Impact of Macro Environment on Debenhams

Debenhams Case Study
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Contents
Questions.........................................................................................................................................3
REFERENCES................................................................................................................................9
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Questions
Discuss about the impact of macro environment on current situation of business.
Debenhams is type of leading organization which based on departmental store in UK.
The organization has its presence in different cities and considered to be most recognizable
British brand. It is oldest operating multichannel departmental stored that easily traced 1778
when it opened as a drapers store at 44 Wigmore street in London (Alexander, 2019).
Pestle analysis is based on strategic tool to analyze macro environment of Debenhams.
The change in macro environment factors have directly impacts on organization that identify the
business competitive advantage and profitability of company.
Political Factor
Political factors play an important role for identifying overall profitability and
productivity of Debenhams departmental store in certain market. The organization is operating in
retail market more than dozen nations and expose itself. In this way, political factor impacts on
profitability and chances of survival of company are quite diverse slowly. It has increase risk of
sudden changes occurs in existing political regimes (Boardman, Henninger and Zhu, 2019).
There are following factors considered before taking any investments such as political stability,
politician integrity to take part in act of corruption etc. Apart from that country law enforces in
term of business where Debenhams is not allowed to do.
Economic Factor
This factor is those that pertain to economy of country that Debenhams like change in
inflation rate, foreign exchange, interest rate and current age cycle etc. these are important
factors that directly impact on the aggregate demand, investment and climate of business. they
have potential to make Debenhams department store firm highly profitable and incur their loss
(Hossen, 2018). In context of Debenhams, economic factor may sensitive and depend on the
overall business profit rate. For example- GDP growth rate will affect on Debenhams which are
expected to grow in the near future. However, it efficiently operates the entire financial market
that impact on how Debenhams increase capital at fair cost and price.
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Social Factor
The social factor impact on Debenhams, which are directly reflect of society that operates
different countries. It describes belief, culture, values and attitude of population that may hold
entire community. Sometimes, impact of social factor is not only important for operational
aspects of business but it also essential for marketing aspects. This factor affect on the
Debenhams which may include social aspects: demographic of population in terms of respective
gender and age that directly impact on the certain product where it only participation of women
and less involvement of male (Jones and Livingstone, 2018). Debenhams need to be aware about
the standard level and records reaction towards harassment, which important of protect
environment and culture at workplace.
Technological Factor
Modern technology can rapidly grow the competitive level and price structure in
Debenhams department store where it is important for constantly maintain the innovative idea
that seek to increase possible profit rate and now becoming leader in global marketplace.
Technology may influence Debenhams where encounters new technique that is gaining more
popularity in retail industry. It helps to monitor the overall level of popularity and how it quickly
growing business.
Environmental Factor
The factor that may impact on Debenhams which including current weather conditions, it
directly impact on the resources and finished item that uses in Debenhams stores. In this way, it
affect on the delivery date to final item (Jones and Comfort, 2019). The Debenhams is based on
department store that product extremely large waste materials which may require to manage by
using environmental law that maintain overall habits of business otherwise it will increase
pollution rate in global world.
Legal Factor
Legal factors impact on the Debenhams because policies and procedures of company is
not enough to protect the employees and making desirable place of worker. In this way, it will
increase the chances of repel talented and skilled people. In context of Debenhams, they can
implement the legislation related data protection, intellectual property and discrimination law
etc. these legislations will help for improving the quality of services and also create an efficient
business environment.
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