Contemporary Issues in

Strategic Management
UNIT 8: LECTURE 17 KEY CONTEMPORARY ISSUES IN STRATEGIC
MANAGEMENT
Lesson Structure
8.1 Lesson Objectives
8.2 Introduction
8.3 Concept of Contemporary Issues
8.4 Contemporary issues in Strategic Management
8.5 Implications of Contemporary issues on strategic management practices.
8.6 Conclusions
8.7 Model Questions
Lesson Objectives
At the end of the lesson, you should be able to:
 Discuss how globalisation has shaped and continues to influence contemporary
issues, including cultural, economic, and political implications.
 Evaluate the causes and consequences of contemporary issues and explore
potential solutions.
 Discuss how emerging technologies influence contemporary issues and how
they impact societies.
 Analyse the role of culture, identity, and social dynamics in contemporary
issues
 Examine contemporary environmental issues, such as climate change,
resource depletion, and biodiversity loss, and their global consequences. .
Introduction
Contemporary issues refers to current, relevant, and often complex topics,
challenges, or situations that are of particular significance and interest at a given
point in time. These issues are typically characterised by their relevance to
contemporary society and the impact they have on various human endeavours.
The term contemporary implies that these issues are occurring in the present or
recent past and are of ongoing concerns that affect individuals, communities,
and societies.
Contemporary issues in strategic management are continually evolving as the
business landscape changes.
Contemporary Issues
Some key contemporary issues in strategic management include:
 Digital Transformation
 Sustainability and ESG
 Globalisation and Geopolitical Uncertainty
 Supply chain resilience
 Artificial Intelligence and Automation
 Ethical Leadership and Corporate Culture
 Competitive Landscape
 Data privacy and Cybersecurity
 Regulatory and Legal Challenges
 Disruption and Innovation
 Talent Management.
Digital Transformation
Digital transformation is a comprehensive process that involves the integration of
digital technologies into various aspects of an organisation’s operations, strategies, and
culture. It is a strategic approach focused on enhancing efficiency, improving customer
experiences, and adapting to the rapidly evolving digital landscape. Digital
transformation is about adopting new technology and encompassing material changes
in how businesses and organisations operate and deliver value in the digital age.
Some key components of digital transformation include:
• Automation – workflow automation
• Customer – centricity/Citizen-centricity – User friendly digital interfaces
• Technology integration – data analytics, AI, streamline processes
• Cultural Shift – Employees need to embrace technological skills
• Data Utilisation - For data driven decision- making.
Strategic Implications of Digital
Transformation
Digital transformation has significant strategic implications for business. Organisations
do well to have clear digital strategies, investing in the right technologies, and
monitoring the landscape for emerging opportunities and threats. Successful digital
transformation requires a proactive and agile approach to remain relevant.
Some of the positive strategic implications of digital transformation include:
 Competitive Advantage: Digital technologies can result in competitive advantage
through innovation and differentiation
 Customer- Centricity: Enhances convenient online interactions
 New Revenue Streams: For example online markets, and E-Campuses
 Operational Efficiency: Cost optimisation, improved profitability
 Data-Driven Decision- Making: More informed, access to data and advanced
analytics leading to better understanding of customers and market trends.
Strategic Implications of Digital
Transformation (Cont’d)
 Global Expansion: Easier to expand globally, easier adaptation to local
preferences and regulations.
 Supply chain Optimisation: Reduced lead times, lower costs, and better
inventory management through digital tools and technologies.
 Employee Productivity and Satisfaction: Improved productivity, job
satisfaction, and higher retention rates.
 Cultural Change: Fosters a culture of innovation and adaptability
 Agility and Adaptability: Organisation become more agile and adaptable.
 Ecosystem Collaboration: Collaborating with external partiners, suppliers, and
technology providers helps organisations leverages digital ecosystems for
mutual benefits.
Sustainability and ESG for Business
Sustainability revolves around the responsible management of resources and systems to
meet the needs of the present generation without compromising the ability of future
generations to meet their own needs. Sustainability encompasses three primary
dimensions namely, economic, social, and environmental sustainability.
 Environmental Sustainability: The focus is on preserving natural resources, reducing
pollution, and minimising environmental degradation. It includes the drive to combat
climate change, protect biodiversity, and promote responsible resource management.
 Social Sustainability: This involves promoting social equity, inclusivity, and addressing
issues such as poverty, access to healthcare, education, and quality of life.
 Economic Sustainability: Maintaining a stable and thriving economy while ensuring
that the resources are used efficiently and equitably. Mnaging finances, reducing
waste, and addressing income inequality.
Sustainability and ESG for Business
(Cont’d)
 Cultural Sustainability: This is about preserving cultural heritage, traditions, and
identities while promoting cultural diversity and heritage.
 Institutional Sustainability: This aspect focuses on creating policies, governance
structures, and institutions that promote and enforce sustainable practices.
ESG (Environmental, Social, and Governance): ESG is a framework used to assess and
evaluate the non-financial aspects of a company’s operations. Performance, and impact.
It provides insights into a company’s sustainability and ethical practices to financial
analysts and potential investors.
 Environmental: This assesses adherence to environmental regulations
 Social: This assesses the relationships with stakeholders, for example employees,
customers, communities etc
 Governance: Evaluates the internal practices and policies for sustainability.
Companies with strong ESG practices are seen as better long-term investments.
Key Contemporary Issues in
Sustainability and ESG
Contemporary issues in sustainability and ESG include the following:
1. Climate Change Mitigation: Addressing climate change is a top global priority.
2. Biodiversity and Ecosystem Services: Reducing impact on biodiversity and
ecosystems
3. Circular Economy: Encouraging a circular economy approach
4. Supply Chain Responsibility: Emphasis on ethical and sustainable supply chains.
5. Social Equity and Inclusion: Promoting equal opportunities, pay equity, inclusive
work environments
6. Human Rights: Respect for human rights such as employee safety, fair labour
practices, avoiding modern slavery
7. Data Privacy and Cybersecurity: Protecting customer data, preventing data
breaches etc.
Key Contemporary Issues in
Sustainability and ESG
1. Water Stewardship: Managing water resources responsibly and developing
strategies for efficient use and pollution prevention.
2. Stakeholder Engagement: Companies are being compelled to engage with
stakeholders for understanding their expectations and addressing concerns
related to sustainability and ESG issues.
3. Greenwashing and Transparency: Companies are being increasingly
scrutinised for greenwashing. This involves exaggerating or misrepresenting
their sustainability efforts. Transparency in reporting and verification of ESG
claims has become a critical dimension.
4. Regulatory Changes: Companies are expected to keep abreast with changes
in sustainability and ESG to ensure compliance.
Key Contemporary Geopolitical Issues
Geopolitics refers to how national governments carry out political, economic, and
financial activities and how they interact with one another.
Business operate in a world shaped by political dynamics which can create opportunities
and challenges.
Some of the key contemporary geopolitical issues facing businesses include:
 Trade Tensions and Tariffs: Trade disputes and tariff wars between major economies
can disrupt global supply chains, increase costs, and impact trade dependent
industries. For example, COMESA, SADC common tariffs
 Geopolitical Instability: Political instability can disrupt business operations. For
example, conflicts in the middle East, parts of Asia, parts of Africa. The breakup of
some geopolitical alliances and partnerships such as Brexit, BRICS can impact trade.
 Cybersecurity and Espionage: State –sponsored cyberattacks and industrial
espionage pose a threat to businesses.
Key Contemporary Geopolitical Issues
(Cont’d)
 Immigration Policies: Changes in immigration policies can affect mobility of .
Labour and skills.
 Intellectual Property Protection: Protecting intellectual property (IP) has
become a major concern in an interconnected world. The unique features of
IP laws in different countries creates enforcement challenges.
 Global Supply Chain Vulnerabilities: Trade tensions, geopolitical issues
expose vulnerabilities in the global supply chains, leading to businesses to
consider diversification and resilience strategies.
Contemporary Challenges in E-
Commerce
The e-commerce landscape is constantly changing and businesses in this sector must
adapt to new challenges to remain competitive.
Some of the challenges include:
 Supply chain disruptions
 Logistics and fulfilment
 Last- mile delivery
 Data-privacy and security
 Regulatory compliance
 Payment fraud
 Cross border commerce
 Stiff Competition
Ethical Business Challenges
Ethical business challenges are among the contemporary issues in
strategic management. Ethical concerns have become increasingly
important for organisations due to changing societal expectations,
increased transparency, and potential impact on reputation and long-
term sustainability. Addressing ethical challenges is not only a matter
of ethical responsibility but also a strategic necessity
Key ethical challenges include:
 Ethical leadership
 Ethical decision-making
 Reputation management
Ethical Business Challenges (Cont’d)
 Corporate governance
 Transparency and fair trade
 Ethical supply chains
 Corporate social responsibility
 Data privacy and security
 Diversity and inclusion
CONCLUSION

Contemporary issues refers to issues that are currently affecting people or places that are
unresolved. Approaches to addressing global and regional issues reflect historical
influences and multiple perspectives.
Managers and leaders face a new set of problems and issues while making their decisions
in this era. Unlike their early 2010s counterparts, todays leadership faces issues such as
innovation, corporate governance, corporate social responsibility, globalisation, health,
sustainability etc. which have emerged which have significant impact over the strategic
decisions of an organisation.
Today’s leaders can address these challenges by developing leadership qualities like
problem-solving, critical thinking skills and communication skills.
Leaders need to navigate issues to ensure employees can perform at the highest possible
level with minimal disruptions. This requires quality, ethical, and data-driven decisions at
all times.
THINK & SHARE……
CONCLUSION