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Pestle analysis of Debenham

   

Added on  2021-02-21

10 Pages3311 Words341 Views
Debenham

TABLE OF CONTENTSDebenham........................................................................................................................................1TASKS.............................................................................................................................................11. Impact of macro envitonment.................................................................................................12. Leadership style......................................................................................................................23. Motivation theory...................................................................................................................34. Recommendation:...................................................................................................................55.Reflection.................................................................................................................................7REFERENCES................................................................................................................................8

TASKS1. Impact of macro envitonmentPestle analysis assists to give detail about current situation and how pestle factors impacts onDebenhams macro environment or other competitive forces. pestle factor leads minimization andmaximization in profitability of organization.Political factors: Political factors are government instability and their policies, funding, taxes,trade regulation, wage legislation etc. gives negative on retail company. Lack of knowledge ofpolicies changes which government sets out for every retailer stores, like Debenhams is failed tochange in their fashion trend according to new government policies, that causes Debenhams hadto face economic hazardous. Company was also failed to expanse plan of retailing due tounawareness government policies. that created financial crisis in company.Economic factors: Economical factor is major factor for every type of company or organization.Economic factors like inflation rate, interest rate, foreign exchange rate, efficiency of financialmarket, unemployment rate etc. gives negative impact on retail company. Due to low efficiencyof stock market, company had to face price crisis issues like down the prices of product inretailing market that causes economical scale of Debenhams is dropped out. Due to lowfinancial market, prime-sited large properties comes with big rents, high rates as well as largestaff requirement that's all leads liabilities in company (Aithal, 2017). That's all created financialcrisis in Debenhams company. Inflation rate also gives negative impact in company. Forexample if marketed product price becomes high, that state can decrease buying efficiency ofcustomers which leads financial loss in company. Foreign exchange rate also impactorganization. For example Before sometime UK uploaded new currency that was BREXITwhich led inflation in market that causes product prices was increased. It deceased productselling efficiency that led loss in companies.Social factors: Population, education, media, lifestyle, fashion and cultures are called socialfactors which plays vital role in company and impacts on company culture or environment. Dueto outdated fashion trend Debenhams is unable to change in fashion trends according populationdemand that causes company was failed to retain customers and failed to take competitiveadvantages. During expansion plans, company was unable to give discount on sale for exampleBirmingham store in Bull Ring was costly that led decreasing in sell ratio and in that statecompany was gave frequent discount on sale that ultimately led financial crisis in company.1

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