Contemporary Management Issues at P&O Ferries: BUS6001 Analysis

This report critically evaluates the contemporary management issues facing P&O Ferries, focusing on the drivers of change impacting the company's decision-making, such as globalization, ethics, and CSR. It analyzes the implications of these decisions on P&O Ferries' commercial and operatio...Read More

BUS6001 CONTEMPORARY
MANAGEMENT ISSUES

Table of Contents.
INTRODUCTION...........................................................................................................................3
Drivers of change impacting decision-making of P&O Ferries...................................................3
Implications of decision-making on the company's commercial and operational activities........6
The nature of the pressure for Drivers of changes.......................................................................7
Recommendation......................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Contemporary management issues are those ongoing challenges which are based on the
following factors like political, social, economic, technical, environmental, legal etc. It has its
significance, implication, relevance, applicability, effectiveness and material presence in the
present time (Tomislav, 2018). The report will critically evaluate the P&O Ferries business
environment. The company is one of the UK's ferry operator carrying passengers and freight
cargo. The quoted firm was acquired by DP World which is logistics company of Dubai. The
research will express the current challenge which the given organisation is facing i.e. sacking
jobs of around 800 staff without providing the notice and replacing the role with cheaper agency
workers. The study will dicuss the causes which might have impact the decision making of the
company such as social change, globalisation, ethics, sustainability, CSR, demographic change,
leadership, changing needs of stakeholders and innovation. Further, the project will evaluate the
implications of the quoted firm's decision-making on the commercial and operational activities.
Later, the task will suggest considering the nature of the pressure of the change by alternative
approaches. In the end, the report will provide relevant recommendations that recognises the
sustainability and ethical consideration of the company.
Drivers of change impacting decision-making of P&O Ferries
P&O Ferries, a British shipping company incorporated in 2002 through M&A which
operates from its base UK to Ireland, France, Belgium and Netherlands. It provides services like
port, ferries, transporting passenger and freight. In 2019, DP World repurchased the company
from Dubai World (Whyatt and Saunders, 2021). Brexit have not debenefitted the company as
Cyprus is still the member of EuropeanUnion and with the flag of convenience business practice
the company gets advantage of EU tax arrangements (Vega, Feo-Valero and Espino-Espino,
2018). The quoted enterprise came into limelight due to abruptly suspending or terminating its
800 UK's staff with an immediate effect due to the reason of redundancy. The method of
expulsion was hugely critized all over the world by various government and non-governmental
bodies (Preston and et.al., 2020).
The era of 21st century has extremely dynamic which was not only been witnessed but
also impacted us. Every sector in the economy has faced the various challenges in the
functioning and behaviour of the companies. There are many factors which led to the decision-
making of the P&O Ferries. The decisions of the company has a both positive and negative

impacts on its future growth and success. For example, the quoted company don't know that
sacking jobs of the UK's staff members would be one of it's worst decision considering the fact
that the county was the core foundation of its business. This not only means that they are going
against the workfoce but it has other repurcassions which they are unable to foreseen. The
company has to deal with political, social, economic, legal, technical and environmental forces
which might have bad impact on the future of the firm (Roberts, Williams and Preston, 2021).
This decision has witnessed changes in the quoted company's globalisation policy which
may brought new opportunities but also with new threats. Globalisation is a process which is
considered complex affects the functioning , development, behaviour of the corporations and of
consumers. There are several areas which works with the gloabalisation. Apart from all the
factors, economic point lowers the investment and trade which is related to capitalism decrease
in the super-territorial domain. As the quoted company had been acquired by Dubai's group it
would increase the market internationally as well boosting the regional market of the company.
The areas of globalisation are firstly finance which enhance the mobility of capital, financial
market being deregulated and increase the mergers with financial institutions. With help of
globalisation, the quoted company saw a increase in the revenue due to business operations
working on a global scale with better business strategies. The development in technology due to
gloabalisation benefitted the company having an advanced techniques providing better
experience to the consumers. Globalisation reduces the role of parliamentary governement and
protect them from the legal battles. The quoted company owned by Dumbai's group has an
advantage, although the act of suspending was not correct on the ethical or moral ground but
possibly not illegal as UK's National Minimum Wage policy would not be applied to non-UK
destinations because of combination of National Minimum Wage Act, 1998 and Amendment
Order, 2020 which provides provision where a person will only be qualified if working under the
UK's contract (Ewing, 2022). But apart from the legal provisions the action of the company was
largely critized by the ministers and there was an immediate outrage amongst the employees of
the quoted company's subsidiaries. They didn't even feel to consult the employee unions and
UK's government which would defintely not allowed the company to do so resulting them in
higher payoffs. The reason for suspending was important to cut the costs and easy flow of
business which would be replaced by cheap workers.

Corporate Social Responsibility (CSR) increase the chance of getting triumph in the
global as well as domestic market by strategic activities which work in the welfare of the society.
Sustainable development and CSR would influence the working of a company. Corporate
rhetoric has less relationship to reality. P&O Ferries scandal has a global issue and it's impact
expressed the true picture of the DP World's purpose, mission and the working culture.The
website reads that employees are “essential to our success” as well as members of “corporate
family.” The employee policy further ensure that the company would resect the human rights
complying with the laws having strong anti-discrimination, anti-bullying, equal opportunity and
no harassement with the workforce. They include prioritizing sustainabile growth and positive
environment for the society at large. These all word salad is completely opposite and the reality
has different picture. The very first CSR of a company is towards it's employees and using ex-
military guards to escort the staff off their ships due to terminating them who even worked for
more than a decade (Nargundkar, 2019). Hiring third-party workers in place of their ex-
employees and paying them low minimum wages is another failure of towards the society by
exploting the human rights of the individuals. P&O has connected continent with the Britain for
long time but the act of the company would going to witness various legal and political
problems from the UK's end. DP World's is a traditional gulf state-owned company which could
be described as male dominating firm who acquired the P&O and due to the video launched by
the CEO to immediately resign the staff has lead to boycott the working, low reputation, poor
fiduciary relationship with the consumer & shareholders and financial bankruptcy. Participation
of the company towards the social responsibility is important and doing charity with publicity is
not the single method to serve the society but it has a duty towards the community. It should
strength the position of the company and increase the profitability of the firm. The act would
impact the UK's government policies which were favouring the P&O like disallowing
investments through London Gateway.
Therefore, globalisation and CSR could bring damage due to the profit-oriented approach
while reducing its value globally because of the actions which are being critized all over the
world. Following the CSR programmes through actually implementing globally creates the
opportunity of talent hirings, improved health, better living standard, expanding new businesses
etc.

Implications of decision-making on the company's commercial and operational activities
Sacking of job was a poor reflection of the Dubai-owned business through a Zoom call
was a utter shock due to no warning. Enhanced compensation pacakage for lack of notice is
coercing them to sign a settlement. It would have been easier if done during pandemic or
lockdowns because Covid-19 had shackened the businesses to its core. But to eliminate the staff
it was done pre-pandemic without fulfilling the requirement of 45 days notice. P&O reportingly
were is loss which may result in the job loss but the approach was immoral failing the rules and
regulations of UK law. Due to this decision of the quoted company, they had to face various
implications like legal batlle for unfair dismissal without notifying the staff in advance and
violating the Trade Union & Labour Regulations (Consolidation) Act, 1992 which may result
in high losses if the employees win the legal battle by compensating them (Johnson, 2022).
Recently, the CEO admitted the termination being unlawful by officially apologizing publicly
through social media had make their position more worst. After this decision, the company had
prevented from running its vessels except one. There were many regulatory hurdles being facing
by the company's regarding their ships which had impacted the operational activities of the P&O.
The outrage from all over the world and the UK's government has forced the quoted firm to stop
its operational business throughout the ports of UK resulting in huge loss. The other implication
could be witnessed by protests against the Peter Hebblethwaite, the CEO of the company to step
down from its position and reappointing the staff back to their roles. Non-fulfillment of these
demands may lead to face the maritime laws issues, criminal, civil and employment laws
(Lancefield, 2022). Due to pressurising the CEO to quit would resulting in the non-management
of the operation, organisational structure, miscommunication with board, non-collaboration and
ineffective strategies to run the commercial activities. It also resulted in the de-motivation or
unconfidence of the remaining employees in the company due to shocking terminating the staff.
This would have bad implication on the working efficiency and productivity of it's remaining
workforce towards the company (Powell, 2022). The fear of loosing job could demoralise the
people working within the organisation. Staff redundancy is the implication due to the bad step
by the quoted company to remove the staff without notice resulting in poor wellbeing of
organisation. The firm has started facing problems of retaining the other staff members due to
breakdown in trust and less commitment. This has a direct impact on the commercial and
operational functioning of the P&O.

Risk of bankruptcy is another implication due to the bad decision making of the quoted
company which faced the UK's government bodies to take critical actions like the vessels are
being detained by the Maritime and Coastguard Agency (MCA) to inspect all eight ships. Due to
this process there is an increase in the insurance cost and redundancy bills which resulted in
financial crises (Macola and Goss, 2022). The uncertainity because of fiscal problem and to
begin carrying the passengers and freight between Dover and Calais route is still a biggest
struggle of the company. This may result in the decrease of given organisation's commercial and
operational activities.
The reputation of the company has been badly impacted resulting in a surgical decline of
it's commercial and operational activity in the UK. Buidling a brand name is not easy task to do
while sinking the name could be done my terminating the staff through a video call. The value of
the company is not only calculated on the basis of assets but it's intangible asset known as the
brand or goodwill of the firm (Forsdick, 2022). This resulted in the decrease of the customer's
trust and reduce the number of passengers which is the biggest source of earning revenue for the
company. The government is in complete dilemma as the company is huge investor in UK's
industry. The reputation of the company has its implication on the shareholders of the company.
After the incidence, there was an decrease in the prices of the share as well as many stakeholders
left the company due to the challenges faced from all over the world and the government bodies
againgst them. Thus, it would badly impact the functioning of the business.
The P&O could embark formal decision making tools and techniques to organize the
steps to arrive at better decisions by identifying the goals, identifying alternative information,
evaluate the options, choosing better approach to find work on short term and long term goals.
Decision matrix, multiple voices, pros and cons chart, pareto analysis, cost-benefit analysis and
conjoint analysis, SWOT and PESTLE analysis are various techniques a company should obtain
to identify the weaknesses and opportunities of the businesses.
The nature of the pressure for Drivers of changes
The driver of changes in the P&O company increase the fatigue and safety compromises
which are important in the business because the drives of changes related in the business such as
ethics, sustainability, corporate social responsibility, social change, innovation, demographic
change, leadership corporate and changing the stakeholders needs. The P&O company plan to
reduce the fatigue in the cross channel routes with the customers services and marine staff as

well as opposed to moving towards the safety grounds (Wang, 2019). The company drives the
changes towards the health and safety which are most important for the staff and customers with
the helps of compromised by the commercial imperatives. The main objectives of the
organization to change and do something's better to be the more efficient and effective in the
regards of the needs of the customers. The organization change the obtain the better efficiency
and reach the scale of the economy and more attract the audience of the international towards the
company and that helps company to achieve the accomplish goals of the organizations.
1. Demographic change: the changes in the demographic than the organizational changes
are also require in the culture. The P&O company grew and built their organizations and
they need to change the strategies with the demographic regarding the products gets the
in the front of the customers. It impacts the business with the demand patterns shifts as
well as opportunities are arise in the marketplace in order to population age. The global
will be double in the future and increase by the double people (Elekes and Szilágyi,
2020). The developing countries is the accounted the populations growth of the
democracy patterns across the regions and countries. That's why the company needs to
change the polices and procedures according the demographics changes.
2. Political changes: the governments are restrict the changes in the organizations then the
company must change their wages of the employees and changes rules and restrictions
according to the government because of the fair competition in the market. The company
must use the affordable health care act in the business as well as change their operations
according to the political changes and make sure about the health of the employees who
are work at the industry. The political changes such as the lockdown and covid payments
which are the governments approaches to the P&O ferries are effects the revenues and
profitability of the company. The relationship between the business and governments are
also become the complex at the modern period of time. The forces on the organization
regarding the legal and political changes in the business and adapt to the pressure of the
forces.
3. Ethics: the business ethics are refer as the various policies and procedures which are
related with the controversial projects which includes the discrimination, bribery,
corporate governance, etc. the effectively operate the business is important for the
business to allow and follow the good ethics. The company not follow the business ethics

in the business organization because they are lay off the members more than the 800 staff
and they replace with the cheap agency workers and that resulted into the discrimination
among the employees and staff, so also the violation of the policies of the company (Egli,
2020). The good business ethics are involves the various such as loyalty, trust with the
staff and communication which helps in achieve the objective of the business
organization. The business ethics helps in eliminate the legal issues which can impact the
functioning of the company.
4. Stakeholders needs: the stakeholders needs is collecting the information and data which
are important for evaluate the performance of the organization. The organization needs to
change the business according to the stakeholders changes. The stakeholders needs
request can be change request, enhancements request, defeat. The changes which are
needs by the stakeholders that can affects the organization because it is nit being able to
sustain in the environments and not able to survive in the competitive market place
(Meyer and Kirsten, 2020). The benefit of the stakeholders have the best experience to
business and members of the company such as board of the directors, managers which are
not involves in the affairs of the business but they helps in providing the big picture for
the business success such as introducing the long term plan for the business. The
stakeholders interest observe the many people which put their personal interest rather
than the thinking and making decision about the objectives of the business organization
which can impact the company as well as profitability. The company have also fear about
the operating the business which can due to the lack of the proper planning and
communication between the stakeholders and members of the company.
5. Corporate leadership: the corporate leadership is the comprised of the managers and
executives who run the company as well as build the strong organization. corporate
leadership are changes than the the business are affect by the business goals such as
growth and expansion of the company are also affects, the management of the workforce
in the business are also effects as well as administration operations and support are also
affect by the drivers of changes. If the corporate leadership are change than the
organization management in the leadership will also affects and that affects the company
cooperation and coordination which are most important for the business. The corporate
leadership helps in increase the productive of the business and enhance the employees

engagement as well as reduce the turnover of the staff (Gafiatulina, 2018). But the
corporate leadership are change than the staff turnover will be increase and and the risk
management of the company are also not improve by the changes of the corporate
leadership. The corporate leadership are change in the positive ways than it impact the
business to improve the risk management, achieve the better projects of the company as
well as improve the skills and abilities of the managerial leadership. The challenges of
the corporate leadership which are face by the business organization is crafting the
strategy as well as motivated and developing the talented executives.
Recommendation
P&O Ferry which is one of the leading UK's Ferry operators which carry more than 10
million passengers has undergone various issues and problems which has affected the operations
of the company. The organisation has faced various issues during pandemic resulting in
outraging the 800 staff members of the organisation in order to hire cheap agency
worker(Greenwood, and Freeman, 2018). On the other hand the company also broken various
legal and ethical norms which has also affected its image in the competitive market and also
violated various provisions of the employment law and further they also failed to follow the
safety regulations which resulted into loss of many skilled workers. As a result of which the
company has lost the trust of the customers and passengers due to the violation of many
provisions which was necessary to be complied by the organisation. IN order successfully
operated its business in the competitive market it is necessary for the company to make various
modification which can be helpful in regaining its position in the market and also rebuild the
trust of the customers.
 The company has contravened various ethical norms that is to be compulsory to be
complied by the company so it is suggested to the company in order to maintain its
position they are required to follow positive ethical approaches and focus towards
obeying and following all the legal norms for the safety of the passenger and also
workers.
 It is also necessary for the company not only focus on increasing the productivity and
profitability but also focus on preserving and protecting the environment and with the
help of adopting new and advanced technology use various systems that helps in reducing
the negative impact it can have yo water and marine.(Rendtorff, 2019).

 Furthermore, in order to sustain in the market, organisation is required to deliver best
services to its passenger and initiate various corporate social responsibility initiatives for
the welfare of the society. It has been observed that various toady most of the companies
are involved and introducing various CSR programs which help in delivering effective
services for the benefit of the society and which can also benefit and contributes in
building the image of the company in the market.
 Globalisation has created various opportunities of the companies and has also resulted
into increase in the standard of living of the developing countries and also helps in
expanding its business in various other markets in order to increase its market share and
further growth of the company. Furthermore, it also helps in increase in the cultural
exchanges because of grater movement of the people(Steinberg, 2020). It is
recommended to the company to focus on complying with all the necessary laws and
standard which helps the company to grow its business in the oversees market and
enhance better communication among the countries.
 Statutory code of practices refers to the various set of rules and procedures that is
mandatory for the management or employer of the organisation to follow those
provisions .It can be any regulations that applied to the company operating in any sector
or industry. These code of practices provide a detailed information about the task that is
to be performed within the company which also includes the health and safety
regulations(Miller, 2021). It has been observed that the company has not complied with
the safety regulations. The organisation is required to take the decision that positively
affect the functioning of the company.
 Business environment is dynamic in nature and various changes takes place in the
environment which includes the technological and market factor that can impact the
operations and functioning of the company. It is necessary for the organisation to
evaluate such changes and its benefit the company. There situation occur when
employees resist to changes in the company but it is responsibility of the management to
convey to the employees the benefit of such changes within the company(Mansaray,
2019). It is recommended that in order to manage the resistance to changes it is necessary
to understand and listen to the concerns of the employees and communicate the
employees about the need for such changes within the company.

 For long term sustainability in the market it is required that P&O Ferry to plan and
implement the various strategies that can help the company to diversify its business in the
market. On the other hand it is also necessary to focus on the changing factors in the
market and execute plans accordingly.
CONCLUSION
From the above report is can be concluded that every business faced various issues that
can impact the functioning of the business due to various changes that takes place in the internal
and external environment. In order to overcome these issues it is necessary for the company to
critically evaluate these factors and make plans and strategies accordingly. Apart from this
various changes that takes place in the organisation also influence the decision-making. The
present study is based on the contemporary management issues on the case study of P&O Ferry
which is one of the leading ferry operator in UK.

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