The Critical Issues Related to Business and Management Context

Question: Discuss about the Critical Issues Related to Business and Management Context. Answer: Introduction: It is identified that business environment of all industries have become dynamics as the market demands and needs are rapidly changing. Gone are the days when the organizations rely on their long-term strategies for controlling the operation. However, in the recent days, the due to the dynamics scenario of the market, the organizations have observed the rush of developing their marketing strategies on a regular basis (Weske, 2012). It is also found that many organizations have rely on the long-term strategies to deal with the business challenges both internal and external environment. In order to resolve the external issues, the organizations are seen to be conducting the external analysis considering different aspect such as market demand, dynamics of market, economy, suppliers and others. The major purpose of the report is to gain intensive understanding of the contextual factors to the business that influences organizational operation as well as its decision-making. The following report provides a critical discussion of the contemporary management and business issues. The issues are evaluated with the relevant theories and models. Based on the type of issues assessed appropriate solutions have been provided so that organizations can able to achieve sustainable growth in the global market. Discussion: Organizational structure: As put forward by Myers (2013), the traditional organizational structure often becomes a pyramid, where the chief executive of the company sits on the top. Hence, the CEO of the company delegates some of the authority to immediate the subordinates who have in turn many layers of managers and seniors reporting to them. It is identified that this sort of structure effectively works when the challenges are working level are easily predictable. However, this practice could be inflexible when a working level of staff encounters the situation, which is not expected. The organizational members at the lower level of management have to wait for the instruction, as they do not have the authority to make decisions. On the other site Rosemann and vom Brocke (2015) commented that a contemporary structure could empower working-level of employee as well as reduce centralized control. In addition, the contemporary structure consider all organizational level responsible for their own decisions that c an have massive impact on the overall business performance. Environmental forces: Proper assessment of environmental forces is essential to achieve sustainable growth in the market. It has been assessed that both internal and external environmental factors can actually affect the way businesses has been conducted in the global market. For instance, different rules and regulations in different countries can actually create massive impact on the overall business performances (Dumas et al., 2013). It has been assessed that legislative obligations like trade restriction, tax and subsidies has affected the overall business level of the organizations. On the other hand, political environment like setting up minimum wages for the employees has induced organizations to invest more on the operational procedure. Risk Confronting the firm: Globalize business environment has induced organizations to deal with several risk factors in achieving sustainable growth in the market. Firstly, increasing competition level is among the prime risk factors that induce management to focus on innovative business procedure. It has induced organizations to invest more on the marketing and promotional activities (Jansen, Brinkkemper Finkelstein, 2013). Secondly, cultural differences among the global customers also have come up with major challenges for the organizations to conduct business in an effective manner. For that reason, every organizations have tried to focus on remain unbiased so that all the members of the community can able to purchase the products. Moreover, improper selection of suppliers can also create massive risks associated with the business procedure. In addition, changes in the lawsuits can actually increases the risk level associated with the overall business procedure. Governance and legal requirement: Maintenance of governance and legal requirements has become essential for the organizations to avoid any type of unnecessary challenges. It has been assessed that high performance work practices can have major impact on the overall environment of the businesses. Therefore, it has allowed organizations to increase the employee engagement in a superior way. High performance work practices have helped organizations to deal with different complex business challenges comprehensively (Van Der Aalst, 2013). For that reason, it can actually help to enhance the present financial performance of the organization. Moreover, organizations also have to focus on effective utilization of formal and informal benchmarking practices for handling all the business related challenges in an appropriate manner. Positive work and business practice: Business practices reflect the essential behaviors and systems within an organization that drives businesses to look for greater performance. Now, it has been assessed that several factors like workplace environment, employee engagement, motivation, satisfaction, power, information and knowledge can have major impact on the overall business practices of the organization (Poulis, Poulis Plakoyiannaki, 2013). For that reason, management has to ensure that all the factors are at the optimum level to create desired impact on the market. Thus, management will have to share the vision and mission of the organizations elaborately in order to provide a clear idea to the employees regarding their future. It can actually induce employees to give their best for fulfillment of the organizational responsibilities. Organizational functions: According to Loorbach and Wijsman (2013), businesses are comprised with different level of functions including marketing, operations, human resource and finance. It has been assessed that all the mentioned functions are extremely close related with each other. For that reason, ineffective performance of one department can actually damages the overall performance level of the organization. As per the article by Chang (2016), organizational functions can be divided into two broad categories internal functions and external function. The global presence of the organizations has induced increased the complexity of the functions as well. The above figure has highlighted the fact that both internal and external factors are correlated with each other. It includes all the activities that organizations have to perform to create desired impact on the business performance (Woodcock, 2016). Thus, it induces management to assess all the activities to identify and eliminate any possibility of chall enges in the business procedure. Possible solutions to the critical issues: Now, in order to handle the above mentioned challenges related to the business context, management will have to play a key role in fulfilling all the responsibilities in an effective manner. For instance, management will have to assess the best possible structure for the organization to perform all the activities at the desired level. Rafols et al. (2012) have mentioned the fact that there is no specific structure for all the organizations, it depends on the kind of activities and functions required to perform for fulfilling all the business activities. Thus, management will have to assess the best possible way to perform all the activities at the time of developing structure. In case of environmental forces, management will have to focus on assessing political, economic, social and legal factors in an appropriate manner. It will help organization to identify the risk factors in an effective way. As a result, it will help management to develop effective counter strategies for the ful fillment of the business objectives. Thus, it will eventually create positive impact on the overall profit level of the organizations. On the other hand, utilization of all the internal factors at the optimum level is among the prime responsibilities of the managers. For that reason, it will have to focus on motivating employees to give their best at the workplace. Management will also have to assess the performance level of the employees constantly to recognize best talents. Rglinger, Pppelbu and Becker (2012) have mentioned the fact that internal and external functions also have to be performed at the desired level for avoiding any challenges associated with the business practices. Hence, management will have to focus on specifying the roles and responsibilities of each employee for avoiding any confusion at the workplace. Therefore, it is likely to create positive impact on the overall business performance of the organizations. Management also have to assess the correlation between internal and external functions for completing all the responsibilities in an effective way. Conclusion: The above illustration has emphasized the fact that management has to play significant role in handling all the challenges associated with the business context in an appropriate manner. The report has highlighted the fact that effective utilization of management strategies and policies can actually allow organizations to counter all the challenges associated with the business procedure in an effective way. However, in order to maximize the positive impact on the business context, organizations will have to assess all the functions and procedures in a comprehensive manner. Otherwise, it might not able to counter all the business related challenges at the optimum order. The study also has mentioned the fact that the managers cannot control impact of external factors of businesses but it can certainly minimize the adverse impact through the innovative strategies and policies. 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