Contemporary Issues on Business Management: An ASOS Case Study

This report provides an analysis of contemporary business issues, focusing on the fashion retail company ASOS. It examines the impact of these issues on management and leadership perspectives, particularly in the context of the COVID-19 pandemic. The report explores how the pandemic affected leadership styles, employee motivation, and operational strategies, including online delivery challenges and supply chain disruptions. It also investigates the influence of stakeholders on the strategic direction of ASOS, considering their views and the company's need to adapt to changing market conditions and external factors such as political and economic changes. The report discusses strategies employed by ASOS to address these challenges, including change management, online delivery improvements, and adjustments to production and marketing approaches. The report also delves into the stakeholder's views and their level of influence on the strategic directions of the organization, highlighting how ASOS navigates these dynamics to maintain its market position and pursue global expansion.

CONTEMPORARY ISSUES
ON BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
Impact of contemporary issues on management and leadership perspectives.............................3
Impact of contemporary issues on organization..........................................................................6
Stake holder’s views and their influence on strategic direction .................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Contemporary issues in business management refers to the challenges in the management
of cash flow, marketing issues, operation and production, human resource management and all
other issues that impact the business of the organization. Sometimes these challenges might not
be controllable for the organizations. ASOS is one of the leading fashion retail company in the
world. The UK based company faced many issues in the past due to Brexit, covid pandemic and
is still experiencing problems due to international disturbances because of war. The current
report analyse the contemporary issues in the field of business, management and leadership while
identifying and critically evaluating the impact of those contemporary issues on different
management and leadership perspectives. The report also analyses the impact of contemporary
issues on organization as a whole. The present report analyse the stakeholder views and their
level of influence on strategic directions of the organization.
MAIN BODY
TASK 1
Impact of contemporary issues on management and leadership perspectives
Impact of covid-19 on leadership and management perspective: As from case of ASOS, it is
known that it is facing number of problems that has affected its sales and overall productivity.
One of the main contemporary issue that has affected ASOS’s productivity and sales is: Covid-
19. Covid-19 increased in shipping cost and it has decreased its sales. Before covid-19, people
used to buy products through online and offline but due to covid-19, people are buying product
through online only. It has affected leadership and management as well. Due to covid-19,
employees were bound to work from home and it has increased pressure on leaders to change
their style of leading. Leaders were bound to provide virtual training to employees about ways of
performing functions and satisfying customers. Leaders were bound to change their style
(Garcia, 2021). They used to use democratic as well as transformational style of leadership and
as per this style, employees were being given an opportunity to share their views and help out
company in accomplishing goals. It makes employees feel valued and motivated but due to
covid-19, employees were not allowed to come to office and stores and due to shortage of time
and delivering of products, leaders were bound and they changed their style. Now they follow
autocratic and all main decisions are being now taken by themselves. It makes employees feel
de-valued. One of the best ways of solving this problem is to inform each and everything to

employees by via Email and online team meeting. Along with this, leaders can follow
transactional style of leadership. As per this style of leadership and management, employees are
being rewarded and punished as per their performance. Management should also measure
performance of employees via online. It has increased pressure on managers as well. Managing
performance of remote workers and providing them detailed information via online is not an easy
task (Guglielmi, 2021). Managers also need to make changes in their functions such as leading,
staffing and controlling. They need to set criteria of performance measurement of remote
workers and employees who are working from home. It can increase pressure on both employees
and managers as well. So, on the basis of this, it can be said that contemporary issue Covid-19
has affected management and leadership to the great extent but ASOS has developed strategies
for solving it
Due to covid-19, companies started online delivery of products and services. For online
delivery and services, there were requirement of fuel and diesel. Many of the times customers
deny to take their products and it increases cost of company. As due to covid-19, government
made changes in oil prices and tax and it affected overall performance of ASOS. This problem
increased pressure on leadership and management as leaders became bound to develop strategies
by which they can solve such types of problems without affecting business operations (Bhaduri,
2019). This problem has changed delivery schedule and because of this changes, customers
cannot get their products in a timely manner. It has affected image of company and customers
are giving negative reviews on websites and to delivery boys. It de-motivate employees and also
increase staff turnover. So, it is now important for leaders to develop new strategies for
motivating employees so that they can cope up with such changes and can perform their
functions in an effective manner. It is also found that this problem is out of control of business
and ASOS is unable to do anything to bring more fuel into possession. The only solution of
Covid-19 and associated problems is to display stock that is available on warehouse so that they
can clear it in a timely manner and can earn at least half of its actual cost and price. This problem
is affecting management functions of origination and controlling. Managers are facing problems
in performing function of controlling and make sure as how much of quantity is left out and how
much of quantity needs to be demanded. Leaders are striving hard in making planning and
deciding as what the best they can do for delivering products without increasing cost. In this
context, it is found that leaders and managers have decided to use other transportation modes that

do not rely on fuel to deliver items. Leaders have decided to deliver products via bicycle, electric
transportation modes and the subway if clients live in nearby areas.
Leaders need to decide as for which areas they need to use bicycles, they need to use
subway and electric transportation. It has increased pressure on management. They need to strive
hard and make changes in their existing strategies so that they can satisfy customers. In this
context, it can also be said that when leaders and managers bring some changes within business
then employees resist to adapt changes. It affects their performance and productivity. So, on the
basis of this, it can be said that Covid-19 has affected leadership to the great extent (Kovoor-
Misra, 2019). In such situations, leaders and managers need to implement change management
within business and by performing it’s all stages, they need to engage employees in changing
situations.it is a time consuming process but they do not have any other option to do in order to
cope up with such situations. Due to changes in external environmental factors, political changes
like changes in tax, increase in fuel price, changes in people’s behaviour, managers also need to
make changes in its planning and need to engage everyone. It needs them to make changes in
staffing and leading functions. Leaders also need to identify effective ways by which they can
motivate employees to adapt changes and using different modes of transportation as well as
satisfying customers by delivering products to them in a timely manner. By doing so, ASOS can
improve its organisational performance and productivity as well. It can make able to managers
and leaders able in satisfying customers and retaining them with the brand for the long run.
ASOS made some changes and in order to satisfy customers’ changing needs, leaders decided. It
started delivering products and services online. But this online delivery did not become
successful as ASOS was consistently reported the problem of sizing inconsistency from its
customers and regular feedbacks of inaccurate description on its website. It may be due to a
variety of reasons such as type of fabric, measurement unit of different countries and brands etc.
It becomes a headache for the leaders and the board of directors to monitor with that much
accuracy and eradicate this issue. During the Covid times, there was inconsistency in the
employee structure and management of work was being done with less specialized work force
that was also less in number and hence, this issue became more frequent and problematic
(Kaushik & Guleria (2020)). Considering the fact that ASOS was receiving a good amount of
orders, the initial work force was too less to deal with the business and the leaders and the
management were not able to solve this problem.

The Board of directors may create a team of researchers to display the correct size chart
according to different clothing material, type of fashion wear, different measurement units across
the world and provide the most accurate size guide and availability for the customers on the
company's website (Kim & Woo (2021)). Leaders need to focus on all those problems, led by
Covid-19 and accordingly, they need to change production function. As per this, they need to
focus on different body shapes rather the relying on the general size chart so that maximum
customers may be satisfied. The management team may update their functions and description on
the online platform and make sure the information displayed is correct and consistent (Ogunjimi
& et.al. (2021)). This may be helpful for the organization to tackle with the issue of sizing
inconsistency and deliver a satisfactory customer experience.
Impact of contemporary issues on organization.
There are a lot of contemporary issues that has been faced by the ASOS company
throughout its career but it has still managed to maintain a remarkable growth in the field of
fashion retailing. One of the biggest contemporary issue faced by ASOS in recent times is the
covid- 19 pandemic. This pandemic and lock down phase completely changed the lifestyle of the
people and the way they used to think about shopping and spendings (Salma & ANWAR
MUHAMMAD (2021)). The economic scenario of the production and import- export was highly
influenced during the global pandemic era. A lot of locations became unreachable due to strict
lock downs, the shipping costs increased in some countries and the customers started facing the
price factor. This was a huge blow for the company’s business and completely manipulated the
business strategies and global planning. Instead of all these breakers, the company kept recording
a positive increase in their business and their sales were consistently rising advancing in the fact
that it is an online retailer. The board members of the company used these conditions to their
favour by delivering more house wear products and once the restrictions were ended, it
surrounded its sales on outdoor fashion wear and introduced new campaigns. The global
pandemic had a huge impact politically and economically as well. A lot of trade restrictions were
seen and many agreements were cancelled and new rules and regulations were introduced at
global level. The company faced many economic issues because of this as the workers could not
travel and transportation was not an easy task. Foreign employees were affected very badly and
the organization faced a lot of problems to re- plan its strategies and restart the entire system
with new ideas and adapt to the changes.

The entire business was shut off for some time when the pandemic was at is peak
considering the fact that UK was one of the worst hit countries in the world. ASOS use high
quality production technology and requires a huge employee support to perform its operations. It
requires importing raw materials and machineries and regular service that was abandoned. The
organization lost a lot of market places or either it can be said that the frictionless business
operations were now with certain laws and agreements that even affected its profit margins and
overall revenues.
Stake holder’s views and their influence on strategic direction
ASOS is one of the leading fashion retail company in the world and currently with its
market position and image, it looks to expand rapidly at global level and explore new markets
around the world. Though the global market has unlimited opportunities and scope, it is still not
safe from the influence of stakeholders and their influence on strategic direction of the
organization. The organization has to cooperate and adjust with these stakeholders in order to
successfully run the business. There are various components and steps that are need to be
considered to be able to understand the stakeholders and their influence. It may be done through
the stakeholder matrix (Mangifera (2019)).
Keep satisfied-
Customers
Board Members
Managed closely-
High Profile Executives
Boss
Monitor-
Government
Investors
Keep Informed-
Functional Heads
Employees
High Power, High Interest- These are the directors, managers, chief executive officers
and high power individuals in the organization. They are the top officials that cover the top- level
of the organizational hierarchy. These bosses have all the decision-making power and the success
and failure of the organization is directly influenced by their decisions. They control almost all
the activities in the organization including the production, quality, cost, revenues and human
resources and budget. The boss is directly held responsible for the success and failure of the
organization and hence, its role in the organization becomes very crucial personally as well as
professionally as well (Maximova (2019)). Due to the fact that the reputation of the top- level
employees is associated with the outcome and success of the organization, the involvement of

these top- tier becomes crucial and because of the power they have, they drive the organization
according to their strategies and planning and makes sure everyone cooperates with them. This
means they directly drive the organization's strategies and things work according to them and
every function relies on their decisions. Ultimately these are the most involved and the most
powerful stakeholders that directly influence the other stakeholders and the position and graph of
the organization. Sometimes the board of members that hold active positions in the organization
have highest influence and impact in the company.
High Power, Medium Interest- These are the shareholders and investors that may hold
stake in multiple entities and portfolios. These stakeholders have high power due to their
ownership of value of the organization's stocks and equities but have medium interest in the
organization's operations. The investors may invest in the organization as whole or in particular
projects over a certain period. They do not work in the organization or make any decisions but if
they are the board of directors then they may get involved in making major decisions regarding
the business. Their income or outcome is influenced by other stakeholders and functions of the
organization. But they still have the interest and expectation of return of their investment and
expect the company to progress so that their portfolio grows over time. The organization
frequently communicate with them and involve them to increase their interest and build trust
towards the organizations (Chowdhury & et.al. (2020)). Otherwise, the investors may step down
or reduce their investments that may negatively influence the direction of the organization and
the business. The investors do not influence the work operations but may impact the stock
market performance and market value and cash flow of the organization and hence, they must be
treated according to their type of investments. The top stakeholders and investors of the ASOS
that hold the key position in the category are Anders Holch Povlsen ( 26.41% stake) and T.
Rowe Price Group (12.98%).
High Power, Probably Low Interest- The Local Government may be categorized under
this as they have no interest in the organization and its business, but they have the ultimate power
to control the entire business operations of the organization and decide the fortune of that
company. The government controls and abide the company to cooperate with them and work
according to their rules and regulations. The government has the power to control the businesses
and even shut them off. It would be safe to say that the government has no interest in the
business and profits but its power may indirectly influence the strategic directions of the

organization and leave no option to adjust and follow the directions provided to them. For
example, the ASOS company may face government laws such as quality, taxes and import-
exports. Various government functions monitor different activities and make sure they do nit
breach any laws or else necessary legal actions may be taken against the organization
(Maximova (2019)). Hence, these government entities need to be kept satisfied and
communicated frequently in order to prevent any legal trouble and sometimes having a positive
relation with the government may prove to be a blessing for the company and become a big
advantage for their business.
High Power, Low Interest- These are the senior executives of the organization. They are
the head of the various functions in the organization and act as leaders in certain projects and
departments. They may not be the decision makers but are powerful at the operational level and
hold the responsibility of executing the tasks and carry out operations to meet the organizations
objectives and goals. Their influence on the strategic direction of the organization cannot be
ignored as everything is dependent on their ability and efficiency to perform and make the
system perform as per the desire of the organization. Hence, the organization looks to keep a
regular touch with them and provide necessary feedbacks and offer opportunities to enhance
them and increase their interest in the work and company.
Medium Power, Medium Interest- These are the workers and other employees that do
not have much power and perform according to the duties assigned to them and follow the
instructions given to them (Mangifera (2019)). These workers have the power to make influence
on the company by their work and the special contribution they may provide and their ability to
leverage additional resources. The may show interest in the organization in an expectation of
opportunities and look for learning and scope that they may be able to achieve. The employees
and customers may not have direct power but their interest and requirement is must for the
organization and hence, may be considered medium power stakeholders. The organization may
keep them satisfied and provide regular feedbacks and incentives to be able to retain them and
maintain their interest in the organization.
CONCLUSION
It has been concluded from the above report that the business management deals with a
lot of contemporary issues that may not be easily controllable at times and the organization's
leaders and management has to make effective strategies to handle such circumstances. There

has been a deep impact of the global pandemic on leadership and management perspective and
issues such as fuel shortage, uneven distribution of products and services etc. started to challenge
the leaders and management of the organization. The three years of pandemic era has been the
biggest contemporary issue for the organization and had a huge influence on the strategic
direction of the company. The stakeholder matrix has been analysed in the report that suggest the
influence of various functions and elements or stakeholders that directly or indirectly influence
the organization. It has been studied that there are various factors that influence the business of
an organization and constant need of understanding the stakeholders and their influence and plan
appropriate strategies to perform against the contemporary issues.

REFERENCES
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Age ofCOVID-19.
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ofAbsenteeism.
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Journal of Business and Management, 12(15). 1-10.
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during the COVID-19 pandemic. Fashion and Textiles, 8(1).
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Maximova, V. (2019). Stakeholders’ Analysis. EDITORIAL BOARD, 201926.
Ogunjimi & et.al. (2021). Smart mirror fashion technology for the retail chain
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Salma, N., & ANWAR MUHAMMAD, R. E. B. E. R. (2021). The effects of intellectual capital
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organizations. Journal of Contemporary Issues in Business and Government, 27(3).
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