Contemporary Management Issues: Dynamic Forces and Strategic Decisions

This report delves into contemporary management issues, utilizing Mothercare as a case study to analyze the impact of dynamic forces on business and society. It examines political, social, technological, and economic forces, evaluating their interrelationships and influence on strategic decision-making. The report explores Mothercare's responses to these forces, including an assessment of the company's strategic decisions and the application of relevant theoretical foundations. The analysis includes an evaluation of enterprise responses to key dynamic forces in the contemporary business world, highlighting the importance of adapting to changing market conditions and competition. The report also discusses the selection and application of decision-making tools for managing change within the context of the baby care product industry. Overall, the report provides a comprehensive overview of the challenges and opportunities facing businesses in a dynamic environment, emphasizing the need for strategic adaptation and effective management practices.

Contemporary
Management issues

Contents
Introduction.............................................................................................................................................3
MAIN BODY..........................................................................................................................................3
Dynamic forces influencing on business & society.................................................................................3
Evaluation of relationship between dynamic forces associated with strategic decision making..............4
Briefly provide evaluation of enterprise response to key dynamic forces in contemporary business
world.......................................................................................................................................................5
Select and discuss the Decision-making tool for the drivers of change...................................................7
Evaluate relevant theory foundations to support application of effect corporate responses to
contemporary management issues...........................................................................................................9
CONCLUSION.......................................................................................................................................9
REFERENCES..........................................................................................................................................10

Introduction
In the dynamic business world, the competition has become difficult as there is high level
of risk and uncertainty present in the business. In order to survive in the business this is essential
for the company to develop the sustainable business model which help in providing better
opportunity to achieve desire aims and objective in a well define manner (Bertazzoni and et., al.,
2019). The present report is based upon Mother care which deals in the baby care product and
the company headquarter is located in UK. Furthermore, this report describes about the various
dynamic forces which impact the business as well as the society in a well define manner. This is
essential for the business to achieve the strategic forces which help in making effective decision
for the growth and development. This is essential to select the business and provide drivers to
change and make effective decision for the growth and development. Apart from this, there are
different relevance with the contemporary management issue.
MAIN BODY
1. Dynamic forces influencing on business & society
Due to globalization and innovation the company have to manage and look after the
different aspect which is associated with the different aims and objective. So, this is essential for
the management of the company to manage the operation providing better outcomes for the
society. In addition to this, it is vital for the company to make changes in the rules and regulation
for the betterment of the business and society. In the context of Mother care the business needs to
be managed effectively as this help in providing better opportunity to expand and explore the
business effectively. Here are some of the dynamic forces which are used to influence the
business and society in a well define manner.
Political forces: This force consist of different aspect which is associated with the
current political condition of the country. There is different element which are political stability,
trade barriers, policies and rules for operating business activities. For the company like Mother
care the company can conduct the business activity in the nation as this help in providing better
are the nation like UK have laws which are beneficial for the company to earn more profit. For
example, due to BREXIT UK have to face loss the business as most of the customer which are

associated with the company where from the European Union (Borowiecki and Siuta-Tokarska,
2019). Hence the UK government also support the business by providing financial support which
help in increasing the sales and profitability in a well define manner. So, the management have to
put emphasis on the working condition and bring out effective alternative which help in
achieving desire aims and objective so the firm can achieve its common goal and benefit the
society.
Social forces:Forces which are derive from the society which determine the individual
beliefs, norms and culture as well as ethnic background. The needs and wants of the company
keep changing as this provide better opportunity to accomplishing the desire aims and objective
in a well define manner. So, the company like Mother care have to focus on social factor which
help in attracting more and more customer in the well define manner. The UK society is more
towards the healthcare which help in providing better market share in a well define manner. The
manager of the company has to look into different factor which are associated with the society
and try to transform the product and service as to develop effective market in the shorter time
span. This is essential for the firm to conduct proper research which help in making changes for
the improving the product quality and changing mindset of the society.
Technological forces:The technology have changed in the recent years as it has seen a
massive growth. With the assistance of the advance technological the company and develop
innovative products and able to increase the sales in a well define manner. Apart from this, it
able to increase the customer base which aid in improving the sales. The forces have emerged in
UK as the people are used and focus more towards more the technology driven product. The
people are more centric towards using more technology which help in providing better
opportunity to use product. In the relation of Mother care the company have to use different
technology and use of online marketing which able to increase the overall sales effectively.The
company have to focus on achieving the desire outcomes as this is essential to reduce all kind of
risk and uncertainty,so this is essential to increase the desire aid and technology.
Economic forces:This is considered as the most effective forces as this describe about
the different aspect which is related to the inflation, recession and many forces effectively. This
is vital for the company to invest after analyzing the different aspect of nation which help in
providing better opportunity in a well define manner (Boella, and Goss-Turner, 2019). The
nation like UK is been developed and have people who are working as the white-collar job.

Hence this means people have more spending power which is consider beneficial for the firm to
maintain the flow of supply in a well define manner. For example, alterations in the tax rates by
government has both positive as well as negative impact on the organizational performance. So,
this is essential for the management to overcome the problems in an effectively manner.
Although the disposable income is high which help company to have better market share in the
shorter time span. . In order to offer high reaction to a enterprise customers are willing to pay
much less prices for high fine in the event that they do not find prescribed costs suitable this may
lead the organisation to lose their market proportion. So within this response it's miles very
important for Mothercare to make their product charge touchy in order that it could be suited to
wishes of every and every purchaser section inside international periphery (Bertazzoni and et.,
al., 2019).
2. Evaluation of relationship between dynamic forces associated with strategic decision making
The company have to focus on the different relationship which is essential as this help in
increasing the desire outcomes in an effectively manner. The strategic decision for the company
is vital as this aid in providing better opportunity which help in increasing the revenue for the
company. This has been figured out that the international with the dynamic forces can able to
provide better opportunity to develop effective plan to overcome the problems with the
assistance of solution. For the company like Mother care the company have to manage the entire
operation by using dynamic forces as this help in increasing the sales as well as the income. This
is also important of the marketing team of the company to figure out changing trends for the
baby care product as this able to reduce the competition present in system. Here is the
interrelation which are explained briefly below in detail manner:
Interrelation between economical and social: There is been direct link with the
dynamic forces present in the company as this is important for the management to have to
identify the economical as well as the social aspect which help in developing effective strategies
to improve the desire outcomes for the organization. For the company like Mother care the
manager have to see the current economic condition of the market and try to keep the effective
marketing strategies and change in the pricing policies which help in providing better
opportunity to reduce the competition. On the other hand, the social factor hasdepended upon the
economic condition for example if the persona have high income which means the individual
have more spending power and have different aspect towards the society. So, the top-
levelexecutivehasderived the aspect which needs to be changed as this is will affectthe business,
so this is essential to have proper planning which tend to overcome the various aspect for the

management. After analyzing all the scenario Mother care have to focus on the different forces
which help in providing better opportunity to overcome the problems.
Interrelation between Technological and Political:Both the aspect has to be managed
effectively as this help in increasing the sales and provide better opportunity to understand the
market. The technological advancement is increasing day by day as this help in improving the
customer experience and able to increase the outcomes more effectively. The company like
Mother carehave to focus on improving the market share by promoting more product and service
with the assistance of technology. The other relation with the political factor is essential as this
provide the different rules and regulation which are made by the government for the smooth
functioning of the firm. For example,Mother care tend to provide online services to the
respective customer so in this case the management have to follow all the rules which are
associated with the online deliveries. Hence this help in achieving desire aims and objective in a
proper manner. So, this is crucial for the management to focus on the desire outcomes by
determine the different forces to develop the effective strategies to gain the revenue as well as
the market share effectively (Bilal and et., al., 2019).
3. Briefly provide evaluation of enterprise response to key dynamic forces in contemporary
business world
There is essential for the business to have key changes which help in providing
better opportunity and also increase the sales of the company. There are different kind of
stakeholders which need to be taken care of effective as this help in providing better opportunity
to overcome the problems effectively. Hence this is essential for the management to take
essential steps which provide better services and product to the customer. From the case study
this has been identified that the Mothercare are closing their store which have reduces their sales
as they are not focusing on the quality which leads to the downfall of the company (Gilyard and
et., al., 2020). So, this is essential for the company to derive the dynamic forces for the
contemporary business as this help in achieving desire outcome in the smaller time frame. In
order to analyse the framework this is essential for the management of Mother care to conduct
intensive marker research which aid in increasing the better outcomes in a well define manner.
This tool involves five elements which are discussed below-

Threats of new substitutes: The company mainly diversifiedtheir product and service in
order to increase there purchasing audience. The main motive behind doing diversification is
increase the market share which help in providing better opportunity to increase the sales as well
as profitability in an effectively manner. For the company like Mother carethe main reason
behind the decline sales is the different substitute product. So, this management have to
improvise the plans and bring out new plans in which proper structure and marketing should be
done to increase the sales as well as profitability in a well define manner. Customer constantly
change the behavior effect the business as well as it become more challenging for the company
to attract the customer. So, this is essential for the management to focus on the developing
desirable outcomes effectively.
Rivalry among the competitors: In the present business environment there are different
kind of competition are there dealing the same business. So, this is crucial for the company to
maintain the desire outcomes which help in providing better opportunity to achieve desire aims
and objective in a well define manner. So, the company like Mother care have to focus on
providing better product which help in achieving respective outcomes which is associated with
the other aspect as this provide better opportunity to accomplish the various aspect for the
company. The management have to overlook the pricing and try to bring down the cost which is
essential for the firm to manage the outcomes in a well define manner. So, the management have
to focus on developing different aspect effectively.
Bargaining power of the buyers:The customer has become more demanding which
reduces the cost and well as company have to face problems to overcome the problem. There are
different kind of factor which are associated buyer bargaining power such as rise in the
competition and the variety of product available in the market (Kitai and Xanthopoulos, 2020).
Hence this reduces the cost which help in providing better opportunity to achieve the desirable
aspect. In the context of Mother care the company have to focus on quality as well as the service
of the firm which help in increasing the sales and profitability of the company. In order to reduce
the bargaining power, the management of the company have to focus on driving forces which
allows the firm to overcome the problems effectively. This is essential for the manager to
emphasis on the driving forces which allow to capture large market share effectively.

Bargaining power of the suppliers:The company require raw material which is essential for the
firm to produce their final product. There is different supplier which are used to fulfil the need of
the company. So, the logistic department have to focus on the different supplier as this help in
reducing the overall monopoly of the supplier. There are different kind of factors which are used
to derive at the certain outcomes, so this is essential to maintain or to develop the supply chain in
a proper way which reduce the cost and provide better services to consumer. The management of
Mother care have to develop different channel of distribution on online as well as offline which
help in providing better opportunity to achieve respective outcomes in an efficient manner. It is
also said that vendor look for bargaining power so that they gain maximum profit by delivering
low quality products, so this firm have to manage the resources and hire more supplier in order to
reduce all kind of risk and uncertainty present in the business.
Threat of new entrants:In the recent years the company can see the huge the rivals as well as
tough competition. This make difficult for the company to survive in the market for the longer
time period. Furthermore, this is essential for the firm to manage the different aspect of the
competition and focus more on the innovation which help in minimizing the competition in a
well define manner. In the relation with the Mother care company their different rivals such as
Johnson’s and Johnson’s as they have the large market share. In order to reduce the competition
firm, have to focus on the changing trends as well as the needs and wants of the person which
help in providing better opportunity to capture large attention of buyers. The management have
to focus on the market and adopt the different aspect which needs to be maintain as this help in
achieving larger market share in the lesser time frame. Beside this firm have to change their
corporate structure which help in achieving desire aims and objective.
After analyzing the report this is essential for the management to be more flexible and
bend towards the need of the market. As this help in increasing the desire outcomes and able to
focus on the respective market to overcome all the problems more effectively. The company
have spent more on research and innovation as this help in providing better opportunity to
overcome the problems and to focus on the market effectively.

Figure 1: Porter's five force model
(Source: Porter's five force model, 2020)
Interpretation: From the above mentioned image it has been concluded that Porter’s Five
Forces Analysis is a critical tool for expertise the forces that shape competition within an
industry. It is likewise useful for assisting you to adjust your method to suit your aggressive
environment, and to improve your ability income. Five forces analysis allows Mothercare to
understand the factors affecting profitability in a specific industry, and can assist to tell
selections relating to: whether to enter a particular enterprise; whether or not to boom capacity in
a specific enterprise; and growing aggressive techniques (Desbordes, Aymar and Hautbois,
2019).
4.Select and discuss the Decision-making tool for the drivers of change
Business leaders have to make different decision as the change occur respectively. So,
this is essential for the firm to manage and bring out respective change for the betterment of the
company. Due to the fast globalization and innovation the company have to adopt different
strategies to explore as well as expand the business in the respective manner. There are different
kind ofdecision-making tool which help in deciding as well as take effective decision
toovercome all the hurdles (Smith and Gould, 2019). For developing international policies which
help in increasing the driving forces to increase the sales and also reduce the risk and uncertainty
present in the business. Here are some tools for making effective decision which help in
providing better insight in a detail manner:
Margin analysis: This kind of tool describe about the different kind of benefits which
help in providing better opportunity to overcome the problems effectively. The company can use
such tool in order to determine the rate of return and provide better outcomes in a well define

manner. The marginal analysis is effective as tool which help in decision making and also
provide and develop constraint to overcome the all the problems. This method will assist Mother
care to bring change in the company and also provide insight to achieve desire aims and
objective in a well define manner. The management have to conduct research and analyses the
cost and the profit earn by implementing change in the company.
In order to conduct marginalanalysis, you need to change the different variables which
quantity and quality input and once the variables to determine the profit. This is considered as
the effective tool which help in increasing the sales of the firm. Mother care management have to
focus on the reducing the operational cost by using technologicalaspect which reduce the cost
and also maintain the cost of the firm. The cost variable has to be accomplished effectively and
also bring new policies which help in bringing out effective outcomes respectively. The firm
have to look upon the marginal cost and track the activities which aid in reducing all the waste
for the development and growth.
SWOT analysis:
This tool is widely use by the company as this provide better opportunity to identify the
problems and bring effective solution for the company. There are different steps in the analysis
of SOWT which provide all the pros and cons of the firm. In the context of Mother Care the
management have to focus on using such tool which help in increasing the efficiency and able to
provide better opportunity to make changes as to meet the international demand. The main
reason of decline as well as closing down the store of Mother care is lack of implementing
change which reduce the impact of the organization in the minds of customer. There is a detail
explanation of SWOT tool which help in making effective decision in a well define manner.
Strength Weakness
 The main strength of the company is
that it provides better product and
services to the respective customer
(Bilal and et., al., 2019). Hence this
help in developing brand image and
also the market shares effectively.
 Another positive of the company is
 The main weakness of the firm is that
it does not focus on the change and
which reduce the market at the
international level. There are various
kind of factor such as promotion in
which company lack.
 Mother care does not use integrated

that it has intensive after sales services
which help in improving the customer
experience and able to bring out
effective result in the smaller time
frame.
 The company have superb
performance in the market and the
company is focusing the rapid
expansion which help in providing
better opportunity and to expand the
business in a well define manner.
policies and do not have flexible
structure which tend to reduce
effectively to bring out change in a
well define manner.
 Beside this there has been gap among
the product as well as customer which
bring down the cost and unable to
connect with the customer. There is
been lack of choices provided by the
firm becomes the major weakness for
the company.
Opportunity Threat
 The main opportunity lies in taking
firm at the global level which increase
the customer and company can able to
capture untapped market effectively.
Due to globalization firm can expand
the business and bring out effective
result.
 Apart from this company can bring
out new trends which help in
attracting more customer and bring
new market share in the lesser time
frame. The management have to
provide stable cash flow facilities
which help in providing better
opportunity to achieve the respective
goal in a well define manner.
 The company have implemented new
marketing campaign which target
mother which help in achieving the
 The main threat for the company is the
rivals present in the market which
create tough business environment to
sustain for the longer time period. As
the firm is operating at the different
store at various places which expose
the currency functioning.
 Due to globalization and innovation
done by the different companies
become the major drawback for the
company as the manage do not focus
on the innovation. So, this is vital for
the company to manage the trends to
reduce the threat.
 The shortage of skilled workers has
become the major issue as this
increase the operational cost. Beside
this is also require training which tend
to bring down the cost for the

desire aims and objective in a well
define manner. There is different
aspect which needs to overcome as
identify the new opportunity.
company. So, the manager has to
ensure to bring out skilled employees
for betterment and growth.
5. Evaluate relevant theory foundations to support application of effect corporate responses to
contemporary management issues
Every organization face some issues that is required to be handle in an effective as well
as proper manner. In addition to this, it is essential for companies to understand the reason and
root cause of occurrence of issues so that it can manage in an effective manner and did not arise
in future. There are various theory adopted by higher authorities of Mothercare in order to deal
with contemporary management issues which are as follows:
Contingency Theory: This theory states that there is no particular theory is suitable in
order to resolve the problems. The problems is not occur same at time, it changes and therefore it
is required by managers to adopt relevant theories after analyzing the situations. It is determine
that an organization need to adopt theories according to the situation so that issues can resolve
appropriately. By the assistance of contingency theory, Mothercare is able to deal with the
changing situations in a proper manner. In addition to this, it also help company to cope up with
the changes and adapt it easily that leads to raise in productivity of the organization.
System Theory: This theory consider system as a whole mot as an individual or separate.
In addition to this, all the business factors required to be separate, working as a group not as a
sole. Acquisition of this theory by the higher authorities of Mothercare will help them to manage
all the employees in an effective manner and implement activities smoothly and effectively.
From the above discussion, it is identified that this theories help an organization to deal
with contemporary management issues in an effective manner. In addition to this, it also assist in
dealing with the changes that take place in the external environment and decline the level of
issues arise at workplace in a proper manner.
As in the recent years the technological innovation as well as globalization have taken
place which become the management issue for the major company. In the context of Mother care