the organisation have to offer attractive
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compensation to the employees so that they provide consent for relocation(Phan and
et.al., 2021). The management have to perceive the larger market, competition and
international employee due to the globalisation. The management have to face the global
expansion difficulties because they have to discover the benefits of the globalisation and
analyse the market in order to maintain the business. It has to follow and understand the
new laws of the other countries where the business is being expanded and must be aware
with the new legal system. Any of the misstep lead to the impediments and severe
financial and legal consequences. Therefore, the management has to keep up with the
ever changing laws of the other countries and also have to face tough competition
because the companies search for the cheap labour in order to produce low cost products
to attract the customers. The management have to face the marketing and communication
challenges as the employees are hired from the different countries which create language
barrier. The management have to make strategies for marketing the products to the new
audience that creates hindrances for the management. Thus, management of business is
impacted as they have to make international recruitment for higher compensation.
 In leadership: When the company expand its business so the leader have a great impact
of the globalisation as it has to perceive ethics, belief and customs of that country. They
have threat of loss of cultural identity of the organisation. The leader have to increment
the knowledge and awareness about the cultural differences, standards, commitment and
integrity. The leaders have to face challenges to lead the team as the employees are hired
from different countries so it create obstacles in making collaboration with the employees
and providing support to them. They are not able to inspire the employees and developing
them due to the lack of knowledge of the other countries laws and systems. When the
expansion is made in the business due to the globalisation so a leader has to create team
again with the new employees which is a big challenge as the guidance is provided to the
employees to create knowledge, innovation and motivation in the organisation. The
leader has to find out the ways to mitigate the consequences, overcome the resistant to
change and deal with team member's reaction while coaching and mentoring. A leader in
an organisation face challenges in managing the relationships and politics in the working
environment. With the new team, a leaders is required to develop the relevant skills in the
employees which might create hurdle due to the skills and knowledge of the employees.
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Thus, the leadership is affected by the globalisation because as they have to taken into
consideration the customs and standard of that country in accordance with leadership is
provided.
In relation to Asda, the company has to consider the perspectives of the customers to
make its business profitable. The organisation have to make the internal communication plan
because the employees are from different time zones and have different native language. It can
use various software to improve the communications and managing employees. The organisation
can make partners so that it can meet out the challenges and run its business successfully. For
effective management the organisation have to recruit experienced and knowledgeable
employees and convince it existing employees for relocation. The companies should have a
leader who must have knowledge of the customs and standard of that country in such ways the
companies can deal with the issues of globalisation. The management is required to have good
understanding of the other country laws where the business is being expanded so that it can face
the uncertain events. A leader in a business concern is required to have profound knowledge of
the international market and have ability to make cooperation with the team so that proper
mentoring can be done.
(2) Identify and critically evaluate the impact of contemporary issues on organisations.
The Organisation is impacted by the globalisation because it has to face many barriers
which may affect the profitability and revenues of the business. The company have to face the
challenges related to the diversity of workforce, technology, innovation, low cost for products,
outsourcing etc. which affect the business widely. As regard with the Asda, a business concern
may face the problem related to the technology, innovation as the environment gets changed
which affect the business due to the change in the preferences of the customers. (Permal, 2021).
When the new technology is not adopted by an organisation so the production of the products
can not be done effectively which may hinder the supply chain. This leads to the decrease in the
market share and profitability. Therefore, the organisation is required to make effective and
valuable development in order to improve their productivity and need to analyse the market
before making any innovation so that they get aware the preferences or needs of changing
environment. Globalisation enable the organisation to make flow of goods across the borders and
get access to the new culture by spreading new innovation and technology. The company is
competent to make the products at lower cost and sell it to the customers against the competitors
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to gain the competitive advantage. But there are various challengers in this contemporary
environment which company has to face(Krall and Knapp, 2021). In relation to the Asda, a
concern deals in the retailing market so it may face many challenges of the globalisation when it
thinks of expanding its business to the other countries. The company can be impacted in such
ways which are as below:
 Cut throat competition: Globalisation can leads to the destructive competition in order
to eliminate competition where the rivals uses such destructive practices to eliminate
others. It can be happen any of the reason such as due to the seasonal drop in the demand
or persistent drop due to the change in technology or regulatory policies. When there is
low entry barrier so the new entrant can come with huge investment to reduce the
competition and affect the business of the other companies(Kernan, 2021). The excess
supply in the market so the companies sell its products at the lower prices in order to
overcome the competition.
 Removal of protection: The globalisation negatively impact the business because the
industries which are assisted by the government due to the change in policies the
assistance can be removed. When the business is expanded by the organisation in other
countries so it has to follow the norms and regulation to that country. But it can be
affected when the rules and policies are changed due to the change in government.
Therefore, new government govern its own rules that are followed by the industries to run
their business successfully without any restriction of the government.
 Expensive imports: When there is limited exports by the few countries so the imports in
the country can be more expensive and the products are sell by the organisation on the
higher prices which may affect the purchasing power of the customers. Since
globalisation, organisation are able to import and export easily, however it can be
affected when there is limited import of the goods which may affect the economy of the
nation and the balance of trade(Khan, Khan and Shafiq, 2021). Therefore, the expensive
import negatively impact the economy of the nation and also add higher cost the
domestic producer who relies on the imported goods.
 Takeover of business: Globalisation leads to the tendency of the takeover by the large
business of the small institutions so that they can increase the market share and access the
economies of scale. This leads to the reduces of competition at the marketplace and make
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strong the customers base. The organisation defend itself from being takeover by the
other business organisation but this can be impacted when the high cost involved in
it(YU, and XIA, 2022). It also upset the customers and the suppliers because of the
overtaking of the organisation and also it occurs the problem of the integration because
the employee resist to takeover.
 Monopoly arises: This situation may arise when an organisation bring such unique
products which have no other substitute. This leads to the higher price of the products and
provide restriction of the choice to the customers. However, globalisation makes it
difficult for the organisation because the firms enters into the global market which
provides higher competition to the organisation instead of local competition. Monopolies
take advantage of their postilion and charge higher prices because the customers have no
other alternative for the offer products. Thus, it negatively impact the overall economic
growth and eliminates the competition.
 Unemployment: Since the globalisation has come, the organisation look for the ways to
produce the goods at lower cost so that it can provide products at the low prices to the
customers for gaining more profits. Due to this problem, it increases the rate of the
unemployment in the nation because the firms outsource their operations for cheap labour
which reduce jobs in the nation. Therefore, the worker have to immigrant to find out the
new jobs since the technology increases. It creates various jobs day by day which attract
the worker towards the new jobs.
 Expensive domestic goods: Globalisation provides open market for producing the goods
in a country and use strong pressure on the domestic products to remain in the
competition. Globalisation has divided the market into many segment so that it can
increase the sales for the business(WANG,2021). It may leads to the rise in the price of
the tariffs which reduce the purchasing power of the customers and negatively impact the
economy of the country.
(3) Analyse critically the impact stakeholder views have on approaches taken by organisations.
Stake holders are the group of the people who can impact the decision making process of
the organisation. They provides assurance that organisation have to cope up with the changing
environment in order to improve the performance and provide good quality products to the
customers. Different stakeholder have different interest related to the productivity, environment,
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quality, technology financial ethical and many more(Ekmekcioğlu, Koc and Özger, 2021).
Without the stakeholder the business can not function and affect the operation of the business.
The primary stakeholder have the direct contribution to the success of the organisation this
includes the both internal such as shareholders, employees, chief executive officers and the
directors and the external include the customers. The secondary shareholder have a indirect
impact on the organisation which includes the government agencies, suppliers and many more.
The role of the stake holders have been explained as under:
 Shareholder: These are considered the owner of the organisation as they provide fund to
the company to grow their business and can impact directly in the decision making of the
activities of the business and influence the stock market.
 Employees: the company cannot run without these employees therefore, they can affect
the decision of the organisation by refusing to work or not working as directed by a
leader.
 Customers: The customers provide their feedback to the organisation and provide their
opinion to improve it(Morea, Fortunati and Martiniello, 2021). They can impact the
company by with their negative feedback when the products are nit liked by them.
 Suppliers: These can affect the business of an organisation by changing the quality of the
products or increase the price of the inputs which they supply to a business concern.
 Regulators: The company have to abide by the rules and regulation of the government
agencies for which they are accountable.
 Local communities: These are the valuable business asset which assists in expansion of
the business. But when the activities of the business provides negative consequences so it
may oppose against the company.
Conclusion
From the above discussion it has been concluded that the contemporary plays an
important role in an organisation as it impact the probability and sale of the business and
decision-making process of a business concern. The report has discussed the contemporary issues
such as globalisation, technology and innovation which have great impact on the business,
management and leadership. The globalisation has impacted in terms of cost, price of the product
to enhance the competition in the international market. It also impacted in terms of encouraging
employees for relocation. The technology has impacted the organisation because as it increase
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the risk of security of the data. The innovation impacts in respect of the success of the product
which are newly brought with changes. Further, the report also discuss the impact of the
contemporary issues such as globalisation, technology and innovation on the organisation.
Moreover, it has explained the stakeholder of the organisation and their influence can be on the
decision making of a business concern.
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References
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