Debenhams Case Study

This case study analyzes the SWOT and PESTLE analysis of Debenhams, discusses the main challenges faced by the company, and provides solutions using management theories.

Debenhams Case Study

Table of Contents
Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
Discuss SWOT and PESTLE analysis Debenhams.....................................................................1
Discuss the main challenges faced by the company....................................................................4
Various solution of problems with the help of management theories.........................................5
Experience while writing this report............................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
This report is based on the case study of Debenhams which is a multi-national company that
is headquartered in United Kingdom. It deals with wide range of merchandise such as toys,
clothing, furniture and other home essentials and it aims to provide excellent offerings by
rendering fast and efficient services among their customers (Barton and et.al., 2016). They
promote a good sense of culture and strong team spirit which in turn promote the growth and
enhance the productivity across the globe. This report comprises of SWOT as well as PESTLE
analysis that assist the firm in making best decision and ensure efficiency. This report also covers
various challenges that are faced and render various solutions through management theories that
promote proper coordination. At last, this report includes a reflective journey which cover the
overall experience in writing this report.
Discuss SWOT and PESTLE analysis Debenhams
The internal and external analysis is conducted to monitor the overall activities which aids in
accomplishment of a task in a limited period of time. The both analyses are detailed below:
SWOT analysis: This assist the corporation in determining both strength and weaknesses of
a firm by making proper use of opportunities and combatting threats in a marketplace (Bees and
Williams, 2017). This facilitate in proper decision making by ascertaining each and every aspect
in a market and make proper strategy so as to contribute a significant position within a market. In
the context of Debenhams, the same is given beneath:
Strength
 Strong cash flows: The respective firm has great financial performance which
provide assistance to the firm to focus on diversification and modernisation of a
business at a global level.
 Large global presence: The concerned firm is well known brand in UK and focus on
merger and acquisition so as to enjoy greater economy of scale within the market.
 Giant number of stores: Debenhams has wide number of stores in different locations
as it has more than 150 stores in UK, Ireland and Denmark.
Weakness
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 Obsolescence of Technology: There are changes due to globalisation which create a
difficult for the firm to change its technology at a faster rate which hamper the
growth.
 Poor performance in some markets: Debenhams is a giant retailing company which
is spread in different locations so there is chances of failure of some specific market
across the globe as it led to huge losses.
Opportunities
 Advanced technology: The concerned firm uses a sophisticated machinery that
simplify the overall working procedure.
 Use of online platforms: The manager of Debenhams uses various social media sites
such as Facebook, Instagram and Twitter that create a strong promotional campaign
and thus create a brand awareness within retailing sector.
 Wide expansion: The strong finance with the respective firm renders the opportunity
to emphasise on expansion in European territories to gain maximum exposure at an
international level.
Threats
 Emerging competition: There are large number of players of Debenhams such as
John Lewis, Marks and Spencer and Arcadia which affect the performance and
growth within fashion industry.
 Impact of Brexit: The Brexit has adversely affected the operations of a company
which possess a biggest threat for the firm like Debenhams.
 Impact of Corona Virus: The pandemic creates a chaos and minimise the sales
and profitability in case of retailing sector.
PESTLE analysis: This provide the framework to macro environmentalists to scan the
external factors such as political, economic, social, technological, legal and environmental which
provide a way to the firm to beat the competitors present in the market (Berry, Broadbent, Otley,
2016). They also control and evaluate the several activities of an organisation which help in
making proper decision through new and innovative ideas which in turn brings coordination and
success. With reference to Debenhams, the six elements of PESTLE are presented as follows:
Political factor: This includes various elements such as corruption, taxation laws, labour
laws and trade restrictions and many more. UK has great political stability and it consist of
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multiparty system which includes two laws such as labour party and conservative party
(Biesenthal and et.al., 2018). The exit of Britain from European Union that is Brexit has affected
the operations of Debenhams and thus minimise the sales and profit margins within the confines
of retailing industry.
Economic factor: This includes various aspects such as GDP, national income, fiscal and
monetary policies and economic laws. The vote for Brexit creates an unimaginable chaos which
in turn generates a negative consequence on the company. Another major prospect is that
Foreign Direct Investment provide an opportunity to Debenhams to generate multiple sources of
income and thus create a strong position in a marketplace. This ensure the growth of a firm and
provide expansion and diversification in different parts of the country and thus develop a strong
reputed image within the confines of fashion industry.
Social factor: This covers emerging lifestyles, diet conscious and safety emphasises and
many more. UK has a diverse population that put more preference on quality than on price and
are highly standards and are highly educated. The senior authority of Debenhams ensures quality
specifications and fast delivery of services so as to achieve a rivalry edge across the globe.
Technological factor: This cover aspects such as technical awareness, research and
development and many more. UK is most advanced technological country at an international
level. The senior authority of Debenhams uses new and creative technology as it uses highly
sophisticated machines so as to conduct fast operations of a business in an efficient manner.
Legal factor: this cover various elements such as antitrust laws, patent, trademark and
copyright laws and many more. The manager of Debenhams use health and safety laws and
various intellectual rights in order to promote the interest of workers and facilitates smooth
operations of a business. This ensure greater transparency and accountability in a corporation and
allow it follow a proper code of conduct and thus help in attainment of objectives in a
predetermined time (McGrath and Bates, 2017). Therefore, this ensure job satisfaction and aids
in retaining employees for a long period of time.
Environmental factor: This comprises of factors such as climate. Pressure from NGOs,
weather and many more. Government has taken several measures in order to provide protection
towards the environment by making judicious usage of resources. The manager of Debenhams
eliminates the use of plastic bags and adopt the strategy of reduce, reuse and recycle so as to
achieve sustainable development in a long run. They use solar panels and smart lighting system
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which save consumption of electricity and provide a proper ecological balance in the country. As
there is lot of awareness regarding the environmental aspects that assist the firm to ensure
sustainable development in a long run.
Therefore, these analyses are conducted so that firm could take decision which ensure
future growth and success.
Discuss the main challenges faced by the company
The vote for Brexit has created an unimaginable chaos which create a negative influence
on the operations of the company and declines the overall performance in a marketplace, this
also create a major impact on sales and profitability and decline the growth (Debenham and
et.al., 2018). There are several challenges faced by Debenhams. One of the major issues faced by
Debenhams is that there is outdated in fashion and trends and risk of obsolescence due to the
reason of increasing competitors as well as changes in taste and preferences of customers. This
affect the performance and posses a difficult for Debenhams to survive in such a competitive era.
This results in price wars and decline the profit margins within the confines of retailing industry.
The respective firm is not able to maintain traditional brands that does not able to create a proper
brand image within a marketplace. In addition to this, the senior authority of Debenhams should
use innovative and creative ideas so as to take a best decision which develop ensure greater
transparency and accountability in a marketplace. Also, the business environment is regarded as
flexible that promote a continuous change as it involves the manager to conduct proper research
to bring modifications in accordance to modern era.
Secondly, the challenge faced by Debenhams is as it has large number of stores that are
operating in different locations such as Ireland, UK and Denmark as it has vast stores so the
major issue is that the it might result in poor performance in some markets. This could decline in
the growth and affect the sales of a company in case of retailing sector. In relation to this, the
manager of Debenhams should make proper analysis and implement a strategy that help in
attainment of targets.
Third major challenges that is faced by Debenhams is that there is increase in debts and
liabilities that affect the overall operations of the company (Hur, Shannon and Wolf, 2016). The
liabilities create a headache for the firm and create a burden and risk which possess a biggest
threat in case of retailing industry. Also, the increase in rent in case of Debenhams as it incurs
huge cost on such expenditures which in turn affect the overall performance specially in case of
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pandemics like corona virus. This is one of the greatest challenges faced by the company and
result in minimising the revenue and profit margins in case of fashion industry.
The improper hierarchical structure is followed in an organisation which hamper the growth
and decline in coordination and cooperation in a workplace. It also results in minimisation of
number of staff due to the reason of job dissatisfaction and reduces the morale and motivation
within a marketplace. This decline the performance and create adversities in a market. Another
issues that is faced by the firm is negative media coverage as it provides misleading information
that affect the growth and create lack of authentication in a marketplace. This affect the brand
image and create misunderstandings and lack of trust among them which hamper the growth.
Various solution of problems with the help of management theories
Efficient management play an important role in an organisation as it performs various
functions such as planning, organising, directing and monitoring the activities so that it could
help in achievement of business objectives within set time period. In other words, the role of
management is to get the work done from others so that it could ensure proper hierarchy in a
workplace. With reference to Debenhams, the management concepts and solution of challenges
are prescribed below:
Use of advanced technology: The manager of Debenhams would conduct an extensive
research and development in order to identify the latest trends of fashion and nature of
competitors and many more. So, the senior authority emphasises on determining the needs of
customers through surveys, polls and many more which assist the firm in gaining competitive
advantage across the globe. They also use new and innovative technology which boost the
sales and profitability and help in maintaining proper coordination and cooperation in a
workplace.
Proper planning: This is the foremost step of management as the manager of concerned
firm prepare a planning and strategy which help in accomplishment of targets within limited
time period. The manager of respective firm would make an efficient planning which assist
Debenhams to facilitate smooth flow of activities and ensure greater success in future and
therefore provides an enormous growth of a firm in a respective time period.
Optimum utilisation of resources: The manager should make judicious usage of resources
such as manpower, funds, machines and raw material so as to produce a desired level of
output. The senior authority of Debenhams should set standards and measure the
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performance by monitoring the direct the activities which help in attainment of goal within
respective time period.
Proper organising of work: This is most crucial concept of management which involve
that there should be proper balance between authority and responsibility that ensure success and
growth. The manager of Debenhams would organise the work among the subordinates in
accordance to their specialisation which ensure greater efficiency and effectiveness in a
workplace. There should be proper balance between them as it promotes a sense of good culture
and create belongingness as well as team spirit among them. This is only possible when the
manager has excellent communication skills and assign the work in an efficient manner which
promote growth and boost the morale and motivation among them.
Apart from these, the manager of Debenhams should make proper usage of funds in an
appropriate time period in such a way that it generates greater return on investment and also the
firm should ensure it can decide an appropriate course of action by direction and delegation of
authority in order to facilitate smooth operations of a business. It should close the outlets that are
not performing well as well as to promote a good culture in a workplace and develop a spirit and
enthusiasm among them so that they could work with zeal.
Management theories: These are well defined rules and regulations which ensure the
firm to maintain proper code of conduct and coordination in an organisation. The management of
Debenhams uses these theories so as to promote a good culture and proper systematic working
procedure and also it develops discipline as well as coordination. With reference to Debenhams,
the senior authority uses two theories that are detailed below so as to develop proper
effectiveness:
Democratic style: This theory of management involves the participation of employees in
decision making by considering their ideas so as to make them feel satisfied and delighted. The
manager of Debenhams considers the ideas and opinions of staff and also appreciate their efforts
and provide them with compensation benefits as well as incentives which promote the growth
and help in taking best and innovative decisions. The senior authority of respective firm also uses
this style and render an effective solution and thus promote high level of commitment. This build
strong relations of team members and boost the morale and job satisfaction among them. This
promote an excellent culture and shape a bright future of company to the next level.
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Situational style: In this style, the manager would adopt this style to behave differently
in accordance to the prevailing situation in a workplace. This assist the firm to work in a
dynamic environment and help in facilitating proper changes and modifications in a workplace.
The senior authority of Debenhams would consider this theory so that it could promote a positive
atmosphere and a very comfortable environment for the workers which create an awareness
among the leader to provide proper guidance and to built a strong vision. It would promote a
team spirit and through rendering training to them which make them capable of accepting
challenging task and handling additional responsibilities which ensure future success.
Experience while writing this report
It feels an amazing and wonderful experience while writing this report as I have learnt lot of
new things which make a unique and a great learning moment. The manager is a multitask in
nature that perform various operations in an organisation as it has to listen the grievances and
problems of subordinates so that it can make proper decision and also it has been calm and
patience in nature. In addition to this, the manager of Debenhams promotes an excellent culture
in a workplace as it has different style of working with set norms and ethics so as to promote a
favourable image in an efficient manner.
The manager of respective firm uses internal and external analysis to determine the
accessibility of resources which help in sustainable development in a long run. There are various
challenges which are faced by firm so it has the ability to cope up with pressure and to attain task
within limited time period. It provides a new and innovative technology to the firm which
facilitate smooth flow of activities and thus promote the principle of unity of command so as to
avoid confusions and misunderstandings among them. Also, the firm uses management theories
such as democratic and situational in order to generate a positive reputation across the globe. The
leader of Debenhams renders an effective training to them to accelerate their skills and
knowledge base and thus inculcate confidence and determination among them.
CONCLUSION
From the above information, it can be comprehended that changes are necessary in a
workplace so the manager adapt various modifications and must use latest trends in order to
achieve a rivalry edge over a marketplace. It has been analysed that the senior authority should
use management theories and maintain proper systematic working procedure so that it could
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develop proper hierarchy in a corporation. The business environment is dynamic so it should
maintain proper changes by bringing new technology so as to simplify the overall working
procedure. The PESTLE and SWOT analysis is discussed in this report which help the firm in
combatting threat and to grab each and every opportunity in a marketplace.
REFERENCES
Books and Journals
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Barton, R.N.E., and et.al., 2016. Reconsidering the MSA to LSA transition at Taforalt Cave
(Morocco) in the light of new multi-proxy dating evidence. Quaternary
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Bees, A.D. and Williams, I.D., 2017. Explaining the differences in household food waste
collection and treatment provisions between local authorities in England and
Wales. Waste Management. 70. pp.222-235.
Berry, A.J., Broadbent, J. and Otley, D.T. eds., 2016. Management control: theories, issues and
practices. Macmillan International Higher Education.
Biesenthal, C., and et.al., 2018. Applying institutional theories to managing
megaprojects. International Journal of Project Management. 36(1). pp.43-54.
Debenham, N., and et.al., 2018. The permeability structure of fault zones in sedimentary basins:
a case study at the Castle Cove Fault, Otway Basin. The APPEA Journal. 58(2). pp.805-
808.
Hur, J.W., Shannon, D. and Wolf, S., 2016. An investigation of relationships between internal
and external factors affecting technology integration in classrooms. Journal of Digital
Learning in Teacher Education. 32(3). pp.105-114.
McGrath, J. and Bates, B., 2017. The Little Book of Big Management Theories: and how to use
them. Pearson UK.
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