Contemporary Management Issues

This document discusses contemporary management issues and their impact on strategic decision-making and business activities. It focuses on how Mothercare has strategically responded to drivers of change, particularly in the context of online retailing. The document explores the features of online retailing, the approach of Mothercare towards online retailing, and the concept of brand differentiation. It provides insights into the role of contemporary management in addressing issues and opportunities in the business environment.

CONTEMPORARY
MANAGEMENT ISSUES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Mothercare has strategically responded to these drivers of change with consideration for the
nature of the pressures for change...............................................................................................3
Recommendation.......................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Management can be defined as the procedure of organizing and guiding individual and
physical resources in the company so it meets it’s objectives. There is numerous roles such as
motivating, training and recruiting etc. perform by managers in the company. Contempory
management refers as a modern, people-oriented approach that involves in planning, leading,
organizing and supervising operation to gain business’s goals on time. Contempory management
is different from general management because here managers are highly responsible for applying
resources effectively at each level of a company. It helps organization to determine to issues and
opportunities which gives impact on organization performance. To understand role of
contempory management has an example of Mothercare Plc. it is headquartered in Cherry Tree
Road, Hertfordshire, UK. It is operated in 79 countries through it’s retail stores worldwide. It
offers baby products to the customer across the world. The main goal of the company to offer
high quality product to the customer so they get value of their money. The brief study provides
understanding about Mothercare that has strategically responded to driver for change and it’s
impact on strategic decision-making and business activities.
MAIN BODY
Mothercare has strategically responded to these drivers of change with consideration for the
nature of the pressures for change
Online retailing change driver
Online retailing is a process that involves selling company’s products over internet. E-
commerce has been seen as the major transformation in the corporate sector. Almost all
companies have switched to sale its products online at different e-commerce sites or on the
company’s own website. In United Kingdom it noticed that e-commerce trade growth rate is
more than 8% which indicate about the influence of e-commerce trade in business environment
(Elbeltagi and Agag, 2016). Not just economies in developed countries like United Kingdom but
also developing countries like India, China and other developing economies society has been
switched to e-commerce trade. This is an easy medium of procuring goods at a most affordable
price structure. Online retailing is further segregated into different mediums such as e-commerce
trade, internet, social media trade and other source of medium that contribute in improving the

scope of online retailing all across the globe. This concept of online retailing has also provided
sufficient scope to all existing as well as new companies that have entered recently in market.
Online retailing has provided scope to emerge in market to such new entrants.
As per different researches entire business environment is switching to online mode of
retailing due to its convenience. As the emerging demands of society has also improved the
standard of living of peoples in society. Due to mergence of various modern demands available
time for people to do shopping has also reduced. This mode of shopping also allows peoples to
conserve the time in shopping and rather than investing such time in doing other activities with
loved ones (Xiao and et.al., 2017). As per professionals the online retailing becomes the part of
the daily life of the peoples in United Kingdom. As the developed countries is already serving
high level of internet connectivity which has allowed to peoples in United Kingdom to purchase
products over internet. Research has also stated that almost 96% of the internet users are involve
in online retaining in United Kingdom. This statistic is showing the huge involvement of the
people in United Kingdom in online retailing business.
Online retailing is not a old concept of retailing as it emergences after the introduction of
the internet. Over the last one decade the online retailing has become part of the market.
Technological factor involve in PESTEL Analysis tool that channelizes to assess the business
environment has also projected that online retailing is gaining much popularity all over the
globe. As it becomes feasible and accessible for all internet users (Peterson, Kim and Jeong,
2020). Online retailing not just provide easy access of all top brands but it also enable to choose
between plenty of options that also better fulfil the needs of the society. As per the statistics in
United kingdom the online retailing has witnessed the turnover of more than £ 200 billion. More
than 66 million people in United Kingdom are constantly active over internet to conduct the
online retailing and meeting their needs with the support of online retail market.
Features of online retailing
Online retailing is associated with the following features that have improved the
significance of the online retailing in business environment.
Global expansion: Online retailing provides global expansion to all customers. This is among
the key feature associated with online retail business. Customers get the global exposure over

online retailing. Companies based in worldwide get to project its products over internet.
Customers get access of the brands associated with retail sector irrespective to its geographical
locations (Tandon, Kiran and Sah, 2017). This is the luxury associated with the online retailing.
Due global expansion and exposure of brand online retailing provides immense number of
product options to customers at the most affordable price range. As the online retailing becomes
trend of market so all companies needs to give discounts to customers in order to attract
customer base. Due to prices affordability feature and plenty of product options the concept of
online retailing improved the shopping experience for all the people in society.
Affordability: Affordability is among the key feature associated with online retailing. Online
retail business has been a part of the trend which offer aggressive competition between the
brands and companies operate in retail sector (Fan and et.al., 2020). Due to heavy demand and
aggressive market competition the product over online business are available in the most
affordable price. Companies entertain competition over online retailing not just from big brands
but also from the small companies. Affordability is among the key feature associated with online
retailing. Many companies also offer free shipping facility over online retailing which also save
money of customers and makes product more affordable for customers.
Full stack of technology: Online retailing is totally associated with the technology. The concept
of online retailing is to provide retail services to customers with the support of digital
technology. Due to expansion of internet plenty of new mediums also launched along with old
mediums to conduct online retailing in market. Customers get to access all different features of
shopping at the digital medium on case of online retailing.
Time saving: Online retailing is a time saving mode of doing shopping. It is observed hat
shopping over internet via online retailing is much more time saving than the shopping in real
life (Chen, Liu and Li, 2019). In order to save the valuable time of all customers this concept of
online retailing was launched earlier. Customers get to access of all brands and products over
internet at single place. This can be stated as the top feature associated with the online retailing.
Value added services: Online retailing is a value added service. In order to improve the value
addition in the life of customer’s concepts of online retailing is launched. This practice ensures
feasibility and convenience while conducting shopping. This practice also allows customers to

improve the shopping experience as it also offers discounts, gift vouchers and other shopping
benefits. All such aspects of online retailing put a value addition in the life of the customer.
The above mentioned points are indicated as the key feature associated with online
retailing. All the features made the online retailing more significant and convenient in nature.
Companies apply online retailing
All big and small companies engaged with retail sector follow the practice of online
retailing. Online rattling has been taken as the transformation in the retail sector. All companies
follow the practice of selling its products over internet. Companies like Marks and Spencer,
Asda, Wall Mart, Mothercare and other companies are engaged with the feature of online
retailing that also facilitated the business growth of such companies. Along with all top brands
drives business operations in retail sector small companies also considering an effective response
over internet in respect to their retail business (Souiden, Ladhari and Chiadmi, 2019). Many
companies in retail sector are only associated with online retailing. Such companies do not hold
any physical store but they follow the practice of online retailing. Companies like Amazon have
entertained healthy revenues by selling retail products over internet. Such companies sale their
product with the support of mobile application and website. In United Kingdom the online
retailing is contributing in the retail market is approximately around 25% of total retail sale. The
figure represents the dominance of the online retailing in the entire retail sector. The way people
are approaching online retailing these contributions will grow at the rate of 8% every year. This
is an effective growth rate.
In United Kingdom many other companies like Currys PC Worls, John Lewis and
Partners, Next, Screwfix and other top company’s sale the products online. All such companies
give tough competition to Mothercare Company. All such companies are among the leading
competitors associated with the Mothercare Company in retail market (Hua, Hou and Bian,
2016). All such competitors has improved its sales growth by entering into the online retail trade.
This has proved as an effective growth strategy for all such companies. The merging trend of
online trading has also improved the market competition between all such companies.
Mothercare Company approach of online retailing

Mothercare has seen collapse in United Kingdom as the company could not perform
effectively in the retail sector of United Kingdom. The company has been a part of top brands of
UNIETD Kingdom associated with the retail sector. Company’s approach towards the online
retailing has not been seen as a very participative in nature. The company management has never
taken the online retailing as the primary weapon to improve the company’s growth in market
(Wang and et.al., 2019). Apart from the emergence of the interest and online retailing all across
the globe company did nt initiate aggressively to perform in online trade. Mothercare also
approached online retailing by launching company’s websites and other features but it was seen
as a casual approach towards online retail business. Strategy formation of company is also
keener towards selling off line products at the company’s stores. Today the company is facing a
huge downfall even many of the stores of the Mothercare is about to shut. This is an effective set
back from the company. Approach of Mothercare Company could have been healthier toward
online retailing. Company also did not follow the low cost strategies over internet. This is also
one of the major reasons behind the company could not entertain effective response over internet
apart from keeping a very profitable brand value of company.
Brand differentiation
Brand differentiation is the process of defining a brand from the competition line by engaging a
outstanding performing aspect of the brand along with different users benefits. In other word,
differentiation is the method of determining and communicating the unique attribute and features
of a brand as compared it’s competitors. It plays essential role because it helps to lead high
growth of the business across the world and portray good positioning in front of customers and
competitors. It permits company to become more targeted in their marketing strategy,
communicates directly to the targeted audience. It has numerous advantage such as it develops
brand loyalty among the customer and permits firms to compete in different areas except price.
Brand differentiation stages
There are five stages to differentiate brand from other competitive brands such as start with
brand positioning. It is initial stage of brand strategy in which analyses brand positioning of the
company in the business market. In the stage all unique brand looks for establishing a unique

positioning for attracting customers and influences potential stakeholders towards brand. The
unique and compelling position can achieve only in one condition such as when company has
wide product portfolio and offers innovative products and services to the customer or sells good
quality products on the lower costs (Bhattacharjee, McKenna and Ray, 2016). It automatically
helps company to gain good positioning in the business market as compared its competitors.
Another brand strategy is look for customer experience which helps company to build good
relationship with them and makes them loyal as well for its products and brand. Organization
must use customer reviews tactic that helps to understand each customer perspectives for the
brand and it’s products. by the strategy easy to gather real experience of the customer who can
give lifetime profitability in the organization. it is a simple when a company looks for customer’s
reviews that automatically brand image in the customer’s mind because they share their actual
experience after consuming it’s products and services. This brand strategy builds emotional
relationship with the brand and encourage them to show their loyalty for the company for the
long time. Keep it personal is the third stage of brand strategy whereas individual customer
always wants that they get special treatment from the shopping stores, not like others.
personalized offers and shopping experience make individuals happy and boosts them to buy
more products from the store. In that situation most of the companies understand customer’s
behaviour through their purchasing behaviour and their response for the products (Dhir, 2019).
By the market segmentation strategy targets it’s major audience and creates personality profile as
well. It supports companies to give relevant offers, experiences and communication that makes
customer feel special and influences purchasing behaviour. Cultivation stronger relationships is
another stage of brand differentiation which is important for the brand differentiation.
According to the stage brand must bridge the gap between digital tools and relationship in term
of customer so that can get effective outcome in the company (Stevenson and Cole, 2018).
Technology and social media are the major tool that develops bridge for the company so that it
easy to communicate with customers effectively whether they are outside of the stores or in
stores. But touchpoints i.e. like, share, comments and ranking help build brand positioning in the
business market. Push with the limit of growth is the last stage of brand strategy that guides
company to develop a set of strengths and overcomes weakness or transform them into
opportunities. To differentiate brand from other competitors uses brand expansion strategy into
new market by many companies. It helps company to build brand image in other new market and

leads high brand recognition in other new markets. Overall stages of brand strategy lead high
brand image in the business market and differentiate in unique positioning from the competitors.
Basically, brand differentiation is a long-term objective, not take one day to publish in the
market. Most of the organization uses these all brand strategy and enables to differentiate brand
successfully in the business market (Jadhao and et.al., 2020).
Mothercare Plc. approach of brand differentiating
Brand differentiation is considered a driver of growth which uses for leading change in
the market. Mothercare Plc. is most famous brand in the business market which came in
existence in 2008. It is a British retailer that has specialization in products for expectant mothers
and general merchandise for children up to eight years of age. It has 150 stores which is located
across the UK in 2017. But in 2019 number of stores has declined to 79. Currently organization
has decided to close all 79 stores across the UK. There are some reasons that causes company
have to face this situation currently. It has wide product portfolio such as children’s toys,
clothing, baby products etc. offers worldwide (Teece, Peteraf and Leih, 2016). From the few
years Mothercare Plc faces tough competition in the UK market that causes company become
incapable to sustain its business in the market. the potential competitors of the company do not
have wide product line and not good brand recognition but after that they give high competition
to the Mothercare Plc. The reason behind is that company has inability to differentiate itself like
specialized for the young families and expectant parents. It causes volume sales has decreased by
and by. It is the main driver of the change that creates issues for the company (Mansour and
et.al., 2019). Mothercare Plc unable to differentiate itself from the competitor in the UK market
due to some reason such as lack of market research, poor management practice, lack of
monitoring and others. Deep market research is very essential part of marketing because it helps
to understand customer’s attitude for the products and its brand, demands and expectation of
them for the products, competitive positioning etc. these are strategic information that helps
company to take strategic decision on time. But marketer of the company does not aware to the
management of the Mothercare (Vaara, Tienari and Koveshnikov, 2019). It causes strategic
management unable to set goals of company to reduce pressure for the change.
Poor management practice is another reason that causes company unable to differentiate itself in
front of society and it’s competitors. HRM management does not give quick response in

customer trends otherwise company has good opportunity to differentiate it’s products by the
customer segmentation strategy and meets objective. Due to poor practices of the HR is the
major reason which influences Mothercare’s decision to shut down in the UK market. Company
does not recruit skilful employees in the workplace who can understand customer’s demands and
their behaviour to listen the price of the products. it is also another reason that causes company
unable to build loyal customer on wide scale. It follows traditional selling system instead of
online selling platform that causes it enable to target younger families as audience (Van Diepen
and et.al., 2017). Traditional platform helps company to build few customers as loyalty range
while resting people prefers to buy products from the online platform. It does not develop bridge
between social media and digital technology for communicating with the customer directly. It
causes Mothercare unable to gather reviews of shopping from the customer which builds a gap
between customer and the company. It shows company does not have good technology
performance which is another reason that impacts Mothercare’s decision positively. Company
has two products such as car seats and pushchair that has high market share in the market still.
But management of the company unable to take advantage of this opportunity as well (Scasta
Hennig and Beck, 2018). Organization does not oversee overall business activities that causes it
unable to access consequences and impacts of drivers. It is also highlighting that management
team of company does not give good response on these consequences. Otherwise such kind
situation may never occur in the company like Mothercare have to take decision shut down
stores in the UK. Thus, Brand differentiation driver gives negative impact on organization’s
decision as well as it’s operations.
Recommendation
To differentiate brand from it’s competitors in the UK market can use digital tools that
helps company to build a platform for accessing customers and improves online brand presence
in the business market. it is healthy approach for the company because its dos not have to pay
cost for the promoting brands and its products. it can directly use online media and can up to date
it’s customer about new products and other news that leads high engagement of the customer.
Touchpoints such as likes, shares, comments and rating become great option for the modern era
because it directly communicates with new and existing customers and builds strong relationship
with them. So, company can use this strategic approach to differentiate brand in the UK’s market
(Waller, 2017). Another is product segmentation strategy that organization can use to promote its

products. By the strategy can express features and grading of the products which improves
market share of the products and leads recognition in the business market. it is another approach
to differentiate brand in the UK market. Brand endorsement is another approach that
organization can use to improve brand image. By this approach company can sponsor popular
celebrities who helps to attract customer and improves trust of them on the brand. This approach
is quite famous approach and more successful because it attaches customer emotionally and
builds loyalty of them for the brand. Marketing mix strategy is the best marketing tool that can
help company to different it’s brand, products, price, place, objective and others. This strategy is
not helped company build brand image but also puts pressures it’s competitors (Schaltegger and
Burritt, 2017). Company can implement this strategy effectively without investing high to
differentiate each element effectively. It cost-effective but brand influencing approach that
creates attractive zone of the company in the business market. Company has wide product line in
which two products i.e. car seats and pushchair are most famous product of the company.
Organization captures large market share on these two products in the UK market. Mothercare
Plc. can develop these products more effectively by the help of R&D department which can
support company to differentiate it’s brand. 360 feedback strategy also good strategy that can
help company to understand viewpoints for the products and it’s brand that makes easier for the
company meet targeted customer’s objectives and leads high satisfaction for the products and it’s
services. Thus, company can adapt these strategies that assists to differentiate it’s brand and
products in the business market (Van Niekerk, 2017).
Mothercare Company is planning to shut its stores. Company can channelize an effective
strategy to improve its online sale. This will be a healthy approach to improve the market
performance of company. Company can also implement low cost strategy to improve the online
sale. As the online retailing also offers immense amount of market competition. Low cost
strategy of the company will allow it to deal with all such aggressive competition and make an
effective revenue even in the mid of such heavy competition.
Company can also follow the online branding to polish its brand image. Company can
launch a new marketing campaign over online. Different platforms offer by internet can be
utilised for the marketing campaign. All key social media channels like Facebook, Instagram,
Snap Chat and other social media application can use as a key tool for the online marketing

campaigning which can also be denoted as digital marketing. This approach of company will
improve its brand presence over internet (DeValve and et.al., 2018). This will also support
company in improving its brand reach in online retail sector. One of the primary reasons behind
company’s decline is not involving in online retail market. These approaches will support
company to enter aggressively in the online retail sector and also to attract all potential customer
base over internet. Company can also channelize brand sponsorship to promote its online
retailing. Company can appoint some famous personality to promoting its online retail segment.
This will also heat the popularity over internet. All the above strategies can be suggested as the
supportive tool for the Mothercare Company to deal with this situation and also to emerge as the
top brand in the market.
CONCLUSION
This report has concluded about the different change drivers that play an important role
for the company in improving its market growth. Change drivers like diversification and online
selling is among the key change drivers that play a huge role in improving the brand presence in
market. This report has summarised that one of the main reason behind the failure of the
Mothercare Company is the company was not mush focused towards product diversification and
online selling. Both the factors play a huge role for the company to entertain growth in market.
Due to lesser activeness in the online selling and diversification company could not cop up with
the expectations of the customers. As the lesser involvement in product diversification has
resulted into company could not upgrade its products. Most of the products of company are
outdated in nature. Not taking part in online retailing has also played damage for the company.
This is also the major reason behind the company has declined its growth potential. Company
can improve its performance by investing more in research over product development and also
by launching campaigns over internet. Both the strategies will support company in improving its
market presence.

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