Contemporary Management Assignment sample

CONTEMPORARY MANAGEMENT
IN ACTION

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................1
PART 1: INTRODUCTION............................................................................................................1
PART 2: INFLUENCE OF BREXIT..............................................................................................2
Brexit impact in the external environment to the internal environment of the organization.......5
PART 3: REALWORLD COMPARISON......................................................................................6
PART 4: RESEARCH APPROACH...............................................................................................7
PART 5: CONCLUSION................................................................................................................8
REFERENCES................................................................................................................................9

EXECUTIVE SUMMARY
This research problem definition identifies a research problem within an organisation that I
have chosen, which has been and is going to be affected by Brexit significantly. It will be
combined with my management pathway subject area knowledge which is leadership and
management. The research intends to use both primary and secondary data, as well as qualitative
and quantitative data. Then the problem will be set up and discussed providing sufficient context
and background in those following below: firstly, brief justification of the reason why this
company has been chosen, and background of the company will be followed. Then in the second
part will be about the influence of Brexit. Relation of the chosen company and elements of
interest from the indicative content for this module will be explained. The third part will explain
research about real-world comparison. The forth section will be about the research approach. It is
going to be identified and explained the research approach proposed. And lastly there will be
conclusions. There is going to be summary of my findings, and indicate where my action
research process might take me in the coming stages.
PART 1: INTRODUCTION
Food industry especially the processed food and drink sector is the biggest manufacturing
sector in the UK and contribution to the economy is worth £28.8 billion. In 2017, exports were
worth £22 billion itself and it is expected to stay growing. The sector employs 400,000 people in
the UK, and one third of them are EU national employees. The success of this sector has been
highly dependent on participating in the single market and customs union, meaning it will get
great influence by hard Brexit (the Houce of Commons, 2018).
Arla Foods is an international company, produces dairy food. The headquarter is in
Denmark. It is owned by 12,000 dairy farmers and approximately 2,500 of them are based in the
UK. The biggest market is in the UK and Arla is the UK’s number one dairy company in terms
of milk, butter, spreads and cheese. The history of this company dates back to the 1880s when
the first dairies Sweden and Denmark were formed (Arla, 2018).
Arla Foods was chosen for this assignment because it is the UK’s leading dairy company
and is the great way to show the example of what could happen to dairy industry including food
industry in general. Dairy provides 80,000 workforces across the UK and helping many
companies that is involved in the supply chain to generate revenues. Since the UK is the third
biggest milk producer in the EU after Germany and France at 14.8 billion liters of milk output
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per year, there is high possibility of Brexit could make dairy industry more competitive and
profitable (Bate, 2016).
PART 2: INFLUENCE OF BREXIT
The estimated impact of Brexit on the food industry is huge, in terms of inward
investment, labour and employment, as well as the change of policy and regulation. It is not only
UK’s food producers concern but also for any companies that serves the UK market (Hogan
Lovells, 2016). As mentioned above, there is possibility that dairy industry could be more
competitive and profitable by the influence of Brexit. In order to make this happen, the
organisations have to manage the impacts of change on external environment and as also on the
internal environment of the organization (Dhingra and et.al., 2016). Arla food products will not
face any changes in demand of its products as it has already created brand image and loyalty of
its customers. Brexit will impact trade cost, labour markets, and also some problems will be
faced by goods markets as well. UK household faces' problem of loss in disposable income due
to depreciation in sterling and Brexit related uncertainty. UK will have to spend more on trade
cost due to changes in rules and regulations of Brexit effect.
The animal origin products will face a great problem as when imported from European
markets, it received UK special country treatment. Now it has to fulfill veterinary certificate
requirements. Arla foods also have to manage veterinary control check which will cost 50.60
euros per 6 tonnes consignments and will also require 54 euros per consignment for organic
certification. Arla foods will also face problem regarding ports as it has to change routes which
will further increase its cost and time for go through checks (Ziv, 2018).
Domestic dairy market has been strong and successful for years and exports have been
increasing and demand in non EU countries have also been increasing by 91% in volume over
the past few years, meaning even if the hard Brexit hit and trading in EU had become difficult,
there is a way to stay profitable by doing business outside of the EU. As for a fact, it is expected
that demand for dairy products will grow at 2% globally in the next decade, which means UK
will have more opportunities to have new markets and increase dairy exports globally (Willis
Towers Watson, 2017). However, Pan-European dairy cooperative Arla Foods thinks border
breakdown could also leave consumers in the UK with higher prices and fewer choices
especially for the availability of butter, yogurts and cheese, which is caused by non-tariff barriers
to trade and restricted access to labour (Do and Smallbone, 2017). This means that current
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imported dairy products which are including cheese, butter, butter oil, whey, buttermilk and
fermented products, yoghurt, concentrated milk, powders, milk and cream, infant formula and
ice cream will get huge impact (Arla Foods, 2018). For Arla foods to manage the impact of
change in the external environment to the internal environment is by coming up with strategic
plan. In order for them to get to the desired state where they will successfully be able to expand
their business outside of the UK is by finding alternative countries where they can import those
products mentioned above (Portes and Forte, 2017).
Where are the skills gaps exposed by the potential reduction of E.U. citizens in the U.K.
workforce?
UK expects moderate skill shortage of employees due to Brexit. Organisations should
focus on developing existing staff, increases its employee relations, give opportunities and
chances of promotion and development growth to employees in order to retain them. UK
countries remain alert of potential changes which may happen due to leaving the union European
union. UK companies aims at hiring people with skills and knowledge who are able to gain
competitive advantages and who satisfy their potential needs (Belke and Gros, 2017).
The decision of UK to leave the European union has affected recruitment and talented
professionals. There is increased competition for recruitment of skilled and talented workforce.
UK markets was having EU workforce which is affected by Brexit effect and it also created
skills gap very apparently. Brexit will also affect IT workforce of UK countries as it were mostly
generated from European markets. Arla food products will not get affected much due to effects
of Brexit because it is not much related to income of people. Arla foods provides various cheese
products which are estimated to gain demands due to Brexit (Bartkova and Ishchuk, 2017).
How will employee/global resourcing/employment of expatriation change?
As for restricted access to labour, another problem in the food manufacturing industry in
general is that UK companies are going to face difficulties in finding alternative for a great
number of non-UK nationals workforce. It is estimated that 130,000 of this 400,000 workforce
are coming from outside of the UK, many of them are coming from Eastern Europe often
working in agriculture and factories for valued seasonal jobs. On top of that, also estimated that
over the next few years, as many people are getting retired, this sector is going to lose 100,000
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workers overall. The increase in the dependence on UK workers is going to lead many
companies to change their business model, especially in terms of wage costs (Kaur, 2017).
It is very important for multinational companies to manage its expatriate workforce.
Organisation should focus on retaining its employees and lowering the employee turnover.
Companies human resource management aims at using and utilizing the best use of knowledge of
skilled workforce. UK companies can manage to attract expatriate labours and skilled employees
which can benefits the organisation. This will result in bringing innovation in business activities
of UK company by having fresh ideas and techniques of expatriate workforces (Whitman, 2017).
How to manage an expatriate workforce of U.K. citizens in Europe?
In today's competitive world, it is necessary to have effective workforce that is able to
manage and bring innovation and creation in business activities. Large multinational companies
hire expatriate workforce to handle its business operations and get anemic return on human
resource investment. Companies can focus on retaining its employee and expatriate work force
which leads to reduction in employee turnover and saves the cost as well. Organisation should
able to manage their expats effectively and properly and can follow general practices for the
same.
UK leaving European union creates problem and uncertainty for business organisations.
The major problem is related to recruitment and staff retention. Majority of the staff for UK
comes from European countries as expatriate workforce. Brexit would also impact and reduce
the number of students who come in country for education. And UK will lose highly skilled
graduates and labour workforce. Companies should ensure that they are hiring the right people
for job profile. The expats should be able to manage and complete the given task at right time.
Human resource of organisation should have technical skills and knowledge (How Will Brexit
Affect Your Business, 2017).
In addition to impacts on the costs through the supply chain, there are more concerned
issues that could be worsened by non-tariff barriers. Firstly, there would be increase in time and
costs when the products arrive at the UK ports. There will be additional seven minutes waiting
period for each inspection, which is adding 10 hours of delays plus additional costs of at least
£111 per container. This also could cause some products to have less freshness (Dhingra and
et.al., 2016).
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Secondly, there would be further additional costs especially for dairy products since dairy
product checks at the border is needed due to subjecting products of animal origin (POAO).
Thirdly, there are so many challenges get increased in veterinary checks at the time of brexit. It
also gets decrease number of vets. Workload growth increase 372 per cent vets on borders. It
impacts all over the business of company, brexit make pressure on firm and also to their higher
authority (Do and Smallbone, 2017). After this process the whole structure get changed, trading
process get stopped, business partner ship totally destroyed by separation. Arla food face a lot of
issues for establishing organization in different place. The impact of this process increase
external factors which effect the internal factors of firm and also get some negative changes in
environment. And lastly, there would be rise in costs for transports for EU national due to the
decrease in the value of the pound and other relating Brexit issues could cause rise costs for lorry
drivers and farm workers transport.
Brexit impact in the external environment to the internal environment of the organization
After Br exit between UK and British, the organization face a lot of issues in for trading
their company products. It gets impact on their external and internal environment of Arla food. It
is a UK based company they provide dairy products to people. After exciting process they face
problems in productivity and growth of business. External factors affect business objectives. By
using PESTEL analysis it can easily identify the impact of Brexit (Bartkova and Ishchuk, 2017).
Political factors impact on company growth because after separation it less the productivity
or income source by trading. This process effect on rules and policies made by government.
Further this changes make business growth down in marketplace. For establishing business in
another country Arla food needs to follow new policies which hamper their production. To get
over come within the time of this crisis they need to adjust in their product price and also make
new strategy to attract customers toward their products. Competitors in new place or country is
another function of external factors. Economy factor effect company, Arla food owner can not
have any control on economy after brexit. But they can do one thing which is that company
adjust or made their products according to downward and upward trends. They can stop the other
project and also modify budgets (Kaur, 2017). After the process of growing economy and low
rates, they can make this process easy by taking low interest loans on their production, this will
help in expanding their new business in another country. Social and technology factors also get
impact on business environment of company. Socio- culture of people in new country effect
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organization growth because there are so many other companies established their brand image in
marketplace, Arla food need to attract people by knowing their taste in food products, their basic
needs and requirement. Growth of population, career attitudes, health conscious people are
included in social factors. All they need to do market research for getting better result of
population choice and needs. Technology factors define new process creating innovation in
business. Arla food used different types of technology for establishing their business in another
country. They need to prepare new strategy of marketing their products (Whitman, 2017). The
organization produces new structure of producing services and goods according to present
population demands. They also make some new planning for distribution their products to
people. Through using different promotional strategy they also introduce their product in
marketplace and in front of people which helps them to attract customers. Brexit increase
competitors for company, for establishing business in marketplace company need to research on
other business strategy. Which product they sell in what price, than they set their prices and start
making production for products. Customers get deducted after separation, organization face
many issues. All these external factors impact upon the internal factors of company. This process
get pressure on employees, by their leader (Dhingra and et.al., 2016). Leadership define authority
who take decision for managing firm by such functions as budget making, sales, financing and
marketing. They need to build strong vision for making good brand image. For all the pressure
by brexit leader of firm also forced their employees to work more hard than the other
organization. Workers demotivate through this process, this will increase employee turn over
which is also a major issue for company. Highly impact of brexit on Arla food decease
productivity, stop growth of business, demotivate workers, stoke holder turn over, customer
deduction etc. are the effect of this process. To increase brand position in marketplace better than
the other existing company, Arla food need to developed new strategy and make new planning
for promoting their business or products (Do and Smallbone, 2017).
PART 3: REALWORLD COMPARISON
Retaining skilled employees is the great solution, by this way Arla foods would be able to
run its operations in such critical condition significantly. Entity has strong brand image and its
dairy products are very popular. It is very important for Arla foods that to retain skilled
workersin business so that they can provide deal with consumers significantly. It has large
number of customers thus, entity is required talented people those can perform well in business.
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Arla foods should give rewards to its existing staff members and have to give them recognition
due to their hard efforts. This would be better for firm to retain its skilled employees in firm for
longer duration. This is the best way to implement this solution (Belke and Gros, 2017). People
have different needs, company always has to emphases of its employees’ requirements and have
to fulfill their desires. Arla foods can create healthy workplace environment and can develop
healthy relationship with them. This is the best way through which enterprise can gain loyalty of
its workers and can make them loyal towards the brand. During Brexit Arla foods also faced
some issues but all these problems can easily be resolved if entity has talented people.
People can be encouraged if they get love, affection, monetary benefits, healthy
atmosphere. Arla foods has to ensure providing all these facilities to its existing employees, by
this way will retain in business for longer duration and will contribute well in achieving goal of
organization to great extent (Whitman, 2017).
PART 4: RESEARCH APPROACH
Proposed research approach for the present topic is inductive. It is the type of method that
always emphases on exploring new theories and moving specific observations to generalizations.
It can also be termed as detailed observation of existing theories in order to find out insight detail
related to subject matter. This is the simple way through which scholar can answer research
questions and can develop understanding about topic. Researcher tries to find out preliminary
relationship between variables by applying theories and models.
Inductive approach is undemanding tool because scholar needs not to frame any kind of
hypothesis. It is also known as bottom up approach in which investigator uses observation and
build a clear picture that is helpful in answering research questions effectively.
Inductive approach is suitable for the present study issues faced by companies during
Brexit and its solutions. Through this technique, enterprise has become able to sensing problems
and analysing situations (Inductive Approach (Inductive Reasoning), 2018). It is logical in nature
and supports researcher to involve human being in investigation in order to gather real and
current facts related to study. Inductive research approach is highly associated with qualitative
type of studies in which scholar has to use theories and models. This is qualitative study thus, use
of inductive approach is suitable in order to generate valid results.
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PART 5: CONCLUSION
From the above study it can be concluded that dairy market is performing well and demand
of dairy products is continuously increasing. Brexit has adversely affected the performance and
sustainability of big organizations. Due to Brexit companies were unable to run operations
effectively and that has enhanced burden on the business units. Most of the companies have
faced issues of lack of workers and poor retention of staff. It is very important for firms to pay
more attention on developing existing workers and retaining them in business for longer
duration. This is only possible when entities provide reward and recognition to its staff members
and motivate them to perform well. Multinational entities have to give incentives, bonuses,
healthy workplace environment to its staff members so that they feel encouraged and like to
work in company. This is the best way that may help business in retaining its skilled employees
in company for longer duration.
This research defiantly will be beneficial for researcher, person has improved knowledge
and has developed research skill. These capabilities will help individual to work well in future
other studies.
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REFERENCES
Books and Journals
Bartkova, K. and Ishchuk, N. Y., 2017. Impact of Brexit on the British economy. Topical Issues
of Humanities, Technical and Natural Sciences. pp.12-15.
Belke, A. and Gros, D., 2017. The economic impact of Brexit: Evidence from modelling free
trade agreements. Atlantic Economic Journal. 45(3). pp.317-331.
Dhingra, S. and et.al., 2016. The impact of Brexit on foreign investment in the UK. BREXIT
2016. 24.
Do, H. and Smallbone, D., 2017. The impact of Brexit on UK firms’ internationalisation: a
comparative study between Born Globals vs traditional SMEs.
Kaur, J., 2017. Impact of Brexit on Indian Stock Market. TRANS Asian Journal of Marketing &
Management Research (TAJMMR). 6(6). pp.23-28.
Portes, J. and Forte, G., 2017. The economic impact of Brexit-induced reductions in migration.
Oxford Review of Economic Policy. 33(suppl_1). pp.S31-S44.
Whitman, R. G., 2017. Devolved external affairs: the impact of Brexit. Chatham House.
Ziv, G., 2018. The potential impact of Brexit on the energy, water and food nexus in the UK: A
fuzzy cognitive mapping approach. Applied Energy. 210. pp.487-498.
Online
How Will Brexit Affect Your Business. 2017. [Online].Available through
<https://www.getsmarter.com/blog/market-trends/will-brexit-affect-business/>
Inductive Approach (Inductive Reasoning). 2018. [Online].Available through https://research-
methodology.net/research-methodology/research-approach/inductive-approach-2/
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