Contemporary Management Issues in the Retail Industry Report

This report provides a comprehensive analysis of contemporary management issues within the retail industry, focusing on the impact of technological advancements, e-commerce, and evolving customer expectations. It delves into key challenges such as competition, the need for digital marketing, and the importance of customer satisfaction. The report employs PESTLE analysis and horizon scanning techniques to evaluate political, economic, social, technological, legal, and ecological factors influencing the industry. It explores key technology enablers and innovations, examining their impact on industry operations and future trends. Furthermore, the report examines the future of consumption and societal changes, emphasizing the need for businesses to adapt to consumer behavior, ensure data privacy, and provide seamless online and in-store experiences. The report concludes by highlighting the need for continuous innovation and adaptation to maintain competitiveness in the dynamic retail landscape.

Contemporary issues in
management

Table of Contents
INTRODUCTION ..........................................................................................................................3
Key technology enablers and innovations...................................................................................4
Analysis of the industry..............................................................................................................5
Reflection....................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
Books and Journals:..................................................................................................................12

INTRODUCTION
Business organisation is a structure of aligned activities and various functioning activity .
business scattered their operations into wide area of field which enables them to cope up with the
external and internal environment (Chou and et. al., 2020). Every individual has immense desire
to be financially strong by making money and utilise their talent into respective field. People
choose a business profession in order to make their career and earn a lot of profit more than
private sector jobs. Business are engaged in different activity such as commercial, industrial and
professional. These business organisation are established for different purpose through which
they have to face many and complex challenges into the market. Mainly an enterprise operations
and its expansion are depend on the its environment, behaviour, mode of channels and
distribution, dynamic changes, technological changes and legal amendments. These factors
together creates a complex situations for an organisation which become a cause of their failure.
Those business which have much financial stability and support of shareholders by their
goodwill on the market are become able to face these crises and perform in according to the
economical wants. On the other hands, business who are not financially stable are either find a
way to overcome with the issues or wind up their operations because of continuous losses. This
report has taken the issues of retail or wholesale industry is facing.
The industry is specialised in manufacturing and retailing in household items like
grocery, food items, sanitization, cosmetics, clothing, transportation and repair. Any business
providing daily needed and useful products as per customer demands and compulsory daily
goods are considered to be the retailers (Gough, 2018). This industry has taken a turn into past
years in terms of technological improvement and innovation for customer preference and
investing a pool of variety into the retail outlets for better experience and life satisfaction.
Meanwhile, due to these wide operations retail industries are facing issues regarding competition
into similar products which affects them by being price changer through which customer gets
attract and get dominated by those retailers. Innovation in digital marketing and E-commerce has
taking a lead into the global market which influence customers to the best extent and enterprises
make fuller utilisation of this opportunity by expanding their small enterprise to online retail
firm. Retail industry has multi dimensional and aligned functioning which require high control
over all operations simultaneously due to which it could not make effective use of digital
sources (Tvaronaviciene, 2017). Also, this report going to evaluate about tremendous problems

rising in between customer, employees and business engagement that eventually affects
economy, society and foreign investment. Due to large competition between the industry, people
and process gets impact thorough market exploitation in order to be the first into the market so
that price, technology and economic growth gets unessential. Moreover, the report is totally
based on horizon scanning techniques through which data get analysis with relevant sources and
evaluate critical thinking on the issues in management.
Key technology enablers and innovations
Through considering the issues of retail industry by amendment into technological
advancement the industry has a large expansion into the globe as well as much competition due
to e-commerce and digital empowerment (Gounder, 2020). E-commerce has defining a concept
of selling and purchasing criteria for the purpose of scattering to large number of people at the
same time and interact with the customers personally in order to know their taste and preference
about the product., this way of selling has made an increment into business sector from a street
outlet to a global expansion of product. To operate digital sources and and software, it requires
huge finance and marketing tools to promote digital sources of selling. Due to which some of
retail outlets could not get successful because of insufficient financial stability. The major
problem has been come up with e-commerce is that it could not make every customer happy by
simultaneous response and take their issues into consideration. So that business would not able to
make their retention. The main aim of retail sectors as per the data has considers that to make
maximum profit with maximum selling price but it could not make the long term goal without
being interacted with other rivals and customer satisfaction. The data has shown the number of
industry into the world are approx 255040. it is an important aspect to lookout to dull overview
of customers with the aim to solve their queries and relevant information. A professional manger
could handle it more effectively by maintaining proper communication, confident responses and
significant opinion (Silove, Ventevogel and Rees, 2017). Also, it is essential to make customers
loyalty by generating refunds and payment policy via digital sources and put on efforts regarding
daily updates and handling the all over data. Calls over the problems and abounded on any
services needs to be accurate and audible through higher automation because of large traffics into
the server. So that in need with high quality server and software and a specialised expertise.
Achieving customer satisfaction is must in order to evaluate successful operations via digital
sources. There is need to identify the best channel of interaction to reach at customer. Develop IT

tools and proper infrastructure to make full existing utilisation of systems. The chosen industry
affected by key technological factor also its new invention into the market due to which
customer often change their demand and taste which will let down the capital goods and
automatically profits for the same. This industry has large buyers and sellers also because of
consumable products. Organisation make their relevant improvement in their technologies in
respect with price discriminatory factors. Technical innovations has create positive impact on
economy by increasing in GDP of the country and economy would take upcoming technologies
with the most possible efforts and make it possible towards rise in business. These factors are the
main implications on growing of a business or industry operations. The whole industry gets
suffers with the environmental changes and government much influence on taking new aspects
into consideration.
Analysis of the industry
Pestle analysis-
As retail industries are world wide common in every area, everything is available in
phone whether it is food or medicine. With the help of technology, retail industries that can
survive post- economic destruction. There are six principle which affect retail industries which
are discussed as follows:
Political Issues
As revenue and profitability of any retail industries or stores rely on government policies.
The involvement of retailing industries into digital world proved shopping convenient for their
customers. As there are ample of external factors which are considered as important in their
growth such as political stability of developed countries, government support for e-commerce,
as the government raise efforts to increase cyber securities and promote users to continue
shopping online. It helps any organisation as to promote their business and can attain more
customers. On the other side, it may create threat as well, as there are other firm or new firms
who are expanding their business. Organisation should be aware about these problem and may
take security measure and should plan strategies to overcome.

Economic factors
Economy plays vital role in the performance of any organisation and the important
economic factors which affect the company are economic stability of well developed market and
by increasing disposal incomes. At this time if the country suffers with recession may create
threat for retail industries.
Social or Socio-culture Factors:
Society and social trends develop the shopping habits. Demographic social factors may
affect and there several demographic social factors such as age, gender, race etc. Industries face a
lot of challenges socially which need to be verified and identified. It can create the probability to
get opportunity for firms and industries like increasing online buying habits of the customers and
increment in costumers in developing countries .
Technological Factors:
Either it is online retail shop or or physical shopping mall, technology affects and
influenced them equally. As businesses should adopt hardware and software to keep moving
forward with time in order to balance cash management or management of the store's sales
record. As the E-commerce stores received benefits due to introduction of technology. Even
through technology the online stores can launch product and services worldwide.
Legal Factors
Being in a retail industries it is compulsory to operate within legal environment of a
country. Therefore, manger should make sure to follow the local labour laws, excise, and
taxation regulation and many other business laws. When any brand gets introduced globally as
rules and regulations becomes little complicated and its because every state or city have different
traffic laws, trade and different copyright. If it is not followed then they are many chances by
which brand gets ban and may suffer with copyright issues.
Ecological or environmental factors
There can be alot6 environmental issues which a company can tackle during growth
process such as expiration dates of product and removal of contaminated stock. Companies have
multiple suppliers those who provides stocks with different expiring dates when sales staff put
them together. So expiring dates gets mismatched of all products.

Horizon scanning techniques
Horizon scanning tool is a beneficial tool used to tackle problems which are faced by
firms, it is process in which bringing experts in different subject areas together in order to
discuss common issues faced by firm and suggesting viable solution. It helps in taking
precautions and security measure before threat appear. Well it is not a technique for future
prediction but it is said it is tool which analyse the future threat that may reveal. It helps
identification of important needs or gaps and can assist in policy mak8ing. It is performed
consistently and effectively, when combined with other forecasting tools.
Horizon-scanning scanning consist cyclical actions of scanning, analysing, synthesizing
as well as it is helpful in communicating information. There are four questionnaire which need to
addressed while performing this tool as combined with other forecasting tools, they are :
Approach, scope, Process and time-frame.
Future of consumption and society-
Now a days society are more offended by severe health problems and other economic
disparities, discrimination, poverty and consumer exploitation (Imazio, Colopi and De Ferrari,
2020). All these factors are related with consumer well being and their protection through
business operation otherwise it could cause a serious affect on profitability and life span of
business. Business are entitled to provide safe and security in producing and distributing their
goods to general public. This factor especially creates a negative impact on digital marketers
who are globally serving their products. Specially in retail industry the goods are perishable or
one time used purpose which could get affected by transportation and leniency in services
management. Customers gets satisfied with their whole overview of purchasing with online
stores and want their privacy which they share with the operators such as phone numbers,
emails , bank details and more. growing trends of product delivery and convenience to customers
are making a much influenced factors for an enterprise to enable these services also, so that
customers could think of purchase more and make their reliable contribution (Randi, Bertozzi
and Putti, 2019). Moreover, customer gets a unique and satisfactory experience by being a part of
innovative technologies which business get into their production and promotion for example, the
most popular retail store Tesco, serve an innovative aspect into its supermarket by providing all
products and services under one roof by a unique exposure of showcase and discount offers.
They believe in involving innovation at very short instalments through which organisation make

its name into the market. On the other hands, people believe in making consumption of their
prescribed goods which full their worth by money and usefulness. In respect with this,
consumption involve innovation and innovation involve the whole procedure of refurbished and
production of new goods. Business operations must renovate their products by baking use of new
technologies, qualitative raw materials and effective channel of distribution (Interactivity and
Tool). Retail industry require a lot of emergence of data processing, handing of operations,
managerial efficiency and big data crises. The world has changing its concept of recording and
analysing the exact and accurate information which is necessary to manage financial, profit and
losses statement so the industries and their outlets do. There are enables of effective software
which clarify and optimize the Big-data strategy which convert complex data into simpler forms
of manner. Due to get influenced with these strategies economy and its business has a positive
impact on the performance and working criteria so that decision making and and divisions of
work would get affected. The data has shown the most influenced factor of privacy policy of the
customers. Business organisation are affected by government influence in this regards. It states
that any abolition of customers rights or their personal data and any miss happening revealed the
organisation could come to an end. For this instance organisation must get positive interference
of customers and their security would be the first priority for the digital business so that
customers could get loyal response and a good image of the organisation will get flow
(Porfiriev, 2016).
Future of Enterprise –
It can be found that there are many factors that affect on the industry positively or
negatively. It is identified that there are some important key trends that are affecting the retail
industry. Key trends include productivity, Brexit, globalisation, challenger business models and
disruption. All factors are directly or indirectly influence the business operations. It is very
necessary for industry that they should know about the future of enterprise because it depends on
the reaction of industry that they can easily adapt or not. Productivity is very important because
it is the main factor that show the success and growth of the industry. It is analysed that these
trends are very important to consider because if they are not take seriously then retail industry
can be face many challenges or problems (Manolis, 2017). With the help of horizon scanning
technique, industry can easily find signs that create and develop in industry with the analysis of
potential opportunities and threats. It is analysed that Brexit has great impact on enterprise as EU

is the biggest importer of UK's foods items. So if any changes occur due to Brexit then it affects
on shaping of industry. Globalisation is very important for retail industry because it increase
import and export so that's why it affects on retail industry. There are three main important
challenges that affect on retail supply chains that are adaptation, stretch and complexity. In the
below table it is analysed that how GDP can changes after the globalisation.
Disruption is one of the important factor that create or occurs without warning that means
they are very dynamic in nature (Marinov, Vodenska and Assenova, 2018). It is the most crucial
factor that should be consider while solving management issues. Because it effects on industry
operations and functions. Disruption is the problem that occur in industry without any warning.
In UK's retail industry one important disruption is occur that not only affect on UK's retail
industry but also affect on all industries of world nations. It is analysed that those disruption is
COVID-19 that affects very drastically to the industry environment. Retail industry is the key
sector because it give 5% contribution in the GDP. That means it plays a very crucial role and
also providing approximately 3 million jobs to people of nation. But after the effect of COVID-
19 it is analysed that retail industry face a major declines in their sales. All factors are very
important to consider because it give threats and opportunities to the industry so that they can use
for the benefit of industry.
Future of Work:
It is analysed that there are some important key trends that affect on future of work that
means it can be increase or decrease the working opportunities in industry. It is very important
for the organisation that they should focus on key trends so that they identify their threats and

opportunities in future of work (McBride and et. al., 2017). The key trends are digital skills,
automation, entrepreneurship, gig economy jobs, issues of inclusivity and diversity. They all are
very important for growth and success because it affects on industries survival and sustainability
(Peleckis and Peleckienė, 2017). Digital skills are very important for industry growth because
with this innovation they can improvise their marketing strategies. Retail industry in nowadays
take necessary corrective actions for their sustainable growth through digitalise their businesses.
Most of the big retailers provides their goods and services on online platform because every
person want to save their time and cost. The legal external factors can create opportunities for the
business of amazon. Rising product regulation intensify the efforts of amazon in reducing
counterfeit sale. Changes in export and import regulations company has opportunity to
grow.Digitalisation is very helpful to save their time and cost and creates many opportunities for
retail industry that they globalise their business very well such as Marks & Spencer, TESCO, etc.
Automation is the feature that reduce many layers of retail industry that they provide better
trained and talented employees so that they can grow better. Automation is much related to
digitalisation that it makes little layers so that industry can perform their work easily and
effectively (Mundrane-Zweiacher and Frederick Zappala, 2020). In retail industry
entrepreneurship is plays a very vital role because it helps in growth of business. It provides
creativity and innovative ideas so that they can grow businesses. Entrepreneurship is very
necessary for every business person because it helps in grow analytical skills. In nowadays,
entrepreneur-er is the key person that use their analytical skills and make innovative items that
attracts consumer to purchase their products and services. It becomes necessary for person who
want to start their start-up or business because they should have entrepreneurship skills to
overcome with unexpected issues and problems.
The industries are the biggest employment generator into the society due to its large
operation and diversification of products. There are a lot sectors to grew employment into the
society and make count on number of employment opportunities of the country through which
it impact on GDP and NDP of the nation. The legal external factors can create opportunities for
the business of amazon. Rising product regulation intensify the efforts of amazon in reducing
counterfeit sale. Changes in export and import regulations company has opportunity to grow.This
would create positive affection of the business towards society welfare and their well being
(Ngo, 2016). It is obvious that due to high competition not every enterprise made it possible like

SME who have not large capital investments but has the opportunity to grow their organisation
through the inclusivity which considers large product line. Focus on all over the product leads to
overall growth so that business would not suffer with any kind of loss. Business facing these
problems due to financial instability and narrow managerial empowerment that leads to
contradict their operation and diversification. An organisation would not only work for its
customer perspective but for internal resources as well which indulge their employees, manager,
and other staff ion order to make them all work together to the organisational motive and goals.
Effective workforce has its positive influence on innovation through their talent and skills to
make a product sustainable into the market and gain a competitive edge. These key trends are the
most essential factors for an organisation which could take them to both higher and lower level
depends upon its performance into the workforce (Oruko and et. al., 2020).
Reflection
From the brief analysis of above study, I analysed many factors that affect on retail
industry. I found real and exact meaning of industry that it is the group of firms that procure and
produce similar types of products and services. It include not for a single firm but, include all
firms. I undertake retail industry for this project industry that help me to take many important
knowledge and information that I have no don't about it. I found there are many contemporary
issues that affect on industry. I identifying and analysing contemporary issues with the help of
horizon scanning techniques. This report really gives me the important information. Before this
report I didn't know the applicability of horizon scanning techniques and their importance. I
found that horizon scanning is a technique in which industries find early signs of development
with the help of appropriate examination of threats and opportunities of the environment. It helps
to find the answer of some important questions that are what is fixed and variable in
environment. In simple words, I found that it is a techniques in which industry found the factors
that constantly changes or those which are fixed. This techniques, I feel very helpful in finding
contemporary issues in management that face by industries.
I analysed that why it is important for industries to find contemporary issues in
management. I found that it directly affect on sales and revenues of industries that get affected
by continuous changes in management of industry. It is very important for industries that
industry should be make their management so strong or flexible in nature so that they can cope
up with unexpected situations. I found some contemporary issues in management that are

entrepreneurial skills, leadership, cognitive skills, innovations in management functions, etc. I
found some challenge in retail industry that should be consider by industry while they making
management policies. The legal external factors can create opportunities for the business of
amazon. Rising product regulation intensify the efforts of amazon in reducing counterfeit sale.
Changes in export and import regulations company has opportunity to grow.Challenges of retail
industry are achieving customers service excellence and satisfaction, creating new and improvise
omni channel interactions, system consolidation that help to connect retail, implementation of
mobility. These are very important challenges that should be consider in management because
they are the key element of creating contemporary issues in management. I found that they are
very hard to solve so that it creates contemporary issues in management. To grow successfully
and sustainably, it is important for industry that they know about trends and challenges that can
be affect on their operations and functions.
I analysed that this research report helped me to identifying and analysing factors that
impact on industry's growth and success. If I started my retail firm then I have to know that what
are the factors that affect on retail industry and directly create some issues which reduce
efficiency and productivity of firm. It really helpful in my career as I know about the unexpected
circumstances that may be affect my business when I started in future. It gives me practical
knowledge of retail industry that what types of problems and challenges is facing by industry.
CONCLUSION
It is concluded from the brief discussion of this report that there are several factors which
give a great impact on industry success and growth. Due to the continuous change in
environment, it is analysed that retail industry get affected by many factors that should be
consider in management so that it help to overcome with issues in management. Management is
the important activity that performed by managers of the firm. They are the key person of the
organisation who run their business successful and it contribute in success of particular industry.
It is not easy for mangers to make effective management in organisation because there are many
factors that affect their operations and functions. It is analysed that due to the continuous changes
in industries it affect on business operations as it creates many issues that should be deal to
survive and growth of the business in marketplace. Industry is the group of firms that provides
and procure homogeneous products and services. Industry is get impacted by many factors that
may be external or internal. As revenue and profitability of any retail industries or stores rely on

government policies. External factors are arise due to the changes in macro environment that can
not be control by industry because they are not in hand. Whereas internal factors are those who
arise due to internal conflicts in industry.
To manage and control management obstacles or conflicts, it is important to find out
external and internal factors that affect on industry. Because it directly impact on organisational
management as it create some contemporary issue. These issues can be leadership, creativity and
innovation, cognitive skills, entrepreneurial skills. Sometime when management of organisation
face some problems and issue than they can be unable to solve them because of their
incapability. Industries should make their management flexible and strong so that they can adapt
all upcoming changes and challenges. It is important for the retail industry that they should
improvise their management skills that help in solving contemporary issues. All problems and
issue can be find with the help of horizon scanning technique that gives crucial information
about the industry factors that they positively or negatively affect the growth and success. This
technique is very helpful in analysing factors that gives information about threats and
opportunities. Because it is not necessary that all factors influence negatively, it depends on the
problem that may be become opportunities for industry. From the above analysis of continuous
changes, it is analysed that how they can impact on business and their implications. It also covers
some drivers and dimensions that become the reason of creating and developing issues in
management. It can be done with the proper analysis of industry because it helps in identification
of problems and situations. The trends and challenges are important to find out because if retail
industry follow trends then they can be easily satisfy customers' wants and desires. With the
proper satisfaction of customers retail industry can easily grow their business and get successful.
So it is concluded that affected factors should be analysed so that make strategies in timely.

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