Argos Case Study: Analyzing Dynamic Forces and Management Responses

This report provides an analysis of contemporary management issues within the context of Argos, a retail industry company. It examines key dynamic forces such as technological, political, economic, social, legal, and environmental factors, and their impact on business and society. The report evaluates the relationship between these forces in effective strategic decision-making, including the use of Porter's Five Forces analysis. It also assesses the organization's responses to these dynamic forces, focusing on globalization and innovation barriers. The case study highlights the importance of adapting to changing market conditions, reducing costs, and satisfying customer needs to maintain a competitive advantage. The report also touches upon the impact of legal forces and the increasing awareness of environmental concerns, emphasizing the need for companies like Argos and Sainsbury to adhere to environmental acts and policies.

Contemporary Management Issues

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Key dynamic forces.....................................................................................................................3
Critical evaluation of relationship between forces in decision making.......................................5
Evaluation of organisation’s responses to dynamic forces..........................................................7
Decision making tools.................................................................................................................8
Contemporary management issues............................................................................................10
CONCLUSION..............................................................................................................................12
REFRENCES.................................................................................................................................13

INTRODUCTION
Contemporary management issues refer to issue that affects people working in an
organisation. These issues remain unresolved and it is not good for growth of company. There
are some management issues which is faced by managers like, uncertainty about the future,
regulations and compliance, shaping company culture, recruiting and selecting employees,
wellbeing of workers etc. These are some management issues which is faced by organisation
(Tomislav, 2018).
This report will lay emphasis upon case study of Argos organisation. Argos is a retail
industry which was founded in year 1972 by Richard Tompkins. It serves United Kingdom and
Republic of Ireland. It provides consumer products and good quality products are delivered to
consumers. Sainsbury is a public limited company founded in year 1869. It is also a retail
industry which provides consumer products and serves area of United Kingdom. The report
examines, key dynamic forces impacting on business and society, evaluation of such forces in
effective strategic decision making. Further, decision making tools to address contemporary
drivers for change. Evaluation of an organisation response to dynamic forces in contemporary
business world. Application of effect of corporate response to contemporary management issues
and analysis of relevant theory to support identification.
MAIN BODY
Key dynamic forces
There are some key dynamic forces impacting on business and society like, technical,
political, economic and social forces. In this fast moving world, competition is increasing and
every organisation want to earn profit so they make better plans and face contemporary issues.
Technology is changing rapidly and it is difficult for organisation to implement new machines.
Nowadays, choice of customer is changing and they want new & innovative product so that their
needs can be satisfied. For manages of a company, it is difficult to identify taste and preference
of consumers and make products accordingly. Dynamic forces impact business and society
because trends are changing and customers want good quality products at low prices (Perera,
2017).
PESTLE Analysis

Every firm want to earn profit by creating good image in market and providing quality
products at low prices. Key dynamic forces are, technology, social, political and economic force.
These forces are faced by every organisation because it is common and managers have to make
plans or strategies so that they can perform better than others and gain competitive advantage in
market. It is essential to find solution of problems face by company and focus on accomplishing
goals and objectives of company.
Political force- Political force is another important dynamic force that means some rules and
regulations which is made by government and organisations have to follow it. Political force
impact business and society because if rules are applied in an organisation then it satisfies needs
of employees and create positive image in minds of customers (Nandonde, 2019). In Sainsbury
company, rules and regulations are applied which is followed by every employee and it helps in
creating positive & healthy environment within the company.
Economic force- Economic force means factors which help managers to determine competitor’s
strategy or plans. It is essential to identify factors that can affect performance of company and
make better plans to gain competitive advantage and build good image in market. In economic
forces some factors are included like, unemployment level, inflation rate etc. This is one of the
key dynamic force which can be an issue for managers (Namany, Al-Ansari and Govindan,
2019). Managers of Sainsbury company conduct market analysis before making any plan or
strategy so that they can perform better than other companies and create positive image in minds
of customers. For achieving targets, it is important to identify plans or strategies which is applied
by competitor’s.
Social force- Social force affect business as firms have to make products as per the needs of
people living in society so that their needs can be satisfied and more revenue can be generated by
company. For gaining competitive advantage in market, managers have to provide good quality
products to customers and satisfy their needs. Products should be made after analysing market
situation and choice of customers because it helps in earning more profit (Islam and Mamun,
2017). So, this is a challenge for managers of Argos company to make good products which
satisfy needs of people living in society.
Technology force – change in technology is one of the main dynamic force that affect firms day
by day and for all firms it is not possible to buy new machines for making innovative and
creative products. This force affects society also because people want good quality products at

low prices and they think that with help of technology new products can be made (Phan, 2021).
Technology reduces cost of production and selling price of product is also low. Managers of
Argos company want to produce products at low prices so that they can generate more revenue
and build good image in market.
Legal force- It means to apply some rules and laws which is made by government so that
employees can work efficiently. Legal force helps in maintaining equality in organisation and all
workers focus on achieving targets. In Argos and Sainsbury company, laws are applied to
maintain equality. Legal force has impact on business and society because when laws are applied
in an organisation then employees are satisfied and work efficiently. So, it is essential to apply
laws so that work can be done in systematic way and employees are satisfied. For accomplishing
targets, managers should satisfy needs of employees and apply laws (Christodoulou and
Cullinane, 2019).
Environmental force: in past few years awareness about environment has increased. Due to this
various environmental acts and polices have been developed that has become important for
Argos to be adhered. It is one of the main driving force that can affect both busiess and society.
This because non adherence of these environmental acts and policies that results in facing legal
issues by organization and can affect society such as increasing CO2 emission can increase
pollution ad affect society.
In the given case study, Sainsbury have been boosted by its takeover of catalogue retailer
Argos. Cost saving improved profits, while adding outlets of Argos in Sainsbury store increase
trading intensity. According to chief executive of Sainsbury company, grocery market remained
“extremely competitive” because generally most of the companies are involved in grocery
business. In early summer availability of stock has been bumpy but now it is normal. In case
study it is mentioned that reducing cost increases profit. It is essential to focus on reducing cost
of production and increase profit of company. When products are provided to customers at
reasonable price then it creates positive image in minds of customers. For accomplishing goals
and objectives of company, it is important to determine dynamic forces and make plans
accordingly. This helps company in satisfying needs of customers and perform better than others.
Porters five force analysis
In order to identify main driving force that can affect business of Argos porters five force
model can be used:

 Bargaining powers of buyers: threat of this force for Argos is high because there are
various competitors in this industry. If Argos do not maintain their quality, quantity and
pricing of products and services as per the competition then it can directly result in losing
buyers. This is because buyers can get better option for desired products and services
from competitors. This can affect business drastically (Goyal, 2020).
 Threat of substitute product: threat of this force is also high for Argos because there are
various substitute products available in market for buyers that can affect overall business
of Argos.
 Bargaining power of supplier: threat of this force is low for Argos because there are
various suppliers available in the market who can readily provide required markets to
Argos in lower price with high quality. So impact of this force upon business of Argos is
lower.
 Threat of new entrant: threat of this force for Argos is lower because economies of scale
for new entrant is high because of which its impact upon business can get reduced.
 Industry rivalry: Threat of this force for business of Argos is high because existing
competition because of competitors in the market in which Argos operate is high that can
affect business of Argos directly.
Globalization: Globalization refers to the process of the interaction and integration between
business entities on an international level (Burlacu, Gutu and Matei, 2018). Argos company
needs to focus more on its globalization strategy as it can help the company to grow and develop
its business on a global platform. Globalization can provide numerous benefits to the company. It
can help the comp-any to wider its customer base, enhance its product reach and increase its
brand awareness among global customers. However, there are many barriers which Argos can
face in the implementation of globalization. It includes loss of cultural identity, foreign work
exploitation, international legislation and incurring tariffs and export fees etc.
Innovation barriers: Innovation propose many challenges to the company (Ávila and et.al.,
2017). Theses barriers can include security issues, budgeting, additional costs and limited time.
These barriers can become a hurdle in the way of innovations in Argos. Another barrier in
innovation which the company might face is the lack of investments and funding.
Innovation

Innovation is the important element for earning profit for an organisation. Managers should
analyse market situation and make changes as per the requirement. Innovation helps in
improving productivity, reduced cost, increased competitiveness. It improves brand recognition
and value in an organisation. Innovation helps in increasing new partnership and relationship,
increased turnover and improved profitability. Sainsbury company is making new and innovative
product so, Argos company can earn more profit. Innovation helps in increasing sales of
company and creates positive image. Nowadays, people want new and innovative product so
managers of Argos company should identify need of people and according to that plans should
be made so that needs of customers can be satisfied. Innovation propose many challenges to the
company (Ávila and et.al., 2017). Theses barriers can include security issues, budgeting,
additional costs and limited time. These barriers can become a hurdle in the way of innovations
in Argos. Another barrier in innovation which the company might face is the lack of investments
and funding.
Critical evaluation of relationship between forces in decision making
Dynamic forces have positive as well as negative impact on an organisation’s functions
and decision making. These forces help in effective strategic decision making process and better
plans can be made for achieving targets of company. It is the responsibility of managers to
identify all the factors and make strategy which is beneficial for growth and development of
organisation (Merendino and et.al., 2018). Managers should take decision after analysing market
situation and determining choice of customers.
Technological force helps in determining about new technology by which cost of
production can be reduced and helps in building good image in market. Change in technology or
introduction of new technology can affect decision making of organisation. It has positive impact
on organisation as with the help of latest technology more revenue can be generated (Devi and
Devaki, 2019). Technology can affect decision making of an organisation because it helps in
completing work more efficiently and better products can be provided to customers. Technology
affects decision making of managers as culture, environment and efficiency of Argos company.
When work is done by machines then employees become lazy and they are not focusing on
achieving goals and objectives of company. Competition is increasing day by day and if
company want to earn more profit then they have to apply new technology. This may affect

decision of managers because may be they made plans according to old machine. So, it is
difficult for manager to make new plans or strategies and they have to face problem.
Political force affect decision making of managers because government can change
policies anytime. For example, if Argos company want to expand their business in other country
and make plans accordingly but government make some changes in trade barriers, tax policy,
trade restriction etc. then managers has to make plans and strategies according to new policies
and rules. So, this may affect decision making and managers have to face issues which may
affect overall performance of company (Gökalp and et.al., 2021).
Economic force affect decision making of company as it includes, inflation rate,
unemployment level and many other factors. For instance, Argos company want to open new
branch but due to increasing competition they are not able to open branch. Demand of product
also affect decision making because if demand of product is decreasing then managers have to
make new plans and identify choice of customers so that product can be made accordingly.
When demand of product increases then company hires more employees and when demand
decreases then they terminate employees. This affect unemployment rate and overall growth rate
of country is affected. So, managers should identify all the factors before taking any decision and
take correct decision which is beneficial for all (Nibbelink and Brewer, 2018).
Legal force affect decision making as when laws are applied then employees can work
efficiently and goals can be accomplished. Laws and rules helps in satisfying need of employees
and they work efficiently to achieve targets. Laws help in maintaining equality at the workplace
and there is no discrimination among employees on the basis of gender, race, caste etc. With the
helps of law and rules, managers can take decision quickly and fair decision is being taken. Laws
have negative impact also as sometimes when managers apply laws and changes are made by
government then managers have to make new policies and plans.
Social force affect decision making of company because products are made according to
choice of customers. Nowadays, choice of people is changing rapidly so, it is difficult to identify
which type of product people want. This is an issue which is faced by managers because people
want new and innovative product. For instance, if Argos company want to open new branch then
managers have to identify choice of customers. Due to increasing competition, trends and choice
of consumer is changing.

So, dynamic forces like, political, economic, social, technological and legal affect decision
making. So, managers of Argos company should take decision after analysing all these forces
and take decision which is beneficial for growth and development of organisation. It is important
to make good plans or strategies so that goals and objectives of company can be accomplished.
Evaluation of organisation’s responses to dynamic forces
There are dynamic forces which affect decision making and working of company. It is the
responsibility of managers to handle all issues and identify market situation before making any
plan or strategy so that goals can be accomplished. Managers of Argos company should
determine all the factors and make plans accordingly. In this contemporary business world, it is
difficult to run business and gain competitive advantage. All the organisation want to generate
profit and for that they have to manufacture new and innovative product to satisfy needs of
customers. It is essential to provide good quality products to customers at low price as compare
to competitors (Bieber and et.al., 2018). For achieving goals and objectives , managers should
focus on trends in market and at the time of making plans keep all the points in mind. Managers
should find solution of problem and be ready to face challenges. In this competitive world, it is
not easy for an organisation to survive so, proper planning must be done so that there will be less
chance of mistake and goals can be accomplished.
Nowadays, every firm want to gain competitive advantage in market and for that they are
performing better than others. Managers identify all the factors that can affect performance of
firm and try to find solution. Now, companies are applying different tools and techniques for
determining market situation and strategy applied by competitors. Managers of Argos company
face political force as they have identified all the factors that can affect their performance and
make plans or strategies accordingly like, restriction of trade, how much tax is to be paid,
amount of tariff barrier to be paid by Argos company. Managers want to expand their business in
other country so before expanding business they identify all the factors that can affect their
business. After analysing all points like, trade restriction, tax policy, tariff barrier and others they
implement their plan and expand business. Companies are responding positively to political
force by identifying tax policies of government, trade restrictions, tariff barriers (Gošnik and
Kavčič, 2021).
For overcoming economic force, Argos would make financial plans in advance and make
second plan also so that business cannot be affected. Every firm want to generate revenue by

satisfying needs of customers and provide them good quality products. To overcome economic
factors managers determine financial priorities, use tools and techniques so that they can perform
better and accomplish goals and objectives of company.
In this contemporary business world, technology is changing rapidly and it is not easy for
managers to purchase new machines. Now, to face this situation managers of firm are firstly
determining choice of customers and market situation. After conducting market analysis, they
decide which product is to be made and on the basis of that machine is purchased. With the
change in environment, managers learn how to deal with technology. Training is provided to
employees so that they can work efficiently on new machines. Technological factor is one of the
important factor because this is used for making good quality products. Managers implement
technology which is beneficial for company and has less cost of production. Employees should
make efficient use of resources and run machines properly so that work can be completed on
time and goals of company can be accomplished ((Capobianco and et.al., 2021).
Response of organisation towards legal force is like all firms are applying laws which is
necessary such as, equality law, fair wages, data protection etc. These are some important laws
which an organisation should apply to avoid issues or problems. Legal force help in handling
legal issues in an organisation and good decision can be taken.
Social force affects performance of a company as choice of customers is changing day by
day. So, to overcome this issue manager nowadays, identify trends and culture in market and
make plans accordingly. In the given case study of Argos, technology is applied which is cost
saving so that more profit can be generated (Moghtadernejad, Chouinard and Mirza, 2020). For
achieving goals, it is important to focus on satisfying need of customers and provide them good
quality products at low prices. Political issue which is faced by Argos company is Brexit posed a
challenge, since 30% of goods that Sainsbury sold came from the EU. In early summer,
availability of stock was bumpy and normal in other seasons. So, these are some issues which is
faced by organisation but they face challenges and run business.
Decision making tools
There are some decision making tools which can be applied by an organisation to address
contemporary drivers for change are, SWOT analysis, decision making diagram, force field
analysis and decision matrix. It is important for an organisation to apply decision making tools so
that better decisions can be taken which is beneficial for growth for company. It is essential to

use some tools and techniques because it helps in making better plans and present things in
different way. This helps managers in taking good decision and goals of firm can be
accomplished (Ishizaka and Siraj, 2018). Decision making tools which can be applied by
managers of Argos company are, Swot analysis, decision making diagram and force field
analysis.
Swot analysis- It means to identify strength, weakness, opportunity and threats of organisation
and of competitor. This helps managers in taking good decision and perform better than others. It
is important for an organisation to determine strengths, weakness, opportunity and threat so that
plans can be made accordingly and goals can be accomplished. Strength means positive points of
an organisation which is better than others and help in gaining competitive advantage in market.
Strength of a company is beneficial in growth and development of firm. Weakness means
negative points or area in which improvement is required. opportunities refer to find areas for
growth of company and more revenue can be generated (Leiber, Stensaker and Harvey, 2018).
Managers of Argos company are responsible for identifying growth opportunities in market and
make plans accordingly. Threats means to determine competitors which can affect performance
of business. In this competitive world, there are many firms providing similar type of products,
so managers of Argos company should identify threats and make better plans to achieve targets.
Decision making diagram- Another tool of decision making which can be applied by an
organisation so that good decision can be taken. Decision making diagram includes six steps i.e.,
follow through, clarity, gather facts, brainstorms, pros and cons and last step is to decide. With
the help of this tool better decision can be taken. Firstly, managers should follow then define
problem or clear all the things. After clarity next step is to gather relevant facts related to issue.
After collecting relevant information, next step is brainstorming. It means to share ideas and
knowledge so that problem can be solved. After completing this step, next is to find pros and
cons of different options so that best one can be selected out of it. Last stage is to take final
decision which is beneficial for growth of Argos company (Yao, Wang and Wang, 2020).
Force field analysis- Force field analysis refers to basic tool for doing analysis. This technique is
based on assumption and from this decision can be taken. Force field analysis helps to think
about pressure in favour or against decision. Managers of Argos company can apply force field
analysis to take decision and there is a process for conducting force field analysis. In this process
there are six steps which can be used by managers of Argos company for growth and

development of firm. First step is to assess the current situation, it means to identify present
situation of organisation. This helps in thinking about solutions which can be used to solve
problem. Second step is to define the objective, it means determine objective that company want
to achieve. It helps in making plans or strategies according to set objectives (Hasangholi Pour
and et.al., 2019). Third stage of force field analysis id to identify driving forces so that better
plans can be made and good decision can be taken. Fourth step is to identify restraining forces,
after that evaluate forces so that good decision can be taken. Last step of force field analysis is to
create an action plan.
Corporate social responsibility refers to management in which companies integrate social
and environmental concerns. Almost all the companies are contributing some amount of their
profit for social development. This helps in creating good image in market. Sainsbury company
is giving some amount from profit for development of society. Corporate social responsibility
helps in enhancing positive relationship with customers, increases profit of company. It helps in
encouraging professional and personal growth. It is essential for an organisation to give some
amount of profit to society because company is taking resources from society and it is their
responsibility to give society back. Managers of Argos company should give some amount to
corporate social responsibility so that they can attract more customers and good image can be
created in market. Corporate social responsibility helps in controlling cost and improving
company’s brand. This helps in attracting people and goals of organisation can be accomplished.
Corporate social responsibility helps in facilitating long term financial success and beneficial in
growth of organisation. There are many barriers in corporate social responsibility such as lack of
awareness of stakeholders, lack of information and financial resources and lack of training.
Stakeholder play a crucial role in an organisation because all the decision is taken after
discussing it with stakeholder. It is essential to take necessary decisions so that company can
earn more profit and it is beneficial in achieving goals and objectives. Stakeholders are having
more experience and knowledge and they can suggest better ideas for achieving targets of
company. Stakeholders can suggest changes which is required to be done so that there will be no
issue in accomplishing targets.
Stakeholder interest: Stakeholder interest refers to the interests of individual who have
interest in the success of business entity. There are many stakeholders in Argos including