A Detailed Report on Contemporary Management Issues and Challenges

This report provides a critical review of contemporary management issues, focusing on the dynamic forces that impact business and society. It examines both internal and external factors, including socio-cultural organizations, competitors, and economic conditions. The report analyzes the relationship between these forces and their influence on effective decision-making. It also explores tools such as Porter's Five Forces and Hofstede's cultural dimensions to understand the competitive environment and social-cultural impacts. The analysis covers how businesses adapt to changes in customer needs, global trends, and technological advancements, with the goal of providing insights into strategic decision-making and navigating the complexities of the modern business landscape.

Contemporary
Management Issues

Table of Contents
INTRODUCTION...........................................................................................................................1
The relationship between such forces.........................................................................................4
Tools used to address drivers for change....................................................................................4
CONCLUSION................................................................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
Contemporary management issues invite re-valuation of traditional management
practices. In the recent scenario, there are number of forces such as socio-culture organization,
competitors, etc. that are having a huge impact on both; business and society. On the business;
these forces may have both direct and indirect impact. In this report, a critical review will be
done on the key dynamic forces that impact business and society in terms of their effective
decision-making. The drivers of social change, internal dimensions, etc. will also be included in
this literature review.
Key dynamic forces impacting business and society
As stated by Caguiat, Rowena and Suarez, (2017), all the factors that have a bearing on
business are included in the business environment. External forces, factors and institutions that
are beyond the control of individual business organization and their management are applicable
to business environment and also they will affect the business enterprise in terms of effective
decision-making. The customers, creditors, competitors, government, social-culture organisation,
a political party, etc. are some of these forces. The business can be face both directly and
indirectly by some of these forces. In terms of business, the factors that have impact on business
can be of two types i.e. internal and external.
According to Castellani and Walker, (2018), on the business and society the direct impact
can be there due to the internal environment. However, as per Cho, (2015), there are some
internal factors that can be controlled as company will have control over these factors. Due to
internal factors, the organization is sometimes not able to make effective decisions. Within the
company, internal business environment factors can be there that have a huge impact on success
of the organization. Over these factors, the company will have some control. The value system
comes in the category of internal factors that may have an impact on the business. In the
organization, value system can be defined as the ethical beliefs that help the business firms in
achieving their mission and goals. The behaviour towards employees, customers and society are
also being determined by the value system of a business organization.
A business firm may refuse to produce or distribute the products due to its value system
as they may think that it is morally wrong to promote it as per Cho, (2015). For an instance:
some business firms can refuse to promote liquor as they may think that it is morally wrong to
promote consumption of liquor. For the success of the organization, value system of a business
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organization makes an essential contribution. The culture of the company may also have an
impact on the business. In any organization, the internal culture consists of the values, attitudes
and priorities that employees live. According to Clontz and Gibbs, (2017), the values will be
inferred by the staff based on the type of people that are hired by the business firms. In the cut-
throat competition, each employee in the company will compete each other to develop a different
environment from a company that pays attention on collaboration and team work. From top to
bottom typically a culture of the company flows.
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Illustration 1: Factors Determining the Internal Environment of a
Business
(Source: Factors Determining the Internal Environment of a
Business, 2017.)

The management structure and nature also come in the category of internal factors that
have their impact on the business. The business decision that are made in the organization is
influenced by the structure of the organization. The composition of board of directors influence
decisions as they are considered as internal factors. As stated by DesJardins and McCall, (2014),
there can be delay in decisions due to the structure and style of the organisation. If the records
are not maintained correctly or they are disorganized, this may have a negative impact on
business. Also, any change in the interest rates can also have a direct impact on business.
As per Grant, (2016), the external environment will have an indirect influence in the
business and also these factors cannot be controlled by the business and society. The economy
comes in the category of external factors that has its impact on the business. Even a well-run
business is not able survive in a bad economy. On the credit cards high interest rates will
discourage customers from spending. The economy is uncontrollable as well as threats and
opportunities can be spotted by understanding same. The competition that is faced in the market
will also have a huge impact on the business. In each and every business, huge competition is
being faced by companies in their business. On the market that the business operates the amount
and type of competition mainly depends.
According to Hernandez, (2016), social change in when the people in the community
adjust to their attitude to way they live. In order to meet these changes, the business and society
will need to adjust their products. For an instance: by most of the parents, it is being felt that
children have too much sugar in their diets so the business need to be take sugar out of children's
drinks. About their social responsibilities also the business need to be aware. On the business and
society , the direct impact can be there if there is any change in the state, local, federal laws. Any
new legislation that is imposed by government will have an impact on the business. In case if
new needs and wants are being developed by the customers then this will also affect business
differently. So, it can be said that business will be faced directly and indirectly with both internal
and external factors.
By the global forces and trends that define how the organization communicate with the
customers and respond to the competition is greatly influenced by the business environment and
society. In order to deal with global warming, the business and society all over the globe is
making use of sustainability practices as per James and Prout, (2015).Every company’s product
must have a stamp of approval proclaiming its production and disposal processes are green.
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Various new and advanced technologies are being used in the business that can have an
impact on company. Such as many companies are making use of social media, smart phone app,
etc. in their business.
The relationship between such forces
As per Schaltegger and Burritt, (2017), in effective decision making process, these forces
have both negative and positive impacts on the business. In case of any change in the law, the
business also needs to make its decision regarding new law that is being imposed by the
government. So, in the organization, the complete work needs to be done as per this law imposed
by the government. In order to be better than the rival company in the business the company's
also need to make use of more advance tools in the business. On the business the negative impact
will be there due to the change in economy if there is any downfall in economy then the business
will also suffer. For an instance: in the UK, due to Brexit for the longer time the don fall was
faced by the business as people did not have much money to buy or purchase things. But the
condition is better now as per Sodeyfi, (2016).The positive impact will be there on the business if
the decisions are being made by keeping in mind the customers’ needs and wants. This will help
them to expand their business on a large platform.
Tools used to address drivers for change
In order to make effective decisions the tools such as porter five forces can be used in
order to understand the competitiveness of the business and society environment and also to
recognize the strategy's of potential profitably as per Wachowiak, (2016). This will be help to
gain the knowledge about the forces in the environment that will affect the profitability. With
this the organization will be able to make a competitive environment.
Threats of new entrants- The new firms will be attracted by the profitable industries that yield
higher returns. For the other firms in the industry the new forms will decrease the profitability.
According to Wellington, (2015), the business and society will be faced by this new rival in the
market as the demand of the company can both increase and decrease it mainly depends upon the
capability of the new entrant.
Threat of substitutes- In order to solve the same economic need the substitute make use of
different technology. For an instance for the coke the substitute is tap water. The ease of
substitution, availability of close substitute etc are some potential factors.
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Bargaining power of the customers- The customer's sensitivity to the change in the price will be
there if the ability of the customers is there to put the firm under pressure. In order to reduce the
buyer power the measures can be taken by the firms. The loyalty programs can be implemented
by them if buyers have many alternatives then in this case the power of buyers is high.
Barging power of suppliers- As the market of inputs the barging power of the suppliers is
described. For the unique resources the buyers can refuse to work with the firm to charge high.
Industry rivalry- According to Hernandez, (2016),the intensity of competitive rivalry is the major
determinant of the competitiveness for the most of the industries. About the marketing strategies
of the competitors a business and society must be aware. The powerful competitive strategy,
sustainable competitive advantages through innovation etc are some potential factors of industry
rivalry.
The social culture can be understand by the business and society by making use of theory that is
Hofstede's cultural dimensions
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Illustration 2: Hofstede's Cultural dimensions
(Source: Hofstede's Cultural dimensions.
2017)

For the cross-cultural communication Hofstede's cultural dimension theory is a
framework. On the value of its members this theory will describe the effect of a society's culture
By making use of structure that is derived from factor analysis it derived how these values are
used with the behaviour.
Power distance index- From the followees in this the inequity and power is perceived. A
hierarchy is clearly established and executed in the society is indicated by the higher degree of
the index. It is being indicated by the lower degree index that people question authority.
Individual vs collectivism- According to Castellani and Walker, (2018), the high IDV indicated
that for privacy and freedom the high value is placed on the need of people. The respect for
privacy is business and society there. In the low IDV on building skills and becoming the master
of something the emphasis is being made. For intrinsic rewards the people work.
Masculinity versus femininity- This deals with the distribution of roles between men and women.
The high MAS indicated that money and achievement are essential. And the low MAS indicates
that more focus can be there on the quality of life.
Uncertainty avoidance index-The high UAI shows that pope are expressive and that are allowed
to show their anger, emotion if its required. The low UAI mean that they are open to change or
innovation and are generally inclusive.
Pragmatic versus normative-This is strongly related to the religiously and nationalism. The
characteristics of pragmatist are that thrift and education are considered as a positive values. In
the normative the emphasis is there on the values and rights as per Sodeyfi, (2016).
Indulgent versus restraint -When there is high indulgence then focus is more on personal
happiness and also the importance is given on the freedom of speech. However on if the restraint
is high then the person is more controlled and rigid behaviour is there.
These both theories that is related to social -culture and international business and society
will help in the business and society to understand the behaviour of market and the customer and
based on that the effective decisions can be made. For both society and business and society
these theories can be used.
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CONCLUSION
Thus summing up the above report it can be concluded that business and society and
society today is faced by the number of factors such as culture, technology, laws etc. In order to
make effective decision the two theories that is porter's five force and Hofstede's Cultural
dimensions can be used.
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REFERENCES
Books and Journals
Caguiat, M.R.R., Rowena, M. and Suarez, M.T.C., 2017. Using the Multi-Theory Approach to
Investigate the Factors that Affect the Adoption of Cloud Enterprise Resource Planning Systems
by Micro, Small and Medium Enterprises in the Philippines.
Castellani, D. and Walker, J.T. eds., 2018. Contemporary Issues in International Business:
Institutions, Strategy and Performance. Springer.
Cho, G.H., 2015. Exploring Critical Factors that Affect the Application of Specific Performance
as a Remedy for Breach of Contract in American and South Korean International
Business Transactions (Doctoral dissertation).
Clontz, N.S. and Gibbs, A.L., 2017. Factors that Affect Group Work: Group Cohesion and
Therapeutic Alliance in Substance Abuse Treatment and Personal Growth Groups
(Doctoral dissertation, Brenau University).
DesJardins, J.R. and McCall, J.J., 2014. Contemporary issues in business ethics. Cengage
Learning.
Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
Hernandez, K.R., 2016. An Augmented Gravity Model: Factors That Affect US Sugar Imports
From Western Hemisphere Countries. Louisiana State University.
James, A. and Prout, A. eds., 2015. Constructing and reconstructing childhood: Contemporary
issues in the sociological study of childhood. Routledge.
Schaltegger, S. and Burritt, R., 2017. Contemporary environmental accounting: issues, concepts
and practice. Routledge.
Sodeyfi, S., 2016. Review of literature on the nexus of financial leverage, product quality, &
business conditions. International Journal of Economic Perspectives, 10(2), pp.146-150.
Wachowiak, H. ed., 2016. Tourism and borders: contemporary issues, policies and international
research. Routledge.
Wellington, J., 2015. Educational research: Contemporary issues and practical approaches.
Bloomsbury Publishing.
Online
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Factors Determining the Internal Environment of a Business. 2017. [Online].<
http://www.economicsdiscussion.net/business-environment/7-factors-determining-the-
internal-environment-of-a-business/10099/>
Hofstede's Cultural dimensions. 2017. [Online].<https://4squareviews.com/2012/12/19/six-
sigma-green-belt-define-team-dynamics-and-hofstedes-cultural-dimensions/>
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