Business Strategies and Performance Analysis

The provided document appears to be a compilation of references from various books, journals, and online sources related to business strategies, performance analysis, and market trends. The content includes studies on dynamic capabilities, authentic assessment in business education, enhancing business process execution, sustainable business practices, customer relationship management, cost management, and student satisfaction with online and face-to-face courses. The document also mentions a leadership lesson from Debenhams, SWOT and PESTEL analysis of Debenhams, and a brief overview of the company's website.

Context of business

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1 ...........................................................................................................................................1
Impact of macro environment on current situation.....................................................................1
TASK 2 ...........................................................................................................................................3
Leadership style of Debenhams and its relevance on their current situation..............................3
TASK 3 ...........................................................................................................................................5
Motivation theory........................................................................................................................5
TASK 4 ...........................................................................................................................................6
Recommendations for Improvement...........................................................................................6
TASK 5 ...........................................................................................................................................7
Reflection Report........................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES ...............................................................................................................................9

INTRODUCTION
In modern time the concept of business as grown into wider context including several
aspect of external and internal needs of customer and companies. The term business mainly
represents the valuable and organized efforts of an organisation to produce best services and
product as per the need of customer in order to earn a specific income that can be further
converted into profit. There is much type of companies doing business with the motive to serve
the customer with superb quality product and services and have the main motive to earn profit.
To better understand the terminology of business Debenhams is selected which is the oldest and
biggest departmental store in UK.
In this report, effect of macro environment on business and different leadership style is
discussed which support to examine the present market situation. In addition various motivation
theory and valuable recommendations are also provided to selected company.
TASK 1
Impact of macro environment on current situation
Debenhams is recognized to become one of the first and most popular British brands
which were established as a drapery shop in 1778. With the passage of time and through a
number of investments and takeovers it becomes one of UK's biggest retail store chains. The
company have number of store in different part of globe with around covering 66 major
developed nations (Debenhams, 2019). In the recent time the Debenhams has been facing some
major issues and disparities which make it not easy for survival in competitive market.
PESTEL analysis
This analysis mainly provides a mechanism for evaluating and tracking the macro
environment and external forces which have a major effect around an organization's activities
and performance (Oldman and Tomkins, 2018).
Political- Variables such as trade links, the government and industry policies etc, linked
to the political environment of a nation. The political situation in United Kingdom is largely
manageable, however in recent years due to Brexit problem there have been major negative
effect on most businesses. The company also have threat of functioning in several places,
because it is exposed to various kinds of political conditions (Debenhams SWOT & PESTEL
Analysis, 2019).
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Economical- Such variables involve a mix of the current inflation rate, savings rate, rate
of interest, currency exchange rate, consumer spending and economic investment. Current
economic and exchange movements in the UK have a negative effect on Debenhams '
development and improvement strategy. UK's insatiability and financial collapse owing to Brexit
as well as other problems are seriously impacting Debenhams revenues, so it faces a 95% fall in
value and fights for its existence. As well as the rising interest rates have also boosted
Debenhams overall price and rental obligation.
Social- The current fashion trends and style, culture and society preferences also affect
the activity and performance of a company. UK civilization is quite dynamic therefore, its
patterns in fashion continue to change, but the company Debenhams has not maintained a contact
with the ever constantly changing atmosphere and cultural trends that have caused its decline in
recent decades. Debenhams' regular coupon promotions encourage its consumers to stop
shopping until the offer get more down which could even hampers the revenue level (Janiesch
and Kuhlenkamp, 2018).
Technological- UK technology changes and improves very rapidly so that all businesses
have to rely mostly on technological advancement for better profit and market share.
Development of technology and growth requires a lot of funding for the procurement and
implementation of new technologies, although Debenhams' financial strength is not so good from
past years due to low sales and revenue generation. Therefore to implement rapid technological
progress is hard and company rely on old pattern and scheme to promote goods and services.
Environmental- This factor concerns the various standards and environmental laws
established by either a national government or community. Therefore many environmental
compliance regulations and standards are being introduced that are forcing Debenhams to use
better and sustainable practices and reliable energy sources which do not affect the environment
that are very costly.
Legal- The many rules and regulations of state officials for the safety of workers, staff
and environment are defined in these factors The UK's minimal wage and labour legislation has
raised that affect the complete costs and expenses Debenhams. As from now onwards company
have to give high pay and better incentives to worker working on different post (Torres and
Sidorova, 2019).
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Therefore, sudden change and unsuitability in the Debenhams macro climate have created
growth problems and have contributed to the downturn in entire performance and results in
present time.
TASK 2
Leadership style of Debenhams and its relevance on their current situation
Leadership styles provide a direction and method to leading and motivating an
organization's employees and persons to improve efficiency and effectiveness. This requires all
the formal and informal behaviour of a manager in order to motivate his workers to accomplish
their goals and priorities in respective duration. Debenhams' philosophy and organizational style
requires empathy, collaboration and support to encourage staff to work which makes them feel as
they are major and valuable assets of a company. Debenhams employs democratic leadership
which help to deliver its staff a friendly atmosphere that improves their performance and their
imagination (Leadership lesson from Debenhams, 2019).
Research on Debenhams leadership style
This model is based purely on democratic ideals, which ensure equal opportunities for
everyone and include centralized power to workers within decision-making for different
situations. This focuses more on teamwork and makes it possible for thoughts to flow freely that
foster and encourage innovation. Giving the member respect and understanding and open
discussions or giving and offering sufficient direction and communication for positive and
regulated matters within company can led to better results. Debenhams' democratic leadership
model has the following strength and disadvantage:
Advantage Disadvantage
 Provides a community of
expectations, values and principles
which promotes a safe and
productive working environment.
 Employees' fair engagement in
decision-making has strengthened
their productivity and moral values,
making them satisfied towards
 Since many people consequently
participate in decision-making, that
directly slowed down the process to make
valid and sound decision. This failed to
prevent Debenhams from doing a
profitable business.
 During the emergency and critical issues
many time leaders are not confident
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specific job role (Sheng and Lan,
2019).
 Good partnerships and connections
have been formed between managers
and employees with the help of this
leadership style.
 This offers a variety of solutions and
encourages a creative environment
enough to become agree without a
discussion.
 Decisions taken based on the views of
new workers can be not so productive as
they may be lacking in knowledge and
even not faces the situation in past.
Relevance of Democratic leadership style in current situation of Debenhams
Debenhams has been supportive and welcoming due to democratic leadership method but
the overall performance has already been declining in recent times as well as its valuation has
therefore fallen down 95% that make huge impact on productivity and lead to struggles to
survive. The primary cause is use of democratic leadership that contributed to a weak judgment-
making process and lack of experience in successful judgments, primarily based onto the
viewpoints of amateur and untrained leaders and workers (Verstraete and Kremer, 2018). Some
of the major issues that leader of Debenhams faces while making decision are discussed below:
 Inability to anticipate shift in fashioned sense due to the different team members' ideas
and opinions generate a problem to meet the customer needs.
 Emphasis on more branch expansion and globalization without
analysing market dynamics properly, has contributed to the collapse of several projects,
such as Birmingham's Bull Ring supermarket.
 Debenhams expansion mainly reliance on loans and leases of property thereby resulted
in higher interest payments and other debts related problem, thus it reduces the
productivity level and impact complete revenue and profitability (James and Casidy,
2018).
Democratic leadership is helpful in creating a disciplined atmosphere; improve
communication and connections among managers and staff. It is necessary to instruct workers
correctly and to encourage them to resolve the unfavourable circumstance. Yet, to maximize
their loyalty and profitability, Debenhams must try to offer its workers less independence.
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Employees can be encouraged to make good use of benefits, bonuses and promotions which
fulfil the need of monetary requirement. By generating employee engagement and
encouragement internally can help respective company to generate sales
and improve future results.
TASK 3
Motivation theory
From the case study it has been evaluated that Debenhams have an adverse financial and
operation situation and it is facing regular decrease in profit margin and market share. Due to
which entire workforce gets demotivated that hamper their actual capability and skills to perform
different task and work. In order to cope with sudden changes in the macro environment and
regain the abilities of worker it is crucial for company to apply best possible motivation
techniques. It is important that Debenhams representatives must use a philosophy of inspiration
to get their people motivated, composed and contend to deal different negative situation
(Worthington, 2018). Debenhams was suggested to inspire its workers to achieve their goal of
increasing profitability and success by two factors motivation theory.
Herzberg's motivation theory
This hypothesis shows that there are different conditions in the workforce in which
some contribute to satisfaction reasons, while others lead to unhappiness among the workers. All
these variables have been grouped into two major categories by Frederick Herzberg's.
Motivation factors: These variables provide less measurable intrinsic motivators to
satisfy an individual employee emotional needs that provide intrinsic motivation that leads
to improved performance. Good results, appreciation, individual development and growth,
additional incentives are the main motivating factors.
Debenhams will make use of motivating factors such as by allowing greater job accountability
and regular appreciation to staff that makes them happy and concentrated towards work. Reliable
workers must also be provided better opportunities for growth and promoted on different jobs
roles. This would provide Debenhams staff with an intrinsic desire to improve overall
performance and to achieve the best career profile. This would directly helpful to enhance the
complete performance and likelihood for Debenhams in nearby future. (Kopnina and Blewitt,
2018).
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Hygiene factors- These include such aspects such as employment conditions, employee
partnerships, corporate policies and laws, manager performance, workers ' compensation and
bonuses (Tratnik, Urh and Jereb, 2019). Debenhams must provide its workers with all the
necessary hygiene considerations to decrease the level of disappointment with their jobs that will
make staff at Debenhams more optimistic and inspired. The friendly atmosphere increases
employee satisfaction and encourages them to perform allotted task in more desired manner so
that goal can be accomplished.
Justification upon motivation theory
Herzberg's two-factor principle is best suited for Debenhams, since it provides a good
correlation between intrinsic (motivator) and extrinsic (hygiene) that is often important in order
to attract workers and also to reduce their costs to grow profit. Since Debenhams' financial status
is quite bade due to which many incentives and rewards policies are not offered to worker, but
manager and leader can provide workers with better employment duty and appreciation, so that
they are motivated internally to work really hard get promotions and resolve the financial crisis.
This theory considers funds subordinate and gives Debenhams greater emphasis for advancement
of careers, friendships environment and other reasons. This help to give a greater motivation to
employee that remain for long term. Therefore, encouraging the workers to face an unfavourable
set of circumstances could lead to enhance their financial performance.
TASK 4
Recommendations for Improvement
The necessary recommendations might be provided to address and comply with the
unfavourable financial as well as other challenges that have led to the collapse of Debenhams are
discussed below:
 It is suggested to company that they can use autocratic leadership styles which support to
address that problem of decision-making. It also permits leaders with more power to
implement and enforce a judgment that can develop overall productivity of Debenhams.
 In order to evaluate existing market dynamics and conditions that will guarantee venture
progress, it is advised to increase Debenhams competitiveness before increasing its
activities or starting up a different subsidiary at a certain location.
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 The company should concentrate on its commodities to seek to get involved in constantly
shifting patterns of fashion that are only feasible by way of quick market research that
can help to anticipate the change in the trend in style.
Debenhams must provide those products and items which are more like and favoured
of customers in order to increase sales and profit.
 It is also encouraged to always use modern and improved technology to achieve greater
competition advantage which will definitely improves efficiency and sustainability of
respective firm.
TASK 5
Reflection Report
Research is a comprehensive analysis or examine of substances and the origins of some
information that attempts to arrive at a real conclusion. The work on Debenhams' success and
decline has brought some benefits that help in dealing tough situation. I am knowledgeable
about multiple leadership manner that how does it impacts and affects decision-making. I have
also found that democracy leadership style is better that promote healthy and friendly working
circumstances in company but somehow it reduce the decision making process as leader concern
from entire workforce. I do understand the importance of motivation theory. and it give strength
to my social and resource leadership skills, as I have to finish my research with good work on
appropriate time. To complete this analysis, I use several approaches and look upon the
authorized Debenhams database to collect true data. I will also review several other websites and
annual reports to fully understand how Debenhams has collapsed.
Many challenges do come before me when doing this work, such as the shortage of support
material and necessary information, but I do resolve those problems promptly. This study work is
therefore very useful to me since it has enhanced my understanding and competencies and also
enhanced future opportunities.
CONCLUSION
In the end of this report it can be interpreted that, macro environment generates a
substantial impact on business achievement and activity. The PESTEL test is used to determine
an organization's external forces. Leadership styles play a key role in guiding and directing
workers and support in making more cosine decision. Democratic leadership is helpful to create
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a positive working environment, but it impedes decision-making. Through motivation
philosophy, workers are inspired to accomplish strategic goals or to improve their performance.
Timely analysis on the marketplace and technological advancement is required to guarantee an
organization's performance and development.
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REFERENCES
Books and Journals
Duarte Alonso, A. and Kok, S., 2019. Dynamic capabilities in the context of Brexit and
international wine business: An exploratory two‐country study. Thunderbird
International Business Review. 61(2). pp.277-290.
James, L. T. and Casidy, R., 2018. Authentic assessment in business education: its effects on
student satisfaction and promoting behaviour. Studies in higher education. 43(3).
pp.401-415.
Janiesch, C. and Kuhlenkamp, J., 2018. Enhancing business process execution with a context
engine. Business Process Management Journal.
Kopnina, H. and Blewitt, J., 2018. Sustainable business: Key issues. Routledge.
Kumar, V. and Reinartz, W., 2018. CRM Issues in the Business-To-Business Context.
In Customer Relationship Management (pp. 265-283). Springer, Berlin, Heidelberg.
Oldman, A. and Tomkins, C., 2018. Cost management and its interplay with business strategy
and context. Routledge.
Sheng, J. and Lan, H., 2019. Business failure and mass media: An analysis of media exposure in
the context of delisting event. Journal of Business Research. 97. pp.316-323.
Torres, R. and Sidorova, A., 2019. Reconceptualizing information quality as effective use in the
context of business intelligence and analytics. International Journal of Information
Management. 49. pp.316-329.
Tratnik, A., Urh, M. and Jereb, E., 2019. Student satisfaction with an online and a face-to-face
Business English course in a higher education context. Innovations in Education and
Teaching International. 56(1). pp.36-45.
Verstraete, T. and Kremer, F., 2018. Using cinema in a pedagogical context to understand the
importance of conventions in designing a business model. Revue de
l’Entrepreneuriat. 17(2). pp.63-89.
Vos, E. and Oberholzer, N., 2018, July. An Analysis of the Status of CSR Practice in the South
African Business Context: A Framework for Analysis. In International Conference on
Applied Economics (pp. 1-13). Springer, Cham.
Worthington, I., 2018. The demographic, social and cultural context of business. The Business
Environment, p.135.
Online
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>.
Debenhams SWOT & PESTEL Analysis. 2019. [Online]. Available through:
<https://www.swotandpestle.com/debenhams/>.
Debenhams. 2019. [Online]. Available through: <https://www.debenhams.com/>.
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