Contemporary Management Issues: Strategic Analysis of P&O Ferries

This report provides a detailed analysis of contemporary management issues faced by P&O Ferries, a leading UK-based ferry company. It begins with an introduction to management and its challenges, followed by an examination of P&O Ferries' business environment using PESTLE and Porter's Five Forces analyses. The report then identifies and evaluates drivers of change, including ethical and social responsibility and globalization, that have informed the company's strategic decision-making. The implications of these decisions on P&O Ferries' commercial and operational aspects are assessed, followed by a discussion of alternative strategies the company could have explored. Finally, the report offers recommendations that consider ethical and sustainability aspects for the company, concluding with a summary of the key findings and recommendations.

Contemporary
Management Issues

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Business environment of P & O Ferries......................................................................................3
Drivers of change that might have informed P & O Ferries strategic decision making.............5
Evaluate the implications of such strategic decision on P & O Ferries commercial and
operations going forward............................................................................................................6
Suggest alternative avenues they could have explored considering the nature of the pressures
for change/drivers of change.......................................................................................................8
Make relevant recommendations that recognises ethical and sustainability considerations for
the company..............................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Management refers to the coordination and the monitoring of various business activities
so that they can rightly defined the given task and lead their team for the better working of the
company. They are establishing the strategies in order to have the effective functionality within
the organisation and leads to achieve the goal of the company with the help of available
resources within the organisation. In changing business scenario, they are facing various issues
which is influencing the entire functionality of the business and its efficiency such as recruitment
and selecting the deserving candidate, diversity in the given workplace, uncertainty of future and
other aspects(Hussain, HAQUE and Baloch, 2019). For this respective report, P&O Ferries is the
chosen business organisation as it is the UK leading company who is operating their business on
larger scale as they are carrying around 10 million people before covid. Afterwords, the company
is acquired by the DP world, it is the multi-national ports company which is established in Dubai.
Moreover, this report will cover the drivers of change which might have given the information
P&O Ferries decision-making & its implication of various business strategies. It also analyses
the implications of such strategic decision on P&O Ferries commercial and operations going
forward. Moreover, suggestions for alternative revenue which can be explored in order to
analyse the nature of pressure of drivers of change also made the recommendations for the
sustainable and ethical consideration for the given business.
TASK
Business environment of P & O Ferries
Business environment refers to the combination of different factors which create the
impact on business operations & efficiency. P&O Ferries perform the PESTLE analysis for
accessing the factors which are illustrated below:

Political factors: Government bodies plays the vital role in business environment as it
also involves the fiscal policies, trade tariffs, interest rates and many more. P&O Ferries is
operating their business in various countries as different routes from UK ports to Europe. This is
the respective factor which increase the risk for the give business in order to have the effective
compliances of political law of various nations. With the concept of globalisation, all the
political conditions have been understand by the given business in which they are operating in.
When business is having high risk as they have expanded the business in new locations then this
create difficulty for the staff to have more consideration in the company and they might face
difficulty for its retention.
Economic factors: These are the aspects which includes the foreign exchange rates,
inflation and interest rates. After the huge impact of pandemic, there are various operational
variations has happened in P & O Ferries. In this tough situation, government has put strict rules
and restrictions on travel which also impact the overall functionality of the business and they
face huge loses and profitability. Due to which they also sack its staff from the employment as
there is less demanding the market.
Social factors: There are factors which consists the demographics, population rates,
culture, buying trends and other factors. P & O Ferries focuses on offering quality experience is
to have the customers which retain them in various business organisation of time. When the

employees are not getting favourable working conditions then it leads to leave of the employees
from its job.
Technological factors: In this aspects, P & O Ferries is conducting the research of
market and using the appropriate technology in order to perform their appropriate operations.
They minimise the cost with the help of adopting upgraded technology and get the innovation in
different business functions. Sometimes, employees are not efficient while using the new
technology which leads sack of its staff from their job.
Legal factors: There are certain laws and regulations which are health & safety law,
labour law which are needed in order to considered by P & O Ferries so that they can have the
better functionality in an efficient manner(Hafberg, Borinstein and Alexopoulos, 2019). When
the company has registered in another firms, this become vital for them to analyse the cross-
border laws by which they can operate their function in an appropriate manner and manage its
employees in an appropriate manner.
Environmental factors: It is known that P & O Ferries is following all the
environmental standards and use the corporate social duty of the company and waste
management by which they can maintain the good position in the target market and also retain its
employees within the organisation which contribute to the higher profitability of the company in
the target market.
Porter Five Forces
This is the framework which helps in analysing the competitiveness within the industry
and they further develop the strategies and the appropriate strategies. This is the tool which is use
to assemble all the factors which helps in evaluating the competitive marketplace.

Competition in the industry: P & O Ferries is facing huge issues from competitors as
there are lower number of brands that are operating in the similar industry. With this, there will
be less employment opportunities to people and leads to affects the employment of the company.
Threats of Substitutes: When taking the consideration of P & O Ferries, there is threat
for substitute goods as there are less player who are operating in the given industry. In context to
employees, when the company is having threat then it also affects the overall working of the
employees in the given job role.
The Threats of New Entrants: when the industry is operating in the profitable market
which shows that there are large group people who are availing the goods and services in the
target market. thus, there is low threat of new entrants as company has to go through various
laws and regulation in order to start the business. It is the main factor which is related to the
overall growth of the business in the target market.
Bargaining Power of Buyers: With the less number of company, there is the less
bargaining power of supplier as they have to analyse the services for the existing company in
which employees are operating its given job but when it comes to less bargaining power so
management focuses on the training of the staff so that they can get the innovative products to
the company.
Bargaining Power of Suppliers: They basically focuses on the power which is
impacting the overall functionality of the business and also leads to enhance the material prices.
It is known that the bargaining power of suppliers is low due to the large number of supplier in
the current market.

Drivers of change that might have informed P & O Ferries strategic decision making.
Drivers of change refers to the internal and the external pressure which leads to shape
change within the organisation. It is vital for the given business in order to analyse the various
change drivers and create the various in the given business task, products and operations. P & O
Ferries is going through the various challenges that includes the globalisation, sustainability,
corporate social responsibility and ethics of the company. Additionally, they focus on the needs
of stakeholder. Demographics change and leadership. This is vital for the given company to
analyse all such changes in an appropriate manner and consider then as the effective business
decision-making strategies. From the given case scenario, this has been analysed that P & O
Ferries, they are going through the huge change such as corporate leadership and globalisation.
This is needed for the business to analyse all the certain change in the given business which
helps them to perform all the business operations in an appropriate manner so that they can
sustain in the business in long run. All the strategic decisions of P & O Ferries conducting
effective research which is micro and macro elements drivers of change and these are given
below:
Ethical and social responsibility: It is the major change which is the driver of change
and this requires the considered by P & O Ferries in enhancing the certain business policies and
the decision-making by which they can run their business in an appropriate manner and achieve
the competitive benefit in the market. Moreover, social responsibility is basically connected to
the ethical theory and this reflects that every human being is responsible for fulfilling the duty
and the action which help the society(Giones, Brem, A. and erger, 2019). With the adopting of
such ethical social duty, organisation can ensure the good balance between the company's growth
and its welfare. There are certain stakeholders which are involved in the given business as this
provide the benefits to them and also help them with better business operations by which they
can achieve the overall objectives of the company. This is the main concern which is basically
related to the overall working of the people by which they can sustain in the market in long run.
Ethical duties include the higher minimum wages by which employees receive the competitive
benefits which are given to the employees and are treated with all the dignity & respect(P&O
Ferry masters,2022).
The company is following certain contemporary issues which are connected to the employees as
there are 800 personnel who are replaced by the company and they are getting below national

minimum wages. This also leads to create the negative influence on the image of the company as
it enhances the rate of employees turnover within the company. The chief executive of P & O
Ferries is Peter Hebbletwaite, told that the average hours of new employees is 5.5 pound per hour
and this analysed from the given case that people in UK aged 23 is about the 8.9 pound per hour.
Respecting shipping company is registered in other nations and they are operating from UK to
Europe. Thus, they are paying the less wages which are exempt from the employment law. They
have stated that they are paying wages to the crew which is above the international transport
workers minimum wages. This is the serious concern which needs to be analyser by the firm and
offer them wages as per the company is going to close it or will do it in the future.
Globalisation: It s defined as the process which is connected to the interaction as well as the
integration of the people, government and organisation at international level. This also define
how the trade and the given technology is connected and interdependent lace(Pluskal and et. al.,
2021). Globalisation concerned with various economic changes which are emerging in the
working of the business. This is considered as the major change driver which create the influence
on the overall working of the company and also give the efficiency of the business in the
competitive world. This is considered as the change drivers which create the impact the overall
performance and the efficiency of the given business. P & O Ferries is being acquired by DP in
that multinational ports and logistic company which is based on Dubai in year of 2019(The P&O
Ferries Scandal Is a Global Issue,2022).
Evaluate the implications of such strategic decision on P & O Ferries commercial and operations
going forward.
Strategic decisions refers to all the business decisions which help the business in order to
take the corrective actions by which they can rightly take the business advantage for longer
period of time. It is vital for the business to ensure the better business operations so that they can
understand the business operation in an appropriate manner and they can maintain the strong
positioning in the given marketplace over its rivals. These all such decisions plays the signifnace
role in the betterment of the employees. Company needs to take the benefits of given situation
through initiating the effective actions as per the given situation. There is the huge impact of
drivers of change on the overall business organisation. Business performance strategic actions
related the change which maintains the unique position of the company in the minds of the
company. P &O Ferries is following systemic and appropriate actions in order to take the

appropriate strategies by which they can manage the change unique positioning. Organisation is
conducting forecast to analyse the working of business in the near future. As P & O Ferries in
operating their business in different locations by which there are certain change drivers which
impact the business performance. It is also recorded that acquisition by DP world was not a
forceful task. Thus, business activities needs to focuses on the situation and take the corrective
actions with the various business operations. Globalisation plays the significant role in which the
business can ensure the development and growth opportunities. DP world that established in
Dubai bases and as per the given concept of globalisation. This also facilitates the business in
order to operate the business in various at various parts of the world. This is the strategic
decisions which provides the certain benefits to the given organisation in future. Organisation are
planning in order to replace its 800 employees or staff member from cheaper agency employees
which reduce the entire cost of the business (Vlasenko, Levcheniuk and Tovmash, 2019). The
company is registered in other nations so there is no obligation in order to follow the UK law of
employment. Apart from that, company has provided the wages as per the International
Transport Worker's Federation that is lesser than employment laws.
From the given case, this has been analysed that company has sacked out the 800
employees so that they can hire the cheap employees. This termination is helpful for the
company but against their employees as it can hire the staff members on minimal salary, but this
lead to impact the overall working of the employees and the reputation of the company and leads
to reduce the overall contribution for attaining the organisational goal. This is also vital for the
company to manage all the change and develop effective strategies which help the business to
manage in changing and dynamic business environment. P & O Ferries requires to manage all
the necessary business environment and the social values of the countries in that they are
operating and they are also place better for employees within the workplace. Company is
following the suitable practices so that they can provide the better quality services and
experiences to their prospective buyers. Performance based salary and reward motivates the
employees and enable them to attains determined goals and objectives in an appropriate
manner(Collective redundancies and the P&O Ferries debacle,2022).

Suggest alternative avenues they could have explored considering the nature of the pressures for
change/drivers of change.
In order to have the change, there are various alternatives ideas available in the given
market and company can adopt such change in business on the given situation of the business. In
order to have the change, there are alternative ideas that are available in the given market and P
& O Ferries can adopt the change in the business on the basis of situation of business. When the
company is adopting the change then it helps in ensuring the better working of the employees
and conducting effective research which allow them to develop the strategies for the given
business on the basis in which they can get the success for long time period. It is vital for the P &
O Ferries to understand the marketing condition which help them to take the effective decisions
in business which ensures the better working of the company. This is also significant for the
business to have the better decision-making which is essential by which they can explore the
pressure in order to identify the best options. This is necessary for the business to have the better
working by which they can rightly ensures the long term and effective impact on the
functionality of the business. There are various types of alternatives revenue which are available
that are given below:
Conduct internal and external analysis: It is vital for internal and external analysis
which can be used for the decision-making. This also helps the evaluating the internal
performance of the given business so that they can understands the internal capabilities and the
performance of the company with its requirements. This also allow the workers to work in an
appropriate manner so that they can provide success. In context to P & O Ferries, this is analysed
that the company does not given the value to their employees and emphasis for the higher
profitability of the company, with this, an organisation can make the better decisions to sack 800
workers.
Company is focuses on conducting the external analysis within the company so that they
can analyse the current trends of the company. There are various factors which are present in the
macro environment and also create impact on the overall performance of the company in the
decision-making process. When taking the consideration of P & O Ferries, this is being evaluated
that the company require to monitor internal and external aspects which creates the adverse
impact on the decision making of the firms. It is also necessary to analyse the overall
performance of the business within the set period of time

Competitive analysis: This present the business environment is high and before making
the certain decision-making in the given business. This is vital for them to analyse the overall
competitiveness in the given marketplace which helps them to make better decisions. This
competition analysis helps them firms to understand the strategies which can be adopted by the
competitors which allow them to compete in the given market. P & O Ferries, is the firm which
is emphasising on the development of the competitive strategies by which company can meet the
changes and challenges which are occurring in the given business environment easily. It is also
vital for the business to analyse the influence of such strategies by the firm in he given market
place(Forces for Organizational Change,2021).
Forecasting: It is another significant component that helps in business to analyse the future
course of action in an appropriate manner. It is the technique that helps the firms in order to
evaluate the results of decision before they are completing their assign work. On this aspects,
business can rightly analyse the benefits and limited of a decision within the company. This is
also important for the business in order to check the influence of decisions accordingly.
P & O Ferries, is the company which is dealing in shipping and also following certain
laws and legislation that is necessary for the business expansion. It also required effective
analysis for the success of the company by which they can take care of the business environment
in which they are operating their business and leads to ensure the goods brand image of the
company. They are concerning for the environment and adopt the sustainable business practices
which can full fill the needs of the customer in the given market. In order to meet the corporate
social responsibility, business also require transparency of data and the information which allow
the business to operate their business in an effective and efficient manner. For ensuring the sale
product of the business, company needs to gain the trust of the buyer and establish the goodwill
of the customers. All such actions is being adopted by the company which also helps them to
have good relationship with their customers also the employees. This also motivates the
employees in order to accept the change within the company in which they are working. In order
to implement the variation with effective change and business needs to work in a way which
allow them to attains goals and objectives of the business.

Make relevant recommendations that recognises ethical and sustainability considerations for the
company.
This is vital for the company in order to perform its operations and work as per the
ethical & sustainability. There are both considerations which leads to have the business to
maintain the differentiate and good brand image in the market over its competitors which also
give the competitive advantages well(Huang and et. al., 2022). This is essential for the business
to conduct the social and ethical duties. All such sustainability plays the significant change as
leads to prevent the natural resources in order to ensure the pollution free environment.
Carroll’s Pyramid
This is the model which help the company which understand the roles and responsibilities
by which they can prevent the environment from negative impacts. All such responsibilities
which requires to be taken from the business in order to perform the operations in an efficient
manner which are illustrated below:
It is integrated with the economic, legal, ethical and philanthropic responsibilities so that
they can provide the better results in the business and also focuses to follow all the rules and
regulation which is concerning to the business units(Gogokhia and Berulava, 2021). Moreover,
they are focuses on adopting the ethical duties by which they can full fill the needs of the people.

To save the environment, businesses should adopt approaches for waste management to
perform the business activities in a efficient way and hold up the powerful image of brand in the
market place. To assist save the environment from the noxious human activities, there should be
much more concentration by P&O ferries on the environmental goals. It has been advisable to
countries to find out and adapt the activities which is quiet advantageous to their stakeholders as
well as it will give advantages to the organisation to compete. carrying out these activities will
aid the business to protect the nature. In context of P&O ferries, there are some suggestions
recommended below.
 It is advised to P&O ferries to impose some rules and polices and start giving priority to
nature favourable activities which will cause less pollution in the nature. There should be
proper utilization of natural resources. The company makes this sure that the resources
are fully managed which will boost up the performance and productivity of the business
and result into revenue growth and maintain the strong brand identity in the market. The
chosen company take all the required measures to avoid harm to the environment.
 For the business operations, P&O ferries is advised to opt for the latest technologies as it
is much more effective. There should be transparency in working procedure in order to
help the business's stakeholders to gain more information linked to the business. To
maintain a good client base, organisation should have good relations with the company's
employees as well as the customers. This will only happen when an organisation is able
satisfy their customers needs and wants and this will result into fixed client base for the
long period of time. The company should go for only eco friendly approaches to satisfy
their customers.
 P&O is suggested to put on ethical consideration to maintain that trust between he
stakeholders of the company. This Will allow the company to execute and perform the
tasks in very efficient and accurate manner. To encourage, motivate, build trust and
satisfy the employees, they should be equally treated so that that keep going on with the
organisation. To improve the enhancement and the engagement of the workers there
should be supportive working, grooming, training as well as opportunities to develop
themselves, this will make them participate into more and more business activities.
Overall it will boost up the productivity of the firm, revenues, engagements, brand image,
and whole performance of the business.

 To increase the satisfaction level of the customers, it is necessary to give them best
services and products as per their necessities. It is advisable to P&O ferries to prioritize
their workers and plan more strategies for the growth of business.
 P & O Ferries also facing the actual crisis experienced by the organisation seems to be
the result of an inefficient or poor CSR and corporate governance. Thus, it is
recommended to the P&O Ferries to improve its CSR and corporate governance by which
they can help the company in an appropriate manner.
CONCLUSION
The above respective report concludes that the activities like planning, organising,
staffing, directing and coordinating is done by the management department of the company. It is
very crucial for the business to have organized manner of business activities which allows the
firm to get more competitive benefits. It is also to important to examine the outer environment in
order to build up strategies to handle it. There are numerous key change drives which affects the
business positively as well as negatively. It is advised for the business to have the alternatives for
the challenging situations.

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Online:
The P&O Ferries Scandal Is a Global Issue,2022 [ONLINE] Available
Through<https://www.bloomberg.com/opinion/articles/2022-03-30/the-p-o-ferries-
scandal-has-repercussions-for-global-capitalism>
P&O Ferry masters,2022 [ONLINE] Available Through
<https://www.poferrymasters.com/about-us/responsibility#our-approach>

Collective redundancies and the P&O Ferries debacle,2022 [ONLINE] Available Through
<https://www.dentons.com/en/insights/articles/2022/april/14/collective-
redundancies-and-the-p-and-o-ferries-debacle>
Forces for Organizational Change,2021[ONLINE] Available Through
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