Context of Business of Debenhams Assignment

Context of Business

Table of Contents
INTRODUCTION ..........................................................................................................................3
Impact of Macro Environment ...................................................................................................3
Debenhams leadership style........................................................................................................4
Motivational Theory ...................................................................................................................6
Recommendations ......................................................................................................................7
Reflection ..................................................................................................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
The functioning and processes of a business is highly dependent upon its external forces
and it is affected by its external environment to a large extent. It is essential for an organisation
to cope with its changing surroundings so that it can function in an appropriate manner. This
report is based upon an enterprise named Debenhams which is an UK based organisation that is
the largest departmental store in United Kingdom (Debenhams, 2019). This business entity is
currently facing issue for surviving in market as its value is dropped by 95%. This report covers
impact of micro environment upon this issue faced by this organisation. It also covers its
leadership style and its relevance to the current situation faced by the enterprise. In this report, a
motivational theory is also provided that would help in providing motivation to workforce so that
they work in more appropriate manner. At the end, reflection and recommendations are also
covered in this project report.
Impact of Macro Environment
Macro environment refers to all the external factors that has affects and implications over
the functioning of a business enterprise. It is mandatory for an organisation to identify these
external factors in order to make necessary changes in its functioning as per accordance. This
organisation is facing problem of decrease in its value which has decreased by 95%. It has taken
place due to various range of factors in which the most vital role is played by macro
environment. In order to identify the impact of external factors upon current situation, this
enterprise can use PESTLE analysis.
PESTLE Analysis- This is defined as a strategic tool which is utilised for analysing the external
forces that can affect the functioning of a business (Riddle, 2019). These factors includes
political, economical, social, technological, legal and environmental. The impact of these factors
upon the current situation faced by a company are stated as follows-
Political- There are various political factors that has impact over Debenhams and its
present situation. The political related to governments relatively approach of arm's length to
Europe and to remain outside of single currency area. For a business enterprise such as

Debenhams which has international operations in other countries, can be seen as a negative
affect with foreign exchange prospect. This is one of the reason of dropping of its value by 95%.
Economical- UK is facing financial crisis since the year 2007, which has generated
problems for retail sectors of United Kingdom. Debenhams is expanding its business to large
extent for which it requires adequate monetary funds that can be generated by economy of a
country. Moreover, this enterprise provides lots of discount and sale to its products by which
customers only purchase its products when there is discount or sale is going on. This is the major
reason why this organisation is facing losses.
Social- Due to rapid changes in customer's tastes and preferences, the sales and brand
image of Debenhams has reduced to a large extent (Nascimento and et. al., 2019). This
organisation has failed to cope with changes in fashion and trends of customers. It is not only
lacking in predicting current fashion trends but also lack to respond to these changes. This is the
reason why this enterprise is lacking behind of its competitors such as John Lewis because of its
lack of focus upon social factors.
Technological- Technology and innovation is increasing in UK to a large extent. An
organisation is required to update its products and services by using latest ideas and innovation
in order to stay in the market. Currently, this enterprise is facing problem of reduction in its sales
and profitability. One of the major factor that is giving arise to this situation is that Debenhams is
not updating its products by using innovation and technology as its competitor John Lewis is
doing. Due to this, it is losing its customers because consumers prefer latest technical products as
compared to traditional ones.
Legal- Due to large number of stores of Debenhams, it is facing financial crisis at global
level. Because of this, it is not able to provide adequate facilities to its staff members which is
generating demotivation among them. In this context, this organisation is largely affected by
labour laws UK, according to which employees must be provided with the better working
facilities.
Environmental- The current situation of Debenhams is also impacted by environmental
factors such as like other companies, it do not produce products that are healthy and safe towards
environment (Tan and Meyer, 2019). Due to increase in environmental friendly customers, this
organisation must produce such products that are beneficial for environment.

Debenhams leadership style
Leadership is determined as a practical skill and research area that encompass the
individuals or organizations ability to supervise and lead to other people, enterprises and teams.
It is a kind of social influence under which an individual is able to enlist its support and aid of
other people in accomplishing a common task. Debenhams treat its employees like a family
member and formulate a caring environment for its workforce. It provides equal opportunity to
its employees and give them equal and fair chance in decision making procedure. The leadership
style which is followed by this enterprise is participative style of leadership which is explained
as follows (A leadership lesson from Debenhams, 2019).
Participative Leadership- This leadership style give fair chances to company's workforce in
participating in its decision making procedure. It helps in inviting employees input on most of
the decisions of a company. In this, workforce is provided necessary information about the issues
faced by company and the majority vote helps in determining the action course which will be
taken up by the organization. Debenhams is using this form of leadership in order to encourage
and motivate its employees to perform in an appropriate manner (Bocken, Boons and
Baldassarre, 2019). There are certain merits which this enterprise is getting by using this style of
leadership. These are-
 It has enhanced the moral of employees by giving them equal chance in taking
participation in decision making procedure. This has also resulted in increase in
employees participation in improving the working conditions when they are given an
opportunity in affecting the policies govern at workplace (Dadzie, Dadzie and Winston,
2019).
 It has also resulted in enhancing the employee retention by getting chances to its
workforce to participate actively for determining company's future success. By allowing
staff members to actively participate in organisation's growth has encouraged them to
stay with the enterprise for a long period of time (Awadid and Nurcan, 2019).
Relevance of participative leadership to current situation
Although this form of leadership has various benefits such as employee retention,
enhancing employee morale and decrease in competition among workforce but at the same time
time it has certain disadvantages which is making this enterprise to face certain loses in its sales
and profitability. This leadership theory adopted by Debenhams is failed to a large extent due to

various reasons. Because of which this enterprise is facing certain issues such as dropped in its
value by 95% due to decrease in quality of its product and brand image (Advantages and
Disadvantages of Participative Managment, 2019). Relevance of this style of leadership upon
current situation faced by an organisation are-
 As Debenhams treat its workers as its family members , due to this, employees of this
organisation has become too friendly and comfortable in its working environment which
has resulted in their lack of concentration upon working and performance. Due to this
their performance is decreasing day by day which has resulted in decreased in
productivity and efficiency of workforce (Xheneti, Karki and Madden, 2019).
 This style of leadership is not always proved to be one stop solution to each problem
arising in a business. Most often, the managers are required to take their own decision
without consulting the advice of their subordinates. For instance, the case in which the
enterprise requires disciplinary action, participative management becomes worthless.
 As Debenhams is giving chance to each of its workers in decision making process, it has
enhanced the number of people who are involved in the same process. This has resulted
in slowing down of this process as feedback and inputs start from every side. It also takes
time in verifying measurement's accuracy that means it will take time for this enterprise
to arrive at a specific decision. As per this case study, one of the major reason why this
enterprise is dropping down its value is that it is not coping with changes in fashion and
trends of customers. The reason behind this is that it is taking too much time in arriving at
a common decision due to high involvement of people in its decision making procedure.
Motivational Theory
Debenhams motivates its employees by making them participate in its decision making
procedure and by giving them equal opportunity in all the functioning and processes of
workforce (Viriyasitavat and Hoonsopon, 2019). This organisation can use Maslow' s Hierarchy
Theory of needs in order to motivate its employees to work in an appropriate manner in the
business and in enhancing their performance. This theory is explained as follows-
Maslow's Hierarchy Theory- This motivational theory includes the five-tier model of
individual needs working in a business enterprise. Needs that are lower down in a hierarchy are
required to satisfy first and than the other needs. This theory is elaborated as follows-

Physiological needs- These are the basic needs which which are necessary for human
survival such as food, shelter, clothing, sleep, and so on. This enterprise must fulfill these basic
requirements of its employees before it moved on to other needs.
Safety needs- It refers to needs that protect individuals from security, elements, law,
order, stability, fear, and so on. Debenhams can motivate its workers by providing them job
safety and security (Abugre and Debrah, 2019).
Love and belongingness needs-The third needs are love needs which involves friendship,
love, trust, intimacy, acceptance of an individual in an working environment. This enterprise can
develop certain employee engagement programs which will motivate its workers to enhance their
performance (Shrivastava and Singh, 2019).
Esteem needs- It is the individual's need for achievement, dignity, independence,
prestige, status, and so on. Debenhams must give recognition and respect to its workers when
they perform well so that they are motivated to perform better.
Self-actualization needs- This needs are fulfillment of self growth and peak experiences.
It is a kind of desire of an employee to attain everything which can be attained. This need of
workers can be achieved if this enterprise will provide them a platform where they can
accomplish their targeted goals and by promoting them when they perform better.
Justification of choosing this theory
The reason why this theory is the best to motivate employees in the current situation
faced by this enterprise is that it works upon feelgood factor. Currently, Debenhams is facing a
situation where its value has been deceased by 95% which is the result of decreased productivity.
One of the reason of decreasing productivity is that employees are demotivated to work, which is
reducing their performance. For this purpose, in order to provide motivation to workers this
theory can be used as it covers all the basic needs which are required by workers to provide them
motivation (Tuan and et. al., 2019).
Recommendations
Debenhams is facing loss in its sales, profitability and overall productivity which are due
to several reasons such as unawareness about current fashion trends, expansion of market and
demotivated employees (Ashrafi and et. al., 2019). There are certain recommendations which can
be made in this context as follows-

 Currently, this enterprise is using participative leadership theory to guide and supervise
its workforce to enhance their overall performance. But this leadership style is failed as it
is resulting in delay in decision making process. Moreover, workers are also doing the
work casually which is deducting their productivity (Yilmaz, Rascher and Ceric, 2019).
For this purpose, this enterprise must change its leadership theory and use autocratic
leadership style. This is characterized by control of managers over decision making and
no participation of workers in this process. This will result in fast decision making and
will enhance the overall productivity of this enterprise.
 Moreover, Debenhams can also indulge in market research which will let this enterprise
know the current fashion and trends prevailing in market. This enterprise should also
keep an eye to its competitors and charge prices of its products as per accordance (Crane
and et. al., 2019).
 Currently, this enterprise is focusing upon market development which is resulting in its
low productivity. This enterprise must focus upon product development instead of market
expansion which will help in attracting large number of customers and will maintain the
company's brand image.
 It can also motivate its employees by giving them reward if they perform in a desired
manner. This will increase the performance of workers as they will be motivated to
accomplish a specific task. This will result in enhancement of overall profitability and
productivity of an enterprise (Wynn and Jones, 2019).
Reflection
While conducting this research, I have been provided an opportunity to learn specific
concepts of marketing, leadership and motivational theories. This research has enhanced my
analytical and communication skills which I can use in future to grab many other opportunities. I
have used primary mode of collecting data while doing research upon certain topics such as
leadership style used by Debenhams, motivation theory that is accurate for this enterprise and the
impact of external forces upon its overall functioning and productivity. I had went through
official website of Debenhams to identify the different range of products it is providing. Other
search materials I have used was newspapers, magazines and world of mouth.
While conduction this research, I have faced certain difficulties such as lack of time and
lack of coordination between me and my team members. Although I have identified this problem

at early stage and in order to eliminate these issues, I has done overtime to implement this
research properly. Moreover, for in order to maintain coordination with my team members, I
indulge me and my team members in various team building activities.
CONCLUSION
From the above report, it has been concluded that in order to stay for a long run in a
market, an organisation must consider certain factors such as external forces, motivational theory
and leadership theory it is utilizing. The impact of social environment is great upon an enterprise,
so, it is important for an enterprise to cope with the changes in tastes and preferences of workers.
It is necessary for an enterprise to choose an adequate leadership style for guiding and
supervising its workforce. An organisation must provide motivation to its workforce by using
Maslow's hierarchy needs which focus upon satisfying all the needs of employees to stay in
market for a long run.

REFERENCES
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Online
A leadership lesson from Debenhams . 2019. [Online]. Available through:
<https://www.hrzone.com/community-voice/blogs/timtaylor/a-leadership-lesson-from-
debenhams-how-to-buck-the-retail-trend>.
Advantages and Disadvantages of Participative Managment . 2019. [Online]. Available
through: <https://www.managementstudyguide.com/participative-management-
advantages-disadvantages.htm>.
Debenhams . 2019. [Online]. Available through: <https://www.debenhams.com/>.