Contemporary Management Issues: A Literature Review

This literature review explores the key dynamic forces shaping the contemporary business environment. It examines how these forces, including technological advancements, social changes, and international dimensions, influence strategic decision-making processes within organizations. The review also delves into the impact of social and cultural diversity on business operations, highlighting both the opportunities and challenges it presents. By analyzing these factors, the review provides insights into the complexities of managing businesses in a rapidly evolving global landscape.

Contemporary Management Issues
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Table of Contents
Task 1.........................................................................................................................................3
Literature Review.......................................................................................................................3
Introduction................................................................................................................................3
The key dynamic forces affecting business and society............................................................3
Dynamic Forces to influence strategic Decision Making Process.............................................4
The Drivers of Social Changes..................................................................................................5
International Dimensions...........................................................................................................6
Social and Cultural Diversity.....................................................................................................7
Summary....................................................................................................................................7
References..................................................................................................................................9
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Task 1
Literature Review
Introduction
The aim of the literature review is to discuss responses of the key dynamic forces of the
contemporary business world. The social and business environment changes are effective to
the strategic decision making process of the organizations. The organizational functions are
interdependent on the current market research report at their strategic decision making
process. The international business world is facing multiple issues to operate their business in
the international competitive market. The international dimensions like culture and political
regimes increase the product quality and design in the international context. The business
environment is closely interrelated to the social and cultural diversity. The rapid growth of
globalization and industrialization are radically changing the contemporary business
environment. The contemporary business environment is regularly facing several issues to
grow up in the current competitive market. The literature review aims to discuss the issues of
current business environment and its diversity. The social and cultural diversity is another
part to influence the international business platform. The literature review is the details study
of interrelationship between business and social changes which are related to the
contemporary issues of current business environment.
The key dynamic forces affecting business and society
The current business world is affecting with several key dynamic forces of the international
business platform. The organizations have market influences and resources to effect the
positive changes of the business. The current business environment implies the external
forces, institutions and factors, which are beyond the control of individual organization.
These factors affect the small business enterprise. Through the supply chain management,
products labelling, corporate philanthropy, cause marketing and employee coordination helps
the organization to gain sustainable growth in the business environment. The external forces,
which influenced several business organizations, are competitors, local governments,
creditors, socio-cultural organizations, several political parties and others. Some forces affect
eth business organizations directly and some affect indirectly. The current business
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environment sums total of external things to influence the business forms, which are
aggregative in nature. The small business environment requires both specific and general
forces. The specific external forces affects the daily work progress of the organization and the
general external forces affects all types of individual organizations directly. Current business
environment is dynamic in nature, which moves on changing in terms of technological
improvement, shifting in consumer choices or the entry in new competitive market. In
context of key dynamic forces, which are affecting the business organization, people are at
the first position. However, people are the thinking, living and feeling beings to work in an
organization in order to achieve the specific objective. This element creates the internal social
function of an organization. The internal organizational; system requires the dynamic
workforce which is small in size and informal an unofficial in nature. The organizational
structure defines the most formal relationship among the people and organization itself. In
this context, the report of Hrmars.com. (2018) disclosed that if the workforce keep the strong
team bonding, the achievement of organization becomes easier. The co-ordination increases
the work progress and product quality. The adaptation of advanced technology uplifts the
mechanical process to meet the organizational goals. This technology provides the necessary
resources, which are effective towards the productivity and profitability of the organization.
The local political environment is another dynamic force, which is responsible for affecting
the business as well as the society. The local political environment influences the attitudes of
external stakeholders which affecting the working conditions and increases the costing of raw
materials. The mismanagement of the supply chain has the potentiality to change the
performance of an organization. However, the size, sales, efficiency and effectiveness of the
supply chain defines the performance of an organization in the competitive market.
Dynamic Forces to influence strategic Decision Making Process
According to Dimitratos et al., (2011), current strategic decision-making process is non-
routine, ill structured and inevitable to the firm. This statement also disclosed that the
strategic decision is a plan, poly, pattern, position and perspective of a management team of
an organization. These five Ps helps the management team to plan, formulate and
implementation of strategic decision-making process. In this context, the strategic
management team faces several issues like the requirement of large amount of resources for
the firm. The issues of dynamic forces also affect the long-term prosperity. The decision
specific characteristics are the major issues, which affects the strategic decision-making
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process of an organization. Therefore, the organizational and internal forces are responsible
to influence the internal strategic decision making process. The suppliers and customers have
the potentiality to increase the external stakeholders’ numbers of the particular organization.
After that, the marketing intermediaries play the role of an intermediary to interlink the
merchant and agents in order to increase the sales of the organization. On the other hand, the
ability of manages with the grater meta-cognitive work experiences create the less erratic
strategic decision. Current competitive market in changing rapidly with the gathering of
existing competitors and new entry of several organizations with advanced system and
technology. The management team keep in mind about the stability in current market. In this
context, the market research report is the most effective part to influence the decision making
process of an organization. However, Puterman, (2014) commented that this market research
report provides the necessary information to the marketing team to take the necessary
decision about the promotion and placement planning. On the other hand, Robert Mitchell et
al., (2011) the finance department takes their strategic decision in order to create the annual
budget planning which is effective to depict the capability of the organization. The finance
department also set the pricing strategy, based on the market research report, in order to grab
the market position in the international competitive market. Therefore, the production and
operation department of an organization used to designed and manufacture their product on
the basis of the market research report. The aim of the market research report is to acquire the
complete information about the current competitive market before placing any new or
modified products.
The Drivers of Social Changes
The dynamic forces, which are influencing the business environment, are active to make the
changes to the society also. According to Unrisd.org. (2018), the dynamic forces which are
responsible to change the human behaviour are effective to change the society. The current
review studied that multiple social changes in various areas of the business environment,
which brings the economic and social inclusion. The individual behavioural changes
influence the society to change its essence and values. In this context, the positive behaviour,
changes the ranged from the simple actions or the shallow change to a major changes in the
daily lifestyle. The renowned scholars Head and Alford (2015), commented that the modern
thinking of the business leaders offering the economic benefits to drive the social changes
and innovations. On the other hand, the organizational reputation, which is responsible for the
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social changes, has the potentiality to raise the pool of forthcoming employees and
customers. The investment in the social changes creates the better business sense among the
society. According to Puffer and McCarthy, (2011), the corporations can utilize their
charitable efforts in order to improve the competitive context of current market. The
philanthropy helps the society to enhance economic goals and business perspective of the
local business owners in a long term way. The social behaviour requires three essential
elements to change the individual behaviour of the social animals. Motivation is the key word
which effective and essential reason to make the social change. Therefore, the individual
ability and efficiency furnish the confidence level and knowledge of the workforce to bring
the social changes. At the end, the organizations get the opportunity to access all the
necessary resources from the society which smoothes the relationship among the
stakeholders. The social changes are effective towards the contemporary business
environment to uplift the business process and system.
International Dimensions
Famous researchers Cavusgil et al., (2014) international business environment has several
dimensions which impacted the organizational behaviour. The international dimensions are
cultural dimension, income generating profile, legal system, political risk, international
exchange rates, tax regimes and others restrictions. In this case, at the time of building
taxonomy, the international business environment must be weighted with the carrying
operations to the foreign markets, selecting the partner ships, planning and adaptation of new
or modified products in order to adjust in the internal process of the organization to the
foreign operations. In this context, the cultural dimension the effective and important one to
the international business environment. Culture is the set of attitudes, values and beliefs
which can be used to distinguish among different groups. The diversity in the legal system
enhances the business opportunities to the foreign investors. The legal system is another
important international dimension which included several political practices and policies to
operate in different location in the international business platform. The renowned scholar
Falkner, (2017), stated that the income profile among the international countries requires the
adaptation of multinational environment to their operational system. The labour intensity and
their skill management are essential to the international production and operation department.
Current changes in the modern slavery law have stabilized the wages system of the employee
in the foreign business environment. The political risks which are arise from the instabilities
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of international regime shifts, civil insurrection and unwanted bureaucratic interventions of
the foreign investors. At the end, the restrictions which refers to the various forms rules and
regulations like non-tariff barriers, tariff barriers which are hosted by the local government on
several foreign products or services when they enter in to the host country’s economy.
Social and Cultural Diversity
According to the report of UNESCO World report, (2015), the social and cultural diversity
has its vast impact in the international business platform. However, the social and cultural
diversity enhance the development of products and services in the international competitive
market. In this context, the interaction and communication with the foreign business partners
increases the products design and quality because of multicultural combinations. The cultural
and social diversity has its positive impact to the contemporary business environment. The
screening and selection of foreign investors and distributors is effective to the international
business environment as well to the domestic business environment. The interactions among
the potential and current customer of foreign lands are another addition to the social and
cultural diversity. The participation in the international trade fair widens the business
engagement among the foreign investors. The self categorization theories suggested that the
cultural diversity is strongly associated with the negative outcomes of the organizational
performances. The cultural diversity has several drawbacks, with extra ordinary costs,
especially in the problem solving situations. The historical and geographical conditions have
created a place of co-existence of multinational countries and cultures. The diversity at the
workplace is an exact reflection of contemporary changing business world. The international
diversity management benefits the associate groups to the same challenges and opportunities.
The literature review presents that the cultural diversity is neither an important asset nor a
vital liability but it is definitely closer to the profitability.
Summary
The current international business environment is rapidly changing its shapes and nature. The
main reason behind this radical change is the interlinking of multinational cultural
environment. The international business platform provides the opportunity to access the
multicultural knowledge and information which are responsible to enhance the products
quality and service. The enactment of modern slavery act enhances the poor condition of
labour group in the international business platform as well as in the domestic business. There
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are several key forces or key drivers to bring the changes in the business environment as well
as in the social changes. The social changes and business environmental change are
interlinked on each other. These two are responsible for making the changes in the
international business environment. On the other hand, intermingling of globalization and
digitalization is the prime key drivers towards these radical business environmental changes.
Finally the literature review successfully describes the effective key drivers to make the
current international business and social changes.
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References
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Cavusgil, S.T., Knight, G., Riesenberger, J.R., Rammal, H.G. and Rose, E.L.,
2014. International business. Pearson Australia.
Dimitratos, P., Petrou, A., Plakoyiannaki, E. and Johnson, J.E., 2011. Strategic decision-
making processes in internationalization: Does national culture of the focal firm
matter?. Journal of World Business, 46(2), pp.194-204.
Dimitratos, P., Petrou, A., Plakoyiannaki, E. and Johnson, J.E., 2011. Strategic decision-
making processes in internationalization: Does national culture of the focal firm
matter?. Journal of World Business, 46(2), pp.194-204.
Falkner, R., 2017. Business power and conflict in international environmental politics.
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UNESCO World report, 2015 , Investing in Cultural Diversity and Intercultural Dialogue
[pdf] Available at: <
http://www.un.org/en/events/culturaldiversityday/pdf/Investing_in_cultural_diversity.pdf>
[Accessed 19 March, 2018]
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