STRM042 Critical Issues: Strategic Development of Organisations

This literature review critically analyzes the strategic development of organizations facing uncertainties in today's business environment. It discusses various challenges such as changing market trends, technological advancements, and globalization, emphasizing the importance of strategic planning, innovation, and leadership in navigating these complexities. The review draws upon existing literature to explore how organizations can adapt to uncertain conditions by developing flexible strategies, fostering employee training, and managing cross-cultural issues. It also highlights the significance of sustainability and ethical practices in achieving long-term success in an ever-evolving global market. The document is available on Desklib, a platform offering a wide range of study resources including past papers and solved assignments.

Critical
Issues in
Business

Critical Issues in Business 1
Table of Contents
Introduction...........................................................................................................................................2
Literature Review..................................................................................................................................2
Conclusion.............................................................................................................................................3
References.............................................................................................................................................4

Critical Issues in Business 2
Introduction
In the age of uncertainty strategic development of organisations is important as it sets
up long term goal for an organisation. The objective of an organisation is analysed and all the
barriers that are faced by expanding the product is analysed. The goal of company and path of
success is planned by conducting a market research and competitive analysis of all the target
audience. In addition, it is important to know about the competitor’s strategies and plans, as it
helps organisation to build up leadership for the organisation. Thus report is a complete
research about the critical issues that are faced by organisations and the strategic
development of organisations in the age of uncertainty. To deal with such uncertainties
strategic planning in an organization is carried out for management of all the activities. It is
used to set priorities and focus upon all the resources, operations and also ensures
that employees and other stakeholders are working toward common objectives. So that
outcome due to changing environment is not affected on the organisation. It is a disciplined
effort that is taken by companies to undertake fundamental decisions and actions. Effective
strategic planning articulates not only where an organization is going and the actions needed
to make progress, but also how it will know if it is successful.
Literature Review
According to (Massa, Tucci and Afuah, 2017), there are different issues looked by
association in the period of vulnerability in this manner vital improvement is required. The
size of vulnerability in introduce time is expanding as it causes trouble in deciding. The scale
of uncertainty in present time is increasing as it causes difficulty in making decisions. The
challenges are faced by business due to different social, political as well as economic
environment. The uncertainties that are faced by organisations are industrial democracy;

Critical Issues in Business 3
change in exchange rates, government rules and regulations, change in technology, pollution
regulation issues, cost of energy and available raw materials (Waddell, et. al, 2016). The
uncertainty affects the growth of an organisation, it not only impact the private sector but also
have a negative effect on financial industries. Thus to resolve these business issues
organisation should undertake a proper business model so that sustainable goals could be
achieved. The main issue that are faced in an organisation for strategic development is
dealing with the changes. It is important to cope up with the changes that could be done by
developing strategies and new advanced technology. To succeed in new environment
strategies need to be pulled up in terms of innovation and talent. Organisational change is
common and various uncertainties are faced in internal and external environment (Alkhazim,
et. al, 2015). A new leadership strategy is needed to shape the system of an organisation.
Thus a set of priorities and capabilities need to be expanded by the business and focus more
on the changes. Thus business undertakes steps for development by observing and
understanding the current situation and then mapping out the relations for all the threats and
opportunities (Alkhazim, et. al, 2015). The next step after observing the situation is making
sure that all the young employees learn about new activities and technology so that
curriculum of changes could be maintained.
In the views of (Avgerou and Walsham, 2017), in the uncertain world it is important
to plan and implement some strategies for organisational changes. Adaptable procedures are
created as it develops capacities that could be effortlessly adjusted. The issues look because
of vulnerability influence the advancement of an association. In this manner different
difficulties that is looked by the organization because of inadequate pioneers and need of
accomplices to accomplish the objective. (Teece, Peteraf and Leih, 2016). Thus strategic
development of an organisation is implemented by strengthening the core internal strategies
like accounting, HR, communications as well as finance department of an organisation. Long

Critical Issues in Business 4
term action plans are developed to meet longer goals and objectives. The issue that are there
in an organisation is market demographics that help in knowing about all the demands in the
market. The strategic goals are the basic issues or challenges that are faced in an organisation
due to uncertainties. The company faces issue due to poor strategic development. They face
issue in terms of selection and recruitment process. While hiring candidates from all over the
globe poor development can cause diversity at the workplace (Teece, Peteraf and Leih,
2016). Thus it is important to manage all the cross cultural issues at the workplace that is
caused due to poor communication channels in the organisation. Thus proper training and
development programs should be used so that uncertainties in the environment cannot affect
the growth of an organisation. The uncertainty can affect the growth of an organisation thus a
clear future could be determined (Teece, Peteraf and Leih, 2016). Flexible strategies are
developed as it builds up functions that could be easily adapted. The issues face due to
uncertainty affect the development of an organisation. The challenges that are faced by the
company is due to insufficient leaders and need of partners to achieve the goal. Thus to deal
with the uncertainties an alternate future scope is defined so that a discrete outcome could be
achieved.
According to (Schartinger, et. al, 2015), companies in present day face challenges and
uncertainties while entering new geographical market. The most common difficulty that is
faced is deciding where an organisation should introduce their new products and services.
The challenge that is faced while strategic development is identifying the possible market so
that customer’s penetration is managed (Bryson, 2018). The other challenge that is faced by
the companies in today’s era is technological changes that are handled due to innovation of
advanced technologies. For the companies it is difficult condition to decide which
technologies need to be adopted. While adopting new technology it is important to provide
proper training sessions to the employees so that even staff understand the use of technology

Critical Issues in Business 5
and can use in an affected manner. The development of the company is dependent on the
technology used so that they could bet the competitors in the market. Strategic planning is
needed as it is not only beneficial for organisational future but it is used to understand the
long term impact on the organisation. The critical business issue of an organisation is the
overall success (Bryson, 2018). The issue due to several organisational functions is also due
to uncertainty and can get directly affected by the people. The legal issue can also be a barrier
in growth of an organisation as it has adverse effect on the customers and stakeholders
(Bryson, 2018). The market trend is so uncertain, thus company should mould all the
functions according to the trend in the market. Thus it can be clearly stated that success of a
firm or an organisation need to managed in all the uncertain situations so that it can survive
even in difficult situation (Farid, et. al, 2015). The achievement of business in current time of
vulnerability depends totally on the methodology that is upheld in an association so economic
improvement takes place. In this way to confront all the difficulties and issues it is imperative
to infer a few endeavours that mean to oversee and organize with all the ecological, social
and monetary on-going (Farid, et. al, 2015). Thus for maintaining strategic planning for an
organisation some steps need to be taken like developing and engaging leaders. To deal with
the changes in the environment it is important to deliver consistent training to the staff. This
will help in enduring the overall skills of the employees as it will future improve the
productivity (Farid, et. al, 2015). The conflicts management is also important to be
maintained so that there are no cross cultural issues in an organisation. Employees in an
organisation are from entirely different backgrounds which may lead to conflicts at time of
interacting or sharing ideas. This could be resolved by demonstrating the value of leadership
and adapting the concept of training. The uncertainties are every often and it is important to
deal with this change that could be done by acquisitions, technology development, staffing
and budgets (Björklund, Abrahamsson and Johansson, 2017). The issue of uncertainty from

Critical Issues in Business 6
the environment can be resolved by developing leaders at every level so that all the complex
and diverse issues could be resolved. The uncertainties can be resolved if there is a good
communication channel and training learners regarding how to cope up with the suspicions
(Björklund, Abrahamsson and Johansson, 2017). The uncertainties increases the risks in an
organisation thus to balance the risk a sustainable development plan is needed.
In the opinion of (Shaw and Barry, 2015), it is true that we are living in an uncertain
environment where technology, demands and services changes every day. Thus for an
organisation it is important to deal with all kind of situations. There are many competitors
who are selling the same products but with lower price or better quality. Thus innovations in
technology need to be adapted so that businesses achieve long term success. In the age of
uncertainty, where we are not aware about when a new competitor can come in the market
with new ideology or when the overall demand of customers can change. For such cases
development plan need to be designed to capture the marketing audience so that sustainable
growth can be achieved (Butler and Ivanovic, 2015). It is true that once the company has
covered the local market it tries to enter in the foreign market for growth and expanding their
business. Many rules and regulations need to be considered to make sure that sustainable
growth of organisation is achieved. Thus for business to survive in world of uncertainties it
is necessary that they remain updated to innovation (Ward, 2016). Innovation of new sources
will always help a business to stand out in the market and met the competitors(Ward, 2016).
There are various challenges in the market for development company need to undertake some
strategies so that disruptors and challenges can be removed.
In the views of (Siebert and Martin, 2016), sustainability a key to corporate
achievement in the time of vulnerability as business are outlining strategies to address the
difficulties by keeping every asset accessible. The most concerning issue looked by an

Critical Issues in Business 7
organisation is to keep sustainability that is paying up all the market heads, as demand are
increasing day by day. As now a day’s sustainability is considered as an important part for
long term success of an organisation. The sustainability can be achieved by adopting
environmental, social as well as governance policies (Knoke, 2018). There are various social
policies faced by an organisation that includes diversity at work place and discrimination
within the employees. Thus all the policies related to citizenships, rights and business ethics
are designed so that product risk and safety measures are maintained. The issue that are faced
in business is mainly due to diversification of cultures as there are employees from entirely
different background because of that conflicts occur in an organisation. To overcome from all
these barriers a leadership quality need to be followed within an organisation (Knoke, 2018).
There are various possibilities that are impossible to predict thus to deal with such cases a
step by step procedure is followed. At first level all the scenarios are identified by observing
the future outcomes and analysing the triggers so that a good image can be maintained in the
market place. Uncertainty demands a more effective approach for situation analysis.
In the views of (Goffee and Scase, 2015), in today’s time it is complex to expand the
business globally and remove the complexity from the business environment. While
expanding the business in foreign market there are various different policies about which
organisation are not aware. This also increases the chances of risk thus various strategies are
used that can deal with uncertainty. The use of analytic technique helps in dealing with the
complex situation and outcomes are prepared for multiple situations. Variety of situations is
created so that at any uncertain happening proper steps could be taken (Nallusamy, 2016).
Apart from that businesses need to focus on the inputs rather than outputs. Uncertainty can
also be due change in global economy and also because they are unaware about what the
competitors are doing in the market. There is an uncertainty about the arrival of new
technology in the market as it affects the overall growth of the company. If some advanced

Critical Issues in Business 8
technology hits the market the overall progress of an organisation is affected. To solve such
issues a short term focus is needed on developing strategies for long term success. While
expanding the business in foreign country all the factors are uncertain (Nallusamy, 2016). It
is difficult to understand and penetrate in the foreign culture as foreign country has entire
different principles. Thus it is recommended that businesses should understand international
markets and culture so that better information could be gathered and analysed.
According to (Viguerie, Kirkland & Courtney 2016) the uncertainty is common in
present time thus it is important to deal with all the changes. The innovation processes and all
the government policy and regulation need to be understood to expand the business. The
technology is also changing exponentially thus long term technology strategy are used for
maintaining flexibility. The diversification within the companies needs to be improved, that
can be done by adopting leadership within an organisation. Leadership within an organisation
can foster the expansion and avoid conflicts due to differences in ideas and viewpoints
(Luthans, 2015). The uncertainty can affect the supply driven approach that need star be
resolved with strategic thinking and problem solving technique.
In the views of (Menke, 2016), . In today’s era the main issue faced by business due to
uncertainty is about global economy, credit markets and competitors in the market.
Uncertainty can lead to discomfort for the business and can also affect the long term success
in business. The uncertainty also affects global economy and also effect the costumer
behaviour due to environmental regulations. The uncertainty leads to a short-term focus.
There are various challenges that are faced by business while entering new market and
designing new products and services. The companies often struggle in finding out a new
innovation process and working in an environment that has entirely different policies and

Critical Issues in Business 9
rules (Luthans, 2015). Thus it can be stated that uncertainty in market trends affects the
overall economic balance of the business.

Critical Issues in Business 10
Conclusion
It can be concluded that uncertainties in business can lead to various challenges. Thus,
to maintain a strategic development it is necessary to know about the competitors in the
market. While when companies expand their venture in the international market they face
various issues due to competitors in the market, innovation and new geographical market.
While expanding in new market the issue are due to various companies that are already
present in the market. Apart from that, all the businesses look for innovating new process so
that they could stand out in the market. It can be concluded that uncertainties in business
brings out a lot of discomfort in the operations. Thus, to cope up with all the uncertainties in
the market an effective approach or tool need to be used to deal with such situations.

Critical Issues in Business 11
References
Alkhazim, M.A., Althubaiti, A., Al-Ateeg, H., Alkhwaiter, M. and AlNasser, M.M. (2015).
Delivering effective continuous medical education in Saudi Arabia: Some critical
issues. Health Professions Education, 1(1), pp.43-49.
Avgerou, C. and Walsham, G. eds. (2017). Information Technology in Context: Studies from
the Perspective of Developing Countries: Studies from the Perspective of Developing
Countries. Routledge.
Björklund, M., Abrahamsson, M. and Johansson, H. (2017). Critical factors for viable
business models for urban consolidation centres. Research in Transportation Economics, 64,
pp.36-47.
Bryson, J.M. (2018). Strategic planning for public and nonprofit organizations: A guide to
strengthening and sustaining organizational achievement. John Wiley & Sons.
Butler, G. and Ivanovic, M. (2015). Cultural heritage tourism development in post-apartheid
South Africa: Critical issues and challenges. Cultural Tourism in Southern Africa, 47, p.58.
Farid, S., Ahmad, R., Niaz, I.A., Arif, M., Shamshirband, S. and Khattak, M.D. (2015).
Identification and prioritization of critical issues for the promotion of e-learning in
Pakistan. Computers in Human Behavior, 51, pp.161-171.
Goffee, R. and Scase, R. (2015). Corporate Realities (Routledge Revivals): The Dynamics of
Large and Small Organisations. Routledge.
Knoke, D. (2018). Changing organizations: Business networks in the new political economy.
Routledge.