Contemporary Management Issues

This document discusses the concept of contemporary management issues and their impact on organizations. It focuses on the case study of Mothercare, examining the drivers for change and the challenges faced by the company. The document also explores the factors that Mothercare needs to emphasize in order to enhance its profits.

Contemporary
management issues

Contents
INTRODUCTION...........................................................................................................................1
The fact that in today’s dynamic business environment (due to globalization, innovation etc),
change is inevitable................................................................................................................1
On the basis of case study, examine and explain drivers for change.....................................4
To effectively complete, PESTLE analysis is conducted based on the case study in order to
evaluate factors (such as innovation, technology) impact on business performance and
decision making at Mothercare..............................................................................................7
Challenges faced by Mothercare as well as different elements on which they need to
emphasize upon for enhancing profits....................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Contemporary management issues is defined as a strategic tool which is adopt by
mangers as well as leaders in order to effectively control and monitor various types of activities
such as globalisation, human resource management, e-commerce and many more. In today’s
dynamic environment, it is important for companies to effectively manage contemporary issues
as it help them to develop a positive environment at workplace and handle teams in a proper
manner (Brown, 2018). it has been identified that various theories and strategies is adopted by an
entity in order to deal with the changes take place in the environment. In addition to this, it also
aid in bringing changes and make employees understand about the requirement of change. For
the present report, Mothercare is taken into consideration. It is a British retailer and offer
products for the expectant mothers. In addition to this, it also offer product such as toys, clothing,
seat chairs for children and so on. It is analysed from the case study that Mothercare has around
150 stores in the year 2017 and at the present the number is declined by 79 in November 2019.
One of the reason in declining the number is subsidiary gets place into administration, which
leads to the wind up of all the stores of Mothercare. The company was founded by James
goldsmith and Selam Zilkha. The company offer ist product online, in town retail parks and in
high streets. The report will cover dynamic forces and their impact on the strategic decision
making. In addition to this, there is a discussion about drivers of change in relation to the chosen
organization. The challenges faced by Mothercare and the factors, which company is required to
emphasis to enhance its profits is describe in the report.
The fact that in today’s dynamic business environment (due to globalization, innovation etc),
change is inevitable
It is determine that there are various dynamic forces that has impact on the overall
performance and activities of the organization. In addition to this, they help in gaining
opportunities which in turn leads to growth and success of the company at marketplace. In
addition to this, analysis of dynamic forces help in gaining knowledge about the threats so that
effective strategy is developed in order to deal with such threats in future. It help an entity to
gain an insight about the major forces that has high impact on organisational performance. The
dynamic forces are technology, globalisation, innovation, social and economic forces as well. It
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is determine that all these factors has influence on the strategic decision and business activities.
The factors having high impact is given below:
Globalisation –
It is defined as a process of integrating products, ideas, information and knowledge
across the world. Globalisation helps an entity to expand its operations globally in order to earn
higher profits. It is determine that globalisation has both positive as well as negative impact on
the international business environment so it is important for managers to consider all the factors
before expansion of business operations and activities globally. The factors that has impact on
the strategic decision due to globalisation are price instability, economic conditions, democracy,
trade barriers, cost of labour, raw material and many more. In addition to this, it is evaluated that
a complex globalisation structure mot only has influence on decision making but also affect on
the overall functioning of business entities. There are various challenges faced by small
companies and international companies due to globalisation (Analoui, 2018). With reference to
Mothercare, it is important for mangers to gain an insight about the concept of globalisation and
its influence on the revenue and profit level of the organization. There are lot of competitors
present in the marketplace that has negative influence on the sales of company. The competition
mainly is of price, technology that attract more number of people towards the brand. In addition
to this, it is determine that customers have high expectation from Mothercare in terms of quality,
price, features and many more. It is important for higher authorities to analyse the need of
customer and market in order to retain them for longer time period. The company is require to
develop an effective pricing strategy without compromising the quality as it help in attracting
more number of people globally that leads to increase in sales and profitability of the
organization within the global market.
E-commerce: In today’s business world, technology is changing rapidly and affect on the
overall buying behaviour of customers towards the product as well as services. They like to
consume those goods and services that offer some innovative and unique features in market. E-
commerce is a platform, which include wide range of goods and services that is sold to
customers in an effective manner. It is important for customer to have internet access so that they
can get knowledge about the price charged by company and its competitors as well. E-commerce
allow an entity to reach more number of people at different locations and enhance their customer
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base level. There are mainly two types of trading, which are conducting E-commerce that is
business to business and business to customers as well. It has been analysed that it has both
positive and negative impact on society and strategic decisions. If it is talked about the positive
factors, it allow customers to experience and shopping 24/7 hours at any place. In addition to
this, it save the time of customer and allow them to make comparison and then take decision of
buying the particular product and service as well. In addition to this, it allow customers to
compare product and its features, price with the competitors in an effective manner. Moreover, it
help an entity to develop an effective relationship with customer and engage them for longer
time period. Increase in the offering on online platforms, decline the number of employees
required by an entity for performing such activities and is considered as a negative impact of E-
commerce. The number of physical stores is declined that ahs negative influence on the living
standard of people. It is important for higher authorities of Mothercare to gain proper knowledge
about negative and positive impact of E-commerce on business so that they can expand
operations in an effective manner and attain competitive advantage at marketplace.
Human resource management: For every business organization, Human resource plays
very essential and crucial role irrespective of the scope, size, function or motive of the business.
It has also been identified that employees are the primary source of generating revenues for a
business entity as their functions contribute in the growth and development of the company. For
utilizing the talent, knowledge and capabilities of staff members it is said that training and
development session are given to then so that they can create positive outcomes in an effective
manner. In relation to Mothercare, it is concluded that employees as well as staff members are
the strength of business entity with the help of which they can easily perform their functions in
an appropriate manner and get maximum output. It is required by the human resource manager of
Mothercare to provide positive working environment to their staff members so they can feel
motivated and encouraged towards the organization and help in attaining organizational goals
and objectives. Apart from this, it is also very essential for the human resource manager to hire
skilled, talented, capable and potential workers in their business organisation.
Legislation: Legislation, policies and legal laws are the crucial factors which have the significant
capability which affect the business organization functions, operations as well as decision
making procedure. It is examined that there are various kind of laws, regulations, rules and
legislation developed by the government and needs to be followed by every business
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organisation for conducting their operations in an effective and ethical manner. For this it is very
important for the HR manager that they have proper knowledge about legislation & legal laws
which highly influences the business operations as well as execute the same in within
organizational premises for future growth and development. In addition to this, it has also been
identified that a business organisation is required to follow each and every law which is
necessary for conducting international trade (Micklin and Choldin, 2019). For this, labour law is
an essential regulation which need to be executed by business organisation so that they can
provide appropriate rights to the people working within the business entity. In reference to the
present context of Mothercare, Human Resource manager of the company is required to have
sufficient knowledge and understanding about the rules and policies developed by government of
the country as well as execute the same within the workplace. In addition to this, it has also been
said that legal policy are formed in a country commonly associated with the political stability
which are different in every country every nation. Fir this, it is necessary for a business
organisation to expand their business functions only in those countries where political stability is
quite effective and can aid in gaining maximum profitability.
On the basis of case study, examine and explain drivers for change.
With the assistance of above stated information, it has been identified that factors such as
technological, human resources, legislation and globalisation having significant influence over
the retail sector as well as can further influences Mothercare in ample number of methods in
order to adopt change. Therefore, it is quite essential for the business entity to have sufficient
understanding about all these factors & develop effective strategies & measures to attain
significant opportunities at the competitive environment. This as a result assist in maximising
profitability in an effective manner. According to the examination, it is examined that
Mothercare requires organisational modifications so that they can improve their business
functions, productivity as well as efficiency. For grabbing maximum number of advantages as
well as for gaining profitability in a retail sector it is necessary to manage each and every
business functions in an appropriate manner. Business organisation is needed to examine the
current market situation so that they can make appropriate market entry in the international
marketplace. It has also been identified that by examining the impact of such factors managers
can easily take business decisions with the help of which they can maximize their overall
profitability and revenue. In reference to Mothercare it has been identified that mangers of the
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company modify their technologies so that they can perform all the operations in best ajd
effective manner. This will help them in order to maximise their overall growth and development
at the competitive marketplace. By adopting such changes, business entities cab easily grab
opportunities available at the marketplace and leads towards profit maximisation. In addition to
this, business entities are required to launch high- technology within their organization so that
they can strengthen their overall manufacturing process which leads towards the growth of
business organisation. This as a result, assist business organization in order to maximise their
business functions and can improve the process of decision making in a positive manner. All
these factors are further going to be discussed in a detail manner as follows.
Globalisation as well as legislation: It is said that both globalisation as well as legislations
are interrelated with stimulate business organisations in order to perform their task in an effective
and appropriate manner. With th help of globalisation business organisation can easily expand
their business functions at international marketplace and can maximise their productivity and
profitability (Kaufman, 2018). While in relation with different types of regulation and legal laws
it is necessary for a business entity to manage all these legislation in an effective manner and
produce best and most possible outcome from it. For Mothercare it is very essential to maintain
these factors in an effective and appro priate manner so they can ensure to get profitability.
Mothercare manager is required to understand that these factors highly influence the business
functions and ensure that all these factors are needed to be considered in an effective manner
while doing business expansion. On the basis of evaluation it is examined that legislation as well
as globalisations are interrelated and keep modifying on regular basis so they get maximum
advantages.
HRM and technology: It has been identified that HRM & technology are the two main
essential factors of an organization which are interrelated with each other. It is necessary for
Mothercare to examine every technical elements so that they can enhance the efficiency of
human resource in an effective manner. For retaining and attracting large number of skilled
employees it is necessary to examine the current requirements of business organization and its
procedure in an appropriate manner. In this, with the help of upgraded technology business
organisation can manage the overall performance of staff members and produce maximum
profitability with it. Management team of Mothercare is needed to manage their staff members
with the help of high-tech technology. Along with this, for improving their skills and
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knowledge, managers need to provide training & development sessions to their employees. This
will aid them in achieving their targets and objectives within stipulated time frame which says
that both technologies and human resource management are interrelated with each other.
E-commerce as well as globalisation: Globalisation define as the procedure with the help
of which business organisations can perform their functions in different locations across whole
wide world. In this, business organisation needs to manage their functions so they can gain
profitability as well as increase revenue of the company at the competitive marketplace. For
entering the new marketplace, it is necessary for the company to explore their markets before
entering at international marketplace. Therefore, it is necessary for the management team of the
company to develop understanding about the concept of globalisation and utilise it in an
appropriate manner so that they can gain maximum profitability and raise market share. But on
the other hand there are some elements of globalisation which affects the growth and
development of the business organisation which consist of trade barriers, fluctuation of
transportation cost, communication barriers and many more. In reference to e-commerce it is
essential for Mothercare to emphasize on the sector and evaluate e-commerce elements so that
they can perform their functions in more effective manner. In addition to this, it is necessary for
the business to aligned all there functions in appropriate manner with the help of which they can
perform their functions associated with globalisation in an appropriate manner. This as a result
makes Mothercare to conduct their function in an appropriate and effective manner. With the
help of e-commerce, organisations will be able to influence customers in order to buy their
products and services which develop healthy and positive relationship with them. For increasing
the sales, profitability and revenue of the company managers of Mothercare needs to manage
each and every work in an appropriate manner. According to Lewin change model there are
wide range of elements related to change in context of Mothercare are as follows:
Unfreeze It refers to the first phase in order to manage
changes within the business entity. It includes
detail description of labourers as Well as its
execution among the business movement
Change This is the procedure, where there is
requirements of distinguishing among
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workers who conduct their functions in order
to receiving as well as tolerating variety.
Freeze In the last phase of the model, ample number
of balances out according to which
characterize that how business entity will be
dispatch for going ahead.
To effectively complete, PESTLE analysis is conducted based on the case study in order to
evaluate factors (such as innovation, technology) impact on business performance and decision
making at Mothercare
There are various macro environmental factors that directly impact on the functions as
well as activities of the organization. It is important for managers of Mothercare to gain an
insight about this factors as it deals and operates in the retail sector. It help company to develop
effective strategy and attain competitive edge at marketplace. PESTLE analysis is a framework
that help company to analyse the impact of uncontrollable factors on the business performance.
The PESTLE analysis is give below in relation to the respective company. This framework
involves technology, political, economic, social, legal and environmental factors which are as
follows:
Political factors: In include factors which are associated with the political environment
of a country such as political stability, trade barriers, exchange rate and many more. It is
determine that political factors has both positive as well as negative impact on the organisation.
There are many companies deal in retail sector and expand their operations globally as the
government of United Kingdom supports organizations to enhance their operations that leads to
growth as well as development of economy. It is important for Mothercare to identify various
political factors that affect on their business performance. In addition to this, it has the
opportunity and support of government to do expansion and strengthen its market position in an
effective manner. Moreover, it is analysed that managers of Mothercare is required to abide
factors such as trade control, trade regulations, employment law in order to ensure support of
government that help in increasing profitability at higher extent.
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Economic factors: This factor involve interest rate, inflation rate, exchange rate, foreign
exchange rate and many more. It is determined that income level and buying capacity of people
in UK is high and Mothercare has the opportunity to increase its efficiency in an effective
manner. it is important for Mothercare to analyse the customer behaviour at the time of
purchasing product as it help them to satisfy needs of customers and retain them for longer time
period. In addition to this, analysis of this help company to develop effective plans and strategies
in order to attain desired goals and objectives as well.
Social factors: It include factors such as perception, culture, values, opinions, customs
and many more. It is important for Mothercare to consider all this factors in order to fulfil the
requirement of people and develop positive mind set of people towards the brand of company. In
addition to this, it is essential to identify their taste and preferences as it help them to attract more
number of people and enhance their level of profits.
Technological factors: This factor is consider as one of the most important factor that
has impact on the business activities and operations of an organization. Technology is changing
rapidly and affect on the buying behaviour of customers as their preferences is changing with the
upgradation of technology. It is important for Mothercare to adopt advanced technology that help
in improving quality of products that leads to increase in efficiency and profitability of the
organisation.
Environmental factors: Nowadays, people are more concerned in order to protect
environment and they are like to spent money of those products as well as services, which is eco-
friendly and did not harm the environment. It is essential for Mothercare to follow all the laws
and norms made by government for protecting the environment. In addition to this, it is
determine that company uses biodegradable packaging that help in saving environment and
develop positive mind set of people towards the brand.
Legal factors: It involve various laws and legislation that is required to be follow by the
organisations in order to carry out activities in a smooth and effective manner. The laws
associated with the companies are employment law, health and safety law, discrimination law,
consumer protection act and many more. It is essential for managers of Mothecare to ensure that
all the laws made by government is followed in order to carry out activities without any
interruptions and delays.
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Challenges faced by Mothercare as well as different elements on which they need to emphasize
upon for enhancing profits
It is very necessary for a business entity to analyse various kinds of elements available in
the international marketplace in order to enhance their performance and profitability. In
reference to Mothercare, it has been examined that there are various contemporary problems and
issues faced by business organisation while doing business operations at international level. In
this context, leaders as well as managers play very significant role in order to develop strategies
and policies for doing their business functions in a well defined manner. Mothercare want to
expand business operations at international marketplace and for this there are some factors which
need to be considered by them. Therefore, it is essential for the management team to consider
below mentioned elements in an appropriate manner so they can effectively raise their
profitability at the marketplace.
Cost:
It refers to the most important elements which are necessary to manage business entity
for conducting functions in an effective and feasible manner. In this context, business manager
needs to underline business activities according to the budget so their functions will be done in
an appropriate manner. This not only help business organisation to perform their operational
activities as per the cost and budget and also provide advantages so that they satisfy customers to
the core. It has also been recommended that the management team of the company to prepare a
budget and perform all their functions as per the cost so they can gain positive outcomes.
Taste and preference:
Another important factor which have quite significant influence on the overall business
environment is the taste, needs and preferences of customers. It is examined that taste and
preference of customers changes on a regular basis which affects the performance of business
organization. In the present context of Mothercare it is necessary for the management team to
examine needs and wants of customer’s regularly by doing market research so they can produce
goods and services according to their requirements. It has been recommended to the higher
authorities that they must conduct market research before expanding their business functions at
the international market so they can understand the changing needs of customers. This will help
them in order to gain opportunities at the competitive marketplace and increases overall revenue
of company.
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Advanced technology:
For every business organization, technology plays very important role in the growth and
development of business entity as they help them in order to beat the competition level by
producing high quality goods and services. For business organisations like Mothercare, it has
been identified that managers adopt highly advanced technology so that they can perform their
functions in a well defined, systematic and accurate manner. Along with this, they will be able
to gain advantages at the marketplace by providing high quality products and services to their
customers. Therefore, it has been recommended to the management team that they must upgrade
their technologies on a regular basis so they can significantly improve their customer experience
and retain them for a longer period of time frame.
CONCLUSION
From the above study, it has been analysed that there are various factors that has direct
impact on the business activities and performance as well. Globalisation and innovation is
consider as the major factors that impact on the overall functions and operations of company. it
is important for an entity to make use of advanced technology that help in attaining higher
growth and success at marketplace. In addition to this, PESTLE framework is used by companies
to identify the impact of external factors on business growth and effectiveness as well. Moreover,
it help company to develop an effective strategy and take effective decisions, which is beneficial
and suitable for the growth of company.
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