Debenhams Case Study: Business Context, Leadership, and Strategies

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This report provides a comprehensive analysis of the Debenhams case study, a multinational departmental retailer facing financial challenges. It examines the impact of the micro-environment, including political, economic, social, technological, environmental, and legal factors, on the company's current situation. The report delves into Debenhams' leadership styles, specifically democratic, strategic, and transnational approaches, evaluating their relevance to the company's challenges. Furthermore, it explores Herzberg's motivational theory, offering recommendations for motivating employees during difficult times. The report suggests improvements, including strategic leadership implementation and employee motivation strategies, to help Debenhams overcome its current situation. Finally, it reflects on the case study and strategies for the company's revival.
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Context of Business
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Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY .................................................................................................................................2
The Impact Micro Environment had on the current situation faced by company.......................2
Debenhams Leadership style and relevant to their current situation..........................................3
Motivational theory which can be helpful for Debenhms employees.........................................5
Recommendation For Improvement...........................................................................................7
Experience in writing this report.................................................................................................8
CONCLUSION ..............................................................................................................................9
......................................................................................................................................................9
REFERANCE................................................................................................................................10
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INTRODUCTION
Debenhams is an multinational departmental retailer store they are operating their
retailer stores in all over the world , company's headquarter is in United kingdom and also have
franchise departmental stores in other countries, more then 27000 employees are working in
this companies stores they are have most of the departmental stores in 2016 but now they are
facing problem and company is suffering from loss. This report will cover this case study on
Debenhams. It will discuss about the impact macro environment had on the current situation of
this company and this report will research about the leadership of this company and it will
explain and reverence this leadership style in the current situation of the company and this will
also discuses that which leadership style they should follow. It will give one motivational theory
for companies employees and also suggest the and explain how that theory will help company to
motivate their employees in this situation. This report will also also add recommendation as an
improvement proposed leadership style and also will recommend management theory so
company can come out from this current situation. It will also conclude various strategies which
will be based on this companies situation. In the last report will give reflection about this case
study.
MAIN BODY
The Impact Micro Environment had on the current situation faced by company
Pestle analysis of Debenhams
Political factors
Debenhamce was one of the reputed retail departmental stores in the world and they were
having most of the stores in all over the world, because of Establishment of store in all over the
world they face many problem related to tax structure. Every country have different tax structure
and this affect on their profitability (Albrecht And et.al., 2015). Corruption in the countries also
impact on the growth of this company. Wherever they were making stores they have to follow
lows and rules of the government. This was the reason they are facing current situation.
Economical factors
Macro environmental factors like interest rates , inflation rates and foreign exchange rates
were affecting the demand and investment of the company in the economy. On the international
export and different currency rate affect on the profit of the company because they different
countries have different in their currency rates some counties Debenhamce Were making good
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profit about some other counties which currency rate in low. They ware affecting company to
much.
Social Factors
Social factors affect company to much because they were not following the trends and
they did establish new technology in their workplace. Because of this all it affect on the company
and they are facing problems current. They did not satisfy their customer and they were failed to
attract new customers. Companies marketers was failed to predict the demands of the customers
and because of this all It is affecting on their current situation. It is important for them to respect
every culture equally and give them respect (Brown and Capozza., 2016). They need not study
about the behavior of the customers and they do not follow the new trends they were following
old trends which was become a reason for their failure.
Technological factors
Debenhamce was using the old technology in their business and that technology was to
slow to give competition to the other marketer and they did not implement new technology in
their business (Alonderiene and Majauskaite., 2016). Because of this all they face problems.
Environmental factors
Different country have different environmental condition and this company was having
stores in all over the world because o this environment change this was affecting on the
company products
Legal Factors
It is important for company to for company to follow rules of the movement and they
have to understand the impotence of the government rules (Albrecht And et.al., 2015). They
cannot break any rules of country they have to follow strictly.
Debenhams Leadership style and relevant to their current situation
Democratic leadership style
Democratic leadership style is one of the best leadership style which is implement by
most of the organization this very effective and very effective. Leader take decision based on this
situation and they give chance to the workers as well and they all together take decision for the
company. Employees get equal chance and leaders treat them equally to every worker who are
part of this organization (Donate and de Pablo., 2015). Leader give chance to the employees and
give them responsibility so works will be responsible toward their task and they all will work
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properly and this will affect on this companies growth. They give high level responsibility so
employees can be capable to take future position and they can become responsible persons. Even
in board meeting also they invite some employees and give them chance to give their own
thought5s and their suggestions. Debenhmas was using thi8s leadership style because they were
treating there workers like their family members and they were giving them a equal respect.
The staff was treated the same way they were treating the valuable members. Not even with the
staff members they were also treating good to supplier and designer and they were giving them a
affordable price for their work they all were independent but afterward company did not follow
their leadership style they were only looking for companies expansion.
Strategies Leadership Style
In a strategic leadership style leaders mostly look for the company growth and
opportunities. They make new strategies for company and that strategies implement on the
company so they can increase their growth more and achieve organizational goals. For this
leadership leaders need more skills to make new strategies they have to develop their skills.
Strategic thinking o9f the leaders help to control the multiple employees at once (Holten and
Brenner., 2015). Leaders have to control and they have to respect each and every workers
working for them because if they will get respect then they will give respect as well. In the
strategic leadership style leaders give proper directions to their employees and they have to
follow instruction of the leaders. This is helpful for employees and they complete their task in
very less time. Leaders of the debenhams should use their strategic leadership style to overcome
from this situation. They can make new strategies to improve the companies working method
this will be very important for them to overcome from this situation. First of all leaders of this
company have to implement skills then only then and give proper direction top their workers and
they will improve they task sacrificial of the employees and because of this company will again
come to their previous situations.
Transnational leadership Style
This leadership style is very common now a bays and there are m,any organization who
are using this leadership style. It is one of the best and proper leadership style because this is
helpful for employees motivation and they give their best toward their task. In this this
leadership style leaders give reward bonus to their worker if they are doing better in their task
and this bonus help them to increase their moral and they work more effectively to achieve
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organizational goals. A marketing teams of any organization who revive reward or bonus from,
leaders for helping generate a certain numbers of the leads by the end of the quarter is common
example of the traditional leadership (Donate and de Pablo., 2015). They also give incentive for
regular present in the office this is helpful for company and their all staff members will present
in the organization. This is one of the proper and best leadership style if mangers of the
Debenhmas will follow this leadership style they can give bonus to their employees so they will
be stay motivated and they will come regular to the stores and they will also understand the
situation of the company. Employees will, start give their support and they will give their best
toward the organization.
Motivational theory which can be helpful for Debenhms employees
Herzber's Motivational theory
This is one of the best and effective motivational theory which helps many organization's
leaders to motivate their employees during the hard situations. This can also be helpful for the
Debenhams leaders to motivate their employees in this situations. Recently they are suffering
from lose and their employees are demotivated they need proper motivation from their
subordinated so this company can use this theory to motivate their employees in the current
situation. Employees play impotent role in the formation of the company and if they bare
demotivated then they cannot work effectively of this company and the company cannot come
out from this situations.
There are two factors which is identified by this motivational theory:
Motivating Factors
Achievement – Job for an any employees is and achievement if they are doing proper job
and they on the poisons they deserve (Nguyen And et.al., 2017). This can be proud feeling for
them if they are doing something which they deserve to do. Debenhms should give the
employees their proper job according to their deserving power If they are doing well I their task
then they should give them promotion and give them better position in the company this well
help them to motivate and they will keep motivated in this current situation.
Recognize – A job of the employees in the Debenhmas should provide Recolonization
and praise for their success. This recognize should be come from the both managers and leaders
because it is their responsibility to give them recognition for the success of any employees this
will helpful for them to motivate them in this current situations.
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The Work Itself- they should provide any fun activities and praise some communication
practices in which employees and enjoy during the tasks. Mangers of the company can give them
challenging task so they will make them more skillful and they will be keep motivated and they
will give their best toward the task. This one bf the best way to keep[ workers motivated so
superiors of the company should do this and give their employees a challenges.
Responsibility – Managers of the company can give them a High-level of responsibility
and motivate them to do their task properly so they will understand the importance of this
organization and they will also motivate the others who are working in their team.
Advancement - superiors shroud give them a bonus or opportunity for their promotion
In this situation they need their employees mostly and it is impotent for them to keep them
motivated they should give them a bonus and they can also give them promotion if they are
doing well in their given tasks. Employees are facing financial problem in their life because of
the current situation of Debenhams It is company's superiors responsibility to give them bonus in
this situation (Lines And et.al., 2015). This bonus scram will work as a motivation for the
employees who are suffering from financial problems they need support of their superiors.
Growth- Management of the company can provide growth programs for employees for
their motivation this programs will increase their potential and they will develop their skills.
Training programs are needed for employees because they are demotivated and they are3e facing
problems related to their task given by the superiors.
Hygiene factors
Salaries- Structure of the salaries should be proper ad equal for the all the employees.
Mangers and leaders should give them equal salaries and who are doing better to them they
should give bonus as gift (Nguyen And et.al., 2017). They should also be competitive with the
other organization. If they will treat them equally then they will respect superiors and they will
support the Debenhams in their Current situations.
Relationship- Superiors of the Debenhms should communicate with the workers and
understand their situation as well . If the superiors of the company will task to employees face to
face then it will make a good relationship for both the managers and employees. They will
motive f the mangers will come to convene them in current situations.
Security – Employees are also humans and they are also having family and friends. If
employees feel not feel safe during the working in the company then they will not give their
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100% in the task (Lines And et.al., 2015). Debenhams should provide the medical facilities to
their employees so they can give their best for this company and they will give best during the
task. If the companies superiors will understand the situation of their employees then will keep
motivated.
Recommendation For Improvement
Leadership style
Debenhams leader was using democratic leadership style but afterwords they do not
follow this leadership style and in the result they are facing this current situations. If they wanted
to come out from this current situation then they should follow Coach style Leadership Style
This leadership style is quit common to the coach of any sports team. Leader treat their
Employees like any coach and it is very effective and better leadership style as compare to the
other styles (Holten and Brenner., 2015). In this style leader of this company will focus on any
every individual in the group members. They try to work in team and leaders give their
employees instruction and the other members have to follow them strictly. The best thing about
this style is leaders and all other workers work work in team and they help each others to
complete their task. This could be helpful for companies leaders to overcome from this
situation. This style offers a strong similarities to strategic and democratic. This will help every
employees to be increase their growth and they all get opportunities together.
Management practices
Team Efforts
this is one of the best practices which is done by any organization and management of the
Debenhams should run this practices to come out from the problem they are facing recently.
They should they can separate their employees teams and they all will do their task in the group.
Group task help to complete any task in less then the regular time and if the com pies workers
will do the group tasks then they all will make good relationship with each other (Sabater-Mir
and et.al., 2016). They will also increase the growth of this company and they will get aging their
reputation in the market.
Communication practices
Management of the company can run the communication practices with an organization it
will create a good flow of communication in the organization (Nguyen And et.al., 2017).
Communication plays important role in the the success of any organization and if this company
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will use this practices in their organization then it will help employees to share their thoughts and
their ideas to come out from the current situation of this company.
Strategies
Technology
It is important for Debenhams to make new strategies to overcome from their
organizational failure. They have to implement new technology In their workplace and this will
only the way for them to overcome from this current situation. New technology will boost
working capacity of the staff members and they all will work more effectively and they will
achieve organizational objective. Technology necessary for every organization and this company
need to replace their previous technology and they should is employment new technology in their
company.
New Trends
The main reason for the companies failure was new trends and company did not follow
those new trends and they fail in the business . It is important for company to to what is the
demand of the customers and they have to satisfy their customer. If they will follow those new
trends and they will satisfy the customers of they company then company can again build the
reputation in the market (Sabater-Mir and et.al., 2016). They can again be successful in their
business and they will increase their growth in the market. They can give competition to their
competitor in the market. This is one of the best strategies.
Experience in writing this report
In this report I have learned about the situation of the Debenhams company before they
were very famous and they used to treat their employees like their family and they were getting
very good response from their customers they were giving facilities to the customers. They make
their image in the market and giving competition to the other departmental companies but they
do not follow the new trends and they get lose in their business. They were selling outdated
fashion trends they was always playing catch up with many of its main revel .not only
Debenhams failed to predict the change and learn from the errors in judgment to the unfolding
trends eventually led Debenhams in the doom and the company was quick expansion plans and
many times failed to raised the situation in expansion plans and their frequent discount sale also
approach was also hampering their sales as one expert reported , the physical expansion plans
also brought with it the soaring cost that have unhorsed so many other bricks and mortar
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retailers (Wiengarten and et.al., 2016). Their prime situated large properties came with big rent ,
high rates and onerous lease liability , as well as large staffing need and leases that were difficult
to give up all that conspire to create a best that was unable to adopt in a fast changing retail
environment. Also so get experience about how the leadership and management is important for
company and their role in the company this report has make new strategies for company and
new leadership style for the company. Strategies for them which is helpful to come out from this
situation and handle those situation. Also learn about what environmental factors affect on the
company and they have to follow new trends and learn about motivational theories in this
situations.
CONCLUSION
As per the above report has been analyzed the case study of Denbenhams and It has been
analyzed the pastel analogizes of this company and research about leadership style of this
company and relevant to their current situations. this report has been give motivational theory
for the leaders and managers of this company so they can face the current situation of the
company. This report has been also give recommendation for this companies leadership style,
practices and strategies for improvement on the research which has been done by this report. In
the rend this report has been include the reflation about company.
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REFERANCE
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Noe, R. A. And et.al., 2017. Human resource management: Gaining a competitive advantage.
New York, NY: McGraw-Hill Education.
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