Impact of Macro Environment on Debenhams and Leadership Style

Context of
Business

Table of Content
INTRODUCTION.................................................................................................................3
MAIN BODY.........................................................................................................................3
1) Discuss the impact of macro environment had on the current situation......................................3
2) Research on Debenhams leadership style and its relevance to their current situation.................5
3) Discuss any one motivation theory that you would suggest that would help motivate their
employees in this situation.............................................................................................................7
4) What could be your recommendations as an improvement (the proposed leadership styles,
management practices and the various strategies that can be undertaken by this firm based on
research done) to your company.....................................................................................................9
5) The second part of the project will involve writing a reflection report on your experience in
writing this report.........................................................................................................................11
CONCLUSION....................................................................................................................11
REFERENCES....................................................................................................................12

INTRODUCTION
Business is defined as the activity of making money through buying and selling of
products and services (Bargiela-Chiappini, Nickerson and Planken, 2013). The person who
runs business is called businessman. The failure or success of enterprise depends upon way
they run and operate their activities and operation at marketplace. It is very important for
business to analyse need and demand of market and consumers and produce accordingly in
an effective and efficient manner. The given assignment is based on case study of
Debenhams which was established in 1778. It is British multinational retail organisation
which operates department stores and deals in variety of products such as household items,
clothing, furniture and so on. The main aim of report is to discuss about impact of macro
environment which had on current situation of business and their management leadership
style. It also covers motivation theory to motive employees and recommendations for
improvement are discussed. The personal reflection has written to share own experience.
MAIN BODY
1) Discuss the impact of macro environment had on the current situation
Macro environment is defined as condition which exists in business that has impact
on external factors of surrounding. In order to run business at marketplace, it is very
important to analyze each and every external component so that positive outcome can be
achieved. The business environment is dynamic which keeps on changing. Debenhams has
impacted through macro environment which is described with help of PESTLE analysis.
They are:
PESTLE Analysis
It is defined as framework which helps in analysing and monitoring external factors
that influence business from outside (Bell, Bryman and Harley, 2018). They are described
in context of Debenhams are:
Political Factors- This factor includes interest rate, political condition, income tax
and so on. Due to change in political condition, Debenhams has faced issued which leads to
decline in sales and profits. According to the case study given, in 2006 stock market price
was decline that leads to dropped value by 95%. The share price decline from £2 to 11.5p.
Sudden change in share price leads to loss to respective business.

Economic Factors- These are the pertain economy of country like foreign
exchange, interest rate, current stage of economic cycle, gross domestic products, and so on
(Berger and et. al., 2015). The change in these factors leads to impact on demand, business
climate and loss to business. The share price of Debenhams has decline that leads to impact
on economic as well as demand of people. With decline in prices, the consumer has
lowered their need and demand for buying of product and service.
Social Factors- This includes age, income level of people, demography, values and
others. It is the most important factor which should be considered by each and every
organisation running their business at marketplace. Debenhams is large retail store in
United Kingdom which has captured many market and expanded in business. As need and
demand of consumer changes with change in time and trends. The respective organisation
does not focus on new fashion trends and busy in expanding their business to other places
that leads to fail to business and reduced brand image.
Technological Factors- These factors includes innovation, technical, research and
development. Debenhams believe in outdated fashion trends and does not focus on adopting
new and current technology for business which leads to decline in sales and profits. The
rise in latest and updated technology has greatly impact Debenhams and their profits.
Though respective organisation has used online mode for selling their products but relying
on old and outdated fashion trends.
Legal Factors- There are many legal factors which includes health, safety, labour
law, equal wages and many more. It is very important for business to run their operation
ethically and legally so that goal and objectives can be attained. This factor has impacted
Debenhams in positive way as it believes in following values, belief, norms. It has caring,
enabling, daring, encouraging nature for their employees and management provide full
support in case of challenging work. Therefore, it follows all legal laws which are required
for business and their employees in appropriate manner.
Environmental Factors- It means to protect environment in an effective and
efficient manner in terms of pollution, global warming and others (Bucchiarone and et. al.,
2012). Debenhams is retail and departmental business which does not produce harmful
gases and pollution to environment. As it follows all environmental laws and regulations
that are required to carry business in positive manner.