Contemporary Issues in Business Management & Leadership: An Aldi Case

This report critically analyzes contemporary issues in business management and leadership, focusing on the impact of 'dealing with changes' within the Aldi supermarket chain. It examines how this issue affects management through innovation, business strategy, competition, and economic changes, and its influence on leadership regarding organizational structure, regulations, and project changes. The report also assesses the perspectives of stakeholders such as the Chief Operating Officer, employees, and customers, highlighting their influence on Aldi's strategic directions and ethical behavior. The analysis reveals both positive and negative impacts, including increased productivity, employee loyalty, and competitive advantage, alongside potential challenges like resistance to change and workforce imbalances. Ultimately, the report provides insights into how Aldi navigates contemporary challenges to sustain its business and achieve organizational goals.

Contemporary issue in
business management and
leadership

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Analysis of contemporary issues within the organization...........................................................3
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Contemporary issues within an organization referred to unresolved issues that are currently
affecting a business within the industry. These issues have various effects upon the business,
management and leadership as well. On evaluating these issues, one of the major contemporary
issue categorized as dealing with changes as it have a very huge impact upon the business within
Aldi. Moreover, in this report the impact of the contemporary issues have been discussed in the
perspective of business and management. In the addition, stakeholder views and their strategy
direction influence also have been added in the study of contemporary issues within the
organization.
MAIN BODY
Analysis of contemporary issues within the organization
There are various contemporary issues in industry that affects the business performance
in different manner such as internal as well as external factors whereas internal factors can be
defined by leadership, management and external factors as the performance level of company
(Castellani, D. and et. al., 2018). These issues can be listed as globalization, dealing with
changes, business productivity etc. In the account of Aldi, a supermarket chain with stores in 20
countries over the globe. One of the main contemporary issue is dealing with changes within
business as well as the leadership and management of organization.
Dealing with changes : This issue have impact upon both of the factors internally and
externally. In this revolutionary world frequent changes within the business as well as trends are
taking place and among these changes it became complex for the company to deal with these
changes for the sake of sustainability in the market (Spinello, R.A., 2019). It is a very
challenging task for the leaders of company to evaluate the changes, act accordingly and for the
management to manage the desired changes in the appropriate manner. As an example during
and after the pandemic, customers are moving towards the online shopping at the place of store
visit. So digitalization is also one of the major issue company is facing under the account of
changes.

Impact of “Dealing with changes” in the management
This contemporary issue have a vital role in the terms of business, management and leadership. It
can lead in the positive as well as in the negative aspect as well. The changes can be in terms of
various factors defined as:
Innovation: In the positive manner, introduction of technology within the organization
leads management towards the success by emerging the latest technologies within the
management process such as recruitment, record tracking of employee as well as the ongoing
operational processes within the company. Process Innovation boost up the productivity of the
management. (Al Suwaidi, F. and et. al., 2020). Moreover, in Aldi, innovation in management
create the new streams of revenue, employee loyalty increases with the cost saving most of the
time. Furthermore, on the contrary note, the innovation can lead the management towards the
lack of strategy alignment within the management as frequent changes in demands of customers
results in the unclear goals within the management. In Aldi, with changes the employees start to
show the resistance and it reflects in the term of weaken leadership skill.
Business strategy: changes among the business strategy leads toward the better
opportunity for the growth of organization (Schermer, T., 2021). Changes in the strategy of
business within Aldi brings the better productivity for the product sales. The changes can be
digitalization or online business as well. However on the contrary note, change in business
strategy many of time results in the term of breakdown in the working relationship within the
company. This can be costly in terms of employee skill grooming as well as technological setup
as well.
Meeting with competition: With the changes in the environment, meeting with the
competition became easier. By introducing new technologies, strategies and the customer trends,
the management plays an important role to achieve the customer demands and that leads the
growth of company in terms of competition. In UK there is a very huge competition among retail
and supermarket, on the account of Aldi, new product as well as the management strategy helps
the company to meet up with the competition among the industry competitors.

Economic changes, When the uncertain condition starts to happen in the industry or
market then the management of the organization suffers at the most as this can lead towards the
unemployment or inflation within the company. These changes art good in a manner as they can
show the strength of a business management and clears the picture of management system
within a sustainable company (Geada, N., 2020). As an example during lock down due to covid-
19, management of the company helps Aldi to sustain in market by using feedback to maintain
the high quality products in the cheapest price.
The managers of Aldi somehow manages the business by providing the best customers
services on digital platform. The management of the company also gave incentive to the working
employees in the pandemic condition to promotes and appreciate their efforts in that difficult
situation and that made a huge positive impact on employees and the loyalty of employees
increased towards the company. On the contrary note, the management cut off the number of
employees as they were unable to work for the company in that pandemic situation so company
refused to pay those employees as they already faces recession in term of profit. This pay cutting
as well as the decrement in the workforce within the employees bring a threat in between the
employees and at some extent imbalanced the resistance in between the employee management.
Impact of “Dealing with changes” in the leadership
Innovation within the leadership creates a broader vision with the big unique ideas to
improve the production (Elrehail, H. and et. al., 2018). In Aldi, the innovation and emerging
technologies bring the challenges to the leaders as employees of the company trust the leaders
and their leadership skill so it became a difficult task for the leaders to think alternatively for
their business conduction. In the positive manner, It pushes the leaders to the urge of their
thinking to get new approach towards the solution of problem as well as quality production and
improve the skill s of leaders.
Organization structure changes, With the changes in organization structure, leadership
styles also changes according to the new strategy within the business. The reason for the
structure change can be on basis of addressing new market or change in product or service
demand towards the customer. In Aldi, the ongoing store of the company has started to focus
upon the manufacturing of the product that focuses upon the fresh, organic as well as the easy to
prepare food among the product list due to healthier product demand in between the customers.

These changes affect the existing leadership style as leaders have to adopt new
fundamental to change the existing strategy and these changes affects the productivity within a
business because of great efforts of the leaders. On the contrary note, changing leadership
structure can lead the resistance in between the employees, and they can show disagreement to
adopt new changes within the strategy.
Laws and regulation changes in the business, As per the changes in the political as
well as the government of the country changes, this leads the changes in the rules and regulation
to operate the company. Due to these changes in the external environment of the business,
leadership also get affected due to changes in the regulation (Scully-Russ, E. and Torraco, R.,
2020). Leaders among Aldi accept these changes such as if the government passes regulation
towards the pay structure of the employee it can lead towards the increment as well as the
decrement in payroll so the leaders deal with all sort of regulation and follows them properly and
motivate the employees to make them understand the new policies and their causes at the same
time. It can lead the satisfaction as well as the agreement within the employees.
On the contrary note, the more clarification leaders do towards the intention of the
company and their ground rules, the more employee able to predict the outcome or the future
condition of the company's environment. This is one of the hardest side of the leadership, this
can initiate the resistance to change within the employees or this influence can affect the
decrement in the work force.
Project or competition change, with the changes in the project of the company this
results in the change in the competition of the business (Young, J., 2022). New project as
globalization in Aldi have a huge impact upon the new as well as existing business or the
company and the competitive market also changed as per the new local market in which
company is planning to expand. In every country there is a different culture and customer trend,
as a result the leadership within the business also have to adopt the changes to sustain in the new
market within the different environment.
Leaders have responsibility myriad towards the changes and leaders are the one who
delve deeper within the understanding towards the changes, This can support the changes and
accept the changes in the business culture but on a contrary note, leading in the introduction of
new change also can have uncertain consequences of the business setup and that can hamper the
business of company.

Impact of stakeholder operations
The contemporary issue of dealing with changes in the Adli have a great impact on the
stakeholders of the company. The stake holders of the company include customers, employees,
investors and the government. Different stakeholder have a different opinion on the approaches
taken by the company in order to deal with the changes. Strategic directions are created by the
managers and leaders. It refers to the plans that need to be implemented for an organisation to
progress towards its vision (Gan and Yusof, 2019). Various factors influence the approach taken
by the company in order to remove the barriers of dealing with changes that include management
functions, structural transformation, competition, social and economic factors, laws and
technology. Company took Ethical behaviour approach to remove the barriers of dealing with the
changes. Adli took steps to train the employees to deal with the changes and develop the
creativity in the employees so that the contemporary issue of the business can no longer affect
process of achieving organisational goal of the business.
The contemporary issue of dealing with changes refers to the external and internal
changes that impact the growth of the company. So company took various steps to deal with the
changes. Stakeholders of the company have their point of view on the approach of the
organisation. Following are some stakeholders views on the approaches taken by the company
and their impact on the business.. Chief Operating Officer: It is senior executive post which has task to deal with the day to
day operating activity in the organisation (Bennett and Miles, 2020). According to the
chief operating officer, approaches taken by the company are very well observed but the
day to day activity are affecting in the process of the approaches taken by the company.
In order to deal with the changes necessary training should be given to the employees.
Making employees creative will lead to the rapid change adoption in the business.
Company is not forecasting the changes completely. It helps the company to take major
steps to adopt the changes. Contemporary issues of the company should be analysed and
then proper guideline should be prepared in order to remove the contemporary issue in
the organisation. The steps taken by the Adli to prepare the staff and employee for
dealing with the changes created by the external and internal factors of the business.
Although, the approach is giving positive results but it is properly handling the long term
impact of dealing with changes in the company. The influence on approaches by the view

of the chief Operating Officer is that the strategy planning of Adli were improved and the
vision of the approach developed in a more efficient ways that lead to the minimum
wastage of resources. Employees: It refers to the workers who are intent to complete the organisational task of
the business and get paid salary in return. Employees of the business are being prepared
for the dealing with the changes. Their view on the approaches taken by the company are
positive. Employees are learning new techniques through the training. It is also helping in
the personality development of the individual (Falqueto and et.al., 2020). Dealing with
changes is a very good learning that can be used in the personal life of employees.
According to the staff of the Adli, this is a very good step taken by the company in order
to remove the barriers in the contemporary issue of the company. Training of the
employees can also be seen as innovation in the company. Organisation is preparing
innovating ideas to deal with the internal as well as external changes. Employees of the
Adli are influencing the approach as the impact of change is also helping the staff in their
personal life. Employees point of view states that this step will help the company to
decrease the impact of contemporary issue of the organisation and to the growth of the
Adli. Dealing with changes is a very helpful and important task of the business. Workers
of the company are majorly impacted with this contemporary issue as majorly they have
to deal with the changes but this strategic planning helped the employees a lot to deal
with the changes in the company. It will also reduce the time in the adoption of the
changes. Steps taken by the company are highly effective as the employees of the
organisation are contributing their best to make the changes. Investors: Shareholders or Investors of the company refers to the individuals or group of
individuals that puts capital in the business in order to enjoy the profit share of that
particular business. Investors are majorly concerned about the long term impact of the
contemporary issue of the business (Echebiri, 2020). The views of the investors or
shareholders on the strategy of the company is that the process of training is expensive
and time-consuming process. However, it will help the company in long term but the
changes are dynamic. Predication of the upcoming changes is very hard. The result of the
approach is very effective and investors are ready to invest more in the company as they
trust on the approaches taken by the Adli. Investors believe that staff retention would

have better approach to remove the barriers of dealing with changes. The influence of the
shareholders of the company is they are getting engaged with the business meetings and
agreeing the approach of the company. Their point of view is getting heard and
approaches are preparing by the organisations keeping in view the opinion of the
investors. It is helping the business in making decision-making process effectively. Government: The role of the government in the strategic planning of the company is
very important. Government need to know about the approach as it may impact the
economy of the country. It is also stakeholder of the company as it affect the company by
political changes and the laws (Bryson, Edwards and Van Slyke, 2018). The approach to
deal with the changes can only be successful when no external changes affect the
business during the training of the employees. Government may impact the business by
the political change and new rules and regulation in the business sectors of the country.
Government views on the approach is very positive as it will increase the economy in
long term and the people of the nation are being innovative. Business is influencing by
the government as the approaches as created under the laws and the guidelines of the
government. It helps the company to perform better by keeping the problems that may
arise due to the political factor. It will help the economy growth and country
development. Vision of the business is to improve the rapid changes adoption in the
business that lead to the innovative ideas and create better working environment in the
society.
 Customers: It refers to the individual who is consuming the goods or services of the
business. These stakeholders have their views on the basis of the outcomes of the
company. Customers have seen better outcomes from the business such as increase in the
quality of goods and services and company is also adopting the trends that leads to the
increase in the growth of the business (Afandi, Anwar and Ahmad, 2018). Customers of
the Adli are having positive views on the approach of the company and it can be
measured through customer engagement. Better services. Adli is also influencing by the
customers point of view n the approach of the business as the satisfaction of the customer
is the major priority of the company so prapering the plan with the help of customer
views creates better relationship between the customer and the business. It also increase
the customers loyalty towards the company. Adoption of the changes lead to the better

work environment and it has great impact on the service and the product of the company.
Customers are willing to purchase products from the Adli. The approaches taken by the
company has proved beneficial to the company as the customer satisfaction is the main
priority of the business.
CONCLUSION
From the above study, it can be concluded as there are various contemporary issues exist
in the industry, organization and the company as well and dealing with these issue can be
sometimes very complex in the positive aspects. These issues have various positive as well as
negative impact on the companies such as Aldi. These contemporary issues affect the leadership
and management in the business or organization. Among all these issues, one issue 'dealing with
change' have been studied in details within this report.
This report focused upon the different aspect of these contemporary issues affecting the
management of the business such as external as well as the internal prospective of a company.
Furthermore, this study have concluded impact of contemporary issue upon the leadership of
company such as innovation, change in structure of organization, law and regulation change and
the market competition changes within the industry.
In the end, the impact of stakeholder view affects the organization also have been studied
in detailed. The way stakeholder take decisions or adopt the strategy towards the contemporary
issues have been studied in the account of business organization. Critical analysis of approaches
the stakeholder of company adapt to deal with these contemporary issue have been added.

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