Debenham Case Study: Impact of Environment, Leadership, and Motivation

This report provides a comprehensive analysis of the Debenham case study, examining the impact of the macro-environment through a PESTLE analysis, evaluating the company's democratic leadership style, and suggesting Herzberg's Two-Factor Theory to improve employee motivation. The report highlights the negative effects of government policies, economic factors, and outdated fashion trends on Debenham's performance. It then delves into the shortcomings of the democratic leadership style, including disputes among employees and a lack of strategic planning. The report recommends autocratic leadership and various management practices, such as reward strategies and training programs, to improve decision-making and employee retention, ultimately aiming to enhance profitability and overcome financial crises. The analysis emphasizes the importance of adapting to market changes and making quick, decisive actions to ensure the company's success. The report concludes by emphasizing the significance of employee satisfaction and the implementation of effective leadership and management strategies to achieve organizational goals.

Debenham

TABLE OF CONTENTS
Debenham........................................................................................................................................1
TASKS.............................................................................................................................................1
1. Impact of macro envitonment.................................................................................................1
2. Leadership style......................................................................................................................2
3. Motivation theory...................................................................................................................3
4. Recommendation:...................................................................................................................5
5.Reflection.................................................................................................................................7
REFERENCES................................................................................................................................8

TASKS
1. Impact of macro envitonment
Pestle analysis assists to give detail about current situation and how pestle factors impacts on
Debenhams macro environment or other competitive forces. pestle factor leads minimization and
maximization 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 of
policies changes which government sets out for every retailer stores, like Debenhams is failed to
change in their fashion trend according to new government policies, that causes Debenhams had
to face economic hazardous. Company was also failed to expanse plan of retailing due to
unawareness 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 financial
market, unemployment rate etc. gives negative impact on retail company. Due to low efficiency
of stock market, company had to face price crisis issues like down the prices of product in
retailing market that causes economical scale of Debenhams is dropped out. Due to low
financial market, prime-sited large properties comes with big rents, high rates as well as large
staff requirement that's all leads liabilities in company (Aithal, 2017). That's all created financial
crisis in Debenhams company. Inflation rate also gives negative impact in company. For
example if marketed product price becomes high, that state can decrease buying efficiency of
customers which leads financial loss in company. Foreign exchange rate also impact
organization. For example Before sometime UK uploaded new currency that was BREXIT
which led inflation in market that causes product prices was increased. It deceased product
selling efficiency that led loss in companies.
Social factors: Population, education, media, lifestyle, fashion and cultures are called social
factors which plays vital role in company and impacts on company culture or environment. Due
to outdated fashion trend Debenhams is unable to change in fashion trends according population
demand that causes company was failed to retain customers and failed to take competitive
advantages. During expansion plans, company was unable to give discount on sale for example
Birmingham store in Bull Ring was costly that led decreasing in sell ratio and in that state
company was gave frequent discount on sale that ultimately led financial crisis in company.
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Technological factors: Website information, new technologies and communication are called
technological factors which significantly impact company economy and customers (Barik and
Kumar, 2018). due to lack of resources company was unable to offer product on time that
directly impact on product selling. According to customer's choices company didn't represent
product that lost customer's attention (Barik and Kumar, 2018). Debenhams was unable to take
competitive advantage due to high cost on product.
Legal factors: Regulations and standards, employment laws, patent, consumer protection and
discrimination law etc are called legal factors. There factors gives negative impact on overall
company. Due to legal factor Debenhams was unable to change product price without informing
customer that decrease economical scale of company. Company was unable to expansion their
business plan due to limitation which has given by company. Company also affected from
employment law that led less productivity of employees.
Environmental factors: weather, ethical issues, pollution, waste, recycling etc known as
environmental factors (Flint, Woodruff and Gardial, 2002). Weather condition plays vital role in
product selling. Due to weather change Debenhams had to changes their product that gave direct
impact on economic activities of company. On the basis of ethics company had to do work under
government ethics that led minimization in profitability of organization.
2. Leadership style
Debenhams is following democratic leadership style. democratic leadership refers a style where
redistribution of decision-making power and authority between employees and manager k/a
democratic leadership. It's also known as participative leadership because in this leadership
number of employees can participate. In democratic leadership number of participants is more
who can participate in decision-making and development of organization. In this leadership a
manager that works democratically and distributes responsibility among employees group and
allow participating in decision-making process (Tripathi, 2018). This style also empower their
employees by providing training for specific task so that company profitability increase out. This
leadership also allows to employees for giving suggestion for selling improvement. Democratic
leaders provides friendly atmosphere to employees, so they can easily share their ideas,
difficulties regarding task. This leadership supports work well during solves complex problems.
This leadership establishes good relationship between management and employees, this style
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provides values of employees that leads satisfaction in job. Democratic leadership yields
positive environment to employees on workplace so that assists to retain employees for prolong
period.
In case study Debenhams is continually operating multichannel department stores which
has been followed democratic leadership. On the basis of leadership their way of working as
group where they are caring, daring, enabling and encourages sharing. Debenhams didn't get
profit through this style. It created negative emotion between employees due to large group of
employees which participated in decision-making. Due ro this leadership company was enabled
to strategic plans for selling that creates financial crisis in company. This leadership causes
dispute obtained between employees because number of group of employees didn't find out
solution to outcome from financial crisis. Due to lack of awareness of employees about
technology company has been lost control in market and faced inflation. Due to financial crisis
company was has lost control to retain employees in company. Employees were outdated fashion
trends that led less productivity in sell. Due to this leadership employees was unable to adapt in
fast changing retail environment that causes company was unable to make any strategic plan
which can overcome company from financial crisis. During financial crisis staff was failed to
take responsibility because no one was taking responsibility except blaming to each other that
causes correct decision wasn't come and created negative issues between employees and manger.
During market recession staff was unable to attract customers through their tricks so company
was unable to take competitive advantages. In this style staff was unable to make correct
expansion plan due to this many plans of company has been failed that led economics loss in
company. In this style staff gave expansion of sale strategy but didn't check government policies
that causes many plans of company has been failed so that led financial crisis in Debenhams
company. Debenhams staff didn't provide well-formed strategy to achieve competitive
advantages through enhancing selling productivity. Thus, Debenhams didn't get profitability in
business through this leadership because staff wasn't eligible to give proper strategy and in
decision-making. That cause Debenhams had to face financial crisis in company. inappropriate
leadership causes company lost image in market. Critical errors in decision of employees lost
control on existing market.
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3. Motivation theory
After reading whole case study of Debenhams I would like to suggest Herzberg's Two-
factor theory also known as motivators theory which can play vital role to motivate employees
in this situation. Herzberg is motivation theory which is based on job satisfaction in the
workplace through intrinsic factors. It includes challenging work, identity, relationship and
development potential. This theory assists to increase productivity and enhances dedication in
workplace. This theory consists two type of motivator s extrinsic and intrinsic motivator.
Extrinsic motivators (Hygiene factors): it shows basic needs like job security or safety. This
motivates employees to retain in company. It decreases job dissatisfaction by improving hygiene
factors these are workplace condition, co-work relation, policies and rules, job security and
salary etc. If company provides health insurance policies to employees like during any accident
case company will give charge of medical that motivate employees. Comp any can provide some
securities like financial security, personnel security, protection from accident and harm and their
side effect etc. are best sources to retain employees in company for long time. If company
provides safe working environment in workplace that motivate employee's to work freely .
Company can provide secure compensation(such as salary) and job security to employees that
provides assurances to employees regarding job. It will motivate employees . If Debenhams
company provides such kind safety to employees it will motivate to retain employees in
company. In that state company's productivity can enhance out. If employees will satisfy from
above needs then it will create profitability plans in company so that company achieves their
goals. If company provides accommodation like flat, transportation facilities that will encourages
employee's to retain in company for long time. If company provides air conditioning facilities in
workplace that will encourage employees to work happily. If company allows them for flexible
working that boom-up employees to work with loyalty. If company provides friendly atmosphere
in workplace that will encourage employees to retain in company. Thus, Debenhams can keep
motivate employees.
Motivators: it includes achievement, self-esteem, responsibility and personal growth etc. leads
motivation in employees and enhances job satisfaction. Esteem need mentions confidence,
achievement, respect of others and respect by others. Esteem needs plays vital role in human
being life where employees are working they need respect for themselves from manager. As
same hypotheses applies on manager, he needs respect from employees. If company gives
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appreciation to employees for their work then it will encourage employees to give the best
performance in company. Company can enhance employees self-esteem by offering incentives
on their good performance that will dedicate employees to work efficiency so that company
meets profitability. If Debenhams offers such kind reward strategy that will motivate employees
to retain in job. In that state Debenhams can eligible to get profitability through employees.
Above two factors leads morality, creativity, problem solving, acceptance of factor and
transparency in decision are led job satisfaction in employees. If company completes above
needs of employees that will increase job satisfaction of employees and will motivate to retain in
company for long time. If employees will motivate from above motivation then it will create
profitability plans in company so that company can achieve their goals. If Debenhams follows
Herzberg's Two-factor theory in company. Organization can enhance job satisfaction and can
able to achieve goals through employees.
4. Recommendation:
After reading Debenhams case study I would like to suggest autocratic leadership.
Autocratic leadership refers individual control over all decision and takes little suggestion from
other group. In this leadership, leader makes plan on their own content and don't involve others
forecasting in his plan. As far as I think company should follow this leadership because it will
lead the best decision for company profitability (Molodchik and Jardon, 2015). autocratic
leadership is a form of management which manage whole employees in company in well
manner. This leadership is mainly effectively in company where requires quick decision-
making. This leadership provides clear chain of command on employees which needs for
company's profitability. This leadership is useful for some cases where pressure is higher. In that
situation this leadership can deal with pressure in well manner. Debenhams should follow this
leadership because it will assist in situation where company faces constant changes or crisis. in
that state leader will outcome with justify decision which will overcome from such kind of crisis.
Management practices:
Management practices refers a manager who innovates various strategy through management
practices retaining employees productivity in company. There are different management
practices which debenum should follow to retain employees in company. manager should
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organize some reward strategy like incentives, appreciation to employees for their good
performance in workplace etc. will encourage employees to retain in company and will boom up
to give the best performance in company. Manager should provide self-esteem to employees
who's working in company that motivates employees. Without respect no-one can do work
cheerfully. Manager should focus on these needs. Manager should adapt a leadership and
organize some training program for employees it will enhance confidence in employees. In
manager practices manager should provide flexible working hours to employees so that
employees gives services freely form in company that will motivate employees to retain in
company. Debenhams should adapt some strategy to motivate employees and to do improvement
in company's productivity.
Training development programmes: Company should organize skill envelopment classes. It will
provide opportunity to employees for enhancing their skill in well-formed. Such kind program
will boom up employees to participated and sharpen their skills (Iqbal, Anwar and Haider, 2015).
Manager should be provided training to employees so that they enable to give services to
company. This type programs will satisfy employees and it will lead productivity in company.
Management needs: Company should focus on management needs like safety in workplace, job
security, accommodation facilities, flexible working hours, compensation security, health
insurance policies and etc will motivate employees to retain in company. It will lead self-
satisfaction in employees so that will encourage employees to give the best performance in
company and That self-satisfaction of employees will cooperate employees to approaches
company's goal (Lubberink, and et.al., 2017).
Reward strategy: Company should use reward strategy to motivate employees. Incentives are
more attractive part for employees motivation. On the basis of good performance company
should provide rewards to employee's as motivation that will boom up employees self-esteem
and make them loyal for company )(Healy, 2016). Instead of incentives if company gives
appreciation for employee's workplace it will also encourage to work efficiently in company.
Leadership model strategy: Leadership model strategy assist to boost productivity in company
and encourage employees to work well in workplace. In the productivity process leadership
assists to develop and maintain consistent management approach (Nandonde, 2019). This
strategy gives productivity result in company.
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Company should adapt autocratic leadership and some management practices and strategy which
I have mentioned above, these all will lead improvement in company performance and will
motivate employees, these strategies will enhance employees productivity in company.
5.Reflection
Throughout this observation I have gained and developed my skills in most efficient
manner. I gave gained knowledge on the topic of macro environment and on the current situation
faced by the Debenhams. While planning for this research I have nourished my own
understanding and goals on the topic which is already developed by the best potential manner.
Further, I developed my own understanding on the leadership style. I have learns different
leadership styles and its importance which helps me in my next research assignment. I have
gained skills of leadership and understand the significance importance within the organization.
Therefore, I have learn how organization can motivate employees and make them capable to
understand the effective learning goals and better deals with the company effectiveness. I have
gained good experienced from the study and applied the best study formation to grow business
purposes. I got to know how motivational strategies can emphasizes the capabilities of an
individual and how it can help employees for better performance. In the best situational goals. I
have applied my own understanding and knowledge in the study to make the new development
areas. Apart from this I have gained knowledge and importance of the systematic goals to be
more effectively done the business task (Gualtieri, 2019). At the end of the assignment I also
recommended some strategies in the context of the business study and also suggest best
management practices and various strategies. Along with that it also helpful for me to gain new
abilities and skills.
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REFERENCES
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desired value change in a business-to-business context. Journal of marketing. 66(4).
pp.102-117.
Gualtieri, A., 2019. Analysis of project managment practices in the start-up stage of a
company (Doctoral dissertation, Politecnico di Torino).
Healy, K., 2016. A Theory of Human Motivation by Abraham H. Maslow (1942). The British
Journal of Psychiatry. 208(4). pp.313-313.
Iqbal, N., Anwar, S. and Haider, N., 2015. Effect of leadership style on employee
performance. Arabian Journal of Business and Management Review. 5(5). pp.1-6.
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systematic literature review of responsible, social and sustainable innovation
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Community. Global Business and Organizational Excellence. 38(4). pp.54-61.
STARKEY, K., and et.al., 2015. Towards common ground and trading zones in managment
research and practices.
Tripathi, N., 2018. A valuation of Abraham Maslow's theory of self-actualization for the
enhancement of quality of life. Indian Journal of Health and wellbeing. 9(3). pp.499-
504.
Velmurugan, T.A. and Sankar, J.G., 2017. A Comparative Study on Motivation Theory with
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Res. 1(1). pp.204-8.
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