Contemporary Management Issues: Analysis of Dynamic Business Forces

This report provides a comprehensive analysis of contemporary management issues, exploring the dynamic forces that impact businesses and society. It delves into social, political, economic, and technological forces, examining their interrelationships and influence on strategic decision-making. The report highlights the importance of understanding these forces for effective business strategies, using examples such as changes in consumer preferences and the impact of economic recessions. Furthermore, it evaluates the relationship between these forces in terms of effective strategic decision making and introduces decision-making tools like probabilistic models and force field analysis to address contemporary drivers for change. The conclusion summarizes the report's findings, emphasizing the significance of adapting to a changing business environment.

CONTEMPORARY
MANAGEMENT ISSUES

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO1. Exhibit an understanding of the key dynamic forces impacting on business and society. 3
LO2. Critically evaluate the relationship between such forces in terms of effective strategic
decision making..........................................................................................................................5
LO4. Select and use decision making tools to address contemporary drivers for change..........6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business Environment shows a range of comprehensive coverage, academic insights and
so on. According to Wetherly and Otter, (2014), drivers that are related to change in competitive
or global business context consists with diversity which mainly generates a number of issues.
Both the authors have also mentioned that continuous improvement among globalization and the
different actions taken in modern business environment brought up ample number of threats
along with opportunities for firms that are doing business at international level. Political, social,
economic and technological are some of forces that mainly impacts upon decision making
processes. In order to resolve or reduce issues at international level, firms majorly uses corporate
social responsibility, as it aid in developing positive image in front of the society. Non
recognition of these kind of approaches may lead firms to lose chances related with attaining
different goals and objectives.
MAIN BODY
LO1. Exhibit an understanding of the key dynamic forces impacting on business and society
As mentioned by Wetherly and Otter, (2014), modern business world consists of different
dynamic forces or drivers which mainly affects companies or whole society in both positive and
negative manner. Authors have showed a number of dynamic forces and these are mentioned
beneath:
Social Forces : This is being considered as one of key dynamic force that can affect both
business and society at the same time. Under this, consumption, harmonization of consumer
preferences, education and skills are some of elements that stays involved that may put impact
upon working of business and society (Cherry and Jacob, 2016). This could be understood with
an instance, change among customer's beliefs and values towards energy preservation and global
climate change may develop a alterations among preferences of customers or users away from
gas guzzling SUVs to hybrid sedans. Cultures treat the meal as a long social event, and fast food
just won't cut it. Social preferences relating to fashion and trends related to this world are
constantly changing.
Political Forces : Another force that affects or impacts upon business organisations and
society as well at the same time. Some of factors like reduction of trade barriers, intellectual
property rights, privatization, formation of trade groups, technical standards and many more. It
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has been analysed that political stability is required because then only a company can sustain at
marketplace for a longer period of time. This can also be understood with an example,
fluctuation among taxation rates can be seen at global level. This mainly take place because of
government that could enhance rate for a sector and reduce for another one. Determinations
made by parliament could mainly impacts upon business along society as well because rise in
taxation rate will automatically raise products price and this may affect consumers purchasing
power. This could affect supply as well of the company related to products and services (Howard
and Hatfield, 2018).
Economic Forces : Authors have considered this as one of crucial force that may impact
upon both society and business as well. Increasing individual's income, world trade, global
financial markets, market forces and global competition could be considered as some of major
factors that mainly affects decision making of business and the impact can be seen on society as
well (purchasing power). In order to understand this force, a proper instance has been take of
recession time frame (ending of 2007). In this period, customer's were spending less on optional
products like vehicles, jewellery (gold, platinum), luxury good and so on than the expectations of
business companies. This resulted whole business environment to suffer because flow of funds
got reduced to minimal and this impacted directly on profit margins of business firms. Therefore,
it is required for business organisations to select the developing countries that are having a
rapidly growing economical conditions. This would help firms in attaining goals and objectives
like becoming leader of the market in which they are doing business.
Technical Forces : Since business world is rapidly changing, it is being analysed that
technical factor have been one of the reason behind these alterations. Industrialization, transport,
information and communication revolution are some of elements that mainly affects business
strategies and society as well. For an example: Shift of mobile technology from Symbian
operating system to Android, led both society and business company that were dealing in same
sector to develop mobile phones with Android OS. This impacted positively on society and on
business production as well because change requires investment at initial level but then, its return
was highly unexpected because it raised profit margins of the company and mobiles with android
systems become much more faster than the previous one.
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LO2. Critically evaluate the relationship between such forces in terms of effective strategic
decision making
Business world is consists with ample number of uncertainties because of different
external forces which majorly raise issues for companies and impacts upon decision making
processes as well. It was mentioned by the authors that, interlink among forces like social,
economic, technical, and political could help a firm in building effective decisions for the
purpose of performing well at global level. It is required for companies like Marks and Spencer
to keep its focus on building effective strategic relations because firm in fashion sector faces
changes in rapid manner because of new trends and needs of customers. Due to dynamically
changing economical reality, link among above discussed forces could help in developing right
strategical decision which will aid firms in earning profit margins at a huge range. Some of
linking among different forces that would help in decision making are given beneath:
Link between social-economic forces : This is being considered as one of effective and
strongest relationship among social behaviour along with economics. This could aid in reaching
to an all new level. Here, it is being found that social norms, ethical along with social
philosophies consists of different influence related to consumer behaviour or shape of an
economy as well. This would results in making effective decisions. On the other hand, it is being
analysed that a socio-economic class could be considered as group of people with similar
characteristics (Maron and et. al., 2015). These characteristics can include social and economic
standing and other factors such as the level of education, current profession, ethnic background
or heritage, and other ways that individuals can be categorized. Considering this class as the
most effective one may lead a company like Marks and Spencer to raise profit margins with the
help of making right strategic determinations.
Link in between technical and political forces : In the case with technology, politics has
created a vast amount of philosophical thinking along with politics as well. Developing policies
related to technicality use of updated tools and technology have been one of crucial subject to be
studied. Here, it is being critically analysed that, interlink in between both technical and political
forces can help business organisations that are doing business and it could lead firm to raise
themselves to an all new level. For more clarity, politics can be broken down into three sub-
areas: polity, policy and politics in the narrow sense which if gets connected with technology,
then it may help firms to raise themselves and then to perform well at international level. Away
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with this, technological progress is not always intentional and arguably consists with a proper
plan that could hardly be controlled by political advancement. But, ones it gets in control then it
can easily help business organisations that are going business at international level to improve
their own skills which could aid them in raising their profit margins at the same time. Hence it is
required for business organisations like Marks and Spencer to focus on change through keeping
on eye on trends and change among perception related of customers (Maron and et. al., 2016).
Although following, effective relationship in between technical and political terms, and using
developed policies and trends of updated technology would lead firms like Marks and Spencer to
maintain ethical issues and could offer consumers with different plans and procedures as well at
the same time.
Henceforth, these are some of relations that could help a firm in making strategic
decisions to become globally known at international market. Away with this, it is also required
for business companies in performing well and considering relationship among individuals could
help firms in finding themselves to an all new level at workstation where they may easily
perform much more effectively at workplace (Schaltegger and Burritt, 2017).
LO4. Select and use decision making tools to address contemporary drivers for change
It has been analysed that there are ample number of decision making tools that could aid
in addressing contemporary drivers for change (Wachowiak, 2016). Away with this, it has also
been found making decisions is certainly the most important task of a manager or a leader and it
is often a very difficult one. This site offers a decision making procedure for solving complex
problems step by step.It presents the decision-analysis, using different decision criteria, different
types of information, and information of varying quality. It describes the elements in the analysis
of decision alternatives and choices, as well as the goals and objectives that guide decision-
making (Wetherly and Otter, 2014). When it comes to address contemporary driver for change, it
is being found that there are ample number of decision making tools can be used. Some of these
are mentioned beneath:
Probabilistic Model : This is being considered as one of crucial model that can help in
making effective decisions related to drivers of change. This model is totally based on theories
of probability where randomness plays a crucial role and the prediction is being made on the
basis of information that have been collected. Considering this model analyst can easily develop
outcomes as well as amount of risk as well that is present related to drivers of change.
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Force field analysis: It has become vital for business forms that are doing business at
international level to analyse the overall pressure which is present against the change that is
going to be made by the company. This tool was developed by Kurt Lewin in 1940, who
mentioned that business needs proper situation to be maintained with the help of an equilibrium
among forces that could lead drivers to change. This is being considered as another tool which is
helpful for change to happen, the driving forces must be strengthened are the resisting forces
weakened.
This model is enclosed with different steps and these are comprehended below:
Step 1: when it comes to make possible changes it is required to define a proper goal or vision
for the alterations.
Step 2: after setting the goal, it is required for analysts tothink about possible forces that driving
change. These drivers could be both internal and external.
Step 3; this could be considered as a third stage where force against the changes could be
identified.
Step 4: under the step, analyst could assign scores to drivers of change that are strongly
affecting with the point of 5 and those are least affecting could be assigned as one as a score.
Step 5: final structure proper analyzation of the decision and then after that its application take
place.
This could help business and Society from surviving from different sorts of changes that are
being faced by them.
CONCLUSION
With the help of above mentioned report, it is being concluded that business environment
can put both negative or positive impact upon both business of companies that are doing
operating themselves at international level and society as well which consists with consumers,
investors, competitors and so on. Therefore, it is required for multinational firms to select the
right decision making tool that could easily led up firms in understanding or gaining deeper
knowledge related to drivers for change. Away with this, strategic determinations may help in
attaining desired goals and objectives in much effective and efficient manner at international
level.
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REFERENCES
Books and Journals
Cherry, B. and Jacob, S. R., 2016. Contemporary nursing: Issues, trends, & management.
Elsevier Health Sciences.
Howard, D. and Hatfield, F. M., 2018. Aphasia therapy: Historical and contemporary issues.
Routledge.
Maron, B. J. and et. al., 2015. Hypertrophic cardiomyopathy in adulthood associated with low
cardiovascular mortality with contemporary management strategies. Journal of the
American College of Cardiology. 65(18). pp.1915-1928.
Maron, B. J. and et. al., 2016. Hypertrophic cardiomyopathy in children, adolescents, and young
adults associated with low cardiovascular mortality with contemporary management
strategies. Circulation. 133(1). pp.62-73.
Schaltegger, S. and Burritt, R., 2017. Contemporary environmental accounting: issues, concepts
and practice. Routledge.
Wachowiak, H. ed., 2016. Tourism and borders: contemporary issues, policies and international
research. Routledge.
Wetherly, P. and Otter, D. 2014. The Business Environment: Themes and Issues, 3rd edition,
Oxford, UK: Oxford University Press
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