Contemporary Management Issues: Drivers of Change and Implications for P&O Ferries

This article discusses the contemporary management issues faced by P&O Ferries, focusing on the drivers of change such as social change and globalization. It explores the implications of these drivers on the strategic decision-making of the company and provides alternative avenues they could have explored. The article also provides recommendations for ethical and sustainable considerations for the company.

Contemporary
management issues

Table of Contents
Introduction......................................................................................................................................1
Main Body.......................................................................................................................................1
What are the drivers of change...............................................................................................1
The implications of such strategic decision............................................................................2
Alternative avenues they could have explored considering the nature of the pressures for
change/drivers of change........................................................................................................3
Relevant recommendations that recognises ethical and sustainability considerations for the
company.................................................................................................................................7
Conclusion.......................................................................................................................................8
REFERENCES................................................................................................................................9

Introduction
The business environment in which an organisation tends to operate is highly dynamic in
nature which leads to and create many contemporary issues such as uncertainty about the future
along with issues related with wellbeing of employees and shaping positive workplace (Dahal
and et. al., 2022). Further, the key contemporary issues and threat that are being faced by a
business organisation is tend to comprises and includes of the issues related with hiring and
retention of talented candidates along with impacting long term productivity and sustainability of
a firm based on shaping and influencing the workplace culture. The current study is based on the
P & O Ferries which is one of the UK's leading ferry operators that is carrying more than 10
million passengers a year and being a well-known cargo in and out of the UK. Beside this, the
current study comprises of discussion about the key drives of change having main focus on
globalisation and social change. Further, a discussion about the alternative avenues have been
also explored considering the nature of the pressures along with recommendation that supports
and recognises ethical and sustainability considerations for the firm.
Main Body
What are the drivers of change
The concept of the change can be tend to be vital and important for all business organisation
as it tend to supports better balance with eternal business environment as well as supports and
ensures the maintaining of efficient competitive strength. Further, it has been seen that the
drivers of the change within a highly competitive as well as the global business context is tend to
be numerous and diverse in nature. Further, as per the view point of the Otter, D. and Wetherly,
P. eds., 2018, it has been suggested and find out that the derivers of change are tend to result of
the issues that are prevailing with the market. Further, the key derivers of the change that tend to
affect and creating significant influence on the decision making of the firm tend to comprises and
includes of the social change and globalisation which tend to carte and effect the technological
level as well as related with the environmental issues and political aspects. Further, the P & O
Ferries is tend to be a well-known British shipping company that is operating ferries from the
UK to Ireland and other nations. Thus, as P & O Ferries is operating at a global level thus a
dynamic implication driver is change is being seen on this form that causes significant impact on
its strategic decision making. It has been seen and analysed that the social derivers of the change
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comprises of the nature as well as the attitude of the customers and society towards the business
operations and strategies (Hemphill, 2018). Thus, social factor tend to have significant impact on
the strategic decision making of the P & O Ferries as it directly effects the quality level of the
services based on the need and preference of the customers. Further, it has been also seen and
found out that the globalisation has created a rise within the movement of people from one nation
to another and lead to higher technological improvement as well as political influence. Thus, the
globalisation as river of change give rise of rapid technological change as well as the
environmental and political concern. The technology is also tend to be one of the most dynamic
nature of driver of change crated by the globalisation as new updating and improvement within
the technical knowhow tend to carte and expert pressures on the business organisation such as P
& O Ferries to make significant and all relevant changes within its business operation and
strategic decision making. Along with this, the environment concern has been also enhanced that
is also tend to have significant deriver of change as all the business activity and decision making
tend to have significant effect on the environment thus it give and brings change in the strategic
direction of the P & O Ferries. Beside this, the high level of the globalisation has give rise to the
enhanced political deriver of change is also formed out to be vital as it have significant influence
on the strategic decisions making based on the ongoing political stability and scenario of the
nation (Blay and et. al., 2018).
The implications of such strategic decision
An analysis of the implication of the social change and globalisation can be made on the P &
O Ferries commercial and operations going forward as the globalisation is supporting and
leading the enhanced sense of the expansion and growth for the P & O Ferries commercial and
operations going forward in various other countries. It has been seen that the social driver of
change would lead to higher modification and imperilment within the current services of the P &
O Ferries based on the feedback and preference of customers. Thus, bringing and supporting of
the social change would be helpful for the P & O Ferries commercial and operations for
effectively going forwards based on higher customer satisfaction that lead improve productivity.
beside this, the globalisation also bearing many changes within the operation of the P & O
Ferries as it lead to continuous technological improvement as well as high political complexity
and environmental concern along with increased competition level (Smith, Burke and Ward,
2020). Thus, to have higher growth in globalised world it become essential for the P & O Ferries
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to implicate and make use of the latest and advancement of technology to attract and cater larger
number of customer along with becoming more environmental friendly to have positive brand
image at global level.
Alternative avenues they could have explored considering the nature of the pressures for
change/drivers of change
The key drivers of change on which current project is based comprises of the social change
and globalisation which is creating a higher level of pressure on the P&O Ferries to have
considerable change in its operational and commercial activities (Andraska and et. al., 2022). A
deep discussion of the key changes and pressure bring out by these two drivers of change in
context of P & O Ferries has been provided as below reflecting the alternative avenues of
changes lead by globalisation and social change.
Globalisation
As per the view point of the Morrison, J., 2015 the globalisation can be defined as the
process by which a higher and quick movement of the products, people, money, organisation and
information is being seen around the various nation of the world. Further, globalisation is the
term that is used to describe and reflect about the trade and technology that have made the world
into a more and highly connected as well as an interdependent place. Therefore, a significant
level of the change as well as pressure is being created by the globalisation in business
organisation in for of various alternative avenue and pressure carted on a firm. It has been seen
that with the rapid movement of people, information as well as the technology a higher number
of change within the technical know how along with political scenario and economic aspects is
being seen. Beside this, the key pressure and complexity that is being carted and bring out by
globalisation tend to consists and comprises of the higher level of competition along with regular
changes and modification within commercialisation and operational activity to meet the
expectation of global audience along with compliance with global rules and regulations
(Stratigaki and et. al., 2022). Further, the key avenue and effects of the globalisation that is
presenting the positive impact on the business operations of the P & O Ferries comprises of the
fact that it supports access to new culture by the way of making it such more easier than ever to
access and have movement to foreign culture including food, movies, art and music. Along with
this, the free flow of the movement that is being crated and supported by the globalisation as lead
to a higher level of cultural diversity and inclusion at the workplace that is supporting higher
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creativity and innovation level. Further, the another positive attribute and impact of the
globalisation reflecting its alternative avenue on the P & O Ferries tend to includes of the spread
of the technology that is creating a pressure and leading a higher innovation across the business
organisation. It has been seen that the globalisation created a higher connectivity and
interdependency of nation that supported the easy flow of technology and knowledge that
supported quick improvement and higher scientific advancement to have more efficient and
better use of technology that brings higher operational efficiency but at the same time created
pressure for having continuous technology change. Beside this, the concept of the globalisation
is also being supporting commercial benefits for the P & O Ferries also in form of the leading of
the lower costs of the product as globalisation increased the level of competition which derives
the price down and creates a lowered costs of business operation based on use of improved
technology and resources (Malik, 2022). Further, it has been also seen that the globalisation
tends to implicate and supports the higher standard of the living across the globe this lead to
improved opportunity and growth for organisation. Further, it has been also seen and implicated
that the concept of the globalisation lead to access to the new markets along with the access to
the new talent that brings higher growth opportunity as well as the improved level of the
specialisation that brings higher productivity and profitability level.
Apart from these set of the positive outcome an analysis of the alternative avenues they
could have explored considering the nature of the pressures lead by globalisation could also be
made that costs of its drawback for the P & O Ferries as it has been seen that it created many
issues and challenges in form of the managing the employee immigration (Moratis and Melissen,
2022). It has been seen that immigration challenges is also going to be a lot of headache for the
organisation. Further, it has been also seen and implicated that the international recruiting issues
and challenges are also being a great threat for the organisation as the international recruiting
leads to higher and strict rules and regulation for the organisation about the recruiting and hiring
of employees that need to meet by all companies. Along with this, it has been also seen that a
higher level of complexity and issues in leading effective communication along with the salaries
demands and cultural differences and language barriers are also being faced by organisation as
an alternative avenue they could have explored considering the nature of the pressures created by
the globalisation. Beside this, in context to the P & O Ferries it has been also seen and found out
that a higher level of the incurring of the traffic and export fees are also tend to be faced due to
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higher expansion and growth level across the world (Cutri and Pretorius, 2019). It has been that a
selling of services abroad is tend to becoming expensive and also based on the depending on the
market. Along with this, the payroll and compliance challenges is also being enhanced and
increased by the globalisation that is negatively impact and creating a higher pressure on the
operational and commercial activity of the P & O Ferries.
Social change
The implication and Alternative avenues they could have explored considering the nature
of the pressures for social change tend to includes and define the level and way of human
interaction along with the relationship that terraform the cultural and social institutions. Further,
the social change tend to present the alteration within the mechanism within the social structure
that has been tend to be categorised and reflected by the change within the cultural symbols, rule
of behaviour value system and the social presence in organisation (Wilkinson, Barry and
Morrison, 2019). It has been seen and analysed that the a regular change within the preference
and behaviour of customers and other associated shareholder is being seen at global level that
tend to have and create higher influence on the business operation and commercial activity of a
firm. It has been seen that at present the society and government at the global level has become
more conservative and attentive towards the right of the employees along with preservation and
conversation of the environment. Thus, it is creating and leading out a significant change within
business organisation by the way of creating workplace where employees experience a positive
social environment, they are more likely to have a greater sense of job satisfaction and
enjoyment. Along with this, it has been also seen and analysed that the social change are being
creating and leading out a vital impact on the companies as it creating a pressure to have change
within the people's behaviour in order to benefit society and the environment. Beside this, the
social change is also priming in the social innovation that are aiming and focusing on the fosters
goodwill among employees, customers and community members in order to create improved
form of new industries and open up new markets. Thus, an analysis and implication can be made
that the social change is bringing an leading out significant change and creating pressure within
the globalised organisation as it is leading to ensure higher benefits for society along with
supporting conservation of environment (Hall and Werbner, 2020). Thus, the P & O Ferries also
tend to meet and effectively fulfil its social responsibility and meet ethical consideration along
with focusing on preservation and conversation of environment to keep a phase and set a balance
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within ongoing social change that is deriving pressure for betterment in workplace environment
and creating positive relationship.
Further, apart from the pressure and Alternative avenues they could have explored
considering the nature of the pressures crated by the social change and globalisation many other
uncertainty and challenges are also being faced by P & O Ferries that is impact its commercial
and operational activity (Smith, Burke and Ward, 2020). It has been seen that the P & O Ferries
is tend to be highly successful and productive companies but because of the recent spread of the
Covid-19 a higher threat and risk is being seen on the success and productivity level of the P &
O Ferries. It has been seen that globalisation has created the higher movement of people thus it
enhanced the risk and phase of the spared of covis-19 thus, many strict rules and strategies are
being imposed to stop the spread of covid-19 in form of strict lockdown that is negatively
affective the productivity. Thus, as a result the P & O Ferries have to make a merger and its is
acquired by the DP world. Along with this, it has been also seen tat because of the rising of the
operating cost based on use of new technology and other strategy P & O Ferries need to have
taken some decision that supports higher efficiency level. Thus, the managers and top authority
of the P & O Ferries has come to an decision of sacking of the 800 staff to make there
replacement with the some cheaper agency worker. Based on the global rules and regulation this
action and sudden decision of the P & O Ferries is absolutely unethical as no proper discussion
and approval has been made (Zajda and Majhanovich, 2021). P&O Ferries chose not to consult
the workforce, and to pay off staff instead and genuinely, that would not have been 800
redundancies with substantial severance packages, that would have been 3,000 people losing
their jobs. Thus, this sudden step of the managers and directors is not acceptable and justifiable
at global level. Further, based on the change in the social norms at present government and
customers has become more considered and aware about the rights of the employees. Thus, an
analysis and implication can be made out that social change is creating a pressure on the P & O
Ferries to have better decision making and consider ethical principles while taking and creating
any strategy and policy. Along with this, in current case study it has been also seen P&O Ferries
is paying below the minimum wage as it is exempted by the UK employment law. But based on
the fact that P & O Ferries is operating in a globalised world thus, it need to make changes within
its paying policy based on the measures of the ITF (International Transport World Federation). It
has bene seen and clarifies the lowest pay rate being offered by the P & O Ferries as it is £5.15
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an hour, not £5.50 an hour, which was the figure MPs. But the P & O Ferries is having a opinion
that its wage rate varies between £5.15 and £6 - depending on exchange rates (P&O Ferries
Chief Exec on £325,000 salary apologises to his 800 sacked workers, 2022). Thus, an analysis
can be made that the social change as well as globalisation are a key driver to change that are
pressuring the P & O Ferries to have considerable change in improvement in its employment
strategy along with becoming more technological advance and supporting ethical as well as
social way of operating (Rahman, 2020).
Relevant recommendations that recognises ethical and sustainability considerations for the
company
Based on the current study in P & O Ferries it has been seen and analysed that the based on
the reduction in productivity and other threats carted by covid-19 and other pressures from
external environment and changes P & O Ferries had taken a decision of sacking 800 staff and
employing agency workers without having discussion within any union. Thus, this decision is
seemed to be uncertain and unethical based on globalised rights of employees. Along with this, it
has been also seen that the P & O Ferries is also paying a very less wages to its worker as
permitted and exempted by UK but as and while working at global level it can be accepted as the
wage payed by P & O Ferries is governed by ITF (International Transport Workers’ Federation)
standards, we are paying above ITF minimum wages”. However, the minimums wage rate
provided by P&O is much below than the minimum wage rate based on ethical concern and
implication(Labour suggests PM misled MPs when he said government definitely taking P&O
Ferries to court – as it happened, 2022). Thus, it is necessary and become vital for the P & O
Ferries to have significant change within its policy and take effective decision making to have
and supports and more efficient and better operational and commercial activity that meet
Corporate social responsibility and also recognise more sustainability. Based on the change drive
by the globalisation It has highly suggested and recommended for the P & O Ferries to adopt and
implicate use of the improved and innovative technology that enhance and lead to betterment in
its operational activity. Along with this, to gain higher competitive strength and have long term
sustainability it has been highly recommended and suggested for the P & O Ferries to have and
provide continuous training and development to its employees. It has been seen that a vital role is
being played by the training and development in enhancing the skill level as well as the
innovation and creativity level of the employees that ensures and brings to higher sustainability
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for the business organisation (Hall, 2019). Thus, supporting regular training is vital way to have
improvement within the productivity level of the P & O Ferries along with supporting higher
sustainability level in future. Along with this, it has been seen that the employment union and
other global organisation are being dissatisfied in the decision of lower wage rate for employees
along with sudden sack of the staff. Thus, it has highly recommended and suggest for the P & O
Ferries to have regular performance based perks and incentives for its employees to support
betterment in their motivation and job satisfaction level. Beside this, it has been also seen and
find out that the social change is creating and leading a higher pressure to have ethical operation
along with meeting the set corporate social responsibility as it supports more suitable and
improved way of business operations (Hall and Werbner, 2020). Thus, implicating the ethical
consideration based on having the transparency and higher accountability of its actions is being
suggested and recommended for the P & O Ferries to have creating of a positive brand image in
society and among employees. Finally, meeting and implication of the corporate social
responsibility is also being highly recommended and suggested for the P & O Ferries as it would
lead to a better balance within the social implication as well as improved and eco-friendly form
of business operations and activities. Corporate social responsibility is being related and
concerned with the means that a company should self-regulate its actions and be socially
accountable to its customers, stakeholders, and the world at large. Thus, a vital role is being
played by the CSR in enhancing the ethical consideration of the P & O Ferries as well as it also
support’s higher sustainability and betterment of the business operational of the P & O Ferries
(Smith, Burke and Ward, 2020).
Conclusion
On the basis of current study, a conclusion can be made that the there are various drivers of
change present within the dynamic business environment of a firm which is creating and leading
out significant influence on the decision making as well as operational and commercial business
activity. Further, it has been also find out and summarised that the it ongoing changes such as
globalisation and other social change would also create and lead to significant impact on the
business operation and activities. It has been summarized that globalisation tend to lead to higher
movement of the people, services, goods, information and technology across the world and
different nations. Thus, it has been concluded that globalisation tend to brings and lead to
significant technological change as well as higher political instability and competitive threat.
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Beside this, it has been seen that social change is also leading pressure on companies to become
more ethical responsible and fulfil and meet its corporate social responsibility to ensure higher
sustainability.
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Online:
Labour suggests PM misled MPs when he said government definitely taking P&O Ferries to
court – as it happened. 2022. [Online] Available Through:<
https://www.theguardian.com/politics/live/2022/mar/24/rishi-sunak-says-he-cant-make-
every-problem-go-away-after-criticism-of-spring-statement-uk-politics-live?
page=with:block-623c4ac68f08d422c5d5c73f >.
P&O Ferries Chief Exec on £325,000 salary apologises to his 800 sacked workers. 2022.
[Online] Available Through:< https://metro.co.uk/video/p-o-ferries-chief-exec-325-000-
salary-apologises-800-sacked-workers-2646341/?ito=vjs-link >.
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