Contemporary Developments in Business Management Report: CMC

This report provides a comprehensive analysis of CMC Motorcycles South Wales, examining the impact of contemporary developments in business management. The introduction highlights the importance of external factors and corporate social responsibility (CSR) for organizational growth and efficiency. Task 1 focuses on primary external influences, including customers and competitors, and utilizes PESTLE analysis to identify political, economic, social, technological, legal, and environmental factors affecting the company. The report delves into how these factors influence business operations and decision-making. Task 2 explores the relevance of CSR and sustainability for CMC Motorcycles, emphasizing their influence on policies and strategic decisions. The report discusses the importance of CSR in the manufacturing industry, its impact on profitability, and the need for businesses to address social and environmental perspectives. The analysis underscores how CSR and sustainability shape policies, decision-making, and overall business strategies for CMC Motorcycles, including compliance with government regulations and adapting to market changes.

CONTEMPORARY
DEVELOPMENTS IN
BUSINESS MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Primary external influences in relation with CMC Motorcycles South Wales...........................1
TASK 2............................................................................................................................................4
2- Effectiveness of organisation's response.................................................................................6
3- Demonstrating some areas for improvement in CMC Motorcycles South Wales..................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
For an organisation to grow in the market, contemporary development works as the life
blood. It is the part of business management. This supports a company to have various types of
benefits. Contemporary development makes the organisation to give sustainable performance
and increase their efficiency. There are many external factors which influence the firm. Each
factor has their own importance in the working style of company (Asongu, 2014). There are
various elements or themes which have some influence on the policies and decision-making
within the organisation or industry. CMC Motorcycles South Wales is the company who
provides quality bikes to their customers. It operates its business in many countries. Its revenue
in relation with annual estimation is around $5 million. In addition to this, Corporate Social
Responsibility (CSR) has its own effectiveness for the cited business. However, there are some
areas which needs improvement in accordance with the organisation.
TASK 1
Primary external influences in relation with CMC Motorcycles South Wales.
There are various factors in relation to external business environment which either
directly or indirectly affects the working style of firm. These factors cannot be controlled by
anyone (George and Jones, 2015). The business has to use their strengths to cope with the
changing situations. Plans or strategies which are formed in the organisation gets affected by
this. Customers who are associated with it, are mostly by the external influences. However, there
are many other elements too like stakeholders, competitors, government etc. The cited company
is leading in providing the best bikes to their customers. There are some external influences
which impacts the working style and business operations. These influences have deep impact on
the activities which are conducted by the organisation in the market (Dincer, and Dincer, 2015).
The external factors are the part of business environment. With the help of PESTLE analysis,
those external elements can be easily identified. These are the factors which mainly affects the
business operations in relation with the internal level. The elements which are regarded as the
external factors are described below:
 Customers- They are individuals who are the most important for making the company
grow in the market. Taste and preferences of the consumer changes with the time. There
are many products which are available in the market. People have various products to
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choose from. This makes high competitive situations. Individuals can get influenced by
seeing various ranges of products and services. It will deeply impact the income
generation of cited organisation (Dincer, and Dincer, 2015). There are many companies
who are providing the same types of things which highly influence business operations
and performance of firm in the market.
 Competitors- They are factors which has the major influence on the plans or policies of
the company. There are many competitors who are associated with CMC Motorcycles
South Wales. Cited business has to share their market with these competitors. The firm
will make their strategies in accordance with the policies of those competitors. For this it
is necessary for the organisation to do the proper research (Igliński, et.al, 2016). They
have keep an eye on all the activities which are performed by their competition. The main
operations which are to be monitored are prices, policies etc. This will eventually make
them give some competitive advantages. It will also help in increasing the market share
of cited business. They will be able to make those strategies or policies in relation with
their competitors.
These are some factors which highly influence the firm. For handling these factors in an
effective and efficient way company have to do adopt some innovative and creative changes in
working style and business operations (Suliman and et.al., 2016). These factors can be difficult
to be handled sometimes that's why it is necessary to plan the functions which will be flexible.
This will make cited business to adopt some change whenever required.
PESTLE analysis is the technique which makes to organisation to understand all the
external influences in better way. The elements which are included in this technique has very
deep impact on the activities of CMC Motorcycles South Wales. The elements of PESTLE
analysis are described below:
 Political factors- These are the factors which are mainly brought by the changes made by
government. The changes which are made are in relation with the tax rates, interest rates,
policies etc. There are various laws and regulations which are to be followed by cited
organisation (Laudon and Laudon, 2016). There are many countries where this business
operates. Each place has different political environment and various policies. It can be
sometime difficult to follow all the rules and regulation. For this the company have to
understand all the policies and should make strategies in accordance with adopting all the
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policies in an effective manner. CMC Motorcycles South Wales keeps updated with all
the changes in the political factor and manage their business operation according to it.
This activity makes them gain various types of political advantages in the market. Their
reputation also gets increased by this.
As discussed government is responsible for the changes which are made in the policies.
There are many procedures which are to be followed by cited firm in accordance with the
production of products. It is essential for the company to follow all the laws and legislations
which are made by the government in their working style.
 Economic factors- Economy of the country is never certain, it changes with time. There
are elements which influences economy. Those can be inflation, deflation etc. This
highly affects positioning on the company in the market (Igliński, et.al, 2016). CMC
Motorcycles South Wales provides high employment to the individuals. It makes
economy grow. High employment opportunities increase the investing power of
individuals. This makes them to increase their living standards and safeguards them. On
the other hand, inflation and deflation have negative impact on the economy. It makes the
situations unstable. This will further lead to inefficiency of individuals in the investment
activities. Cited business will also have to face many issues in relation with these
economic conditions.
 Social factors- There are various elements which are to be considered as social factors.
Those are taste and preferences of customers, population etc. These are the elements
which do not have any direct impact but indirectly affects the performance and
profitability of the organisations (Pasricha and Rao, 2016). Perceptions of the individuals
changes with time. It makes the major difference in revenue generation of firm. The
business has to do proper research to understand and analyse taste and preferences of the
customers. CMC Motorcycles South Wales will be able make some changes in their
products in accordance with the needs and wants of consumers. It makes the organisation
to increase their income. This will eventually increase their market share.
 Technological factors- There are many new and innovative technologies which comes in
the market time to time. These technologies make the company increases their
productivity and performance level. It is very important to adopt the best and which is
highly suitable for the organisation. Using the best technology in the business operations
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gains the attention of many people (Laudon and Laudon, 2016). It increases the
performance level of CMC Motorcycles South Wales. There are many benefits and
advantages which cited firm will get by keeping updated with all the latest technology
and using them in making quality products. It will lead the company towards satisfying
all customers. This will also make the organisation to increase their reputation and share
in market.
 Legal factors- These are the factors which are brought in accordance with changes in
laws and legislations. All the companies are forced to follow all the rules and guidelines
which are stated in laws. This brings very deep impact on working of cited firm. All the
elements, which are included in legal factors are in accordance with the acts. Those acts
are made to be followed by organisation for the welfare of public and all the workers who
are working with them. CMC Motorcycles South Wales have to follow the acts of
employment law, consumer protection law etc. It will make the business to create safe
and secure environment at work place. Not following these acts can bring various
troubles for the business (Shim, Chung and Kim, 2017). The organisation will be able to
make all the customers and members satisfied by following all the laws and legislations.
 Environmental factors- In accordance with the current situations, environment is
deteriorating day by day. There are various organisations whose wastes make
environment polluted. Nowadays, individuals expect all the companies to follow those
techniques which will not bring any harm. It will eventually make all the people around
business satisfied. Environmental factors are natural situations, location etc. It is the duty
of CMC Motorcycles South Wales to do proper research and make changes in their
working style. It will eventually lead cited firm towards using that technique which will
not bring any harm to environment and reduce pollution in locality.
The above discussion states that there are many factors which indirectly impacts working
and business operation of company. This makes the organisation to adopt some changes in their
style which will lead them to handle all the factors in an effective and efficient manner (Pasricha
and Rao, 2016). Overall, this analysis will also help the business to make all the strategies and
policies in the better manner.
TASK 2
“Corporate social responsibility and sustainability”
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1- Relevance of CSR and sustainability for CMC Motorcycles South Wales and its influence on
policies and decision-making.
Corporate social responsibility is very much important for the manufacturing industry. It
makes the company to understand and analyse all the concepts which are related with the social
and environmental factors (Zalengera, et.al, 2014). There are various perspectives which cited
organisation has to evaluate to fulfil their responsibilities. It is considered to be a tool which is
used to gain sustainability for the company. It is the duty of the company to make the CSR
policy and use it in their working style. The company will be able to all the activities which are
required by them in relation to welfare of the people who are directly or indirectly related to
them. All the businesses want to increase their profitability (What is CSR? 2017). It is also their
responsibility to give attention to social and environmental perspectives. It will make all the
customers of firm satisfied and loyal. Concept of corporate social responsibility derived from the
case which happened in the organisation with relation to the society. That's why government
forces all the companies to follow policy of CSR. This makes CMC Motorcycles South Wales to
increase the profits. It also makes them follow all the practices which are considered to be fair.
Organisations working in the manufacturing industry have to see that all the products are made
are in accordance with the demands of consumers. It eventually leads the firm to gain
sustainability.
Corporate social responsibility and sustainability has very deep impact on the policies
and decision-making. Cited business have to take some decisions regarding the polices and
strategies which will hep them to fulfil all their responsibilities. Government makes many rules
and regulation in relation with this concept (Hansen, et.al, 2016). The firm have to follow and
adopt all the changes in their working style and business operations. It will surely affect their
policy and decision-making. There are many opportunities which will come for CMC
Motorcycles South Wales to gain various benefits and advantages. This will make their
customers satisfied and make them more reputed in the market. It can bring threats as well.
There are many organisations who are effectively adopting the tool of CSR in their working
style. Cited company will face high competition due to this. There are many countries in which
this firm operates. Each place has different rules and regulations to be followed in accordance
with the society and environment. New strategy and policy is to be decided for each place to
satisfy all the customers in an effective and efficient manner. It is the responsibility of
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organisation to give their some part of attention towards the society and the environment. There
are many factors which are included in the concept of corporate social responsibility which has
very deep impact on the policies and decision-making.
The businesses who are working in the manufacturing industry should follow all the
elements to increase their effectiveness and efficiency. CMC Motorcycles South Wales have to
for the CSR strategy which will show them practices which are to be conducted while handling
business operations. The strategy will tell specifically about the objectives which are to achieved
in the near future (Christiano and et.al., 2015). Decision-making in this process should be done
by the skilled persons because it needs effectiveness. There are many things which are
considered while making the strategy. Involvement of stakeholders is very much important in
accordance with the strategy of corporate social responsibility. New management level should be
made handle only the activities of CSR. All the duties of cited firm will be properly fulfilled. All
the decisions which are taken by the business should be informed to stakeholders. It is because
they are the persons who are directly or indirectly related by workings and activities done by
company. Environmental management should also be considered while making the policy of
CSR (Shim, Chung and Kim, 2017). It states that corporate social responsibility and
sustainability has high influence on the policies and decision-making of CMC Motorcycles
South Wales.
2- Effectiveness of organisation's response.
There are many positive and negative aspects of the CSR and sustainability on cited
business. All these aspects are depended upon the policy made by company. Manufacturing
sectors needs to give quality products to their customers. It is their duty to give that thing which
is required by the consumers with the quality. CMC Motorcycles South Wales can get more
developed by making the policy which will fulfil all their responsibilities in an effective manner.
There are many companies who are doing some bad practices which is affecting quality of the
products and services (Alvarez, ed., 2016). That's why government is taking strict actions follow
the policies of CSR. It states that corporate social responsibility has both positive and negative
impacts. Two types of policies are adopted by the CMC Motorcycles South Wales. They are on
social and environmental perspectives. Positive and negative impact of CSR on cited
organisation are described below:
Positive impacts
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 Increase in reputation or goodwill- The corporate social responsibility is very much
important in each type of industry. It makes them grow and get more reputed in the
market. The company gets attention of many individuals if they are following the process
of CSR. By following the process in the effective manner, CMC Motorcycles South
Wales is able to give the quality vehicles to their customers (Zalengera, et.al, 2014). It
will make them increase their revenue generation which will further lead to increase in
the market share. By getting more reputed and increasing goodwill in the market cited
organisation is able to make their brand name more strong. Strengthened brand image
will attract many customers towards them.
 Future growth- Corporate social responsibility will make the organisation to follow all
the rules and regulations which will make them more developed in the market (George
and Jones, 2015). It will make them follow all the guidelines which are given in the
policy. All the activities and functions will be effectively completed. By this all the future
goals and objectives which are set or targeted by CMC Motorcycles South Wales will be
efficiently achieved. It will surely ensure the future growth of the firm. All the activities
which are done in accordance with the process of CSR make the company grow. It also
helps the company to set the objectives which are future oriented. It will definitely ensure
future growth of organisation.
 Satisfaction of the consumers- In accordance with the tool of CSR CMC Motorcycles
South Wales will be able to follow all the practices which are done for the welfare of
customers. Consumers are the most part or organisation and their growth. This tool will
protect all the individuals which are related with the firm. Customer satisfaction is
essential while considering or making the strategy for CSR. It is the element which can
generate more revenue and make the business more profitable (Suliman and et.al., 2016).
The income which is increased can be reused in the activities which are more important
for the organisation. Successful implementation of the policy of corporate social
responsibility make the CMC Motorcycles South Wales to adopt those changes which
will gain the satisfaction of customers in an effective manner. This the element which
will surely gain the attention of more individuals which will eventually make the
company to increase their revenue at the high level.
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 Increase in market share- It is discussed that by following and using the tool of corporate
social responsibility the CMC Motorcycles South Wales will be able to increase their
revenue. They will also able to grab the attention of many customers towards them. It
will eventually lead them to increase their market share. This is because this tool will
make the company to give better performance in all the directions. They will effectively
fulfil their all the responsibilities in relation with the society and environment. Cited
organisation will be able to follow all the rules to contribute in social development and
welfare (Clapp and Rowlands, 2014). It will surely make the company to increase their
market share and gain many types of competitive advantages among the competitors.
These are some positive impact which the tool of corporate social responsibility have
upon the CMC Motorcycles South Wales. It makes cited organisation to give that performance
which help them to gain various benefits and get more developed in the market.
Negative impacts
 Employee turnover rate- By adopting the policy of corporate social responsibility
employee turnover rate can be increased (Hansen, et.al, 2016). Workers can feel insecure
about their safety and job security by the change which will be brought after the
implementation of CSR strategy. The company may have to face many losses and
problems due to this negative impact. It will affect their performance level and
achievement of desired objectives and goals.
 Increase in the cost- The process of corporate social responsibility can be very much
costly for CMC Motorcycles South Wales. There are various elements which are required
to be considered while making or adopting this tool in the working style or business
operations (Samuelson and Anderson, 2014). The practices which are to be followed in
the process can be costly. The important activities which are to be performed in the
company can be very deeply affected by this. It will make the organisation unstable and
they will not be able to give sustainable business performance. This is will definitely
make some bad impact on the working styles. The continuous negative impact can
decrease the reputation of company in the market.
 Involvement of government- Government gets involved in the working style and business
operations of the company if they feel that some bad practice is conducted by them. All
the companies are forced by the government only to follow all policy of CSR. If the
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organisations do not follow than some serious and strict actions can be taken on them.
They may have to give heavy fines and damages (Argiolas, 2017). Involvement of
government creates many troubles for CMC Motorcycles South Wales. It can lead the
firm towards facing many problems and issues.
3- Demonstrating some areas for improvement in CMC Motorcycles South Wales.
Manufacturing sector is growing very much in the present time. But still there are some
areas in which the development is needed. There are any creative things which can be adopted
by the companies to make it more developed. There are various types of products and services
which are given or provided by this industry (Vilalva, 2015). Manufacturing sector has the
ability to use many innovative techniques which can be used to for the further development of
those areas which are in need of it. Areas which can be changes are described below:
 Development of workers- They are the person who are responsible to give better
performance for the organisation. That;s why it is needed to increase their efficiency
which will eventually make the company to gain many types of benefits. It will not only
make the employees developed but will bring development for the organisation too. For
increasing the effectiveness and efficiency of worker company can give or provide
training. But before this they have to analyse who are the individuals which needs some
training to be more efficient (Christiano and et.al., 2015). The activities of training and
development will be very much beneficial for employees as well as company. Better
products and services will be provided to all the customers. The business will be able to
generate high revenue.
 Services provided to consumers- It is the most important area which needs development.
Customers are regarded as very important for the growth of company. Their satisfaction
is essential for each type of business (Harjoto, Laksmana and Lee, 2015). This area
makes the organisations to work in accordance with the demand and preferences of
consumers. The firms adopt that policy which will effectively fulfil all the needs and
wants of individuals without doing any unfair practice. CMC Motorcycles South Wales
can develop their services given to customers. By doing this they can effectively increase
their share in the market.
 Expanding business- Cited company operates its business in many countries. For
increasing the activities of expanding business or maintain their position they need to
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adopt various measures. It can be done with using that techniques which will make them
more profitable (Alvarez, ed., 2016). Effective strategies and policies can be adopted to
make this area more developed. The services which are provided by cited organisation
can be innovated and made more unique. This will surely give them the desired results.
 Enhancement of technology- This is the area which is to be kept necessarily developed. It
makes the firm to increase their productivity (Wang and et.al., 2016). Efficient
technology used in the company leads them towards the further growth and development.
It will help the CMC Motorcycles South Wales to make all the products in an effective
and efficient manner. The products which will be manufactured are with the proper
quality. This will further lead the business to satisfy all their customers. Cited
organisation will be able to increase their profits with the development of area in
accordance with the technology.
 Social responsibilities- The organisations working in manufacturing sector have the
obligation to fulfil all their social responsibilities (Asongu, 2014). They have to consider
all the fair practices which will be beneficial for the society. Responsibilities in
accordance with the society are giving some amount of profits to the charity, using the
techniques which are environment friendly. This will increase the reputation of CMC
Motorcycles South Wales in the market. It will satisfy all their customers and will help
them to increase their market share. Cited business will be able to gain many types of
advantages among their competitors. This will grab the attention of many more
individuals or customers towards them.
CONCLUSION
This report concludes about the contemporary development. This states that development
in the business operations is necessary various advantages for the company. There are many
external factors which are included in this report who has very deep influence on the
organisation. These factors can be effectively analysed by the tool of PESTLE analysis. CSR and
sustainability both have influence on the working style of CMC Motorcycles South Wales. There
are many elements which are to be considered while making the strategy of corporate social
responsibility. This tools make the firm to grow more and get developed. It makes the
organisation to avoid all the activities which are unfair. There are many areas of manufacturing
industry which needs development.
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REFERENCES
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propensity: A multi-experience model of perceived ethical climate. Journal of Business
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Samuelson, P. A. and Anderson, H. C., 2014. corporate social responsibility. Morality and the
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Online
What is CSR? 2017. [Online] Available through: <https://www.unido.org/our-focus/advancing-
economic-competitiveness/competitive-trade-capacities-and-corporate-responsibility/
corporate-social-responsibility-market-integration/what-csr>.
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