Contemporary Management Issues

This report discusses the dynamic forces influencing business and society, the relationship between these forces and strategic decision making, and the enterprise response to key dynamic forces in the contemporary business world. It focuses on the case study of Mothercare, a retailing organization headquartered in the UK, and explores the impact of political, technological, social, and economic forces on the company. The report also evaluates the interrelationship between these dynamic forces and their influence on strategic decision making. Additionally, it provides an evaluation of Mothercare's response to these forces and the use of decision-making tools and theoretical foundations to address contemporary management issues.

Contemporary
Management issues

Contents
INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................3
1. Dynamic forces influencing on business & society.......................................................................3
2. Evaluation of relationship between dynamic forces associated with strategic decision making....5
3. Briefly provide evaluation of enterprise response to key dynamic forces in contemporary
business world...................................................................................................................................6
4. Discuss DMT (decision making tools) to address contemporary drivers for change.....................8
5. Evaluate relevant theory foundations to support application of effect corporate responses to
contemporary management issues...................................................................................................11
CONCLUSION...................................................................................................................................12
REFERENCES....................................................................................................................................13
Books & Journal..............................................................................................................................13

INTRODUCTION
In business world, nothing is permanent because market and events are uncertain as
well as dynamic. To survive in this competitive era, it is important to focus on dynamic
forces of change which affects the growth & development of business at wider level. Mother-
care, which is retailing organisation headquartered in UK. Firm deals in toddlers clothing up-
to age of 8 years and boots. Due to changing business environment, position of enterprise has
been affected at depth. So, with changing time period. This report includes forces impact on
business, relationship between dynamic forces, and response of organisation to forces,
decision making tools & theoretical foundations in relevance with contemporary management
issues.
MAIN BODY
1. Dynamic forces influencing on business & society
In the business world, there are many factors that has an impact on the societies as
well as performance of an organisation. It is determined that there is both negative and
positive impact of dynamic forces. It is essential for companies to analyse the factors that has
influence on activities and operations of an organisation. In addition to this, it assist an entity
to make improvements and deal with changes easily occurred within the environment. It is
determined that analysis of these factors help an entity to attain competitive advantage and
gain higher success within the marketplace. The dynamic forces that has impact on societies
and organisation is described below:
Political forces: It is determine that political forces that high impact on the overall
activities of an organisation. It include political stability, trade barriers, policies &
procedures, technical standards, intellectual property rights and many more. In relation to
Mothercare, the company head office is located in United Kingdom and it is determine that
political stability of country is quite well. The government of United Kingdom supports
companies to expand their business activities globally as it help them to gain growth as well
as development. Change in the policies and procedure develop by government sometimes has
a negative influence on the working performance of an organisation as the managers is
required to change accordingly that consume time as well as occur cost to the company. For
example, at the time of Brexit, the inflation rate of United Kingdom is decline and due to this

purchasing power of people living in UK is also decline. This affect negatively on the sales as
well as profit level of the company.
Technological forces: In this emerging world, technology is changing rapidly and the
choice of customers is also changes. The people in market prefer to consume or buy those
products, which is innovative and new in market. The advanced technology help companies
to expand their business operations, increase customer base level, increase productivity and
so on. With the help of technology, companies are able to reach more number of people that
directly leads to increase in sales and profit of company. With reference to Mothercare, its
managers can launch its own application that will help them to provide information to
customers at one place only. The company can create awareness of its product by using social
media applications like Facebook, YouTube, LinkedIn, Instagram and so on. It will help
company to maintain its sales and profitability. Moreover, using of advanced technology
allow company to maintain sales at the time of reduction of its number of shops. it help
company to attract large number of people as it is determine that people in UK prefer to buy
innovative and creative products that leads to raise in sales and profitability of the
organisation.
Social forces: It include values, beliefs, opinions and custom of people prevailing in
the society. This force is considered as one of the most significant dynamic forces that
directly affect business as well as societies. The taste and choice of people is keep on
changing and it is essential for an entity to make changes accordingly in order to sustain in
market for longer time. It is determine that one of the important social force is culture so it is
essential for managers to identify the culture of people of the market in which there are
offering products and service. It help company to increase its customer base level and gain
higher profits as well. In context to Mothercare, it is important for managers to ensure that
product which is offered in market developed value to customers then only company sustain
in market. In addition to this, considering all the social forces help company to attain
competitive advantage and develop positive mind set of people towards the brand. If the
Mothercare provide goods as per the choice and preference of people, it will surely gain
success at marketplace and attain higher growth as well.
Economic forces: This force involve income level of people, global competition,
exchange rate and many more. Change in the economic force has high influence on the
overall performance and productivity of an organisation. For instance, people invest less

amount on vehicles, luxury goods and jewellery if it compare with their expectations. It
directly impact on the profit margin & market share of the organisation. If it is talked about
Mothercare, its managers can expand operations in the developing countries, which help in
earning higher profits and increase productivity as well. By the assistance of this, company
can strengthen its market position and attain objectives in an effective manner. Economic
forces also include forces such as taxation rate, inflation rate, import and export rate etc, For
example, alterations in the tax rates by government has both positive as well as negative
impact on the organisational performance. If the rate is increase the revenue level of company
decline and vice- versa. Increase in tax rate imposes a company to increase the price of its
good and services. Thus, to pay high tax, company charge high amount from customers that
has directly negative influence on societies.
2. Evaluation of relationship between dynamic forces associated with strategic decision
making
The organisations face issue because of changes take place in the external
environment and all this factors impact directly on business activities and performance. It is
analyse that interrelationship between dynamic forces that is political, social. Technical and
economical forces that help companies to take proper decision which in turn leads to raise in
performance of an organisation. It is essential for companies such as Mothercare to focus on
building effective strategies in an appropriate manner. it will help company to deal with the
environmental changes in a proper and effective manner. In addition to this, Mother care us
required to identify market trends as well as customer needs, which help them to fulfil
requirements of customer and retain them for longer period. It is determine that
interrelationship among dynamic forces help an entity to take effective and right decision,
which will lead to enhancement in productivity and performance of an association. The
interrelationship between dynamic forces, which help in strategic decision making are as
follows:
Link between social and economic forces : This interrelationship is consider as one
of the effective relationship, which assist an entity to take proper decision and attain higher
growth at marketplace. It is determine that ethics, social philosophies and norms include
different aspect, which impact directly in behaviour of customers and shape an economy.
This will result in development of effective strategies, which is beneficial for both
society as well as organisation. In addition to this, socio-economic interrelationship contains

background, profession education, social class and many more. Considering all this factors,
Mothercare increase its business performance and help in raisin profit margin of the
company.
Link between technical & political forces: The case study that is given show that
sales of Mothercare is decline and it is important for company to maintain sales in order to
sustain in market. Adoption of advanced technology help company to attract large number of
people and earn higher profits. It is determined that companies use technology in order to
expand its operations in other countries that help the economy of country to gain growth and
development. It is important for higher authorities of Mothercare to emphasise on using
advanced technology as it help in grabbing opportunities and gain success at marketplace.
There are different political factors that is related with the changes such as taxation rate,
political stability and so on. Technology allow an economy to be politically stable and
support companies to expand operations globally.
In addition to this, Mothercare can gain success instead of declining in number of
shops. its higher authorities adopt advanced technology, which help them to reach maximum
number of people that directly leads to increase in market share and profit margin of
company. Mothercare can develop their own application and advertise it on media
applications that help in creating awareness about product as well as service in an effective
manner. Therefore it is determine that interrelationship among dynamic forces help an
organisation to take effective decision which is beneficial as well as suitable for company.
Moreover, it also assist company to raise market share and increase their productivity level in
an effective manner.
3. Briefly provide evaluation of enterprise response to key dynamic forces in contemporary
business world
Changes are part of business and it essential for every entrepreneur to be aware about
such forces which stimulate such changes within the management. Many firms use different
strategies & tactics so that correct decisions are taken the process. So, it is necessary to adopt
appropriate framework so that effective tactics are applied in business. In this, Porter Five
forces model has been used so that market situation & uncertain events are known properly.
Through this, it becomes easy to give effective response to dynamic forces in CBW (Popescu,
2017). These contemporary management issues slow down the growth of business as well as

development. To conduct this framework proper market research and knowledge is required
so that conflicts & errors do not occur in future. It is mostly adopted by marketers to analyse
competition in market & environment. This tool involves five elements which are discussed
below-
Threats of new substitutes- Each & every product is heterogonous in nature with
sometimes with same similarities. In market, there are ample numbers of substitutes of
products available which have a deep impact on sales as well as profit. Customer switching
behaviour is changeable which allows substitutes to access market & end users. To deal with
the situation strategies are used in management so that value of existing product does not get
reduced (Alfirević, 2019). Also proper awareness is to be maintained in organisation so that
market events are unknown. Moreover, new offers are to be given to old customers so that
they do not change their decision while purchasing product. Also, availability of these
reduces value of existing product. This is the reason why it is said that main responsibility of
entity is to maintain customer relationship management so that end user stick to particular
one brand and does not switch consistently.
Competition rivalry- Another component is CR, which specifies that in market
competition is booming at rapid scale. Organisations compete with each other for earning
more profit and market share growth. In relevance with Mother- Care, they also have many
competitors such as Wattle, Anstel, and Snuggle Bugz etc. These are some competitors of
specified brand which deals in same products with similar purpose. With increase in
competition, new ideas, thoughts are also generate which is beneficial for business & market.
Rivalries between firms stimulate them to put more effort so that goals as well as objectives
are achieved properly. It is benefit for market to have more and more competition because it
generates more business all around environment (Schaltegger, 2017).
Bargaining power of suppliers- Vendors crucial role in business because they are
the source through which products are delivered to end users for consumption in proper
manner. There are various suppliers which are available in both offline & online platforms. It
depends upon the enterprise to select according to need and requirement. Power of supplier is
high when buyers are fewer in numbers so when selecting vendors proper research is to be
done so that suitable one is chosen. It is essential because cost of production depends upon
vendor bargaining power. In relation with selected enterprise, to uplift the business they need
to take proper measures regarding resources, products and vendor. It is also said that vendor

look for bargaining power so that they gain maximum profit by delivering low quality
products (Gordon, 2019).
Bargaining power of buyer- Further comes power of buyer which depicts that at
time of purchasing buyer often demands goods, products at low prices. Power is high when
purchasing is done in bulk quantity or suppliers are few in market. This is done because
customer looks for best deal so that they get what they need at affordable price. Mother-care
keeps the bargaining power high so that their production cost do not get affected & functions
as well as operations run smoothly. By doing this, relationship is maintained between seller &
purchaser. Moreover through this, production cost and manpower decisions are made
properly. So, when this power is imposed on suppliers they examine all ways of managing
cost so that it is in the favour of both parties. It is also need to be considered that when
bargaining is done it is to be done in proper manner.
Threats of new entrants- As competition is rising, new businesses are also taking
place in business sector due to which existing brand also getting affected. This is because,
with same products with similarities, different products with different similarities new
companies enter into the market. Further, it is not possible for every new entrants to acquire
the market opportunities so threats of new entrants is high when government involvement is
less, competitors are few, market is wide etc. These are some situation which gives way to
new entrants. So, effective strategies & tactics are to be prepared so that enterprise runs their
business appropriately. In relevance with Mother- Care, they are getting affected by online
retailers because they were slow in adopting technology which results in declining of sales
margin & profit. Also, policies, procedures are to be adopted so that entry of new corporation
does have much larger impact (Zhang, 2020).
After a brief analysis of above matter, it is stated that without using tools it is not
possible for firm to smoothly run their business. So, it is responsibility of manager or HR to
make ensure that right model is being used in organisation so that work is being carried out
accordingly. Besides this when using this tool, it is to be considered that it is used by
management appropriately.
4. Discuss DMT (decision making tools) to address contemporary drivers for change
In business, it is necessary to take decisions at every phase so that output is achieved
in proper manner. So, when decision making is done it is important to make ensure that it is
done by using correct tools. To address the contemporary drivers for change, enterprise need

to be more careful while taking decisions regarding business (Varelas, 2017). This results in
time & manpower effort saving which is used in future perspective. In context to selected
entity, they use Force Field Analysis & probabilistic model as tool which assists them in
making decisions effectively. Both these tool addresses the drivers for change in appropriate
manner. Decisions making tools are mostly used by superior authority or by person who has
knowledge about the filed. It is a time consuming process so reliable information, correct
measures are to be used in management. Thus, these two models have been discussed below-
Probabilistic model- This model depicts that future is unknown and randomness is
the way of predicting uncertain events. So, it is mostly to know the event or situation which is
about to occur in near future. Mother-care uses this model to determine impact of product on
market & customers. Besides this it is method through which result of future outcome is
known appropriately. In this, it is crucial to be aware about emerging trends as well as
customer switching behaviour so the decisions are made accordingly. It helps in using
resources effectively so that which cab used in other activities. In this, every time it is used
results which occur is different. This depicts that all new ideas are generated every time for
single problem which is beneficial for enterprise. Hence, it provide new alternative for ideas
that can be used in future if the chosen option fail.
Force Field Analysis- Another decision making tool which is used by Mother-Care is
Force Field Analysis is used for analysing & examining proper decisions and also to measure
their drivers which are in favour and resist the force change. Through this two types of
drivers are being taken internal as well as external. These drivers include all factors which are
responsible for change-no change. This analysis was introduced by Kurt Lewin with motive
of taking effective decisions. In addition to this, this framework assists them to identify
needed changes which are essential for growth & overall development. So, it involves several
major steps which are mentioned below-
Step 1- The first phase is to analyse objectives, goals, and mission so that it become
easy to for everyone in firm to be aware that what is to achieved and why. In relation with
Mother- Care their main vision is to be the first choice in retailing sector. By going through
this, business is able to run more effectively as well as smoothly.
Step 2- Next aspect is to identify as well as examine the forces that stimulate firm to
adopt the change. In relevance with chosen firm, they use two types of drivers which are

internal and external & then further by analysing properly which have deep effect most
crucial one is adopted (Nurlansa, 2016).
Step 3- In this, those forces are being identified which are stops management to
accept the change. These are also known as resist for change because they deny adjusting
with proposed change. This mainly happens because of uncertainty of result, situation and
also due to rigid organisational structure. So, it is responsibility of manager to make ensures
that all such resistance are prior analysed so that problems are being solved more rapidly
(Webster, 2018).
Step 4- Once the changes are adopted by everyone peacefully them it is also
important to choose about forces which has more influence on firm & rating is to be done
properly so that decisions are then prepared as well as made accordingly. For example-
Mother- Care main forces which influence mainly are need of new products by customers and
second one is to enhance the speed as well as efficiency of production in business. Thus, this
aspect helps them to be more knowledgeable about the proposed change.
Step 5- After identifying all forces and selecting most influencing one then it comes
the stage in which they are to be applied after a deep decision making process. So, when it is
done revise of those forces is necessary so that appropriate results are obtained and if not
them correct supportive measures should be pre-pared. Thus, selected enterprise uses this step
by consulting to everyone in management so that opinion of every individual is known
properly.
After going through above paragraph, it is being seen that to achieve goals and
objectives it is necessary to take decisions which are suitable for growth of entity. It depends
upon corporation to use which effective strategy for business. So, to do this tools & models
are used at wider and broader level. Besides this, manager of enterprise make sure that these
are used under proper consideration of superiors. Also, it is to be considered to determine
when to use probabilistic & when to use force field analysis. So that decision making process
are process with same purpose/ measures (Sommerwerk, 2017).

5. Evaluate relevant theory foundations to support application of effect corporate responses
to contemporary management issues
Issues in business are tend to be arises at every phase and which are to be handled &
managed appropriately. So, contemporary management issues are also act as perception or
way of thinking which emerge during the problems or challenges. It is needed to be addressed
such issues to remove the business hinders in process. Such CMI are mostly concerned with
present day scenario and it being carried out thoroughly. With help of some theory
foundations it becomes possible to deal with such problems. Also, they are to be adopted
after analysing obstacles so that suitable one is selected. There are some theories which are
being adopted by firm & are explained as follows-
Contingency theory- This one states that there is no particular way or permanent
solution for business/ organisation because answers to all issues are connected with occurring
situations or events. That is why market & business both are dynamic in nature because not
everything is permanent. It uses manpower effort and time at higher scale but if used properly
then positive results are obtained. If talk about Mother- Care they use this theory after
considering all in and out of situations. It assists manager to develop their decision making &
management skills. Moreover, employee’s confidence increases as ideas are shared between
colleagues & process by which allows them to enjoy freedom of expression. Also, by using
this enterprise they improve their infrastructure, decision making system etc. more efficiently.
It is easy to use this but when practically applied it tend to be very complex because handling
every situation is possible for manager (Ferreyra, 2018).
System Theory- Further arises system theory which specifies that a system as whole
system not as individual/ separate. According to this, business components are to be united
as group not as solely. This includes science, natural, social and many more. Through this
theory, it becomes possible for organisation to work actively. In context to Mother- Care,
they adopt this when changes are to be implemented in management. It helps in managing
employees in proper way (Xu, 2018).
After a brief examining of above matter, it is analysed that theory foundations are way
of managing as well as solving contemporary issues in management. So when going through
these above stated foundation proper measures are to be used so that positive outcome is
achieved. Besides this, HR manager need to be aware about such theories so that policies,
procedures, rules and regulation do not net affected by such foundations. Because when

changes are implemented, new policies and practices are prepared by Human Resources
department (Rahimi, 2017).
CONCLUSION
After a brief analysis of above report, it is concluded that business environment
impact on corporation is deep. Contemporary management issues are to be occurring rapidly
& require effective decisions making. So, various tools are adopted such as Porter Five forces
model which assists to analyse market situation so that problems are identified and solved.
Further, DMT have been discussed with appropriate framework such as probabilistic & Force
field analysis. By properly applying theory foundations response of firms are examined. CMI
are necessary to identify so that new ideas are generated for process development.

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