Contemporary Management Issues: P&O Ferries Strategic Analysis Report

This report provides a comprehensive analysis of P&O Ferries, a British shipping company, examining its business environment and strategic decision-making processes. It begins with an introduction to management principles and the dynamic nature of business environments. The report then delves into the external business environment of P&O Ferries using PESTLE and Porter's Five Forces frameworks, analyzing political, economic, social, technological, legal, and environmental factors, as well as competitive forces within the industry. Furthermore, the report identifies key drivers of change, such as globalization, spatial and variance dimensions, linkage dimensions, and social changes that influence P&O Ferries' strategic choices. It evaluates the implications of these decisions on the company's commercial and operational aspects, and suggests alternative avenues for the company to explore. Finally, the report concludes with recommendations that incorporate ethical and sustainability considerations for P&O Ferries, ensuring responsible and forward-thinking business practices.

Contemporary
management issues

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
Business environment of P & O Ferries......................................................................................1
What are the drivers of change that might have informed P & O Ferries strategic decision
making.........................................................................................................................................3
Evaluating implications of strategic decision on P&O ferries commercial and operations going
forward. ......................................................................................................................................5
Suggest alternative avenues they could have explored considering the nature of the pressures
for change/drivers of change.......................................................................................................6
Make relevant recommendations that recognises ethical and sustainability considerations for
the company................................................................................................................................8
CONCLUSION..............................................................................................................................10
References:.....................................................................................................................................11

INTRODUCTION
Management refers to the five step process including planning, organising, staffing,
directing and controlling and ensuring the achievement of organisational goals and objectives in
an effective and efficient manner. A business organisation have to work in the dynamic
environment. As a result, the organisation have to face several issues in order to perform the
functions in changing environment. For the purpose of bringing changes in the functioning of the
business organisation as per the modified environment, the management of business organisation
is required to analyse the internal as well as external environment and develop effective
strategies which leads to their success (Abaeian, Khong, Yeoh, and McCabe, 2019) . P&O
Ferries is the selected business organisation for this report. It is a British shipping company
which operate ferries from United Kingdom to Ireland and continental Europe. Several of
changes has been analysed in the business operations of the respective business organisation.
The respective report include the analysis of business environment, drivers of changes,
implications in making strategic decision making along with the avenues of exploring
consideration for the business. In addition to this, it also include the recommendations through
recognising sustainability and ethical consideration.
TASK
Business environment of P & O Ferries
Changes in the business environment is a constant process. All these changes directly
effect the business operations as it bring changes in the operational strategies as well. PESTLE
analysis is a tool which is most preferred by the business organisations for the purpose of
analysing the external business environment factors which are effecting the operations of
business organisations (Helmold and Samara, 2019). PESTLE stands for political, economic,
social, technological, legal and environmental factors. These are also consider as the external
factors which effect the business operations. Below mentioned is the analysis of external
business environment factors of P & O ferries: Political factors: Political factors refers to the strategies or decisions developed by the
government which also influence the functioning of industry. Some of political factors
include conflicts, fiscal policies, trade tariffs and many more (Alhawamdeh, and
Alsmairat, 2019) . P & O Ferries is the company is registered with several countries and
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majorly operating on the routes from UK ports to Europe. It result in the increase in the
risk for the company and it is essential for them to follow all the political laws and
regulations. The management of P & O Ferries is require to ensure the following of
political laws and regulations of all the countries in which the organisation is performing
its operations. Economic Factors: It is a wide term or concept which involve several factors such as
foreign exchange rates, availability of capital, inflation rate, interest rate and many others.
Due to COVID-19, several of changes in the operating ways of P & O Ferries have been
analysed. The demand of imported products have been decreased due to the lock down
which directly effect the working of the respective business organisation (Pius,
Alharahsheh and Adesanmi, 2020). As a result, the P & O Ferries had beard several
losses at the time of COVID-19 pandemic. Social Factors: In the achievement or success of business organisation, the social factors
have crucial role. Some of social factors which effect the working of P & O Ferries
include population rate, culture of clients, buying trends of customers, demographic and
many more. P & O Ferries is require top focus on the needs and demand of customers.
The respective company is taking care for the demographic factors which result in the
enhancement of positive customer experience (Belza, and et.al., 2019). Technological factors: The technology is growing day by day which result in the the
introduction of higher advancement in the us of technology on the business operations. In
order to work with the advancement of technology, the management of business
organisation have to analyse the technology in an effective way. The management of P &
O Ferries is constantly focusing on the research of market by adopting the advance
technology as it will help the organisation in getting the relevant and effective results
(Heinola and Sörelius, 2021). The usage of advance technology in the research help the
organisation in performing the operation in the cost and time effective manner. It become
easy for the organisation to manage the tasks. Legal factors: All the laws and regulations which are being formed by the government of
country are consider as the legal factors which affect the business functioning. Some of
laws developed by the government of UK include health and safety law, laws of
operations, labour laws and many more (Calabrese and et.al., 2019). P & O Ferries is
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following all these laws and regulations which help the management in the smooth
functioning of business and managing all the tasks. It is essential for the organisation to
follow the rules and laws from of all the countries inn which they are operating which
also enhance the satisfaction level of stakeholders.
 Environmental factors: These factors are also consider as important for the organisation
as it implies positive impact over the customers and society as well (Tamhane, Imudia
and Mikhail, 2019). The management of P & O Ferries has already settled environmental
standard which they attain and result in developing the effective brand image along with
decreasing the chances of becoming the part of environmental disasters.
Porter Five Forces
It is the framework which help the management of business organisation in analysing the
competitive environment. The major use of this tool is to assess and evaluate the business
position along with their strengths. Below mentioned are the several factors which include in this
framework are given below in the context of P & O Ferries: Competition in the industry: there are only a few number of brands available in the
market which are performing the functions in the same industry. Hence, the competitive
rivalry is found as less in the respective industry (Cherunilam, F., 2021). Threats of substitutes: Due to less competition in the industry, the availability of
substitutes products is also less. The threats of new entrants: The threat of new entrant in the respective industry is also
found as less because of requirement of high amount of finances along with the
availability of several laws of different countries (Alobuia, Gillis and Kebebew, 2020). Bargaining power of buyers: Because of the availability of less competition in the
industry, the bargaining power of power is found as low.
 Bargaining power of suppliers: The bargaining power of suppliers are also consider as
less or moderate, because of the availability of less number of suppliers in the market. It
is the major power which help to evaluate the control of supplier in the market (Christian,
and Harahap, 2020).
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What are the drivers of change that might have informed P & O Ferries strategic decision
making.
Here are the key that determines the factors of modification and their effect of the company
activity. The purpose of that takes changes in the company activity of the company. These are
the components that encourages the management of the company to bring essential alteration.
There is a requirement of determination the most appropriate drivers of change and using for
adapting change in order to have a positive change in the market place. The utilisation of
accurate instruments and tools are essential for the company and its attainments. All the policy
decisions of the consider company are carried forward in an appropriate approach study
regarding the internal and external components (Coteur and et.al., 2020). Here is a key concept
of managing the complete operations in an impressive manner. The approaches of changes in
situation of P&D ferries are listed in below report - Globalisation – it is the technique in which business is expanded in another areas so that
in order to have an growing business and income from across the borders. It is the
procedure of connecting one country to another country. The people are also permitted
to more another region in order to act the suitable job. Here is growing occupation
possibility and more people are capable to have a job cording to the skills. Major issues
in the activity of P&O ferries is because of internationalisation and they are capable to
grow the company and provide them the opportunity to raise income (Gitaharie, and
et.al., 2019). It impacts on the brand image of the company so that they can have the
company responsibility in an effective manner . it increases the business brand value
too also effects the company positively as it makes the business competitive in
international market too. Before expanding business in international market they are
required to understand the market conditions and other things that are link with business
expansion.
 The spatial dimensions - it is a power system are link to the size of exchanging, supply,
micro grid and many more. It is simple classification of the equation dimension that is
evacuated to understand the business reputation and it is being analysed that company
P&O ferries have to explain it on global basis. The requiements of the expanding
business on global basis. It is examined that consider company are capable to hhave
high range on the business activity. They are capable to carry the users beyond the
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buyers edge and it is beneficial for them to operate on the basis of connections.
(Guillet, 2020). The variance dimension: It is the dimension present the degree of international similarity
which plays an important role in performing the business functions in the international
market. It is necessary for the management to understand the need and requirements of
customers of different countries (Grossi and et. al., 2020). P & O Ferries is constantly
working on doing the research for knowing about the demand of customers in order to
provide the best services to their clients. They are also required to know about the
variances while making any change in the organisation. These variances result in the
adoption of changes in the effective and efficient manner.
 The linkage dimensions: For the purpose of performing the business operations in an
effective and efficient manner, the connections and links of management with the several
countries or nations plays an important role. The dimension work result in the reduction
of barriers in the trade and exchange. The P & O Ferries can attain the highest position
through providing the kind attention over the trade and exchange (Huang and et.al.,
2022).
 Social change: This is taken as another change driver that work according to the
behaviour and attitude of community. There is a requirement of handling the work in a
global market with the support of societal changes. It is important that the organisation
should make modifications in their operations by understanding the society needs.
Moreover, it is important to balance the cultural norms and values so that necessary
modifications can be attained. As the changes are regular in the community, it is
important to understand and handle those changes with the assistance of identifying and
reacting to the social change driver. P & O Ferries wishes to have a great place in the
potential market and the same can be attained with the help of knowing the culture of the
geographical area. The importance of the work can be completed by understanding the
behavioural and social changes in the customers (Leblanc, 2020). The actions must be
used for the benefits of the prospective customers. The respective company gets inspired
to serve the customer's needs and expectations so that they acquire better image in the
target market place. As different nations have different cultures and values, it is important
to understand them and serve people accordingly by making right choices. Additionally,
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it is also fundamental to understand the behavioural patterns identified in the individuals
and fulfilling them for the goodness of the business as well. Hence, the feature of the
change is reliant on the societal factors of the place as well.
Evaluating implications of strategic decision on P&O ferries commercial and operations going
forward.
The decision impacting business for longer time duration is known as strategic decisions
which is unlikely to change in short span of time. After carrying adequate research, decisions
benefits to organisation in attaining advantages position in market that also becomes essential for
company well-being. The company growth is direct impacted with drivers of change. The P&O
ferries follow proper process for taking strategic decisions and forecasts to enhance future
working. The company had several drivers of change which impacted on business operations
(Mackay, Minunno, and Morrison, 2020). The acquiring by DP world was not forcible activity
which requires understanding of business situations in order to take business decision. The
company is required to carry its work in accordance to market conditions. The market can have
several opportunities due to globalisation which is acquired by Dubai company. The offering of
low wages to worker is also beneficial and they not obliged to follow employment law in UK.
The wages were providing according to international transport worker's federation.
The organisation sacked out 800 employees for hiring of cheap employees for the
company. P&O ferries terminate employees against will of employees and company was able in
recruiting staff members of less salary packages for reducing company brand image. To bring
change there is need of efforts and managing work in organisation. Better place can be provided
to customers by understanding culture and suitable practices are design for satisfying customer
requirements. Strategic decision will help P&O ferries to operate in significant manner &
successful position is attain after getting acquired by DP world (Molokwane, 2019). P&O ferries
strategic and operation decision help in enhancing commercial performance which is taken by
company. The employees were given training in intercultural environment to manage work. The
follow up of right strategy and taking of effective decision help P7O ferries to move commercial
& operation forward. It is key to make all stakeholders aware regrading phenomenon by
undertaking strategies in order to carry work effectively.
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Suggest alternative avenues they could have explored considering the nature of the pressures for
change/drivers of change.
In market several alternatives are available and business environment has dynamic nature
which requires company to analyse overall situation in effective way. To take better decisions it
is key role of determining and using best available alternatives. To take decision in company
favour for its long term growth it is required to identify nature of change which requires effective
research and better strategies to attain success in long run. The condition of market is analysed
by P&O ferries to take better actions (Pluskal and et.al., 2021). Effective management decisions
are taken by use of proper management. Following are the alternative avenues which can be
explored in context to P&O ferries are as follows-
Conducting internal & external analysis- The organisation is required to check all
internal business conditions for inn order to know company real performance & capabilities so
that effective decisions can be taken. It will help in taking right decision according to
requirement and company performance along with employees are prepare to work in effective
manner for having success. The P&O ferries is not valuing employees and takes care about
position profitability which is analysed, due to this they took decision to sack 800 employees
(Robinson, 2020).
To evaluate trends in market there is need of external analysis which comprises several
factors impacting on business performance. The company can take effective decisions by
analysing all factors which are in company favours (Nudurupati, Garengo and Bititci, 2021). The
decision making process of P&O ferries changes due to influence all all factors. In order to take
best decision, P&O ferries must track impact of internal & external factors and necessary steps
must be taken to check overall performance of company in future.
Competitive analysis- In market huge competition is present which is required by
organisation to analyse competitiveness in market for taking right actions. It is important for
P&O ferries to analyses strategies used by competitors so that they can adapt better strategies in
order to carry its work in positive manner and necessary changes are made. This is also helping
in knowing better impact of particular strategy on competitors (Shet, 2020).
Forecasting- The business organisation is able to carry its task effectively through
forecasting in which decision needs to be evaluated. For the organisation forecasting decision is
important for knowing pros and cons so that they can be evaluated which helps in critical
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evaluation of situation & desired action is taken (Heijveld and Gray, 2018). At the time of
working the use of forecasting in company is important and impact is checked which is created
in future.
Through consideration of all these factors it helps in enhancing company manpower to
carry operations in effective manner. The use of strategic decision helps company in making
efficient in market and in business expansion. More ports can be cover along with better options
to customers are provided. The expansion strategy is important for making company operations
successful in business environment which helps in managing & overall work is enhance in
effective manner. To manage work effectively company is required to work & analyse all
practices which is important so that need of taking such decision will enhance brand image
leading to high growth. It is also required to consider sustainability & ethical practices. The laws
and requirements of place will support business expansion of company (Singh, and Padhi, 2020)
The P&O ferries is required to follow laws and legislations being an shipping company in
order to have business expansion. For the company use of proper analysis is necessary to have
success in market. To create an effective brand image of organisation there is need of taking
proper care of the environment. The company is responsible and follow sustainable practices
which helps in attracting customers. To all stakeholders there is need of providing best and
transparent information in order to carry operations in effective manner (Chin and et. al., 2021).
The company trust and goodwill helps customers in trusting them through use of these actions
helps employees in accepting changes. The using of several alternatives in organisation leads to
business growth & success along with makes them effective player in market. The foremost
options will assist the organization to manage the work in proper manner so that goals and
objectives can be attain properly.
Make relevant recommendations that recognises ethical and sustainability considerations for the
company.
It is important to work with sustainability and ethical considerations. It is a main role of
working effectively for the benefits of the organisation. In current times, all the commercial
enterprises from diverse areas must take care of their ethical as well as social responsibilities
(Cravo and Piza, 2019). For the purpose of preventing the natural resources and stopping
climatic change, it is fundamental to locomote the sustainability element.
Carroll's Pyramid
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This aids organisations to understand about their main responsibilities that they should take:
 Economic responsibility: P&O Ferries must do their activities efficaciously so that the
stakeholders acquire increased outputs for the work completed by them.
 Legal responsibility: It is essential for the organisation to follow all the rules as well as
regulations that are imposed by the local government. This helps in smooth functioning
of business (Reardon and et. al., 2019).
 Ethical responsibility: It is essential to adhere work ethics so that P&O Ferries can be
competent to do business as per the expectations of the community.
 Philanthropic responsibility: These are taken as the voluntary activities that are
completed by the organisation for the purpose of concerning the society.
It is an important role of limiting the resource wastage for the purpose of carrying out the
business activities effectively. The commercial organisation necessarily concentrate on the
economic aspirations but they also must guarantee they does not harm the natural surroundings.
It is a need of acknowledging the practices that are advantageous for all the stakeholders
(Birdsall, 2018). An exploitation of the right strategy will aid in attaining various competitive
benefits. The utilisation of such plan or tactic will help in restricting the negative practices in the
surrounding. The following are some recommendations for the respective organisation that will
sort them out:
 It is suggested to reduce pollution and more focus on the eco-friendly manners of
working. It will be great to use available resources effectively so that less harm will be
caused to the environment. The maximum exploitation of resources is important for
business and its operations. By limiting the exploitation of fuel as well as handling the
same they will be competent to carry on the work in a proper way. There are some
modifications that the respective organisation must cover in the activities and uphold
environmental balance (Torlak, Demir, and Budur, 2019).
 The exploitation of advanced tools and technology will aid the business to manage the
work and limit the negative influences. It will be fundamental to create transparency in
work so that all the stakeholders can get information about the related with working. The
proper utilisation of all such plans and tactics is important for attaining the targets of
environment sustainability (Chen and et. al., 2020). They must work on eco-efficiency as
it is a solution of fulfilling needs of human while limiting the negative impacts on the
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natural surrounding. It also comprise the exploitation of resources effectively and then
exploiting it as per the capacity.
 It is required to work according to ethical consideration which is important for all
stakeholders in market. In order to operate business organisation in proper manner it is
necessary to take use of ethical principles (Karakasnaki, Psomas and Bouranta, N., 2019).
The effective use of strategies will help employees in keeping equal & satisfied that helps
business organisation in growth. To work healthy place is provided to workers and proper
payments are given along with work done by them is valued. This is considered as one of
the ethical practices which needs to follow by P&O ferries along with regular training
must be provided to employees for enhancing their productivity.
 The P&O ferries must also work in accordance to customer needs to make them fully
satisfied (Lawrence, 2022). In organisation customers are considered most important
stakeholders in which P&O ferries is required to value customer requirements by
fulfilling their wants & needs so that in market successful position can be created.
CONCLUSION
It is been concluded from the above that, in business environment there are regular
changes which requires monitoring of changes in external macro environment for managing the
work effectively. The business organisation can overcome with challenges through having proper
management. The company external environment is analysed for knowing drivers of change in
this report. Strategic implication is also discussed in this report regarding organisation. The
alternative options are evaluated to understand nature of change in better way. At last, in report
recommendation is provided in respect to sustainability and ethics.
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