Contemporary Management Issues

This report explores the contemporary management issues in the business environment and their impact on Mothercare. It discusses the drivers for change and the pressures for change that the company faces. It also provides a detailed analysis of the business environment using a PESTLE framework. The report highlights the challenges faced by Mothercare and the factors they need to focus on for enhancing profits.

Contemporary
Management Issues

Table of Contents
INTRODUCTION...........................................................................................................................3
The fact that in today’s dynamic business environment (due to innovation, globalization etc),
change is inevitable......................................................................................................................3
Based on the case study, identify and explain the drivers for change. Where the pressures for
change are coming from and what their impact is on Mothercare..............................................6
To effectively complete 2 above, create a detailed PESTLE analysis, based on a case study
provided, to guide them to evaluate the business environment in order to gain a good
understanding of current issues (such as innovation, technology) which may impact current
business decision making at Mothercare.....................................................................................9
Challenges faced by Mothercare and different factors on which it has to focus upon for
enhancing profits.......................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Contemporary management is defined as the tool of management which is used by the leaders
and managers of business in order to control as well as monitor various commercial activities.
These activities include total quality management, E-Commerce, human resource management,
project management, globalisation, etc. it is very important for companies to manage the
contemporary issues which is useful for handling individuals as well as groups which are
working in business environment (Amin, 2014). It is essential for the companies to analyse
philosophies as well as theories of management in order to provide effective services to
customers and employees. The company considered in this report is mother Care. This is a
British retailer that provides products specially made for expectant mothers. This company also
provides products for children up to the age of 8 years. The UK subsidiary of mothercare has
approximately 150 stores in the year 2017. But in 2019, the number of stores was minimised to
79 in the month of November, the subsidiary was placed into administration and this caused
closure of all the stores. The parent company is providing products to supply franchisees in other
countries. Founder of this company Selam zilkha and James goldsmith. This company is
operating online, on hire streets and in out of town retail parks. This report includes information
the facts about dynamic business environment. There is explaination about the drivers for change
in Mothercare organisation. At last, there is description about the challenges faced by
Mothercare and different factors on which it has to focus upon for enhancing profits.
The fact that in today’s dynamic business environment (due to innovation, globalization etc),
change is inevitable.
The business environment in today's world is one of the biggest challenge that an
organisation is facing. It is very important for the companies to know how to react in cases where
there is change in business environment and how to deal with it properly so that there is no loss
to profit making of company (Brodie, Hollebeek, and Conduit, eds., 2015). Companies make
different strategies and plans in order to to enhance strength and minimise weakness of the
company. It is important for the companies to have better understanding about different elements
which are required for maintaining the business and running it in effective manner. There is need
of identifying as well as analysing different forces of the business entity so that it is clear how to

achieve organisational objectives and goals. There are different key dynamic forces which have
impact on business as well as society. Some of the elements are described below-
Globalisation - it is an important factor which is helpful for business in in analysing the the
various opportunities for expanding business and earning profit. It is very essential for the
business organisations to maintain different aspects in order to to analyse the development,
democracy e as well as expansion of free market economy. Globalisation is defined as a complex
method which is important for the companies to analyse as it affects decision making of
corporations. There are different factors like democracy combination and expansion of free
market economy which affects the threat of businesses while expanding their market share in
foreign countries. Globalisation is defined as a complex method which affects decision of
companies and impacts on the functioning of of medium and small enterprises. Globalisation
affects economy, society, business life as well as environment in different manner (sHartmann,
2014). There are various small enterprises as well as large enterprises which are helpful in
increasing competition by using latest technology. There are different ways for dealing with
challenges. It is essential for mothercare to consider the aspects of globalisation and its impact on
the company’s profit. Globalisation can affect the company as there is fierce competition in
market. This is associated with price of products, the use of technology and target market.
Expectations of consumers are are high from mother Care. Expectations of customers include
high quality products with affordable prices. this is very important for mothercare to focus on its
price, products, service and preferences of its customer as this will affect its performance in
global market.
 E-commerce – it is known as selling as well as buying of different services and products
over the internet. Where are various individuals who are having access to internet and
there having involvement in e-commerce trading. Basically, there are two type of trading
which includes carrying out of e-commerce that is a business to customer and business to
business. According to this aspect, society is being negatively and positively affected
because of selling of goods through online process. A positive impact of e-commerce on
business society is that it is helpful in providing effective services to the customers at
their home. Lot of time of clients and customers is saved while collecting and analysing
information through internet. Customers are able to save time by buy the products on
online basis. there is a pot unity with the customers to analyse the features of product and

services of company on internet and compare these prices with products of competitive
organisations. E-Commerce provides benefit to the society by establishing a new
business. There are a lot of financial resources which are required for setting up new
business or physical stores. In the online service, there is availability of selling products
and services 24/7. There are some negative effects of e-commerce on business.
unemployment is the major impact of e commerce on business environment. By the
increase in online services, companies will not require much labour which is needed in
physical stores. If there is expansion of business operations online, there are are different
issues of security and customer trust. It is essential for mother Care company to analyse
the different factors properly if it is trying to to expand business in online services.
 Human resource management. - this is known as another factor which affects business
operations of company. organisations focus more on the employees and staff of the
company as they are the key elements in performance of business. What is very important
for all the companies to analyse the skills and abilities of their employees so that their
able to provide qualitative services to customers. It is essential for mother care
organisation to provide fair compensation and positive working environment so that
employees will be satisfied with their job and help in maximizing profit of business.
Human resource management of mothercare is involved in contributing lot to the success
of company and at the same time it provides competitive benefit to the organisation.
Employees and workers are define as people who support companies in expansion to
commercial activities. All the companies must hire employees who are scared and
talented so that performance of company if maximized.
 Legislation – it is known as important factor which affects operations as well as decision
making of the company. Organisations have adopted different regulations and policies in
order to have good management of company operations and activities. It is very
important for the companies to underlies the HR policies as they affect the commercial
activities of business firm. In order to you managed a smooth functioning of business
activities, it is essential for the companies to have flexible nature and respond to the
organisational change in in right manner (Ha, And et. al., 2014). There are different
regulatory laws which are known as specific standards that impacts on the operations of
business in different conditions. There are large number of categories of legislations

which are applied in companies for proper management. There are several environmental
laws given by government to operate the business activities properly. There are different
laws given by international trade for different type of businesses. One of the major
impact on business is due to the labour law. These are known as rules and regulations
which direct the employer to treat their workers in effective manner and provide them
different facilities and compensation.other laws like occupational safety law, child labour
protection law and health rules also affect the functioning and decision making of a
company. When any new policy or rule is given by the government, it is important for the
companies to analyse that law and immediately adopt that law in the functioning of
business. It is essential for mothercare to analyse all the laws given by the government
for the retail industries so that it will be able to operate in business environment
effectively. Policy form in a nation is related with the political stability and it vary when
compared to the policy which is developed in unstable nation (Jones, and Schmidt,
2004). it is important for the companies to operate in political is stable systems it will
help mothercare to form the business in good market and enhance the profitability e of
business in less time.
Based on the case study, identify and explain the drivers for change. Where the pressures for
change are coming from and what their impact is on Mothercare.
The above factors including globalisation, technological factors, legislations for the retail
industry and human resource management affects Mothercare for adopting change within the
organisation. As there is decrease in the sales of Mothercare, it is important for this company to
manage the work and properly increase the profit of the company by adopting new strategy and
plans. There is need for organisational change in MOthercare as there is need for enhancing the
productivity and efficiency of the company. As mothercare wants to grab maximum profits
within market, it is very important for the company to manage the functioning (sPhillips, and
Krassioukov, 2015). It is very important for this company to manage the work in effective
manner and examine all the market situations before entering into foreign markets. There is need
for analysing the forces which have great impact on the business in positive manner. There is

need of having better decision making in the company as it will help in managing the work of the
organisation and enhancing the profits of the company. The change in MOthercare is due to the
technological advancement within business environment. This takes place for carrying out the
production process of Mothercare in an effective manner. The change is due to the technological
advancement and there is need for taking advantage of the market properly. It is essential for the
MOthercare organisation to analyse the market in proper manner and start expanding market
share using the new technology. It is important for Mothercare to introduce the new technology
within organisation as it is helpful in the manufacturing process of products and services. It is
also helpful for increasing the Mothercare’s efficiency of products and services. It is important
for this company to manage the work properly and increase the way in which company works.
There is interrelation between all the factors of change. The relationship between these factors is
affecting on the decision making of company. These factors are described below –
Globalisation and legislation: These factors are interrelated towards each other. The two factors
including globalisation and legislation are interrelated so that work is done properly. The factor
globalisation means that company is expanding it’s market share in business environment. There
is need for increasing profits of the company and enhancing market share for managing
globalisation (Schaltegger, and Burritt, 2017). On the other hand, there are different regulations
and legal laws which have to be managed properly for working effectively within market.
Different countries have different laws followed within business so Mothercare has to ensure that
it is maintaining the business processes and activities properly for enhancing profits. It is
essential or the company that it is maintaining both these factors effectively so that they are
working in positive manner. There are essential ways in which MOthercare can do it’s business
properly by managing the work in efficient manner for enhancing the working. While expanding
market share into some other foreign country, it is essential that it is following all the factors
effectively for managing the business activities. It is ensured by Mothercare that while entering
into foreign markets, they are analysing the regulations and legal rules so that company will not
have any problem while operating the business operations.The legislations and globalisation and
legislation are interrelate with each other as government do changes on continuous basis for
encourage firms to expand its business activities.
 Human resource management and technology: This is concerned with the two factors like
HRM and technology which are interrelated. It is essential for Mothercare to analyse the

technological factors and improve the way of Human resource management within the
organisation. It is essential for the company to execute business activities and processes
in effective manner so that work is done in proper manner. Technology is known as the
most important factor which helps in increasing profit of the company. These are
managed properly so that it is easy to manage staff and employees working in the
company. It is very important for Mothercare to attain organisational goals and objectives
for maximising profits. There is profit by the company made by managing the working of
human resource management and technology in effective manner. There is need of
updated technology which is managed properly for enhancing the way in which processes
work. Technology is one of the essential factor required for managing the performance of
employees in effective manner. When Mothercare organisation is adopting new
technology, it is essential for this company to manage the performance of company for
boosting the performance of employees. All the employees are able to do their job roles
and responsibilities in proper manner if it is analysing the technological advancement
properly.
 E-commerce and globalisation: Globalisation is defined as the way in which companies
are able to expand their market share. It is important for the organisations to manage the
working of the company for enhancing profits of the company in effective manner. There
is need of exploring the market area before expanding market share in new foreign
country (Schermerhorn, and et. al, 2014). It is essential or the companies to experience
globalisations as it will help in managing the business activities properly and increasing
the profits earned by the company. Organisations must be able to manage the process of
globalisation. The reason behind failure in globalisation includes decline in trade barriers,
fall in communication and transportation cost, due to various investment opportunities
and opening up of new markets. There is increase in the telecommunication and transport
technology and thus, there is need for analysing the new market trends within the
company. It is important for the company that it is able to manage the functioning of the
company properly so that business processes are functioning properly. In context of e-
commerce, it is essential that Mothercare is focusing upon structure of industry and
employment patterns so that selling of purchasing of products and services is done
properly. The business activities are functioning in effective manner so that company is

working by enhancing all the factors related to globalisation effectively. This is important
for Mothercare that it is essential for the company that they are working properly. E-
commerce is affecting business activities as there is globalisation within Mothercare. The
organisations are using e-commerce for purchase rather than sale. This is helpful for
buying the products and services by maintaining good relation with the suppliers. The
organisational change within Mothercare is affecting it’s business operations and
activities. The change in organisation is helpful for this company as it is helpful for
increasing the way in which sales and profit of the company can be increased.
Mothercare wants to increase profit and sales and for doing this, there is requirement of
managing the work properly. According to the change model given by Lewin, the
different factors for the change within Mothercare are described below –
Unfreeze This is defined as the first step for managing
change within the organisation. There is
description of labourers and its execution in the
business movement
Change At this process, there is need of distinguishing
worker conduct with respect to receiving and
tolerating variety.
Freeze In this stage variety are balances out which
characterize how business will dispatch going
ahead (Weiss, 2014).
To effectively complete 2 above, create a detailed PESTLE analysis, based on a case study
provided, to guide them to evaluate the business environment in order to gain a good
understanding of current issues (such as innovation, technology) which may impact current
business decision making at Mothercare.
Mothercare PLC uses the pestel analysis which is a strategic tool in order to analyse macro
environment factors within market. there are several changes in the macro environment which
have great impact on the mothercare PLC which runs its business in the retail sector. there are

various macro environment factors which have impact on the the company's strategy in order to
have competitive advantage. The pestel analysis provides great understanding about the
operating challenges that mothercare is facing in order to have macro environment in the
competitive forces. A company can be highly profitable if it is not doing business in unstable
political environment. The political, economic, social, technological environmental and legal
factors that affect mothercare PLC are described below –
 Political factors - these are defined as the factors which have significant role in order to
determine various factor which impact profitability of mothercare PLC within market. 10
companies operating in the retail sector in different countries. This organisation is
exposed to different type of political as well as political system risk. This company is
able to achieve success in retail industry as it operates in diversifying the systematic risk
of the political environment. Mothercare PLC can analyse different factors before
entering and investing in different markets. these include political stability and analysing
the value of retail sector in the economy of country. It also includes trade regulations and
Paris which are related to the consumer service.
 Economic factors - there are different type of economic factors which affect the
functioning of mother Care PLC. The macro environment factors include interest rate,
inflation rate, savings rate and foreign exchange rate. On the other hand, there are various
microeconomic factors like competition norms that affect competitive advantage of the
company. Mothercare PLC has opportunity for using economic factors of country like
inflation rate, growth rate as well as economic indicators of the industry like spending of
consumer retail industry growth rate for forecasting d chances of company in market
(Verma, and et.al., 2014). There is opportunity with mothercare to invest in markets
which are having high economy.
 Social factors - these are known as the culture followed by the society and the way in
which different things are being done in the organisational culture. It is very important
for companies to have shared believes as well as attitude of the population as it is helpful
for analysing the role which company is playing in understanding the market effectively
and providing the message for the consumers of retail industry in appropriate manner.
There are various social factors which are helpful for leading the mothercare PLC and
analysing different elements like demographics and skill level of the consumers, power

structure in the society education standard in mothercare industry and leisure interest of
the consumers. These factors are analysed before providing any product or service by the
mother Care company.
 Technological factors - technology is defined as the factor which is affecting the
industries across the business environment. there is huge change in the working and
functioning of different companies due to the factor of technological advancement. It is
essential for different industries to adopt all the latest techniques and methods for doing
business in proper manner and achieving success in it. different companies have to
analyse the technological processes and maximizing the descriptions that it can cause
within the company. in context of mothercare PLC, it is very important for this to adopt
all the technological advancement which can be used in the company for providing
products and services to clients and customers. The different type of impact which is
caused by technological analysis in mother Care PLC includes product offering
technologies, cost structure of the retail industry and value chain structure in consumer
service sector.
 Environmental factors - there are different type of markets which have different
environmental standards and norms that have to be analysed properly because they have
great impact on profitability of business. There are different type of environmental laws
and liability laws which have to be adopted by different companies in order to provide
good services and products within market. When mothercare PLC is trying to enter into
new market and start business, it is important for it to evaluate different environmental
standards as these are required for operating in different type of markets. The different
kind of environmental factors which affect mothercare PLC to start its business include
climate change, whether, water pollution, laws regarding environmental pollution and
attitude towards green or ecological products.
 Legal factors - there are different type of legal framework which are followed by various
countries. It is essential for the company to analyse and evaluate legal factors of of the
country in which it is operating so that it is easy to do business effectively. It is
important for the company to evaluate the factors of legal procedures before entering into
to market which is domestic or international market (Wachowiak, ed., 2016). there are
different type of legal factors which mothercare PLC has to analyse before entering into

new market. these include discrimination law, antitrust law, copyright, consumer
protection and health and safety law. Mothercare has involved in different business
operations and activities for managing the sales and profit of the company. There is
rapidity in the organisational change leads to affect on social, economic and political
aspect which is affecting the organisation in both negative as well as positive manner.
Challenges faced by Mothercare and different factors on which it has to focus upon for
enhancing profits
It is essential for the company that it is working effectively in global market so that profits
of the company are enhanced. It is essential for the organisation that it is working properly so
that it is easy to manage the work properly. There are different contemporary issues and
problems faced by Mothercare while operating business activities in global markets. This is very
important for the leaders and managers of company to determine effective strategies and plans
properly so that work is done in proper manner. This is very important for the companies to
manage the working properly so that it is easy to make profits and money. Mothercare is
working for increasing profit and evaluating the major issues which this company is facing while
implementing change within the company. There are various theoretical factors within the
company while managing the business operations. These factors are mentioned below -
Cost: This is known as an important factor which is needed for managing the business
processes effectively. It is essential for a company that it is managing the business performance
by enhancing the cost of manufacturing. It is essential for the company to manage the work
properly so that there is no problem while which is related with value of production and cost.
Taste and preference: This is another factor which has impact on the business environment of
the company. It is important for the organisation to maintain the preferences and taste of
customers so that work is done properly. It is essential for the company that it is working
effectively it is required by the companies to analyse all the activities of global market operations
so that it is easy to make profits and money.
Advanced technology: There is need of managing the organisational goals and objectives by
adopting new technology within market. It is important for the company to manage the work
effectively and analyse the functioning in an effective manner. When there are rapid changes in

the organisation, there is need of managing the work properly. It is essential for Mothercare that
it is working effectively so that all work is done properly and profits are made.
CONCLUSION
This can be concluded from above discussion that there are various factors which impact
the business activities of an organisation while implementing change. There are various activities
such as total quality management, E-Commerce, human resource management, project
management, globalisation, etc. which cause any organisation to undergo change process. In
order to implement the new change within organisation, it is very important that the company has
to analyse market using different models like PESTEL. This provides information about possible
threats and challenges that are to be faced within the company for implementing change. it is
very important for companies to manage the contemporary issues which is useful for handling
individuals as well as groups which are working in business environment There is need for
identifying and analysing the factors which are affected by the organisational change. In order to
make effective decisions, Mothercare can use various tools and techniques for enhancing the
profits of the company.

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