BIN3038-N Contemporary Issues in Business Management
October 18, 2022
E-CRM Strategies and Product Consumption Sample
October 18, 2022
Question
Executive Summary
Modern-day organizations face different kinds of contemporary issues in the business operation processes, such as globalization challenges, sustainability challenges, and innovation challenges. The companies need to establish several creative approaches and consider them in the operation management activities to avoid possible contemporary issues. Internationalization, innovation, and sustainability are three important elements of a successful business. Companies need to create a conflict-free and motivated global workforce to enhance positive internationalization. Moreover, companies also need to integrate technological innovation into business to become successful. Lastly, companies need to consider some transparent CSR approaches in business to become sustainable. In these ways, contemporary businesses can overcome contemporary issues and can establish sustainability, innovation, and internationalization in business.
Introduction
Internationalization and innovations are the two essential components that determine the success of an organization. In the modern world, it is important to understand the complexity and requirement of new and innovative processes. Globalization is a change agent and one of the most essential components because it has the potential to enhance and extend the limits of a business. However several other factors also determine the growth and performance of an organization such as technological innovation and sustainability. Technological innovation is the most important factor that can excel an organization’s performance and also provide innovative methods to meet upcoming market demands. In the contemporary era majority of the business, and firms have the intent to implement new technological measures to reduce costs and enhance quality and productivity. Another factor that drives all business strategies is sustainability. Sustainability is a measure adopted by organizations to retain employee interest in the global market. Therefore, internationalization, technological implication and sustainability together help business firms to continue their business process successfully in the challenging global market.
Over a period, it was assumed that business development and expansion in the global market would mean a direct investment from multi-national organizations however this concept has changed lately. Nowadays Internationalization means working directly in a foreign nation by adhering to the social political and economic guidelines of the nation. To ensure the smooth functioning of a business, companies must engage in some social responsibilities that would increase the participation of several stakeholders. These factors can help in maintaining sustainability. Furthermore, the challenges experienced while working in international markets is higher than that in the national markets. To overcome these challenges there is a need to adopt and engage new technical advancements as technology allows obtaining products through the innovation process and also reducing the cost of production. These factors are very important for organizations to survive in a competitive business environment.
This analytical report is derived in the limelight of issues experienced by business organizations while implementing internationalization, technological innovations and sustainability in the global market. The Issues experienced by the organizations and the strategies required to be adopted to sustain and excel in a foreign business environment.
Findings
Contemporary issues linked to innovation management, sustainability, and internationalization have been founded and evaluated in this section.
Internationalization
As opined by Voegtlin and Scherer (2017), the phenomenon of internationalization has been under observation for the last 30 years and several factors have motivated the virtue of internationalization and globalization as a whole. The virtue of internationalization is based on the development of goods and services in a regulated host country rather than its own country because it not only helps to reduce the cost of development but also enhances the quality of service provided. This statement is chosen and proven based on the pollution haven hypothesis. According to Abrol et al., (2017), the pollution Heaven Hypothesis also known as the PHH elaborates how business firms initiate the development of a product or idea in a host country based on the resources available and the socioeconomic and political status. Significantly, the political interference will always remain high in a foreign country however internationalization is the most essential measure that can drive success for an organization.
As per Ashmarina and Vochozka (2019), the global workforce is an essential aspect of internationalization. To develop a business in a host nation, it is essential to create a global workforce that can share and use the data that is required for the smooth execution of the business. There are several theories and studies that have been used so far to create and manage a global workforce, for example, Kurt Lewin model of leadership.
The Leadership Model Proposed by Kurt Lewin
The Kurt Lewin model of leadership explicitly describes the different types of leadership and their workforces that are incorporated by organizations. According to the Kurt Lewin model of Leadership, three types of work-process come under leadership.
Authoritarian Leadership (Autocratic)
According to Urazgaliev and Menshikova (2020), the Autocratic decision-making process in Lewin’s Leadership model explains that this mode completely divides the two groups of staff in a business firm i.e. the leader and the member. An Authoritarian leader is the one who makes most of the decisions and also incorporates his decision with minimal or no input from the other members. Autocratic leaders set the goals for their employees and make sure that the outcome is generated as expected. This model emphasizes more on a command-based prototype wherein the entire work process revolves around the decision taken by the organizational leader. This type of model is less creative because the employees do not get the opportunity to share their valuable feedback or analyse the work in their outcomes. As a view of Bolton and Hannon (2016), the organizational leader has the freedom to make their decision and control the decision by giving the employees lesser choices to generate their ideas. The autocratic model is effective in several scenarios wherein there needs to be work assigned on a rapid basis. In several scenarios, it has been observed that this model works effectively where there is little time for group discussions. The employees working under an autocratic leader cannot be held responsible for the outcomes because the entire instruction comes to them from their leaders. Hence the outcome of the work allotted is pre-designed and pre-determined. As per Bolz and Konig (2018), employee retention under autocratic leadership is a challenge because a major portion of employees works under different franchise groups and the mode of work is pre-decided by the supreme leader of the organization. As opined by Zaitseva et al., (2016), the leaders have to incorporate this model because it is difficult for them to arrange group discussions for all the franchises before making an essential decision.
Participative Leadership (Democratic)
Participative leadership is the most important approach for an organization’s development due to its ability to provide distinct ideas and values generated as a result of the extensive participation of members in the decision-making process. Democratic leaders allow the participation of group members before the implementation of any decision however restrict the final decision to themselves. According to Cramer (2017), democratic Leadership is better compared to autocratic leadership because it involves the decision made by group members, which can be a lot more creative compared to the Autocratic approach. In this approach, employees are engaged in group discussions and they feel that are an essential part of the team. According to Seiler-Hausmann et al., (2017), this motivation not only boosts the quality of work but also increases the quantity of output because each member feels that the entire work process has been designed based on their decision. In several articles, psychological researchers have also supported this form of leadership approach due to its ability to combine the ideas of all members and then generate a valuable outcome based on the ideas shared by the members. The democratic approach is more creative and there is a lesser chance of errors as a premonition. The leaders in a democratic approach offer guidance to employees and make them a part of the critical thought process. As opined by Ermakova et al., (2016), this approach increases the self-confidence and self-motivation among group members because they feel more valued in the company. As a result, the retention of employees working under a Democratic leader is higher compared to the Autocratic leadership approach. According to Petschow et al., (2017), this form of Leadership model is more effective and it leads to high outcomes for an organization, even though the final decision is made by the leader. Due to this effectiveness, Democratic Leadership has been implemented by many organizations currently.
Delegated Leadership (laissez-Faire)
Delegated leadership approach is the third model of Kurt Lewin theory. As per Pederson et al., (2018), in this model the leader has no significant importance however the group members coordinate among themselves to deliver an outcome. In this approach, there is absolutely no guidance offered by the leadership. The group members in an organization receive a project; they design the project and generate the outcome without being intervened by their leader. This situation is completely different compared to the other two forms of leadership approach and may lead to bizarre. This model also has its uses in several firms such as scientific research wherein creativity is the most essential component of the outcome. As viewed by Ermakova et al., (2016), the workforce under Delegated Leadership is considered to be the most essential part of the organization. There is a lack of teamwork and team spirit because there is absolutely no guidance received from the leadership. In several circumstances, delegated leadership has been profound because it has given optimum results however this approach is only suitable for limited research organizations. Since the role of each and every member is poorly defined in the delegated approach, there is a lack of motivation among employees towards their work as well as the organization. As per Brondoni (2018), the employee retention policy is a big failure against the Laissez-Faire approach of leadership. Another major concern with delegated leadership is the inability of member groups to work independently. The member groups become reluctant and they begin to rely on the work accomplished by others due to a lack of proper supervision and guidance.
Based on the Kurt and Lewin model discussed above, it is evident that Industrialization and the workforce are directly proportional. And there needs to be the incorporation of an appropriate leadership model in the organization’s structure in order to execute smooth and efficient business outcomes.
Technological Innovation
Digitalization and implementation of other technological innovations are effective measures towards organizational growth and development among corporate sectors in the contemporary era. Per Paurova and Chlekbikova (2020), it is essential to understand that digitalization cuts the marginal expenses of production and distribution. It also helps to create and transform the digital services and goods provided by the company. With the help of digitalization, business units can incorporate new products, and updated services and increase the production quantity with high quality. For example, innovation of technology in Artificial Intelligence has become prominent in the modern world. Most organizations in the world have developed the tendency to use Artificial Intelligence and have rewarded AI above human intelligence and efforts. According to Galbreath (2019), the Sole reason behind these innovations being accepted globally is the fact that the use of modern tools has eased the work of employees in an organization and while working in a host country, technological innovation has proven to be important because it has brought the internationalization to a different level. Several innovations have been brought into effect since the development of technology and the implementation of digitalization. The contemporary era has been regarded as the digital era due to various factors. As per Joyane et al., (2017), there are several firms such as Sony that have been able to earn almost five times against the sales of their products in the last five years due to digital innovations.
The Data Base Management System is one of the most essential components because an organization needs to ensure the security and safety of the data. Hence the customer data along with the expenses and income are uploaded and operated with the help of a strong database. However, failure to develop a seamless database for staff and other stakeholders can lead to devastating results. In the modern world, digital advancements are extensively essential. As a view of Oyevaar et al., (2016), to incorporate a strong Data Base Management System, an organization needs to develop a mother server and a backup server and make sure that the entire Data could be accessed by employees across the globe with the required amount of restrictions required. According to Karlsson et al., (2018), these implementations can reduce errors in work and can lead to quick completion of the work.
Cloud Computing Measure is also very important to record information and store them in a restricted and secured web space to access information from different locations. For example, there are several franchise-based businesses such as KFC that need these innovations to be implemented. According to Karpenko and Voronzhak (2018), KFC is based in multiple locations so the leaders need to visit the places and collect data individually, store them and then operate with the information in order to extend the business procedure and enhance the operation.
Implementations of modern and technical equipment are also essential along with the use of mass communication applications such as E-mail services and vigilance through telephone calls and CCTV data. View to Kebir et al., (2017), it is evident that without the incorporation of modern IT services in the central base management system organizations can’t enhance their business and the quality of work. Furthermore, the core data analysis mechanism can also be enhanced with the use of Artificial Intelligence and updated tools in the digital era.
Sustainability
As per Nikolova et al., (2017), sustainability can be defined as the requirement to fulfil the necessities of the present without compromising the requirements of future generations. It has been evident that the sustainability of an organization is difficult to achieve because there are three steps to attain complete sustainability and meeting all the expectations can be difficult for a new company while doing business in a host country.
Triple Bottom Line Approach
The three major pillars of sustainability are Environmental Sustainability, Social Sustainability and Economic sustainability.
Environmental Sustainability
It has become one of the most important objectives for organizations in the modern world. In the contemporary era, majority of the organizations have aimed at reducing their carbon footprints and emphasized quality packaging products in order to reduce the amount of pollution that companies used to do previously. According to Kimatu (2016), environmental sustainability is difficult to achieve for a new and emerging business in a host country because it would require a lot of investment to compete in the environmental sustainability process however most organizations have developed ideas and incorporated mechanisms to reduce pollution in the world.
Social Sustainability
It is another factor that plays an important role as it involves participation in charity services. It has been observed that the majority of the organizations in the modern world have engaged themselves in some kind of charity either in the home country or the host country. As per Marotta et al., (2017), charity services may include fundraising, scholarship programs and sponsorship etc. Social sustainability is also done majorly for the most essential stakeholder i.e. the employees of an organization. The employees can be given better paternity or maternity benefits, learning opportunities and social functions arranged by the organization, which can enhance the interest of employees and community members towards the organization.
Economic sustainability
It is the third pillar of sustainability and plays a major role in the development of an organization. Economic sustainability is easy to achieve because it is directly related to the business and profitability of the organization. According to McIntosh (2017), it has been observed that economic sustainability is the only mode of sustainability that holds the interest of organizational leaders to continue their business in a host country. Therefore it is also termed that an organization’s economy can be positive if the governance is good.
Therefore, it is evident that Internationalization, Technological innovation and Sustainability are the three essential components that an organization must incorporate in the contemporary to excel in their production quality ethically and enhance profitability. As per Menary et al., (2019), the issues and challenges that have been identified in this evaluation need to be discussed further and resolved with effective remedies.
Recommendation and Implementation
Based on the above analysis, some essential components have been identified and these components drive the growth and development of an organization.
While discussing internationalization, it has been observed that this process has become too essential for companies in the contemporary era for attaining sustainability, growth and profitability. With the help of globalization, companies have gained the opportunity to reach out to a large group of the population and distribute or re-distribute their products and services. Some factors are also required to be adhered to while continuing business in a host country i.e. global workforce. The Kurt Lewis model for leadership gives an explicit idea about how companies should perform in the global market and the ideology of the model itself is essential to understand the significance of the global workforce while continuing business in a host nation.
The Democratic Leadership model is found to be the most important approach for leadership implementation while commuting business in the world. The democratic leadership model not only enhances the interest of staff towards the organization but also helps in the development of staff roles. For example, if a U.S.-based company decides to continue its business in a global platform and enters the U.K. then the democratic approach of leadership would be helpful because the employees would feel motivated by the nature of the business approach. Since the decision and thoughts of employees are allowed to be presented so employees feel their decision to be valuable. On the other hand, the leader has the power to regulate the ideas and make the best decision that could be beneficial for the organization. Hence a democratic approach is a very common form of leadership approach that most organizations have implemented in the modern world. This form of approach is centralized and it helps organizations to dominate over employees but in an ethical manner. Furthermore, all employees feel motivated because they are groomed for the next level and better career opportunities against their performance record. In this form of leadership approach organizations have undergone tremendous development.
The twenty-first century is also known as the digital age because of the use of modern and technically advanced equipment and processes. Human efforts have been made easier with the introduction of new technologies in an evolving market. Internationalism is related directly to technological development because the use of digitalization has become evident. Several applications and processes that are used by organizations to communicate such as E-mails, V-net, Intercom and other devices and applications have made the mode of communication easier and more secure. Data security has become a primary concern for organizations in the modern world because any leakage in data could result in huge losses for organizations.
In order to reduce challenges associated with data security, several applications are used by organizations to load and secure data in an encrypted format. Cloud computing, central database, and remote servers are some of the examples that most companies have been using and these applications have proven to be a very essential part of communication systems. Furthermore, the devices used in the modern world have great potential. The majority of the companies in the production sector have been using robot-based machines to produce good quality goods. The robot-based devices can work faster and with minimal chances of error.
Artificial Intelligence (A.I.) has become an essential mode of work in the I.T. sector as well as the communication sector. People no longer wait in queues for their work to be done; the majority of work is done with the help of modern applications and devices. The importance of technology has been identified as the most important factor that can drive the profitability of an organization. Without the use of modern and technologically advanced applications, an organization would not be able to reach its maximum potential. Hence companies in the digital age must use most of the innovations. For example, a medical service-providing company must use applications such as DBMS to store data; furthermore, the data needs to be shared among employees with the help of a shared database in order to operate as a central base communication and storage system.
Sustainability on the other hand is also equally important for an organization. Sustainability is a factor that is not only important for organizations doing business in home countries but also for those who do business in host countries. As per the discussion, there are three pillars of sustainability and all of them are equally essential. The three pillars are social environmental and economic.
The social factor is very important because there is a direct engagement between employees and employers. There are several benefits that organizations provide their employees apart from their basic parole. These benefits include transportation services, maternity services, paternity services, Healthcare coverage, etc. Hence it is very important because the more benefits more the work satisfaction would be among employees. Furthermore, the government also provides tax relaxation against several social programs. Business companies have immense interest in these perks from the government because they enhance the moral values of the organizations.
Environmental factor on the other hand is also an essential part of sustainability because the environmental factor is checked thoroughly in the modern era before a company could get a permit to do business in a developed economy. The environmental factor mainly emphasizes the reduction of carbon footprints. The majority of the organizations doing business globally, have incorporated these measures and also deliver messages to their employees to reduce the amount of pollution with the help of different programs. For example, PepsiCo while doing business in Asian countries has implemented modern measures due to which the production units emit less pollution compared to that in the past. The use of environmentally friendly measures not only helps the community where a company does business but also helps the company to get available resources in order to enhance production.
The economical factor is solely dependent on the organization’s profitability. An organization can only continue its business in a host country or home country if there is profitability. Therefore economic sustainability is directly proportional to the profit an organization makes. Furthermore, economic sustainability can be measured by the cost involved in the production of goods and the cost earned after selling the products along with services. In order to exist in an emerging global market, it is essential that organizational leaders emphasize economic stability first and then other factors.
Sustainability also depends on several corporate social responsibilities that organizations emphasize in the modern world. Corporate Social Responsibility includes active participation in learning programs, outreach events to help underprivileged children, cleaning respective places, sponsoring charity events, etc. C.S.R. also involves several other good practices and these practices help organizations to maintain an ethical environment. The political system also helps organizations against CSR activities by giving business relaxation. Hence CSR is an essential change agent for companies doing business globally.
Conclusion and Reflection
With correspondence to the above-presented analysis, I can conclude that internationalization, technological innovations, and sustainability are the three major components that have the potential to enhance business. The evaluation and implementation of the research paper have highlighted some essential factors that organizations should implement before conducting business in the home country or a host country. The Kurt Lewin model has explicitly defined the role of internationalization and its challenges along with outcomes that can reduce the challenges while conducting business with foreign nations. An organization’s business development and stability not only depend on the capital and number of shares but also revolve around the major stakeholders. In this case, the major stakeholder identified is the global workforce. In order to reduce the challenges experienced by the global workforce, a democratic leadership approach has been recommended because this would enhance the potential of the employees by developing interest in the organization and work. Secondly, there are some issues identified while incorporating technological innovations. Digitalization is very essential and its incorporation is one of the most important factors. The issues encountered while implementing digitalization are the appropriate platform and an efficient application that could be measured and updated with time for optimum data security. I also can suggest that a smooth work platform is also an essential component. Without these implementations, I think the survival of an organization in the global market would be challenging.
Finally, the issues discussed with sustainability are also essential to be measured. Sustainability includes a wide variety of resources. These resources are not only limited to social or environmental factors but also economic factors. An organization needs to enhance all three pillars of sustainability pillar in order to overcome the challenges associated with the smooth execution of business. The development of a floor plan in a host country is based on its socio-economic and political factors. Hence the operating models can be very useful. This working model is significant for autonomous and non-autonomous business firms. The staff engagement strategies are proficient in reducing staff turnover and improving efficiency and competence. These models help transparency in the workforce and a clear and thorough protocol can enhance the quality of products and services offered and could also enhance the employee retention issues that organizations experience in the contemporary era.
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