• Internal Code :
  • Subject Code : BUS1DIB
  • University : Laureate International Universities
  • Subject Name : Management Perspectives

Challenges faced by managers


With globalisation and the subsequent advancement of the technology, the business environment is becoming more and more complex. There has been a change in the dynamics of the business environment along with the change in organisational behaviour and the politics. This has required various companies dealing in the competitive business environment to evolve and become more challenging. The business environment has thus become more dynamic and has created some of key challenges for the organisations to deal with the various issues. There has been a rise in the constraints that such organisations face (Nikolova et al., 2017). The leaders and emerging managers in such organisation encounter difficult situations on a regular basis where they face issues in the development of strategies that can be helpful in leveraging the advantages and at the same time in overcoming the barriers and constraints that such firms face.

In this respect, such organisations require effective strategies that are able to cater the needs and expectations of each of the stakeholder at all times (Beck et al., 2016). The aim of the assignment is to critically analyse the role as performed by managers in dealing with the various challenges that they face in the complex business environment. The following paragraphs will consider the case of a company named as Alfresco Emporium where the assignment will discuss the role of managers and the challenges that the manager face in the company. Along with this the assignment will also discuss the impact of value, diversity and ethics in the culture for the company. 

Background of the company

Alfresco Emporium is one of the leading companies located in Australia that offers some of the key retail products that includes dining products along with which the company is considered to be one of the supplier of some of the respected brands in the domain of lifestyle. Alfresco Emporium offers products of such brand through their exclusive lines. The company was opined as a gift shop in the initial phase where later it expanded itself to an emporium located in bundall (Alfresco Emporium, 2019) The company has also expanded itself in the other parts of Australia as well including New South Wales. 

Challenges faced by Alfresco Emporium

In the dynamic business environment, each and every company faces some of the key challenges that create complex situations. Some of the key challenges that Alfresco Emporium face in the dynamic business environmental as well as within the internal management is as follows:

  1. Lack of legitimate successors for the business owners-legitimate successors are crucial for every businesses and specially for the business owners who are secured about the future of the company if in case such successors have been identified. In this respect, Alfresco Emporium face a key issues where there is a lack of legitimate successors for the owners of the company. The CEO and the founder Janice Hore along with her husband, director Kevin Hore run the store along their staff members (Alfresco Emporium, 2019a). The couple together perform all the business operations and can be considred as an example of leadership as highlighted by (Domnica, 2012) do not have a legitimate successor who can run the stores in the absence of the two. Therefore, the company face an issues of the lack of legitimate successor. 

  2.  Lack of expert consultant- the company also faces another issues where there is a lack of expert consultancy in the company. The store has not employed or hired a consultant who can advise the Janice Hore and Kevin Hore with advise about the ways in which the stores should be managed or the way in which the store can make use of strategies to secure a competitive place (Alfresco Emporium, 2019b). The store has employed manager, marketing manager along with a store manager but all these people have expertise in their respective field where no one is able to provide the owners with expert consultancy. This can be an issues in the future where with the rise in competition, the company and its managers might face issues in competing with others. 

  3. Communication- communication plays a key role in the transfer of information. Communication issues affect the company with a great impact where it can be both internal communication issues as well as external communication issues. In this respect, Alfresco Emporium face communication issues where the communication strategies of the company are not that effective to cater the end customer. The company makes use of a wide range of communication mediums but these are not exploited effectively (Alfresco Emporium, 2019c). 

  4.  Hierarchy – organisational hierarchy is referred to as the definition of the organisational structure where it provides details about the reporting relationship along with the accountability of a person. Alfresco Emporium lacks in respect to a clear definition about the reporting relationship that exists within the company and the accountability of a person. This at times leads to confusion within the company. 

Roles and functions performed by managers

The managers play a key role in the day to day functions of a company and also in ensuring that the employees are working in right direction to achieve goals, vision and mission of the company. Javani et al., (2017) has highlighted three key skills that are to be possessed in every manager which have been stated by Robert Katz. The skills include technical skills, human skills and the conceptual skills. These skills help in performing key roles and functions. Hatchuel & Segrestin (2019) has highlighted five key managerial functions that includes planning, organising, commanding, coordinating and controlling. The role and functions as played by the manager of Alfresco Emporium is a follows: 

  1. Role of marketing manager- the marketing manager at Alfresco Emporium manages the day to day marketing operations of the company where the manager is also responsible for maintaining the annual catalogue. The marketing manager at Alfresco Emporium also looks inn to the task of interior decoration ta the emporium due to the past qualification and experience in the field. The marketing manager at Alfresco Emporium also undertakes the key marketing activities while ensuring that these are able to provide the company with positive implications (Alfresco Emporium, 2019a).  

  2. Role of general manager- the general manager at Alfresco Emporium play a crucial role where the manager looks after the layout of each of the store of the Alfresco Emporium. In addition to this, the general manager is also responsible for providing the store and its employees with creative direction (Alfresco Emporium, 2019c). At the same time, the general manager also ensures that Alfresco Emporium as a brand develops continuously and is able to the embracement of the customers at all times. 

  3. Role of manager- the manager at Alfresco Emporium also plays a significant role in the development and growth of the store. The manager at Alfresco Emporium interacts with the customers and this has helped the stores in developing strong relationship with its customer and added to their life time value. In addition to this, the general manager of the store is also responsible for ensuring that the customers are provided with best experience that adds to the value of the store as a whole (Alfresco Emporium, 2019b). The sales staff at the Alfresco Emporium is also responsible for the training of the staff members. In addition to this, the manager also undertakes inventory and ordering. 

Role of ethics and ethical practice

Ethics is defined as the moral principles that governs the actions and behaviour of an individual. Ethics are both important for a person as well as organisation where it ensure that the actions are do not hurt a person physically or impact the emotions as well (Crane et al., 2019). Ethics plays a crucial role in the functioning of a business where it provides the company with some of the key benefits. Ethics paly a significant role in Alfresco Emporium. The use of ethical behaviour and conduct helps the company in attracting further retaining more and more customers.

In addition to this, ethics has also enabled Alfresco Emporium in reducing the employee turnover where the employees working kin the company are highly motivated and have been working in the company for quite some time. In fact, the employees of the company aim at expanding their operations in managing the other stores that are opening in the other parts of Australia (Pearson, 2017). In addition to thus, the ethical behaviour and the application of ethics in Alfresco Emporium has also enabled the business to expand itself to new locations by opening of the stores. This can be linked to the optimum application of the business ethics by the business where it is able to gain positive response from the customers as the customer feel that the company is undertaking ethical business conduct. 

Ethical behaviour by Alfresco Emporium and is employees is depicted by the way in which the customers are treated and where the employees of the company make sure that the customers are provided with the best experience. The ethical behaviour of the employees including the managers helps in building a positive image in the eyes of the customers and the public. The role that ethics and ethical behaviour in Alfresco Emporium is evident form the fact that the emporium has been able to expand itself from mere a gift shop to a well established store that offers some of the high end brands and is located in some of the key destinations in Australia.

The values, ethics and the diversity that exists within the culture of the emporium has positively impacted the performance as well as the behaviour of managers in the store (Trevino & Nelson, 2016). The consideration that the stores and its owners pay towards the aspect of ethics and ethical conduct is evident from the way in which the internal operations are undertaken and customers are provided with the best experience. Managers at all times make sure that the customers are happy and satisfied at the same time and are providing the company with maximum business. Similar impact has been highlighted by (Werhane, 2019) and (Dierksmeierv & Seele, 2018) of ethics on a business. 

Role and legitimacy of management function

The management function in an organisation is vital for the day to day functioning in a company that adds to the performance of the business as a whole. The management functions as undertaken in Alfresco Emporium play a considerable role in the growth and success of its operations. Manager in Alfresco Emporium perform some of the key activities where the manager aims at achieving the goals and objectives of the company and at the same time make sure that the company is undertaking ethical behaviour while dealing with the end customers and other stakeholders. The management functions have therefore helped in the effective allocation of resources along with optimum organisation. Further, the marketing management in Alfresco Emporium has added to success as it has been helpful in attracting new customers for various stores that have been recently opened in the other parts of Australia (Instagram, 2019).

In this respect, the role of the management function is impacted by social and the political environment. The political environment that includes the political philosophy of the government and the consideration that company has towards the trade impacts the operations of management in the company. The political party that operates in Australia favours trade and the expansion of business in the nation which has thus resulted in the support of the managerial functions within the company. The social environment that is influenced by the culture, social status and way in which people prefer to live also impacts the management function. In this respect, the positive attitude towards the luxury items as offered by Alfresco Emporium and impacts the management and its operations. 


From the above discussion and explanation, it can be concluded that with globalisation and the subsequent advancement of the technology, the business environment is becoming more and more complex. There has been a change in the dynamics of the business environment along with the change in organisational behaviour and the politics. The above paragraphs have discussed the challenges faced by Alfresco Emporium along with which the role of ethics and ethical practice has been depicted.  Lastly, the above sections have provided with the role and legitimacy of the management functions. 


Alfresco Emporium. (2019a). About us. Retrieved from https://alfrescoemporium.com.au/pages/about-us 

Alfresco Emporium. (2019b). Blog. Retrieved from https://alfrescoemporium.com.au/blogs/all 

Alfresco Emporium. (2019c). Stores. Retrieved from https://alfrescoemporium.com.au/pages/stores

Beck, R., Franke, J., & König, W. (2016). Globalization and Diffusion of E-Business: Two Sides of the same Medal. Systèmes d'Information et Management, 12(2), 2.

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Dierksmeier, C., & Seele, P. (2018). Cryptocurrencies and business ethics. Journal of Business Ethics, 152(1), 1-14.

Domnica, D. (2012). The role of leadership in identifying the premises of the future organization. Revista Academiei Fortelor Terestre, 17(2), 154-161.

Hatchuel, A., & Segrestin, B. (2019). A century old and still visionary: Fayol's innovative theory of management. European Management Review, 16(2), 399-412.

Instagram. (2019). Alfrescoemporium. Retrieved from https://www.instagram.com/alfrescoemporium/?hl=en 

Javani, A., Abolhallaje, M., Jafari, J., & Hashemi, S. M. E. F. (2017). Essential managerial skills for financial and budgetary management in medical universities: The top managers' perspective. Medical journal of the Islamic Republic of Iran, 31, 90.

Nikolova, L. V., Rodionov, D. G., & Afanasyeva, N. V. (2017). Impact of globalization on innovation project risks estimation. European Research Studies, 20(2), 396.

Pearson, R. (2017). Business ethics as communication ethics: Public relations practice and the idea of dialogue. In Public relations theory (pp. 111-131). London: Routledge.

Trevino, L. K., & Nelson, K. A. (2016). Managing business ethics: Straight talk about how to do it right. John Wiley & Sons. 

Werhane, P. H. (2019). The normative/descriptive distinction in methodologies of business ethics. In Systems Thinking and Moral Imagination (pp. 21-25). Springer, Cham.

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