Introduction
The economic order of the world is changing. This significant change will create an impact on both society and corporations. In this contemporary business world, corporations are looking to transform their businesses to integrate with some new trends and gain a competitive advantage in the competitive landscape. In this study, the emphasis is on emerging themes and prominent pillars. The impact of these pillars on the disciple and the broader sector will also be articulated. Of course, the future of the business can be different, and organisations are looking to adopt things or conduct scenario planning to optimise the changes. After navigating possible changes in future business, some key recommendations will be made along with the critical rationale.
Section A: A Critical Evaluation of the Current Impact of Emerging Industry & Market
Pillars of Emerging Themes
· Emerging Changes in Society
Emerging changes in society are quite visible. The role of corporations, especially tech organisations in changing communities are in the limelight. For Instance, people in society have changed the buying behaviour and buying process in the corporate world. Obviously, technology is a crucial factor, which transforms people. Organisations are triggered by modern technology, which has made customer interaction more natural and faster than before. People, on the other hand, intend to use advanced technology to enhance better interaction. Cultural diversity, environmental awareness, and human rights movements have been accelerated through digital and social tools, and it justifies the importance and role of technology in society (Bruce, 2017).
· Emerging Work Environments
The emerging work environment is also visible. It is quite different for a traditional work environment where people just used to sleep all night and work all day. The modern work environment is cognitively complex. Organisations contain the workplace, which is triggered by competent people. Social skills and technological competence have shaped a different work environment, which drives the success of the business. The modern workplace is full of millennials, as they cover the management and leadership positions in corporations, especially in the retail sector. According to estimation, the global workforce will contain 75% of millennials. People or employee force like to work in teams, exist in a democratic culture and emerge in a flexible work environment, and it ensures both retention and efficiency as well (Miller, 2016).
· Emerging Technologies
In the corporate world, modern technology is developing, and it is one of the most significant factors regarding workplace transformation as well. For Instance, in scenario planning, management intends to use advanced technical tools. From retail to manufacturing, corporations have to gain a sustainable competitive advantage. For example, Target is using a mobile app for customers to facilitate the buying behaviour decision. Besides, Wal-Mart is using robotics in the inventory management process to keep things in order. Thus, artificial intelligence and machine learning are emerging technology trends, which can help to make a difference (Meyersohn, 2019).
· Emerging Industries and Markets
New industries and markets are emerging in the contemporary world, and people are responding positively. For Instance, 3D printing, small manufacturing by using the internet of things, Cannabis for consumable markets, battery market, mobile app-based services, influencer agency, personal coaching, and AI healthcare are emerging industries and market. These new industries and markets are creating immense employment opportunities in different regions. These new businesses and the market have been shaped due to increasing demands and responses from customers.
Impact on discipline (Management)
The effect of emerging industries and markets on disciples is positive. As mentioned, corporations are emerging, and millennials are taking over different management positions. Thus, in these new industries, new cognitive, communication, technology, and collaborative skills are required, and millennials are quite capable of it. The impact on the management discipline is positive and constructive because it creates both development and growth opportunities for managers and leaders. The management process, along with its four essential functions, is evolving with time. Traditional ways have been eliminated or replaced by order management techniques, especially in these new industries and markets. The management of the company is emphasising on remote working and employee engagement, which is mandatory in these new industries and markets. Apart from it, it has been revealed that the management process is based on customer-oriented organisations. Emerging industries require the work-life balance, which is to be initiated to retain employees. In the new sector or market, investment in human capital development seems imperative. Moreover, new industries and markets are in the limelight due to the advancements of technophiles. Even the business process is based on the latest technology. Therefore, the management has to conduct a flexible training and development process for people to learn or adopt new skills. In these growing industries, the cognitive ability of the administration is a critical success factor as well. The management has to improve or develop the predictive validity to justify the differentiation and gain a competitive advantage in the new industries and markets (Lee and Lee, 2015).
Impact on the broader sector (Retail)
Technological advancements such as artificial intelligence and competitive advantage are drivers for the competitive edge, and the management is quite aware of it. However, the impact of these new industries and markets in the retail sector is also positive. AI and machine learning have become critical needs of the retail industry to emerge accordingly. These emerging industries and markets have shaped new technology and business trends. These trends are adopted by retail companies such as Wal-Mart, Target, Amazon, and many other traditional and online stores. Examples of technology integration are illustrated above. But, the future of retail, to be run by millennials, is entitled to embrace modern trends. The impact on the broader sector, such as retail, can be observed through global expansion as well. Retail businesses, like new industries, have been expanded due to technological advancements. Higher profit margins, continuous business expansion, and sustainable competitive advantage can be observed in this sector (Pwc.com, 2017).
Now, to grow and evolve in the contemporary era, there is a need to make incredible management and retail combination. Management and leadership skills are to be streamlined to make the retail sector successful and sustainable.
Section B: Relating Theory to Applicable Understanding
Identifying and Critically Discussing Emerging Themes
Emerging changes in society, emerging work environment, and emerging technologies have shaped business processes, especially in the retail sector. Author of the article, Adam Gale, referred to a movie “Minority Report” to justify or optimise these emerging themes in the retail industry. He also referred to Peter Schwartz, who conducted remarkable scenario planning for Shell. Now, he is working in a software company to predict the future of the company. He anticipated the retail sector and provided some key recommendations for companies in different industries. Nevertheless, concerning the theme of the study, the emphasis will be on the management discipline and the retail sector. First, he anticipated the retail industry in the next few decades. By illustrating an example from the target and many other companies, he elaborated the role of technology, working environments, and society. Regarding the work environment, the management of retail chains intends to train and develop employees to adopt new skills and enhance the visibility of better customer interactions. Target, a prominent retail company, has developed a mobile app to improve the user experience. On the other hand, the author also streamlined the future of truck drivers. The management has to change the behaviour and develop several employee skills to optimise possible human skills in logistics or transportation process in the retail sector. Conversely, relative to emerging technology, the retail industry has been aligned with advanced technology such as artificial intelligence and machine learning. Retail chains have adopted different forms of artificial intelligence, such as facial recognition and robotics. It is done to improve internal efficiency, customer experience, and competitive position in the competitive landscape. Also, emerging changes in society can be justified by millennials. The retail industry is driven by millennial customers, as well. People love to use advanced tools to make a purchase. Even differentiation is a vital driver of the customer buying decision and behaviour(Gale, 2018).
· Contemporary Industry Example
Scenario planning seems consequential, and firms can set the foundation for the business in the next few decades. The relevant example can be derived from the retail industry. For example, Amazon, one of the biggest retail companies, used drones to deliver products to customers (Vincent and Gartenberg, 2019). The future of truck drivers is in jeopardy, but skills will be required in the future to manage or maintain these drone deliveries. Another example can be obtained from the contemporary retail sector. For Instance, differentiation has become one of the key business strategies to inspire people and help them to improve their living standards. High quality and differentiated products have changed the behaviour and lifestyle of customers in society. The example of the work environment seems visible in the retail sector. Many companies in this sector, such as Wal-Mart, Amazon, Target, and many others, have created a flexible work environment. The purpose is to retain the best talent in the company and improve social interaction. These three examples regarding the emerging themes depict the glimpse of the retail and management revolution. By looking at the broader picture (Scenario planning), the difference can be made.
Critically Analysing the Implications of the Identified Themes on the Future of Business
Implications of the identified themes on the future of business can be elaborated along with some key insights and justifications. Again, management discipline and the retail sector are key drivers in streamlining these implications.
The work environment is changing in the retail industry. This radical change is driven by technology. Hence, it can be said that the changing working environment and emerging technologies have been combined in the retail sector. In the case of the emerging work environment, trends of doing work are changing. From Brick & Mortar business models, retail chains are transformed into different e-commerce platforms. Now, the retail workforce is more talented, skilful, and capable of managing the retail business. Managing digital platforms, which are triggered by technology, is a big challenge. It has been considered as the future of retail. On the other hand, when it comes to the in-store experience, employees are more versatile. Job enlargement and job rotation are internal trends, which are based on employee training and skill development. Retail management requires variety in the workplace to maintain different dynamics. In the next five to 10 years, technology (emerging technologies) will also transform the retail business. With the changed behaviour of the management in the retail sector, the intention is to drive the business through advanced technology to gain and sustain the competitive advantage in the long run. According to predictions, retail stores will be using biometric technology to improve personalisation. The future of retail and management is based on disruptive innovation, and it is also associated with predictive validity. The management of the retail chain can integrate with the changes which are occurring in society. Depending on the new technology and work environment, retail companies can set new trends in the community, which can create a positive impact on both buying decisions and behaviour(Sen and Ongsakul, 2019).
Challenges and Opportunities
In the scenario planning in the retail sector, challenges and opportunities may emerge. For Instance, it is an excellent opportunity for both management and the retail sector to improve the predictive validity. Based on the managerial cognition, it seems a great chance to transform the internal business process. Changes in the technology, training of employees or restructuring of the business are some key opportunities which can set the foundation for the company in the next 5 to 10 years. The biggest challenge is to handle the resistance in the internal and external business environments. Gaining the population is increasing and it leads to a lack of technological skills. Thus, firms have to maintain the balance between the ageing population and millennials. The growth rate can be steady, which may also reduce the profit margins for a while. However, by looking at the larger picture, retail firms can understand the significance and consequences of the change associated with emerging themes.
Justifiable Recommendations for Courses of Actions
· Training and Development
Navigation of changing working environment has needed new ways to transform the work environment. The most significant recommendation for the retail company is to restructure the work environment to facilitate employees and improve the overall business outcomes. Nevertheless, instead of taking drastic steps, the change should be done steadily. Training and devilment process is the first phase to shape the modern working environment. Due to emerging working and management trends in the retail sector, it seems imperative to develop training programs. Skill development and work flexibility are two essential outcomes, which can be predicted. Apart from the training and development process, some other vital moves should be directed by retail management. For Instance, as far as the modern work environment is concerned, the work-life balance is a critical approach. It is highly recommended due to positive consequences. Work-life balance is an essential trait, which provides a motive for employees to enhance their learning and contribute to the success of the company effectively. An increase in social interaction with immense employee diversity is suggested to make customers loyal and satisfied. By improving the work environment or implementing these recommendations, the relationship between employees and customers can be built. Training and development and work-life balance can improve employee assertiveness regarding customer interaction. Training is a process of developing employees or helping them to prepare to emerge in the modern work era. Work-Life Balance is a crucial management initiative to fulfil the social needs of employees in the current work environment (Gurău, 2012).
· Disruptive Innovation
Challenging the incumbent business by using resources and capabilities is called disruptive innovation. In the retail sector, disruptive innovation is highly recommended. The reason behind the disruptive innovation is the possible integration of contemporary business, work, society, and changing economic order. When it comes to disruptive innovation, technological transformation comes into life. No doubt, technological transformation in the internal business environment is a key to gain success. Though, before this transformation, an organisation, especially in the retail sector, needs its how to work. For Instance, in the disruptive change or innovation process, the most important thing for the company management is to create urgency in the internal business environment. Before changing the current work process and technology, it seems essential to develop the vision and communicate it to all key stakeholders. Interestingly, the management can also use different change models such as Lewis and Kotter change process. The disruptive innovation seems risky and challenging as well. For Instance, when bringing something new into the company, it may need new skills and capabilities. Besides, the implications for the next 5 to five years, or even more, are positive, which may direct the appropriate behaviour of the management. The technological forecast is also required by the company. The retail administration must know what changes are needed in the future, along with the impact on stakeholders, including customers. This strategic recommendation is associated with both emerging work environments and emerging technology themes (Pinto et al., 2017).
· Expansion and Acquisition
Business expansion and acquisition are also recommended. This strategic recommendation is directly associated with business growth, sustainability, and competitive advantage. For Instance, due to changing trends in different societies around the globe, a multinational retail organisation can expand the business operations to adopt new social patterns. With the perspective of the business, it goes in favour of the company because it can increase sales and attract customers. On the other hand, the organisation can become customer-oriented because it may direct the business process from a social perspective. Thus, by improving or increasing social interactions, the firm may emerge strongly in the competitive landscape. Social integration can also be a part of the scenario planning in the retail sectors, and organisations must be up to it.
Conversely, relevant to the changing working environment and emerging technologies, mergers, and acquisitions are some key recommendations or strategic choices for the management. One of the most significant advantages of a merger or acquisition is the availability of multiple platforms to integrate with social changes, work environments, and emerging technologies. If a retail firm collaborates with a technology firm to share the culture, technology, and other resources, overall business outcomes can be increased (Tonkins, 2018).
These strategic recommendations are better for both the management discipline and the retail sector. However, with the passage of time, retail management can integrate with a different set of recommendations. Due to changing trends, some improvisations are needed when implementing these recommendations.
Ensuring Continued Existence and Competitiveness in Business
By implementing these strategic recommendations, business continuity or sustainability and competitive advantage can be guaranteed. For Instance, if a firm adopts a flexible work culture in this contemporary world, it can help to build a strong internal force to improve the business outcomes. Of course, it seems rare or maybe undone by other companies. Thus, a competitive advantage can be ensured.
Similarly, using disruptive innovation can justify differentiation, which may lead to sustainable competitive advantage. Disruptive changes or innovation can help to produce products or services or shape the business process, which has not been experienced before. Therefore, it has been considered as a key to gaining a competitive edge. Continuing existence can be achieved by social integration. The business process and outcome must be generally accepted by societies (Lee and Lee, 2015).
Conclusion
In the end, it is to conclude that emerging themes must be included in the scenario planning process. Instead of focusing on the next 5 to 10 years, the company must look at the next few decades. Experiencing something new, which will emerge in the future, is a critical approach to make the retail business different from others. In this comprehensive analysis, pillars of emerging themes and the future of the management and the retail sector are articulated. Some contemporary industry examples and key strategic recommendations have also been illustrated along with a pertinent rationale. The future of the business should be secured at any cost, and scenario planning is an incredible tool in this regard.
References
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