Contemporary Management Issues

This report discusses contemporary management issues in the context of Mothercare, including drivers for change and challenges faced by the company. It explores the impact of globalisation, e-commerce, human resource management, and legislation on Mothercare's business operations.

Contemporary
management issues

Table of Contents
INTRODUCTION...........................................................................................................................1
The fact that in today’s dynamic business environment (due to innovation, globalization etc),
change is inevitable................................................................................................................1
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.........................................4
To effectively complete 2 above, 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.............................................................................................................8
Challenges faced by Mothercare and different factors on which it has to focus upon for
enhancing profits..................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Contemporary management is termed as a strategic tool of management that are being
undertaken by managers and leaders of business organisation as to effectively monitor and
control different type of commercial activities like e-commerce, globalisation, total quality
management, human resource management, project management and more. In this dynamic
environment organisations are required to duly manage contemporary issues through which they
can handle team and individuals in organisational workplace structure in effective manner. For
this with the evaluation of theories of management and philosophies entity can effectively serve
employees and customers in a well define manner (Shet, 2020). Present report has been
conducted on mothercare, this firm operate their functioning as a British retailer and offer their
product and services specially for expectant mothers. In addition to this entity also offer products
for the children till the age group of 8 years. It has been evaluated that United Kingdom
subsidiary of Mother Care is having estimated number of 150 stores in 2017, however the
number reduced by 79 in the year 2019 in the month of November. Subsidiary gets duly placed
into administration that lead towards closure of all of their stores. The parent company is
providing products to supply franchisees in other countries, founder of respective entity, Selam
zilkha and James goldsmith. This company is operating online, on hire streets and in out of town
retail parks. Further this report includes information’s related to dynamic form of business
environment. In this report formative discussion has been made on drivers for change in
respective organisation. Along with this descriptions of challenges that are been duly faced by
mother care and other factors on which entity required to focus upon as to maximize the profit
are included.
The fact that in today’s dynamic business environment (due to innovation, globalization etc),
change is inevitable
It has been identified that business environment involve number of dynamic factors that
keeps on changing on continuous manner and act as a major threat for organisation this makes
entities to properly understand the manager in order to effectively respond towards changing that
are prevailing in business environment and came significant opportunities from them by
overcoming their negative an adverse impact on business functioning what is with the advantage
of efficient plants as well as Strategies and take and effectively able to minimise threat as well as
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weakness and can you further ensure there student in this organisations is required to have proper
understanding related to different type of factors that are prevailing in business environment in
order to run their business operations in a smooth and effective manner for this by evaluating
different forces business organisation can save left formative strategies that further let them to
accomplish organisational goals in effective manner mentioned below there are certain dynamic
factors that can have significant impact on society and business is being define
Globalisation –
Globalisation allows organisations to effectively identify number of opportunities
through which they can maximize their profit earning capacity. In this it is important for business
organisation to effectively undertake number of aspects as to evaluate the development,
democracy and expansion of free market economy. Globalisation involves different types of
complex factors that are required by an organisation to analyse, as these factors can impact upon
decision making process of entity (BUL, 2020). In this factor like democracy combination as
well as expression of free market economy is having significant impact upon business expansion
in foreign market place. Further it has been evaluated that with having complex structure
globalisation not only affect organisation decision making process but it can also impact upon
smooth functioning of small as well as medium enterprises. Globalisation has significant impact
upon business life, economy, society and environment in number of manner. In addition to this it
has been identified that there are number of ways through which an organisation can effectively
deal with challenges. In context with MotherCare, it is essential for entity to effectively
understand the concept of globalisation along with its impact upon organization profit and
revenue earning capability. Globalisation can also impact upon overall sales of organisation, as
in this there is fierce competition prevailing among different organisation related to use of
technology, price of product and target market. Along with this, it has been identified that
customers are having high expectations from Mothercare in terms of affordable price, high
quality of product and services. Thus, it is essential for respective organisation to emphasize
upon preferences, prize, product and purchasing behaviour of customers in order to maximize
their performance and sales in global market.
E-commerce: It is a platform in which wide range of products and services are being sold by
organisation to customers with the use of internet services. It allows individuals from different
locations to involve in the process of e-commerce trading with the access of internet. It has been
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identified that there are mainly two form of trading that are conducting e-Commerce, which is
business to customers and business to business. Further it has been evaluated that e-commerce
selling is having negative as well as positive impact on society. In terms with positive impact this
has been identified that e-commerce platform allow individuals to experience shopping 24 /7 at
their own place. It not only allows customers to save their time but also aid them to have
information about the product with use of internet. It has been started that e-commerce
significantly impact upon customers in a positive manner, as with the help of this customers can
evaluate each and every feature of product of services and compare the prices with competitors
so that they can save their money. In addition to this platform also allow organisation to offer
different type of benefits and rewards to consumers in order to ensure effective relationship with
them. However this platform also has negative impact of business environment in which
unemployment is a major factor. As it has been identified that due to increase in online presence,
organisations do not establish their physical stores this create unemployment that affect living
standards of individuals. Along with this, consumer trust and security issues are also included in
negative aspect of e-commerce trading. Thus, this become essential for Mothercare to have
proper understanding of wide range of factors along with their negative and positive impact on
business in order to effectively expand their business services in e-commerce platform to ensure
maximum advantages.
Human resource management: Human resource is most important and essential as aspect
for any organisation irrespective of their size, scope and business functioning. It has been
evaluated that employees are main source of revenue generation for company, as their
performance contribute significantly in business profitability. In order to utilise skills and talent
of employees organisations are required to provide them proper training in order to serve
customers at best (Karthika and Kumar, 2020). In terms with Mothercare it has been identified
that employees and workers are major strength of entity through which company can expand
their business operations while ensuring maximum benefit. Mothercare is required to offer
positive workplace environment, composition, rewards, and benefits to employees in order to
satisfy their moral and motivate them towards company goals. In addition with this human
resource manager of company is also required to hire talented, potential and skilled candidates to
maximise organisational workplace efficiency at great extent.
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Legislation: Legal laws and legislation are crucial element which is having significant ability
to impact organisation operations, functions and decision making process. It has been identified
that there are different type of rules, legislations and laws formed by government and are
required to be abide by organisations in order to conduct their functioning in a smooth manner.
In this it is essential for HR manager of company to have proper and efficient knowledge of the
legislation and legal laws that affect business entity and further implement the same in
organisational workplace structure to promote their growth in effective manner (Vo and Arato,
2020). It has been identified that there are number of rules and regulations that can affect
business operations in different aspects. Along with this company is also required to abide
legislations and laws that are essential for international trade, in this labour law is one of the
most important regulation that are required to be implemented by organisation in order to
provide effectual rights to individuals those who are working in entity workplace environment.
In addition to this, child labour protection law, occupational safety law, health and safety law,
equality law, employees compensation are some of the legislations that are required to be
implemented by organisation in order to strengthen their decision making process (Vrontis and
Christofi, 2020). In context with, Mothercare, HR manager is required to have proper
understanding of existing as well as new policy rules and regulations framed by government and
implement the same in entity workplace structure. Along with it has been identified that policy
form in a nation is mainly related to political stability that further varies from every nation. In
this it is essential for organisation to ensure that they expand their business services in those
countries that are having effective political stability as this can stimulate entity towards gaining
maximum profitability.
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
It has been analysed that the above mentioned factors like technological, globalisation
legislations and human resource have significant impact upon retail Industry and can further
impact Mothercare in number of ways for adopting change. Thus, it is essential for respective
entity to gain understanding of these factors and develop strategies and effective measures to
gain significant opportunities from them and manage their work accordingly as to maximize
overall profitability of organisation. As per according to the evaluation, it has been identified that
Mothercare need organisational change in order to enhance their performance, efficiency and
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productivity. In order to grab maximum number of benefits and profitability in retail industrial
sector it is essential for respective entity to manage their functions and activities effectively.
Company is required to evaluate current prevailing situation in marketplace for making their
entrance in foreign market place. For this with evaluation of factors that have significant impact
upon business functioning in a positive and negative manner entity can strengthen their decision
making process through which they can effectively manage their organisational operations and
can further enhance their overall profitability at significant manner. It has been identified that
change within Mothercare is mainly due to advancement in technology in business environment,
this is mainly undertaken place to carry out Mothercare production process in best effective
manner. With the help of this change entity can effectively able to maximize their growth,
development and profitability at great extent and can further undertake advantage that are
prevailing in market. In this it has been identified that Mothercare is required to effectively
evaluate market in a well-defined manner in order to expand their business operations with the
use of new technology. Along with this entity is also require to introduce high- tech technology
in their organisational workplace structure as to strengthen their manufacturing process of their
product and services in order to fulfil consumer expectations in best effective manner. With the
help of this company can not only maximise their overall sales and profitability but can also
strengthen relationship with customers (Rådestad and Larsson, 2020). It has been identified that
there is a formative interrelation prevails within all the factors of change that further affect
organisation decision making process. These factors are being further defined below:
Globalisation and legislation: It has been determined that globalisation and legislations are
interrelated with each other that stimulate organisation to work in a proper manner. Globalisation
states that organisation can expand their business services and can gain maximum shareholding.
In order to increase overall profitability of organisation and maximise market share entity is
required to manage globalisation in a well defined manner. While in terms with numerous forms
of regulation as well as legal laws it is essential for an organisation to manage them in proper and
effective manner in order to perform their work effectively in marketplace. Every country have
different set of legal laws and regulations that are required to be understand by Mothercare
management in order to perform their business operations in a legal and lawful manner, it
enhance business profitability at great extent. It is essential for Mothercare to maintain both of
these factors in efficient manner as to ensure positivity in their business operations. Mothercare
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is required to understand all the factors in effective manner and manage their business activities
accordingly in order to ensure successful expansion of their business operations into foreign
countries. Company is required to evaluate legal laws and legislations that are required to abide
while entering into foreign market as to remove any unnecessary issues. According to the
evaluation it has been identified that legislation and globalisations are effectively interrelated
with each other and keep changing on continuous matter that are required to be analysed by firm
on continuous basis in order to effectively expand their business activities while ensuring
maximum benefits.
Human resource management and technology: Human Resource Management and
Technology are interrelated with each other in a significant manner that makes Mothercare to
effectively evaluate all the technical factors in order to improve the efficiency of their human
resource management functions in organisational workplace structure. In order to retain and
attract talented and potential employee’s business organisation is required to effectively monitor
their activities and processes in an efficient manner (Eken and Gezmen, 2020). In this technology
can prove to be an effective aspect through which entity can increase their profitability at great
extent. With the assistance of technology organisation can effectively manage performance of
their employees and staff in organisational workplace structure in order to get maximum
profitability. Mothercare is required to manage human resource of organisation with the use of
high-tech technology. In this entity can provide efficient training and development courses to
employees with use of new and efficient technology. It effectively allows entity to enhance
employee performance and boost their moral through which they can conduct their job in more
efficient manner at maximise workplace performance efficiency at great extent.
E-commerce and globalisation: Globalisation states a process through which organisations
can conduct their business services in different locations around the world and can expand their
market share. In this organisation is required to effectively manage their business operations as
to maximize their profitability and revenue generation capacity. In order to enter in marketplace
at international platform organisation is required to effectively explore markets area before
making their entrance. In this by taking proper understanding of globalisation business
organisation can effectively manage their functions through which they can ensure maximum
profitability. Factors of globalisation that can lead organisation towards failures include
fluctuations in transportation cost, trade barriers, communication barriers etc. It has been
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analysed that there is significant increase in transportation and telecommunication technology. In
this organisation is required to effectively evaluate new market trends in order to manage their
functions accordingly (Rao, 2020). In terms with e-commerce it is important for Mothercare to
effectively focus on industry structure as well as employment patterns in order to effectively
conduct their activities related to selling of purchase of products and services. Along with this
entity is required to ensure that business activities are aligned in an effective manner through
which they can enhance efficiency of different type of factors related to globalisation in an
effective manner. This makes Mothercare to effectively conduct their operations. This has been
evaluated that e- commerce is affecting Mothercare business activities as there is globalisation
within organisation, as entity is undertaking use of e-commerce to purchase rather than sales. It
allow organisation to buy services and products by assuring good relationship with suppliers.
However organisational change in Mothercare is significantly impacting upon organisation
business operation as well as activities. The change in entity proves to be effective as it
significantly allow organisation to maximize the manner in which profitability and sales of
company can be maximized. In order to enhance overall sales and profitability Mothercare is
required to manage their work properly. As per according to Lewin change model wide range of
factors of change in Mothercare is being mentioned below:
Unfreeze It is termed as the first step for managing
change within the organisation. There is
description of labourers and its execution in the
business movement
Change In 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.
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To effectively complete 2 above, 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.
It has been identified that there are different type of changes prevailing in macro environment
and have significant impact upon Mothercare PLC functioning, as company operate their
functioning in retail industrial sector it is essential for them to analyse micro environmental
factors in order to develop against strategies as to ensure more competitive advantage. In this
with the assistance of pestle analysis which is a strategic framework Mothercare PLC can
effectively analyse impact upon different type of factors like a political, economic, social,
technological, environmental and legal impact of organisations operations.
Political factors:
It involves factors related to political environment in a country elements that have significant
impact upon overall business functioning and profitability of organisation. It has been identified
that there are different type of companies conducting their operations in retail industrial sector
and are significantly exposed to different form of political system. In order to conduct their
operations in an effective manner and ensure success in retail industrial sector it is essential for
Mothercare PLC to analyse different type of political elements that have significant impact upon
their operations. Along with this by taking advantage of political stability company can
effectively expand their business services in a well effective manner. Further it has been
evaluated that Mothercare PLC required to abide elements like trade regulations, antitrust law,
trade control, employment law etc in a well define manner as to ensure government support
through which they can maximize their profitability at great extent.
Economic factors:
It involves factors like foreign exchange rate, interest rate, savings rate, inflation rate,
borrowing rate etc. All these economic factors affect Mothercare PLC functioning. By taking
advantage of these factors respective entity can gain significant opportunity to increase their
economic value (Mukonza and Swarts, 2020). It has been identified that it also allow
organisation to evaluate aspects like spending pattern of customers in retail industrial sector
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through which they can effectively forecast strategies and plans in order to enhance their
profitability.
Social factors:
It involves elements like values, believes, culture, perceptions, customs that are followed by
individuals and community in a society. These factors have significant impact upon
organisational functions (Uchino and et. al., 2020). Thus, it is essential for Mothercare PLC in to
evaluate shared believes and attitudes of individuals and society in which they are operating their
functions, as to satisfy their needs in effective manner. It allow organisation to provide their
message to customers in an effective manner. Along with this by evaluating different aspects like
skill level of individual, demographics, education standard in a society Mothercare PLC can
effectively influence consumer interest and can undertake strategies through which they can
provide their product and services to them in effective manner.
Technological factors:
Technology is changing exchanging at constant and fastest rate and is a crucial aspect
which is affecting business operations of an entity. Along with this organisations in retail
industrial sector significantly undertake use of technology and upgrade technological system on
regular basis to ensure competitive advantages. In this as to undertake maximum benefits
Mothercare PLC is required to adopt latest methods and hi- tech technologies in order to increase
efficiency of their functions and maximise overall profitability at great extent. Along with this
entity is required to provide training to their employees in order to make them compatible with
new technological update in organisational workplace structure as to enhance their performance
and increase organisational productivity to satisfy customers in best effective manner.
Environmental factors:
This has been evaluated that customers and governments are significantly changing their
shift towards environmental safety (Chen, Coselli and Shrestha, 2020). There are different type
of environmental norms and standards that are being frame by government and are required to be
implementing by organisations in their business processes. These factors is having major impact
upon company operations, in this as to satisfy customers in best effective manner while having
concern nature towards environment Mothercare PLC is required to undertake use of renewable
resources and environmental friendly measures to conduct their business operations. Along with
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this company is also required to implement environmental standards and laws that are being
frame by government in their operations as to have positive concern towards weather, climate
change and environmental laws, water pollution etc.
Legal factors:
It is an essential element in which government of a country framed different type of legal
laws and regulations that are effectively required to be abide by organisation. In terms with
Mother care, company operate their services in retail industrial sector in which different type of
legal obligations are being implemented by government that are required to be adopted by
respective organisation before entering in international and domestic market segment. Laws like
antitrust laws, copyright, discrimination law, health and safety law, consumer protection law are
some of the legal legislations through which Mothercare can effectively perform their operations.
By implementing these legal obligations company can effectively manage their business
operations and can maximize their profitability at great extent and can further safeguard
themselves from being got caught into any legal penalty and obligations.
Challenges faced by Mothercare and different factors on which it has to focus upon for
enhancing profits
It is essential for organisations to effectively analyse different type of factors prevailing in
global market as to maximize their profitability. It allows entity to effectively manage their
operations and aligned their activities towards organisational objectives (Winham, 2020). In
terms with Mothercare is has been identified that there are number of contemporary problems as
well as an issues that can be faced by entity while conducting business functioning in global
market. In this leaders and managers of entity have significant role to determine plans and
strategies to conduct their functioning in a well defined manner. Mothercare as to expand their
business operations in international level are required to identify these issues and develop
strategies against them with the use of different theoretical factors in order to manage their
operations effectively. Some of the certain factors are defined below:
Cost:
It is one of the most essential factors that are required to be manage by business
organisations in order to conduct their each and every activities in a feasible and effective
manner. In this manager is required to underline activities as per according to budget in order to
conduct their operations and cost effective manner. It not only allow company to conduct their
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organisational activities according to budget and cost effective manner but also benefit them to
satisfy their customers at best.
Taste and preference:
It is essential element which is having significant impact on organisational business
environment. It has been identified that customers taste and preference is changing in a dynamic
manner (Wall and Leith, 2020). In this Mothercare is required to analyse customer’s preferences
and taste on continuous manner with the help of regular research in order to satisfy them
accordingly and generate maximum profitability.
Advanced technology:
In order to manage business operations technology play key significant role, as it allow
entity to manage their functions and enhance their workplace performance in an effective
manner. In order to cope up with rapid change and ensure competitive advantage Mothercare is
required to implement advanced technology in there organisational structure as to satisfy their
customers in a well-defined manner and gain who competitive edge over rivals.
CONCLUSION
As per according to the above mentioned report it has been concluded that there are different
type of factors that are prevailing in a business environment and are required to be understand by
an organisation in order to implement change in their workplace structure as to ensure maximum
competitive advantage. There are number of activities like E-Commerce, project management,
total quality management, globalisation etc that can affect organization process of change. In this
organisation is required to undertake use of different strategies and plans as to effectively
implement change in workplace structure. For this entity is required to analyse factors that are
prevailing in environment as to take advantages of them while overcoming negative aspects. In
this pestle analysis significantly aid entity to implement change in a feasible manner, along with
this entity is also required effectively manage contemporary issues in order to manage groups
and individuals in a well defined manner and further enhance their performance. It allows
organisation to conduct the decision making process in effective manner and maximise their
profitability at great extent.
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