Strategic Analysis of Debenhams: A Business Development Case Study

This case study analyzes the strategic management of Debenhams, a British multinational company in the retail sector. The analysis covers key aspects of strategic management, including the definition of strategy, the processes involved in strategy determination, and the application of strategic tools such as SWOT and PEST analysis. The report examines Debenhams' internal and external environments, assessing its strengths, weaknesses, opportunities, and threats, as well as the political, economic, social, and technological factors impacting its operations. Furthermore, it evaluates the importance of change management in the context of the retail industry, considering factors such as complexity, cost, risk, and sustainability. The case study provides a comprehensive overview of Debenhams' strategic approach and the challenges it faces in a competitive market, highlighting the importance of continuous planning, organizing, and monitoring to achieve organizational goals. The analysis includes an evaluation of the company's performance and recommendations for improvement.

Strategic Management
case study Analysis

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY .................................................................................................................................1
Strategic management.................................................................................................................1
A critical assessment of the process used by organisations to determine their strategy.............1
An evaluation of critical tools used to organisation to determine its strategy............................3
PEST Analysis: Its a tool or method by which any industry will determine and analysis their
external environment, all the forces related to macro environment to identify the forces which
will impact the industry in current as well as future aspect though and to deal with uncertainty
of risk involve in that external forces so Debenhems having lots of forces which are to be
analysis is that :...........................................................................................................................5
An application of tools to real organisation................................................................................6
In the process of making the organisation more effective and eliminating weaknesses from the
industry ,Debenhems are continuously putting an efforts by generating the application of this
tools model which are given in above scenario is that when an retail industry works for their
in determining the SWOT analysis they have to make sure about the proper analysis of the
internal environment this can be of all the inputs in the industry as well as outside the industry
some of the basic points to be cover in the application of this analysis is that by preparing the
structure on which industry will focus on their productivity and profitability approach in
which they have to make sure about the higher quality of products or services and develops
the strategy by which their customer will retain in the market (Priem, 2018). By eliminating
the weaknesses through determine the target market and by making a particular strategies on
how the industry will put pressure on their competitors by giving them tough competition
through new technological terms and create awareness toward the particular change
technology...................................................................................................................................6
Critically appraise importance of change management based on complexity, cost, risk and
sustainability...............................................................................................................................7

CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic management deals with the overall activity related with strategies or practises
by which management will go for their tasks and objectives basically strategy is a term used by
an organisation to accomplish its goals and objectives effectively and in efficient manner this
will include resources which are related in formulation of any organisation strategy
(Velikorossov and et. al., 2020). Strategies involves with planning for goals and objectives
different set of targets inside and outside the organisation, analysing the competitors
environment and determine the forces related to internal as well as external environment,
evaluating and reviewing the strategies here all the practises follow by an organisation are
mentioned in evaluating the different process which will setting up during activities concerns
with organisation targets. Senior level management have to considered all the department by a
motive to achieve all the given targets in an organisation. The report below is based on
Debenhams that is a British multination company and have manage its operation in groceries and
merchandiser. The report below include definition of strategic management, tool that is used to
measure and analyse strategy and importance of change management.
MAIN BODY
Strategic management
Its a process of continuous planning, organising and monitoring the overall activities
related to an organisation with accomplish goals and objective through proper analysing the
needs and requirement of the organisation in respect of their departments and resources this
practises will known as strategic planning in overall development of the Debenhams and its
development (Pfarrer and et. al., 2019). Its involve activities relates to analysing the competitive
scenario in the market, planning for the external forces and any kind of uncertainty which will
happen in the future are considered under the strategic planning ,senior level managers will
decides about the structure on which strategies will be made by taking care of the workforce as
well. It is a process to regeneration of growth in an organisation by particular planning
according to the situation arises in future as well.
A critical assessment of the process used by organisations to determine their strategy.
Every organisation works on the principle of achieving their targets and goals by
different mode of practises follow by them , to plan any strategies Debenhams should know their
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working structure and lope holes is that where the organisation are actually lacking and what sort
of improvement they needs the most are cover in these strategic planning, they have to develop
the process by which strategies are made so here are some of the strategies methods which are
given below is that :
 Environment scanning:This scanning involves all the factor which will impact the
organisation in current as well as in future aspect also to avoid the situation of uncertainty
and risk involvement by proper monitoring and analysis of external as well as external
environment through collecting, scrutinizing and provides necessary information in
completion of the strategic purpose (Makadok, Burton and Barney, 2018). For this firstly
an organisation have to make about the goals and objectives , what will be the
Debenhams target whether small and large its clearly define by the senior level
management on the basis of that strategies are made because by knowing their activities
for objectives relates with company vision, mission they will go for next further process
of environment scanning which related with competitors forces and demand and supply
aspects in the market.
 Strategy formulation:Its a process of formulating the strategies by finding the best course
of action to achieve the organisational goals and objectives by preparing a suitable plan
for that process there is a need of Debenhams to collect and analysis the data and
information related to company past record and current scenario after attaining the
environment scanning, an organisation will go for corporate to functional level strategies.
Strategy will be formed on the basis of requirement and needs of a company in terms of
organisation operational work to financial work (Konovalova and et. al., 2018) .
 Strategy implementation: Its a process of making a strategy successful through proper
implementation of an activities which are to be perform by an action plan to execute it
basically all the activities which are planned under the course of decision making process
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and managing human resources with proper designing of Debenhams structure and distributing
of an resources which are required in completion of the strategic planning .
Implementation of strategy based on the particular activity designed in the planning structure of
an organisation, the activity which are concerned with action plan has to be clearly defined and
having a effective approach to implement it ,organisation should be make sure about the plan
which are made by them will perfectly implement through action (Khosiev and et. al., 2019).
 Strategy evaluation:The last step in strategic management process is to evaluate the
specific plan which are implemented in the activities basically there is a need to identify
by an senior level managers is to whether this strategies are working or not on the basis
of their impact taking care of the future aspect each individual activity will be evaluating
in accordance to that of strategies formation ,activities which will be performed in the
Debenhams has to be measured by managers for their effectiveness and efficiency point
of view with enhancing them if needed so proper execution are to be followed by the
management in the action plan of the industry so as to know about the performance of the
organisation in context of strategic planning.
An evaluation of critical tools used to organisation to determine its strategy
Strategy refers to the planning for organisation activities which are going to be
implement in effective way by analysing all the related data and sources which are required in
making the strategies successful. Debenhems because of their retailing industry they have to
continuously looking into the framework of an retail department what strategy are to be
performed will clearly the action of this retail industry (Dzwigol, 2020). By making the efforts
into both the internal as well as external environment by analysing their forces and on the basis
of that action will performed .so some of the industry tools on which Debenhems works is that :
SWOT Analysis: Its a method or tool by which company will determine their strength weakness
threats and opportunities in course of planning for strategies preparation there is a need of this
tool as to know about the performances and risk involve in the industries , this tool deals in
determining the internal environment.
Strength:
 Debenhems deals in high brand equity and having strong shares in international markets
due to their strong brand image they are well known in their customers base and from that
loyalty will be retain because of the fashion brand image.
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 Because of the international branding image Debenhems have a strong approach in the
fashion market over 160+ stores and their stores in around 20 countries are make them
stronger in retail industries.
 They have a better command on merging and acquisitions of companies due to that it
easy to determine the forces into the market (Ketchen Jr, and Craighead, 2020).
 They are dealing in almost every product segment related to commonly uses is that
clothing , electronics,accessories ,home décor and furnitures ,shoes and toys so they are
catering almost every group of customers. Employees working in this industry are almost 3000+ .
weaknesses:
 There are large number of competitors which are working in the same industry and
product line makes the presence more difficult for this industry this will leads to low
market share capturing by a industry. Debenhems has not reach all the customer age group because of that limited range of
supply will be followed by them and leads to some sort of weakness to that industry.
Opportunities:
 Debenhems due to their fashion industry type and branding image in an international
market franchise are taking interest in developing this brand more effectively to spread
that industry in global market too (Mavi and et. al., 2019). This industry will get benefits from their product line because consumers choices and
taste are changing in a very fast manner so that have opportunity to reach the large
consumers.
Threats:
 Due to high brand ,this industry will deals with lots of competitors and large market of
same product line by that there is a risk of profit margins .
 As raw commodities price will high then there is a direct impact on the input cost of the
company because of that they have to pay more to their suppliers this will leads to loss in
production as well.
 High brand awareness in the fashion market will lead to provide choices to the consumer
to adopt any brand there is a option for them to switch on any product .
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PEST Analysis: Its a tool or method by which any industry will determine and analysis their
external environment, all the forces related to macro environment to identify the forces
which will impact the industry in current as well as future aspect though and to deal with
uncertainty of risk involve in that external forces so Debenhems having lots of forces
which are to be analysis is that :
Political factor:This factor indicates the impact of government indulge in the industry ,this will
impact the profitability of Debenhems in the long run, these factor are political stability,
government policy ,taxation criteria, stability and instability in respect of government policy
(Afanasieva and et. al., 2020).
 By political stability and by retail industry importance in the recent economy through that
approach forces will be determine .
 Laws related to retail sector.
 Taxation policy of the government, tax rates and incentives in the economy. A proper legal framework or structure for contractual enforcement.
Economic factor :This factor considered all the forces related to inflation rate, foreign exchange
rate, saving rate this will impact the competitive scenario into the market ,this will also indicate
the retail sector growth in respect of contributing in the economy as well.
 By analysing the economic terms of the particular countries ,is that what type of
economic style they are using.
 All the infrastructure related activities are concerned in the economic factor in respect of
quality in infrastructure .
 By analysing the skill set of the workforce of the industry.
 Employment rate unemployed rate
Social factor : This factor includes all the forces related to socio-cultural impact on the industry
ans through this factor will influence the industry are comes under that factor its involve some of
the social involvement is that age group, culture ,belief, population etc.
 cultural aspects related to customer
 Beliefs and values of the customer are the forces . Attitudes and leisure impact on the industry.
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Technological factor: Fashion industry are taking their reach in lots of product line by making
an efforts in technological part too. This will also the leads to the competitive scenario in the
international market because large industries are making an efforts to change and outclass their
competitors with new technological and advance technique (Ravenda and et. al., 2019).
 Recent new technological advancement by this industry will make changes in the market.
 This will leads to direct impact on cost and pricing structure of retail marketer.
 Rates of technological changes in accordance of new innovative resources
 this will impact the product offering to that of competitors as well.
An application of tools to real organisation
In the process of making the organisation more effective and eliminating weaknesses from the
industry ,Debenhems are continuously putting an efforts by generating the application of
this tools model which are given in above scenario is that when an retail industry works for
their in determining the SWOT analysis they have to make sure about the proper analysis
of the internal environment this can be of all the inputs in the industry as well as outside
the industry some of the basic points to be cover in the application of this analysis is that
by preparing the structure on which industry will focus on their productivity and
profitability approach in which they have to make sure about the higher quality of products
or services and develops the strategy by which their customer will retain in the market
(Priem, 2018). By eliminating the weaknesses through determine the target market and by
making a particular strategies on how the industry will put pressure on their competitors by
giving them tough competition through new technological terms and create awareness
toward the particular change technology.
In application of pest there is a external importance put by an industry to sought out the forces of
political to technological aspect this forces are having the importance to know about the risk and
uncertainness involve in the industry by making them set through strategic implementation
programme which will be set by an industry through proper monitoring of the forces related to
external factor .
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Critically appraise importance of change management based on complexity, cost, risk and
sustainability.
Change management based on complexity:
Changes in an industries are important factor follow by the senior management with a view to
enhance the profitability criteria of the industry by making them more reliable and easily
applicable to the employees ,change management for reducing the complexity is that it will
improve the structure of working style by making it more comfortable and easy understandable
to their employees and workforce (Ateba and Prinsloo, 2019).
Change management based on risk:
Risk factor involve in the industry will be reduce through the process of changing the strategies
which are applying by the industry too reduce the uncertainty again , industry will have to
organise plan and monitor them for better implementation scenario as well as to reduce the risk
by proper outcome on that part.
Change management based on cost:
This changes work on the basis of proper analysing of a the market in respect of price variation
and taking care of the competition point of view this change will be depend upon the industry
capability on the basis of new pricing techniques and a lot a fresh slot of product cost to compete
in the present scenario .
Change management based on sustainability:
every company need to establish their image of having sustainable image in the brand market for
that several changes are required to accomplish the sustainability is that by making an extra
efforts.
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CONCLUSION
It has been concluded from above report that strategic management is always be necessary for
the business as with this ability to gain market attractiveness is increases on systematic manner.
In this strategic marketing is performed with better attractiveness as with this ability to gain long
terms success is attained with balanced mode. In this internal and external both the factors get
analysed by the business through which ability to gain and maintain strategy is implemented in
better mode.
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REFERENCES
Books and Journals
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of Industrial Companies. Academy of Strategic Management Journal. 19(4). pp.1-7.
Ateba, B.B. and Prinsloo, J.J., 2019. Strategic management for electricity supply sustainability in
South Africa. Utilities Policy. 56. pp.92-103.
Dzwigol, H., 2020. Methodological and Empirical Platform of Triangulation in Strategic
Management. Academy of Strategic Management Journal. 19(4). pp.1-8.
Ketchen Jr, D.J. and Craighead, C.W., 2020. Research at the Intersection of Entrepreneurship,
Supply Chain Management, and Strategic Management: Opportunities Highlighted by
COVID-19. Journal of Management. 46(8). pp.1330-1341.
Khosiev, B.N. and et. al., 2019. Strategic management and zootechnical control in pig-breeding
enterprises: development of its information base. Research Journal of Pharmaceutical,
Biological and Chemical Sciences. 10(1). pp.1267-1279.
Konovalova, E.E. and et. al., 2018. Forming approaches to strategic management and
development of tourism and hospitality industry in the regions. Journal of
Environmental Management & Tourism, 9(2 (26)), pp.241-247.
Makadok, R., Burton, R. and Barney, J., 2018. A practical guide for making theory contributions
in strategic management. Strategic Management Journal. 39(6). pp.1530-1545.
Mavi, R.K. and et. al., 2019. Ranking factors influencing strategic management of university
business incubators with ANP. Management Decision.
Pfarrer, M.D. and et. al., 2019. Sociocognitive perspectives in strategic management. Academy
of Management Review. 44(4). pp.767-774.
Priem, R.L., 2018. Toward becoming a complete teacher of strategic management. Academy of
Management Learning & Education. 17(3). pp.374-388.
Ravenda, D. and et. al., 2019. Money laundering through the strategic management of
accounting transactions. Critical Perspectives on Accounting. 60. pp.65-85.
Velikorossov, V.V. and et. al., 2020. Strategic management.
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