Evaluating Strategic Decisions & Management Issues at P&O Ferries

This report analyzes the contemporary management issues at P&O Ferries, focusing on the business environment, strategic decisions, and drivers of change. It evaluates the implications of these decisions on the company's commercial operations, considering factors such as political, economic, social, technological, legal, and environmental aspects through PESTLE analysis and Porter's Five Forces. The report also explores alternative avenues the company could have pursued, emphasizing ethical and sustainability considerations. Ultimately, it provides relevant recommendations for P&O Ferries to navigate the dynamic business world while upholding ethical standards and promoting sustainability.

Contemporary
Management Issues

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Business environment of P & O Ferries.....................................................................................3
Evaluate the implications of such strategic decision on P & O Ferries commercial and
operations going forward............................................................................................................7
Suggest alternative avenues they could have explored considering the nature of the pressures
for change/drivers of change.......................................................................................................9
Make relevant recommendations that recognises ethical and sustainability considerations for
the company..............................................................................................................................11
CONCLUSION ............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Contemporary management includes planning, leading, organising and operations
controlling to achieve the organisational goals(Hamilton,2018). The operations of an
organisation is totally depend up on the manger of the organisation that how is handling the use
of the resources either the resources are used with the best effective and efficiently manner as a
result it helps the business to grow or if not then, this will become the reason of failure of the
organisation, for any organisation the administration or management department hold the crucial
role to help the business in growing, as all the planning, strategies, supervise all the staff and the
manner of using the resources is conduct by them(Webster, 2018). To build the contemporary
management skills the manager has to study the working of the employees and try to improve the
operations of an organisation every time, apart from this to develop the contemporary
management skills it includes to learn how to take an interview and select the best out of many as
an employee for the organisation. In this report, there is UK P&O ferries operator taken into
consideration who carried more than Ten million passengers before pandemic, later on it was
acquired by the multi-national ports and logistics company based on Dubai called “DP World”,
This report covers the dynamic forces impacting on business society, effective strategic decision
making, discuss the dynamic forces in the Contemporary business world, decision making tools
to address Contemporary drivers for change and in the last the analysation will be done about the
Contemporary management issues(Horstmann, 2019).
TASK
Business environment of P & O Ferries
Business environment is the most important aspect of any business, its a mixture of various
factors which are responsible for the business operations and efficiency(Remdisch, 2019). To
analysis the factors P&O ferries conducts the PESTLE scrutiny that are mentioned below;
Political factors: business operations are also dependent up on the intervention of the
Government in the business environment, if the government is involving in the business it may
be intervene through such factors ; trade traffic, fiscal policies, interest rates and also other

political aspects. As, the P&O ferries was also registered in other countries as their route is from
UK ports to Europe then, in their business more than one government can intervene and they
have to follow the rules and regulations of different State which enhance the risk for business to
fulfil the political guidelines of different countries or states(Ilek, 2022).
Economic factors:
Th business is all depend up on the economic conditions of the state, the proportional rates in
every sector influence the business operation like the interest rate, foreign exchange rate and the
inflation rate etc. In the case of P&O ferries various time the operations of business was changed
at the time of Covid 19, because in Covid the Government's of each State put the restrictions on
business policies and also prohibit the travel organisation to carried the load, it put a bad impact
on the business efficiency and it directly affect the profitability and it occurred loss in the
Covid(Maier, 2022) .
Social factors:
The business is all depend on the customer's or it better to say that society helps the business to
run in flow, only through the society preferences the organisation can decide to improve the
efficiency in their department. Social factors such as culture, population, trends and many other
aspects has a great impact on business. In the case of P&O ferries they are also focusing to

maintain the social responsibilities which helps the organisation to stand in the market for long
run(Weinert, 2022) .
Technological factors:
The operation's of a business is depend up on the technology used in the organisation for that,
P&O ferries conduct regular research to found the suitable technologies which helps the
organisation to perform the operation in a effective and in the efficient manner, it will reduce the
cost of production and also give innovation to the business(Longhurst, 2021).
Legal factors:
without following the rules and regulation prescribed under the law which applied in the business
like, employment law,health and safety law, labour law and the act like minimum wages act to
protect the rights of the employees, the business cant run without obeying these laws and others.
The laws bound the employers to run the business in such a manner which is suitable for the
employee's as well as beneficial for the State. As, the P&O ferries make themselves registered in
the other countries also, for that they are bound to consider the cross-border laws to control the
business operations for the customer satisfaction.
Environmental factors:
It is necessary in every business to adopt the social responsibilities, it will help the business to
create the positive image in the society and help the organisation to grow and capture the market.
Like P&O ferries follow the environmental standards like waste management practices that
create the positive and well-being standards of the organisation even outside the country.
These are the factors on which P&O ferries analyses up on and make their business
operation's under control and help the organisation to grow without bearing any huge loss. To
run the business it is very important for the organisation to aware about the competition in the
market, aware about the organisation who deals in the same product. To measure the competition
in the market there is a tool called Porter five forces, which give the idea to the organisation the
way to perform the management operation's is discus below;
Porter Five Forces:
Its a model or a tool which helps the organisation to measure the competition in the market,
which helps the organisation to develop the plan and strategies according to the competition.
Through this tool the organisation would be able to check out the position holds in the
competitive market.

Competition in the industry:
The P&O ferries felt the less competition in the market because, there are less number of brands
which run their business in the same area, due to the less branded organisation's who runs the
business in the same area in which the P&O ferries operate, they didn't realize such big threats of
the substitute product.
Threat of New Entrants:
This threat can be seen in every type of business and every organisation would be ready to face
the new competition, for the P&O ferries this threat also got minimize due to less numer of
brands and due to fulfil the much more conditions and follow the laws of different countries.
Bargaining Power of Buyers:
In such type of industries where the customer got failed to found the varieties of product, it
become hard for them to bargain for the product then, they have to take the services from the
available industries.
Bargaining Power of Suppliers:
Due to endless number of suppliers in the market for the products the power of bargainingof
suppliers is low or moderate.
Drivers of change that might have informed P & O Ferries strategic decision making
It generally means the indication for the organisation to measure the internal as well as external
pressure which may got responsible for changing the shape of an organisation. Its a duty of the
administrative manager to analyse various driver changes and according to that the strategies

should be made, plan would conduct to make the organisation differ from the other's. P&O
Ferries also faces the driver changes through various aspects such as globalisation, ethics and
social responsibility, technology etc. Its really important for the organisations to analyse all the
changes in an appropriate manner. P&O Ferries were also faced the changes regarding the
corporate leadership and changes in the globalisation. It is essential for the business to examine
all the changes in the business which enables the organisation to perform the work efficiently.
P&O Ferries also have to do the proper research about the internal and external factors drivers of
change, some are discuss below;
Ethical and social responsibility:
It's a biggest factor for the business that need to be consider by the P&O Ferries to develop the
policies in order to run the business operation in appropriate manner. The social responsibility
for the organisation is a major role which have to maintain by the organisation by adopting the
ethical social responsibilities which make the balance between the organisation and the society.
Organisation need to follow the various social responsibilities to achieve the goal and also assist
the employees of the organisation by giving higher wages and by giving great treatment to the
employees, for the society the organisation has to follow such policies which is beneficial for the
society and which help the society to grow.
Globalisation:
Its the most beneficial driver changes for the P&O Ferries, it enables the company to hire more
skilled labour and employees. Globalisation gives the better opportunities to the companies to
expand their business and also give some responsibilities to the company like P&O Ferries deals
with different countries laws, it will expand the business as well as bound the companies to adopt
the changes according to the requirements and make the work of the organisation in an efficient
manner(Sammalisto, 2020) .
Evaluate the implications of such strategic decision on P & O Ferries
commercial and operations going forward
Strategies decision recognise as business determination which aid business in taking long term
competitive advantages. As per need of time several changes occurs in business world so, the
decision must be taken according to it. For proper functioning of business research is essential
for examine various change mechanism. And maintaining powerful status in market for
surviving in market and give competition to others. Such strategic determinations plays a vital

part in organizational personnels. An organisation have to take benefit of such conditions by
taking appropriate action as per condition. change mechanism directly or indirectly affect whole
business performance. For maintaining organisational distinctive status in consumers mind
changes made in business strategies as per it (Aboelmaged and Hashem 2018). P and O Ferries
follows organised and proper actions for taking efficacious decisions. An organization predict for
examining future functioning of business. P and O Ferries function in several countries so
several change mechanism demanded which affect performances of business. An acquisition
through DP world is not consider as forcible activity. For proper functioning an organization
required to examine situation then take proper decision. Globalization helps in attaining various
progress & development occasion. DP World is a Dubai based company which implement P and
O Ferries due to globalisation. It smoothen operation of business in various parts of globe. In
future strategic determinations provides several benefits to the organisation. DP World planning
to replace its employees and staff unit from employee of low budget agency for reducing
business cost. P and O registered in many countries it is not necessary for company to follow UK
employment laws. Other than it company gives wages as per federation of international
Transport Workers which is not equal to UK employment law (Al-Dulaimi at.cl, 2018)
This case study helps in analysing that an organization replaces its 800 employee with low rated
employees. Such dismissal is not in favour of employee but in favour of company because they
have to pay low salary to new staff. It may be positive financially for company but negative for
company's reputation and causes demotivation among existing staff. Its important for P and o
Ferries manage targeted changes and makes effective schemes which help in efficient running of
business in dynamic business world. Company should consider social and ethical values of
nation where they operates their business and provide safe working environment to an
employees. For ensuring quality of services and consumer satisfaction an organisation should
follow appropriate practices. Salary on the basis of performance along-with reward scheme
motivates organisation personnel in attaining their set goal in best manner. It is essential for P
and O Ferries to function in organised way after its acquisition by DP World. Performance of
commercial business increase the function of businesses by applying strategic determination
which leads to progress and expansion of company. For performing in a inter-culture atmosphere
P and O Ferries provides regular training to their personnels which leads to productivity of
business transactions (Burdett and Lip 2022). Proper implementation of strategies and decision

helps in attaining targeted aims and objective of business. As it facilitates company operate its
mercantile and functions forwards. Strategic determination aids organizations to satisfy
stakeholders and helps in efficiently running of businesses.
Suggest alternative avenues they could have explored considering the nature
of the pressures for change/drivers of change
Business world is dynamical as alteration takes place in it on continuous basis. Various
occurrence available in business sector which affect the functioning of business. For adopting
changes several other ideas are provided in market and industry adapt such changes on basis of
condition occurs in business. For adopting best solution for business they required to make
determination in business. Modification make in an organisation develop a suitable site of
business on behalf of it they achieving long period success. Its necessary that P and O ferries
study market position which allows to take efficacious determination of business. It is essential
for business laid down appropriate decision to manage the business which is requisite for
exploring pressure in order to identify foremost option. The effect of strategic determination on
business on long period. And for analysing consequences on business market research should be
conducted. Several variety of alternative approach accessible in business such as:
Conducting interior–exterior analysis: Interior and exterior analysis can be used for decision
making of firm. It aids in analysing inside functioning of business which assist in knowing
stipulation and capableness of business. On the basis of such point an organization will make
appropriate decision which is made on the basis of performance of firm. And on the basis of
necessitates. Its permit an employees of an organization to do work in a way for getting success.
On the basis of condition of company couldn't provide belief in an employee and more
concentrate on getting profitable status of company. The result of it is that company decided to
terminate 800 employees of company.
An organization conducting extrinsic analysis of an organization for evaluating market trends.
Various kind of cause present in outside environs create effect on action of an organisation and
its activity. Cautious investigation and observation of such cause results in occurrence of
decision making procedure of an establishment. As P and O Ferries business required to handle
interior and exterior factors which make pessimistic effect over determination of the company. It
is essential for an establishment to touchstone execution of business in upcoming time period.

Competitory analysis: in business world competition was so high so before taking any
decision for business. It is necessary to investigate level of competition in market it assist in
formulating a business decision. The analysis of competition assist an organization realizing
strategies used by rival. While making strategies company keep in mind the competition in
market. P and O Ferries consider as one of institution which focus on evolution of antagonistic
strategies on ground of this company can cover modifications and challenges arise in business
atmosphere simply (Perry 2019). It is requisite to business to realize the effect of strategy against
competitor made by an organization.
Prognostication: Prognostication is consider as an essential element which assist
business to function in effectual manner. Prognosis is a method which aid firms to assess
outcome of determination before finishing a work. On the basis such methods business can
measure advantages and modest of a determination in an organisation. It is an essential for an
institution for getting desires consequence by examining the situation. Company should verify
the effect of determination and further made steps should be accordingly.
Through considering above factors, an organisation suppose to work on improving the
productivity of human resources and make guarantee the availability of human resources in
business. It requires to made different strategic determination for to assure functioning of an
institution in effectual manner. These Plan of action determination are made for the function of
enlargement of business. On ground of it, businesses will get assorted choice for customers.
Enlargement is needed for business for securing success in marketplace and it assist business to
form business activity process of an organisation in efficient way. For expansion of concern
follow contrary alteration in procedure activity which sort it much effective and modify
skilfulness for a firm. Institution suppose to make important determination in business to
improve icon of an organisation which creates an advantages for an enterprise. Its essential for an
institution to maintain sustainability along with ethical recitation (Siciliani, 2018).
P and O Ferries famous as shipping establishment which follows several laws &
regulations needed for enlargement of business activities. It needed correct analysis which is
necessary for an organisation prosperity in market. It is necessary to concern about environment
for operation of business for developing powerful trade name for the company. An Organization
which concern about environment use sustainable recitation for becoming a penchant to the

customers. As per their CSR, business should guarantee transparency of content share with
stakeholders which permit business to run in effective way.
Make relevant recommendations that recognises ethical and sustainability
considerations for the company
For any business operation it is very crucial that it performs within the ethical and sustainable
framework. Business ethics helps in understanding the concept of sustainability and overall
development which elevates the reputation of business in the market. The concept of ethics and
sustainability brings positive changes in any business organisation because this principles has a
certain values which needs to be practised. It promotes the social and ethical responsibilities. Its
implementation with due care and caution can bring productive change in the world which will
directly benefit to the environment which is the main concern of the world (Cheng 2020).
Carroll's Pyramid
Figure 1https://www.toolshero.com/strategy/carroll-csr-pyramid/#:~:text=Carroll's%20CSR
%20pyramid%20explained,Economic%20responsibility
The above pyramid is the study which will make businesses to understand their participation and
duties with gives them the way to navigate their actions which might impact negatively to the
environment, together with the suggestions in order to prevent negative impacts. The duties of

business which required to implement efficiently in the operations of the business are as
follows:
Economic Responsibility: for any business its economic status is very important and it is
the most crucial duty of the business to maintain it economic affairs. Strong economic base of
any business elevates its stakeholder, including its workers and employees and together they
make business more productive. What is important here is to meet the satisfaction of the
employees in order make them work without any financial burden.
Legal Responsibility: legal responsibility of any business derives from various pieces of
legislation that are developed by the government. Therefore, it is very important to operate
business within the legal framework. Failing to do so may put the business into legal
complexities(Lozano, 2020).
Ethical Responsibility: in case of P&O Ferries, to gain public appreciation, recognition,
reputation and government support it needs address the public expectations in a fair and
appropriate manner while providing their services (Carpenter, 2020) .
Philanthropic Responsibility: philanthropic is voluntary desire to donate or charity for
the welfare of the society.
With the view to protect environment considering the current situation of the world, it is high
time to take rightful actions in order to clean the world that is turning into waste land. Likewise,
the P&O Ferries should focus more on various environmental goals to protect and preserve the
natural ecology of environment. It is also directed to organise environment clean campaign and
events to make people aware and cultivate the sense of empathy toward environment
issues(Ekardt2019.). The collective actions and implementations helps the business as well as
the environment. There are some suggestions in context of P&O Ferries which they can adopt to
fulfil the desire goals.
 There is need to develop the policies within the legal framework to promotes eco-friendly
measures which will help in reducing the pollution. Business should focus more on
utilisation of natural resources. The systematic management and utilisation of
combustible resource should be addressed. Therefore, for a business like Ferries it is
essential to concern more on marine and aqua life and make efforts to reduce and prevent