MGMT20144: Management and Business Context Assessment 1 - Report

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Central Queensland University, Australia
Term – 3, 2018
MGMT20144 Management and Business Context Assessment 1
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Assessment: 1
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Contents
Introduction................................................................................................................................3
Article 1 Organisational structures or governance.................................................................4
Article 2 Environmental forces..............................................................................................5
Article 3 Risks confronting the firm......................................................................................6
Article 4 Organisation and business practices.......................................................................7
Article 5 The functions of diverse firms................................................................................8
Conclusion..................................................................................................................................9
References................................................................................................................................10
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Introduction
In organisational leadership and management, decision-making activities put a vast impact on
growth, effectiveness, success, creativity and goal accomplishments. Basically, decision
making is a dynamic process of choosing the best alternatives among all the available
variables and the associated the same with the systematic act of making choice. In this
competitive era, it is essential for leaders and managers to improve their decision-making
skills or abilities with an aim to sustain long-term success in the target market. The purpose
of this study is to define all those factors which affect the process of decision making within
corporate executives, supervisors and managers in organisational practices. In this relation,
this report will enlighten the five major factors involved in organisational decision making,
such as – environmental forces, organisational structure and governance, risk confronting the
firm, functions of diverse firms and organisational and business practices.
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Article 1 Organisational structures or governance
Gibson, L., Finnie, B., & Stuart, J. (2015). A mathematical model for exploring the evolution
of organizational structure. International Journal of Organizational Analysis, 23(1), 21-40.
Retrieved from: <https://www-emeraldinsight-com.ezproxy.cqu.edu.au/doi/pdfplus/10.1108/
IJOA-10-2011-0519 >
This article is focusing on organisational structure and governance by disclosing that as per
the changes in time structure of corporate governance is also changing. Managers nowadays
are evolving as reverse by developing their logistic system in order to effectively reach a
large group of target audiences. For example – the automobile repair company in the UK has
applied the value-chain governance; it will strengthen the supply chain management process
and in turn improves market sustainability through operational performance. In the context of
the reverse logistics system, there are several governance mechanisms which support the
practices which manage the reverse flow of information and materials.
Hence, in order to strengthen their supply chain practices, automobile companies are tending
to apply new or innovative techniques which would be assistive in reaching a wide range of
target audiences and provides a large client-base to the organisation; which aids to enhance
sales and profitability. Furthermore, the RL system includes the effective organisational
structure which is free from all bias and follows a systematic hierarchy where there is full
transparency between the top and bottom level management.
The organisational structure of the company should allow its employees to participate in the
decision-making process and provide new ideas towards improving the logistic system by
applying effective distribution channels. It is essential for managers to conduct market
research so as to analyse customers' needs or wants thus to satisfy the same in the best
possible manner.
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Article 2 Environmental forces
Browne, S., Sharkey Scott, P., Mangematin, V., & Gibbons, P. (2018). Shaking up business
models with creative strategies: When tried and true stops working. Journal of Business
Strategy, 39(4), 19-27. Retrieved from: <https://www-emeraldinsight-
com.ezproxy.cqu.edu.au/doi/pdfplus/10.1108/JBS-08-2017-0121>.
Due to globalization, a wide range of technological advances and move towards stakeholders
provides an impetus of sustainability of a business organisation. Managers are focusing on
applying overriding principles which helps them in providing environmental sustainability
that are responsible for the accountability and responsibility of stakeholders and ensures the
firm's performance. The report also suggested that due to the lack of integrated approach
managers are unable to retain their effectiveness which affects their business processes and
decision-making activities. Along with this, while expanding business in other countries there
are several political factors which effects a firm’s market survival in that nation because the
reason behind this is changing trading laws, employment laws and consumer laws. All these
alterations affect the sales and profitability of a company in other nations. On the other hand,
UK was suffered from the economic recession in 2008 at this time most of the organisations
were forced to shut down their business; in this relation economic condition of a country also
affects a firm’s business operations and practices. In this modern era, emerging issues are
related to organisational sustainability, performance, assurance and report which are directly
and indirectly integrated with environmental forces. The report also found the reasons for the
global financial crisis, including – inadequate risk management and evaluation, strong focus
on achieving short term performance and ineffective corporate governance. In this relation, it
is essential for managers to apply effective sustainable management practices which
emphasis on correcting these failures and result in long term market growth or success. In
environmental constraints, sustainability plays a crucial role as it determines all those
business aspects which are involved in strategic business decisions, operations, performance
and information of investors, disclosures of sustainability and financial markets. All these
aspects would be assistive to prevent economic, ethical, political, social and environmental
crises.
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Article 3 Risks confronting the firm
Brown, R. (2012). The role of legitimacy for the survival of new firms. Journal of
Management & Organization, 18(03), 412-427. Retrieved from: <https://search-proquest-
com.ezproxy.cqu.edu.au/docview/1040777023?OpenUrlRefId=info:xri/
sid:primo&accountid=10016>.
In this competitive era, wide ranges of risks are associated with growth and success of
business organisations which affect its operations and way of doing things. The report has
covered the risk of legitimacy or validity faced by an organisation towards its products or
services; there are several legitimating factors, such as - CEO Duality and the inclusion of
Alliance, on the other hand, delegitimising factors included Capital Raising, Acquisitions,
Restructuring, Delisting and Geographic Diversification. The problem associated with the
competitive edge is, corporations forget to an emphasis on quality, reliability and
effectiveness of their products or services because it is fact that an organisation's image and
reputation highly depend on the quality of its offerings. In this relation, it is essential for
managers to experience a time period that precedes the realization of the reputational score in
their organizational field. In order to determine potential risks or issues, it is essential for
managers to conduct market research and gain detailed in-depth information about market
trends.
There are various types of legitimate risks associated with a business organisation, such as –
strategic risks, compliance risks, operational risks and financial risk. In which strategic risks
leads to bankruptcy as it is the risk that affects entire corporate strategy of a firm by it less
making effective. It puts the organisation into struggles and occurs due to technological
change, entry of powerful competitors and shifting of customers’ demand. On the other hand,
Australian companies are also facing compliance risks as the government of the nation has
implemented own food and safety rules and labelling rules. Sometimes, it becomes quite
challenging for organisations to meet extra regulatory requirements of a country that could
end up being higher costs of business.
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Article 4 Organisation and business practices
Calvo-Mora, A., Navarro-García, A., Rey-Moreno, M., & Perianez-Cristobal, R. (2016).
Excellence management practices, knowledge management and key business results in large
organisations and SMEs: A multi-group analysis. European Management Journal, 34(6), 661-
673. DOI: http://dx.doi.org/10.1016/j.emj.2016.06.005
This article is helpful to determine the importance of organisational practices so that excellent
performance determine. This article includes various contextual factors like TQM,
competitive advantage, competitive business environment etc. Along with this, it has been
anticipated that such context factors enable a business to manage ethical practices. For
efficient business practices at every level of firm, total quality management, knowledge
management aspect needs to consider. A clear interrelationship between various section
support business practices to become effective and efficient. The major success attribute for
every business includes quality management factor, knowledge management factor, partner
management. Thus, firms are required to analyse the major factors and contextual factors
which contribute to the success of a firm whether they are small, medium or large.
The findings of the study proclaim that total quality management and knowledge
management. The major implications of the study enable managers to take decision
associated with effective business practices with the use of efficient methods. Thus, with this
partner management also become possible so that association can grab maximum appropriate
outcome for future constraints. Knowledge management concept implicates a business
towards effective management and utilisation of resources. This will be going to help in the
assessment of improvement areas which include clear evaluation of employees, alliance,
resources and prospect of leaders and managers. Total quality management is another
prospect which stated in the study that efficient outcome anticipates with the assistance of
proper schedule and frame. All these aspects define that contextual factors and business
practices become appropriate with concept determination.
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Article 5 The functions of diverse firms
Doran, J., & Ryan, G. (2016). The importance of the diverse drivers and types of
environmental innovation for firm performance. Business strategy and the
environment, 25(2), 102-119. DOI: doi/abs/10.1002/bse.1860
Different firms perform different work and aspect so that their financial performance
becomes effective with socially responsible investment. The major contextual aspects which
supported the study include financial performance, socially responsible investment,
diversification in the portfolio, with functions involved in the financial investment. Other
contextual factors which facilitate for the study include financial performance, market
horizon, family investment etc. Other aspect includes corporate social responsibility in a
stock market portfolio which indicates a diversification of business. It includes a meta-
analysis with 85 studies and 190 experiments.
The new findings have been interpreted in terms of contextual factor like it involves a diverse
range of portfolio in the stock market. This function leads to perform by a distinct firm in a
different frame so that the business performs well and effective. All these things are essential
to include in the study which makes a different aspect on the effective outcome. Various
methods and approaches have been anticipated like a thematic approach, investment horizon
with a comparison of data method.
On the basis of the provided findings, a company can easily facilitate stock portfolio
management. This factor is helpful which enable to anticipate the relationship between
responsible investment and financial performance in the context of corporate social
responsibility. An ethical concern is required to determine in context of market portfolio
management. Managers can understand various profitable market aspects like the market,
investment horizon so that they can anticipate better action. A conventional investment
assessment leads to taking place with respect to the study and diversification framework.
Negative screening reflects a less diversified portfolio apart from positive screening.
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Conclusion
From the above-mentioned study, it gets to comprehend that decision-making is the critical
activity which assists managers to ensure long-term market growth and success. It is an on-
going business activity which offers new insights for the company and helps it in grabbing
better future opportunities in the external environment. After studying about all these factors,
the given banking industries, such as – Commonwealth Bank of Australia, Australia and New
Zealand Banking Group, Westpac and the National Australia Bank needs to including
environmental forces while taking any business decisions. The reason behind this,
environmental forces assist to address all those opportunities and risks available in the market
so as to formulate effective decisions or policies accordingly. In addition to this,
environmental aspects help the banking industry to ensure their sustainability; as it provides
effective ways to develop sustainability and ensure long-run economic performance by
considering stakeholders’ value. There is required to follow up sustainable practices that are
formulated for inevitable practices or processes, but the issue raise when climate change rules
are implements, regulations or laws are penalized as they affect business sustainability
practices in an adverse manner.
9

References
 Brown, R. (2012). The role of legitimacy for the survival of new firms. Journal of
Management & Organization, 18(03), 412-427. Retrieved from: <https://search-
proquest-com.ezproxy.cqu.edu.au/docview/1040777023?OpenUrlRefId=info:xri/
sid:primo&accountid=10016>.
 Browne, S., Sharkey Scott, P., Mangematin, V., & Gibbons, P. (2018). Shaking up
business models with creative strategies: When tried and true stops working. Journal
of Business Strategy, 39(4), 19-27. Retrieved from: <https://www-emeraldinsight-
com.ezproxy.cqu.edu.au/doi/pdfplus/10.1108/JBS-08-2017-0121>.
 Calvo-Mora, A., Navarro-García, A., Rey-Moreno, M., & Perianez-Cristobal, R.
(2016). Excellence management practices, knowledge management and key business
results in large organisations and SMEs: A multi-group analysis. European
Management Journal, 34(6), 661-673. DOI:
http://dx.doi.org/10.1016/j.emj.2016.06.005
 Doran, J., & Ryan, G. (2016). The importance of the diverse drivers and types of
environmental innovation for firm performance. Business strategy and the
environment, 25(2), 102-119. DOI: doi/abs/10.1002/bse.1860
 Gibson, L., Finnie, B., & Stuart, J. (2015). A mathematical model for exploring the
evolution of organizational structure. International Journal of Organizational
Analysis, 23(1), 21-40. Retrieved from: <https://www-emeraldinsight-
com.ezproxy.cqu.edu.au/doi/pdfplus/10.1108/IJOA-10-2011-0519 >

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