Contemporary Management Issues and Challenges

The provided document discusses various contemporary management issues that affect companies and society. It emphasizes the need for organizations to identify and address social, economic, ethical, and legal responsibilities through corporate social responsibility. The report covers impacting forces, dynamic changes, and marketing functions, highlighting the importance of strategic decision-making and effective planning in mitigating external environmental issues.

Contemporary Management
Issues- C1

Table of Contents
INTRODUCTION ..........................................................................................................................1
Main Body.......................................................................................................................................1
Exhibit an understanding of the key dynamic forces impacting on business and society..........1
Critically evaluate the relationship between such forces in terms of effective strategic decision
making process. ..........................................................................................................................2
Evaluation of Walmart's responses to key dynamic forces in the contemporary business
world. .........................................................................................................................................3
Decision making tools to address contemporary driver for change ...........................................4
Theoretical foundations to support the identification and application of effect corporate
responses to contemporary management issues..........................................................................5
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Contemporary management issues have arisen as a result of past and current issues will
emerge the current thinking and practises. Present report based on contemporary issues
management which affects the business environment and society. There are different factors will
be discuss in this project which affects the growth of organisation or society. Furthermore, it will
discuss on the basis of three models Hofsted, Porter's five forces and social changes. These
models are the tool to identify the changes and affecting factors. Further, it will also discuss
about the cross-cultural communication, values and social beliefs. Along with that some factors
which affects organisation and society behaviour. These all factors helps to determine the
management issues. Moreover, it will also look upon the issues which affect the environmental
factors. In order to overcome from those issues what steps will take by the company will also
explain in the report.
Main Body
Exhibit an understanding of the key dynamic forces impacting on business and society.
There are several factors which affects organisation or society factors and give adverse
effects to the organisation culture there are some factors which affects external and internal
factors (Alfirević, 2015). Along with that, this factors changes the needs and wants of the
organization and societies. There is the model of porters five forces which affects the
organization as well as society.
Porter's five forces Model
Threat of new entrants: this is the first model of forces, this is the most challenging and
competitive factor which affects existing firms or organisation When organisations are competed
with the same market they facing challenges and issues as well (Cherry and Jacob, 2016). Other
new organisation also think to enter into the same market, these kinds of things create future
barriers. On the other side, society has also affected by the new entrants. Their choices or
alternatives has been increasing due to which they get confused among the several products and
services.
Threat of substitute products and services: this is the another threat which affect the
functioning of organisation. In which customer switch from business to another business. They
compare the prices with other products and selects whichever is better. This possible impacts
affect the growth of existing companies. This force includes witching costs which affect business
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in long term. This makes environment challenging and competitive (Colbert, Brennan and
Mercer, 2015).
Bargaining power of customers: This force looks at the power of customer which is related to
the pricing and quality. Bargaining power of customer affects company when number of
competition is high and number of customer is less. At this level of point company get affected
from the bargaining power of customers. It also impacts on the society as well. It gives the new
effective opportunity to the buyers. In this force consumer only affect towards those products
whose product quality is best and unique.
Bargaining power of suppliers: this force describes about the supplier power and its effects. It
affects company or organisation if suppliers power is high and prices are changed by the
supplier. Due to which company raises their prices which also impact on the society. This gives
the best possible outcomes(Hall and Wright,2017).
Competitive rivalry: five forces helps to determine the competition level in the market. This
model is competitive to measure the market condition. It helps to measure the existing number of
competitors and what they actual do (Schermerhorn and et.al., 2014).
Critically evaluate the relationship between such forces in terms of effective strategic decision
making process.
On the basis of above forces which affects company functions and strategic positions.
Changes factors affect the company performance and decision making process. Along with that,
this will affect the company overall structure. External forces change the decision or business
plan of the organisation. It is the complex process in order to adopt the changes and implemented
effective planning. On the other side, these factors influence the market changes due to which
company needs to make new business plan in order to adopt all changes in the company. Market
changes or external environment is highly dynamic and unstable due to changes in prices, threat
of new entrants, rivalry competition level these all are the forces which influence company
decision making process. Apart from that, changes are beneficial for the company in order to
compete the market position and attract the customer attraction. These changes introduce new
technology and method in order to perform the task. Changes helps to adopt compatibility among
employees which helps to enhance performance level of the employees (Schaltegger and Burritt,
2017). Changes management is very necessary for the company in order to adopt the best
possible changes to maintained the market share of the company. It increases the competition
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level which help to motivate employee motivation and employee enhancement. Changes
management is the necessary for the organisation in order to adopt the best possible outcomes. It
is the responsibility of the manager to adopt effective tools and techniques in order to make the
best adoption strategies. Before making decision approach company needs to determine the
market changes and ineffective factors. It helps to make the effective strategic planning. Change
management includes factors which helps company to determine actual prices of the competitors,
actual technology has been present in the market. With the helps of change forces company can
take action in order to settle the market changes.
Evaluation of Walmart's responses to key dynamic forces in the contemporary business world.
According to Nacion, Park and Kim, (2018), Walmart is a leading and successful
organization operating its business in many countries. There are various key dynamic forces or
factors that affect the business functions or activities of Walmart as identified by the Porter's five
forces model. In order to manage and reduce the risks which can be developed by these forces
Walmart adopt various methods or ways which are as described below -
Threats on New entrants – A major element or force affecting the business operations in the
contemporary world is the threats of new entrants which result in the change in level of
competition. In order tackle these force the companies performs various activities as described
below -
 Innovating new services and products in the market which can help in bringing new
customers.
 Developing scale of economies in order to reduce the fixed cot per unit.
 Spending money on market research and development along with building capacities.
Bargaining Power of supplies – Another force influencing the business functions of Walmart is
the bargaining power of the suppliers. Every organization or business is importing the raw
material from various suppliers, Powerful suppliers within the service sector try to extract higher
prices form the organizations through their negotiating power. The change in the cost of supplies
greatly affect the overall cost of Walmart in order to manage this force the organization performs
the following activities -
 Developing efficient and strong supply chains with multiple suppliers.
 Innovating or experimenting new product designs by utilizing different materials so that
when the price of one raw material rises the company can shift to another.
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 Walmart focus on developing dedicated supplies whose business is dependent upon
Walmart.
Bargaining Power of Buyers – The Bargaining power of the buyers also affects Walmart's
functions and business. The higher bargaining power of the customers and their ability to seek
offers and discounts this puts a lot of pressure ion the Walmart's business strategies, functions
and profitability. In order to handle and mange this force effectively Walmart performs the
following activities -
 Developing a large customer base, it assists the company in two different ways. Firstly, it
decreases the bargaining power of the customers and secondly it provides an opportunity
to the organisation to contour its production and sales process.
 Introducing new products and services also helps Walmart to decrease the desertion of
the exiting customers of the organisation to its rivals.
Threats of substitute service and products – When a new service or product fulfill a similar
buyer needs in different ways, Walmart's profitability gets affected. It is very essential for them
to control and manage this force in order to maintain their position in then market. The Walmart
performs the following activities in order to control this force -
 Walmart starts focusing on providing effective services rather than only offering high
quality products.
 They determine the core need of the buyers
 Increase the switching cost for the buyer.
Rivalry among the existing rivals or competitors – The high or intense competition among
existing competitors affects the profitability of Walmart therefore it is important to tackle this
force. In order to control and manage this force the Walmart performs the following activities -
 They develop appropriate scale in order to compete in a better way.
 They collaborate with competitors in the market to enhance the market size rather than
competing in a small scale market.
Decision making tools to address contemporary driver for change
In order to address contemporary driver for change it is important use effective decision making
tools. According to Taylor, (2017), the social change model and the 7 c's can be applied in order
to select and use decision making tolls which can hep to manage and control contemporary
drivers for change.
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The Social change model and the 7 c's
 Consciousness of self – It means to be aware of the values, attitude, beliefs and emotions
that encourage one to take action. The organizations or individual can use this technique
and make effective decisions.
 Congruence – It refers to the feeling, thinking and behaving with authenticity,
consistency, honestly and genuineness towards the others. The organizations and
individual needs to take decisions according to the elements towards others.
 Commitment – It refers to the psychic energy that encourage an individual to serve and
drives collective efforts.
 Collaboration -This refers to working with others by providing common efforts.
 Common purpose -This refers to working with others to achieve a common aim or
objective.
 Controversy with civility – Civility refers to the respect to others, it is important to
respect the values, feelings and emotions of others in personal as well as corporate world.
 Citizenship – It is a procedure through which groups and individuals become responsibly
links or connected to the society and community.
Theoretical foundations to support the identification and application of effect corporate
responses to contemporary management issues.
There are many theoretical foundations to support the corporate responses to
contemporary management issues. The most effective theoretical approach can be Carrroll's CSR
pyramid. According to Federici, Königs and James(2016), this approach or pyramid states the
hierarchy of responsibilities moving legal and economic through more socially oriented
philanthropic and ethical responsibilities. Economic responsibility states that the society is
expecting a business to manufacture services and goods which are demanded by the people.
Management issues needs to be eliminated by considering all the responsibilities such as social,
economical, ethical and legal responsibilities. The Corporate social responsibility needs to be
identified by each individual and organisation in order ensure that the management issues are
avoided and addressed effectively. There are various other foundations or theories developed by
the Public relation management or issue management which has various approaches and theories
to response to the management issues. The legal policies such as employments act, legislative
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polices, discrimination act etc help an organisation to control and manage the issues related to
the management.
CONCLUSION
From the above section, it can be concluded that, there are many contemporary
management issues which may affect company as well as the society. It gives opportunity to
identify the different aspects of market which affect company atmosphere. Overall, present
report discussed about the impacting forces which gives impact on the social or organisational
context. On the other side, it also covered the topic of dynamic forces which increases
contemporary business world. Dynamic changes influenced the marketing functions and affect
the future objectives plans. Company needs to adopt strategic decision making and effective
planning in order to mitigate the effective issues of the external environment.
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REFERENCES
Books and Journals
Alfirević, N., 2015. Editorial to the special issue of Management-Journal of Contemporary
Management Issues:" The life and work of Professor Emeritus Marin
Buble". Management: journal of contemporary management issues, 20(Special issue),
pp.I-III.
Cherry, B. and Jacob, S. R., 2016. Contemporary nursing: Issues, trends, & management.
Elsevier Health Sciences.
Colbert, S. D., Green, B., Brennan, P. A. and Mercer, N., 2015. Contemporary management of
cleft lip and palate in the United Kingdom. Have we reached the turning point?. British
Journal of Oral and Maxillofacial Surgery. 53(7). pp.594-598.
Schaltegger, S. and Burritt, R., 2017. Contemporary environmental accounting: issues, concepts
and practice. Routledge.
Schermerhorn, J. and et.al., 2014. Management: Foundations and Applications (2nd Asia-Pacific
Edition). John Wiley & Sons.
Federici, A.B., Königs, C. and James, A.H., 2016. Contemporary issues in the management of
von Willebrand disease. Thrombosis and haemostasis, 116(S 01), pp.S18-S25.
Taylor, S., 2017. Contemporary issues in human resource management. Kogan Page Publishers.
Nacion, A.J.D., Park, Y.Y. and Kim, N.K., 2018. Contemporary management of locally
advanced rectal cancer: Resolving issues, controversies and shifting paradigms. Chinese
Journal of Cancer Research, 30(1), p.131.
Hall, J. and Wright, R., 2017. Contemporary issues in the management of patients with coronary
artery disease across the cardiology spectrum. Continuing Cardiology Education,3(1),
pp.2-3.
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