Contemporary Management Issues Report: M&S Strategic Decision Making

This report examines contemporary management issues, focusing on the impact of the E7 emerging economic powers on business operations and strategic decision-making, using Marks & Spencer (M&S) as a case study. It explores the dynamic forces affecting businesses, including globalization, sustainability, political, economic, social, technological, legal, and environmental factors. The report critically evaluates the relationship between these external forces and effective strategic decision-making processes, emphasizing the importance of adapting to market changes. It also analyzes how organizations respond to these key dynamic forces, providing insights into M&S's approach to navigating political and economic challenges. The report highlights the need for businesses to understand and adapt to the evolving external environment to achieve sustainable growth and make effective strategic choices.

Contemporary Management
Issues

Table of Contents
INTRODUCTION...........................................................................................................................1
Evaluating increasing competitive and broader economic pressures created by the growth of
the E7 Emerging Economic Powers impact upon its strategic business decision-making and
Operations ..............................................................................................................................1
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
The basic objective of business is to develop, produce and supply goods and services to
customers. This has to be done in such a way as to allow companies to make a good profit
returns. Economic changes and their pressure being constantly affect the business activities
directly and in indirect manner of growth. The most progressiveness effect that affect the
business into positive and negative manner, that is globalisation which is almost complex and
ineffective decision making task in order to deal with effective management styles and growth.
Company’s decision making is affected by different external factors that affect the overall
company environmental growth. For the present study, M&S company will be taking into action
which is the British multinational retailer in UK. M&S deals with various kinds of different
products such as fashion, clothing, Grocery etc. Present study will be based on contemporary
business management that affect the business growth in order to meet out the best outcome and
growth. However, study will also be presenting the relationship between all such forces in terms
of effective strategic decision making. Apart from that, it brings the effective management task
in order to beat out the result and growth.
Evaluating increasing competitive and broader economic pressures created by the growth of the
E7 Emerging Economic Powers impact upon its strategic business decision-making and
Operations
E7 is also known as Emerging 7 and is the seven countries that includes China, India,
Brazil, Mexico, Russia, Indonesia and Turkey. All these countries are grouped together because
of the major emerging economies. Emerging market economies have been termed as the main
and important drivers of global growth since crisis in terms of financial. In addition to this, high
level of inflation is the biggest threat in emerging market economies.
1. Key dynamic forces impacting on business and society
Business process has been surrounding with different internal and external forces which
in order to meet out the best outcome result into more appropriate manner and best approachable
manner (Clegg, Kornberger and Pitsis, 2015). In 21st century, environment has become more
dynamic and turbulent in making fast changes. All economic changes create competition and
pressure in the market or for the companies as well. In other terms, business environment is
greatly influenced by global forces and trends that tend to define how organisations interact with
1

customers and respond to competition. Every changing factor affect both company as well as
society in different manner.
For example: Globalisation which is the highly dynamic changing factor in the economy
that brings opportunity and threats both. Besides this, business and society has always go and
worked hand in hand. Society get variety of product and services by the companies in order to
meet out the its objectives and growth. Here are presenting some key dynamic factors that affect
the business or society environment (Hayes, 2018).
Focus On sustainability and the environment (Environmental political environment)
In order to mitigate the global warming, governments, manufacturing and other focusing
on factors of sustainability by encouraging the economic friendly practices. M&S should need to
focus on the practices of the environment, so that society get good product or services growth.
Going green is the major dynamic factor that affect both business and society (Liu, Yang, Xie
and Forrest, 2016). This is the first dynamic factor that affect the business. For that, M&S needs
to adopt all environmental laws that helps them to maintained the sustainability and growth in
the market in long term.
On the other hand, political factors of the UK can also influenced the business atlarge
manner. Basically, political environment influenced by nature of democratic environment such
as foreign exchange policy, defence military policies. This overall, business creates some
emerging changes in the M&S.
Economic environment
Economic is the another significant dynamic factor that make changes due to economic
system of the country. Every successful organisation adopts economic changes in positive
manner. For that, M&S should always conduct a research and analyse the economic conditions in
order to make their product or services in efficient manner. On the other side, economic crises
affect the purchasing power of society and make purchasing low because of high prices of
products (McAdam, Rmiller and McSorley, 2019). The factors like inflation, deflation, exchange
rates, interest rates are the major determinants that depicts success and failure of business. so, for
M&S, it is necessary to do feasibility study.
Social environment
Social key dynamic factors affects the functioning level of the business, if company fails
to determine the value of customer needs and wants. Sociological factors includes the culture of
2

work, labour mobility, work culture etc. Hence, M&S needs to focus on the social development
factors to maintained their strong social image in front of the society. Overall, it also helps to
make the effective management of task in order to sustained the business image and growth in
market for long term.
M&S should focused on society needs in order to evaluate their socio culture, cultural
values, fashion trend, different culture (Mikes and Kaplan, 2014). Marks & Spencer has to adopt
different fashion trends so that they make society happy and satisfied by offering them goods and
services as per their requirements.
Technological environment
Technological is the most significant factor that always create opportunity for the
company to implement new ideas and thoughts for development. Technology is the most
dynamic factor that drive change and continue affect the businesses and society in positive way.
Information technology is the most enhancing changing factor that increases the communications
in all sector (Otley, 2016). Small businesses are in unique position to leverage the power of
technology to expand their market popularity as well as company growth. In terms of society
aspects, Technolntemporary Management Issuesogy make buying process easier for customers,
that helps to introduces the new servicing growth and make better environment. For M&S, use of
high end technology in business helps in attaining high competitive advantage in market. This
will help company in attaining high growth and profitability.
Legal environment
The legal environment affects the overall business culture by emerging different law
changes and policy making charges. It depends on the legal environment of the country due to
which businesses also needs to change their legal policies accordingly. For every organisation,
legal implications are necessary to abide. It makes economic environment safe and secure.
Besides, if company fails to abide its legal formalities and clauses, it directly affects the society
as well (Schaltegger and Burritt, 2017). Customers are more attracted towards those companies
who fairly adopts their duties and rights in effective manner. To get customer attraction, it is
necessary for the M&S to adopt all legal implications and managing effective business growth
and challenges.
Environmental factors
3

Environmental dynamic forces affect business elements by cultural, economic,
demographic, physical, technological factors. In order to meet the needs of environmental
factors, company needs to focused on the current needs of the market and to understand the
actual requirements of the customers. Ignoring environmental factors can be creating issues in
the company sustainability growth (Cherry and Jacob, 2016). Besides, company get affected by
changing environmental policies, regulations, due to climatic change, pollution and availability
of natural resources. All these factors affect the functioning of the company. Overall, it has been
seems that, Environmental impact affect the business by changing the needs and wants of the
customers, lifestyle changes, climatic change etc. Due to which customers also get affected and
make change in their purchasing styles.
2. Critically evaluating the relationship between the such forces in terms of effective
strategic decision making
All dynamic external forces influence the strategic decision making approach. All
environmental factors help to determine the company decision making process (Enriquez,
Economy and Tedrow, 2014). For example, by identifying the social economic factors, M&S can
easily make better decision making approach for the product or services. Besides, through
measuring the inflation rates, interest rates company can easily set the products prices
accordingly. However, it has been proved that, in many terms all external forces are partially
necessary for making strategic decision making approach.
Relationship with external factors are always uncertain for the company to make strategic
decision making process. For that, it is necessary for the company to measure the possibilities of
external factors in terms of internal sustainability.
On the other hand, strategic decision making has emerged as one of the most active area
of current management research. Before making strategic decision making, organisation has to
follow some dimensional procedures. It has been argued that the prior decision making of the
managers without analysing the market trend lead to ineffective outcomes for the company
(Howard and Hatfield, 2018). So that, M&S manager should need to evaluate the changes in the
market on regular basis in order to ensure better outcome goals and results. Company needs to
make planning as per the different aspects the of environmental change. It also affects the
business into both positive or in negative manner.
4

As per the perspective of environmental determinants, the process of SDM is to adopt the
different opportunities, threats, constraints and other factors of the environment. On that basis
company would make their planning and decision making approach to get maximum outcomes.
The main purpose of strategic decision making process is that to address all environmental
factors and make sure about the effective outcomes. It also affects the business growth into more
efficient and challenging manner. Overall, all external and internal environment factors help to
make the better decision making approach as per the needs of the customers. Apart from that, it
also helps to brings the new emerging market trend in order to meet out the perfect outcome and
growth (Long, Charles and Stephenson, 2015).
Strategic decision making process undertake the different undertaken in order to develop
a range of strategies that will contribute in achieving the organisational growth in order to meet
out the best strategic outcome goals.
On the other side, strategic decision making process also facing issues in developing
trends having potential to impact an organisational strategy. These ineffective factors affect the
organisation’s ability to achieve its goals or objectives.
The relationship between external factors and strategic decision making factors is that it
also helps to discover the new emerging rate of making effective charges in order to meet out the
effective working outputs as per the external factor effects. Moreover, it brings the new emerging
market growth. Apart from that, it brings the new emerging marketing limits in order to
sustained the long term goals and objectives (Maron and et.al., 2015).
3. Evaluating of an organisation response to key dynamic forces in the contemporary
business world
In order to identify the key dynamic changes in the contemporary business world,
Company needs to measure the external factors and make effective responsive outcomes for the
factors as well. Besides, M&S create an effective strategy in order to reduce the negative impact
of the dynamic forces.
Dynamic Forces Organisation Responses
Political forces Political forces get influenced by change in policies. For that, M&S must
abide all implications of law. They also must be considering the impact of
any forthcoming legislations of their operations. M&S always get
prepared for upcoming political changes due to which they always
5

preferred to adopt all political changes in advance. Besides, company also
conduct a research before implementing any strategic decision making
process. Another tool or process company adopts in order to mitigate the
political risk is buying political risk insurance in order to keep maintained
the political risk.
Economic forces In order to meet out the best outcome and possible results in order to
make the best influencing order goals. Economic factors is the best
outcome results to meet out the goals. In order to mitigate the economic
forces, it requires the best outcomes and managing successful business
growth and effective working outcomes (Morey, 2018). In order to
mitigate the economic risk. Company already has been made contingency
plans to get over from the negative factors of economic changes. Due to
less economy rate of the country will affect the purchasing power of the
consumers. So that, company always need to understand the needs of the
customers before implementing into efficient manner of growth.
Social forces Social factors directly affect the company demand and supply
management. For that, M&S analyse the actual needs and demand of the
customers and offer them products accordingly. On the other hand, M&S
also adopts all social corporate strategies in order maintained the social
image in the competitive market.
Technological
forces
Technological factor has always bring new opportunity for the companies
to make some creative challenging task for the customers. Technology
social factors bring new managing and effective growth in order to keep
outing the task and effective management goals, in order to reduce the
social negative factors (Pedersen and Thibault, 2018). Company need to
make the best approachable results and outcome and low reducing task
and make low level of advancing growth. Apart from that, consumer
confidence is the another important factor that, brings the low effective
outcome results and low effective task. Apart from that, company also
needs to adopt fashion trend or new special product offers to make
6

customer happy and satisfied. M&S also needs to stay loyal and faithful
in front of their customers in the market. Technology forces will help to
implement the better goal oriented services in the overall performance
level and growth. It also affect the new developing and implementing
target performances matter of fact. In order to response technological
negative factors, company adopts all possible effective technological
tools and technique.
Legal forces Legal forces is the another challenging external factors that affect the
business and its operations. In order to respond towards social factors,
Company adopts all legal implication and all required contacts law which
is shelfful to minimise the future risk. Such as M&S abide all kinds of
contract and employment law in order to protect the business from legal
issues (Pestle, Crowley and Weirauch, 2014). Legal factors can also
affect the company into negative manner.
Environmental
forces
Environmental factor is the another most significant factor in order to
meet out the goals and objectives of company. In order to keep
maintained the proper formatting results outcome goals in order to meet
out the environmental factors. Apart from that, environmental factor
affects the overall, decision making approach in order to meet out the best
possible action plan. Besides, it also helps to keep the effective
managing goals and adopt the best outcome results. In order to response
ineffective outcomes of environmental factors company can adopt
effective corporate social responsibilities in order to sustained the
company value within the company.
4. Selecting and use decision making tools to address contemporary drivers for change
Making decision is the most challenging task in order to meet out the best outcome. It is
the most significant task for the organisation that is very difficult for the company process
(Phillips and Moutinho,2017). There are some effective and influencing decision making tools
that helps to adopt all required changes within the organisations tools and techniques.
7

System thinking
It is the tool or technique that helps in comprehensive understanding of the mechanism
and feedback effects of interrelated parts or subsystems that work together. In the operational
perspective, applying a systems approach to sustainability provides a gregarious way to analyse
the potential consequences of human intervention that affect the business opportunity and
challenging goals (Rastogi and Trivedi, 2016). M&S adopts this style of management in order to
meet out the best possible outcomes and effective developing goals.
Force field analysis
It is the another tool or technique of change Management that helps M&S to make and
adopt the best possible action plan for the company’s sustainability growth. This system was
given by Kurt Lewis in the 1940's. On the other hand, this system theory and management task
will be used on better communicating go/no-go decisions. Force field analysis is that situations
are maintained by an equilibrium between forces that drive change and others that resist change.
Overall, it brings the new ineffective management task in order to meet out the best possible
action plan. Overall, it brings the managing effective business in order to meet out the best
possible action results and growth.
In order to implement this tool or technique company required to adopt some process to
use the tool accordingly.
Step 1: Describe plan or proposal for change
Define the goal and objective for the change that company going to adopt in the business
functions (Schaltegger and Burritt, 2014). Besides, it also brings the new management target
performance in order to meet out the goals and proper emerging market performance.
Step 2: Identify the forces for change
Another step is that to think about the forces that are driving the change. These can be
internal or external devices could include these some following kinds of changes and results.
 Some outdated machinery or product lines.
 adopt some disruptive technologies.
 Changing demographic trends and goals.
Step 3: Identify the forces against change
8

Another option and change that company going to change is that to make the better
planning and use of better technology by using brainstorming that helps to resist the change and
orient unfavourable outcomes for the company development (Skuza and Scullion, 2014).
Step 4: Assign scores,
it is the another forces or factor that affect the business target market performance. In this
process company analyse the size of the forces. Such as bigger flows show that it gives bigger
influence to the company. This step helps to evaluate the risk factor in the overall process that
helps to take better development action plan.
Step 5: Analyse and apply
This is the next step that affect the business and influencing manner. In this task company
always needs to influence the decision making process. In this process company implement the
deciding process or techniques in order to full fill the results and growth. Besides, company also
decides that weather change more forwards or not. In this process company check the
effectiveness of change and implement changes accordingly (Sutinen and Seijo, 2018).
Overall, above tools and techniques helps to influence the decision making process and
effective decision making approach in order to implement the best outcomes and effective
change. For every organisation change is very much necessary for the development and get the
best outcome results and growth. Change management can also improves the skills and
knowledge of the employees as per the need of the company environment.
M&S required to adopt all possible change by introducing some effective and efficient
changing tools and technique. These tools helps to develop the new growth of the company in
the market.
5. Analysing relevant theoretical foundations in order to support identification and
application of effect corporate responses to contemporary management issues
Contemporary management issue is defined as event, idea, opinion or topic in a particular
subject that is given and that which is relevant to present day (Clegg, Kornberger and Pitsis,
2015). Contemporary issues may includes career management and development, employee
benefits and compensation, Chronic health issues or organisational development and change. In
addition to this, contemporary management theory tends in assisting nature of Marks and
Spencer that is changing in rapid manner. This theory will help Marks and Spencer in
coordinating programs so that each member can work in collaborative manner. It is also termed
9

as effective as it assists present nature of Marks and Spencer that is constantly changing. This
theory is very effective in terms of flexibility, as members can easily adopt and adjust themselves
as per the situation.
Thus, various theories related to contemporary management issues has been discussed as per
below context-
 Contingency theory- Contingency theory is that which basically claims that there is
no best way in order to organise a corporation, to lead a particular company and to
make any kind of decisions related to Marks and Spencer (Schaltegger and Burritt,
2017). It has been identified that cited company has an open system where there is a
requirement of careful management in order to satisfy and balance needs internally
and also to adapt various environmental circumstances (Hayes, 2018). There occurs
an argument that every circumstance in a particular organisation is unique and
different, so they must try to provide selected and best approach that can be applied
on a specific situation related to economies at hand. Therefore, manager of Marks and
Spencer takes appropriate and adequate decision as per current situation of a
particular company. Thus, this plans plays an essential part in ensuring that Marks
and Spencer may continue in order to operate in efficient manner when they are
facing with various challenges and difficulties. While in business, this theory may
deal with staffing and structural efficiency and management and they also have ability
of changing landscape of business temporarily or permanently. In addition to this,
M&S requires management structure that are more spread out so that they can help
executives to stay in touch with various roles and task if any kind of situation arises in
a company.
 System theory- system theory in business is based on that idea which states
everything is interrelated and interdependent (Liu, Yang, Xie and Forrest, 2016).
Managers of Marks and Spencer must have to understand this theory and recognise
about different systems that may affect employees and how they affect systems. A
system is basically made up of a variety of parts that may work together in order to
achieve a common goal of a cited company. It is a broad concept that helps manager
of marks and Spencer in order to examine or analyse patterns and events in a
company. This may lead them in coordinating programs so that everyone may work
10