Debenhams: An Analysis of External Factors Using PESTLE Framework

This report provides a PESTLE analysis of Debenhams, a multinational retail company, examining the external factors impacting its business operations. The analysis covers political factors, such as government policies, tax rates, and political stability, and their effects on product pricing and promotion. Economic factors, including economic slowdowns, monetary policies, and unemployment rates, are evaluated for their influence on Debenhams' performance. Social and cultural factors, such as consumer preferences and fashion trends, are considered in relation to product development and sales. Technological factors, including e-commerce adoption and technological advancements, are discussed in terms of their impact on productivity and market access. Legal factors, such as employment laws and trading policies, are assessed for their role in shaping the business environment. Environmental factors, focusing on pollution and green policies, are also analyzed for their effects on brand image and customer satisfaction. The report concludes with a list of references, including books and journal articles that support the analysis.

Debenhams

Table of Contents
1. Pestle analysis of Debenhams:.....................................................................................................1
REFERENCES................................................................................................................................3

1. Pestle analysis of Debenhams:
Pestle analysis helps the company to evaluate external factors that affects business
operations. Different factors that affect company's performance are defined as follows:
Political:
Debenhams is multinational retail company which is providing its services in different
countries. Government policies affect the company's performance as different rules and
regulations of various countries directly affect its business growth. Government helps the
Debenhams to launch its news product in the market but different countries have different rules
which affects the performance of the organisation (Atighechian and et.al., 2016). High tax rates
and custom duty charges forces the organisation to increase the price of the product. In order to
increase their profits the organisation has to increase their prices which directly affects their sale
and revenue.
Rapid change in government attitude and political stability has affected the company's
business operations. They have to face various problems in deciding the price of their products
and their promotion.
Economic:
Economic slowdown in UK has directly affected the business operations of Debenhams
as its business is dependent more on UK economy. They have to analyse the economic condition
of the countries be fore establishing their new stores so that they cannot have to face failure.
Monetary policy and fiscal policy of different countries plays n important role in economic
analysis (Singh, , 2016). The firm has to consider different policies so that they can increase their
products image.
Economic growth of Debenhams affected by interest rates, monetary policies and
inflation rates. Further, the organisation has faced many problems due to economic slowdown of
UK. The unemployable rate also affected the overall revenue of the company.
Social:
Social and cultural factors plays an important role in affecting the growth of Debenhams.
The firm has to launch their new products by taking care of their customers needs, choices, and
culture. They have to consider the preferences and priorities of the people of different culture.
The company has manufacture unique products according to the tradition and choice of the
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people so that it can meet all requirements of the customers (Sarwar, Ramachandran and
Hosseinian-Far, 2017)
Due to rapid change in fashion, the company has faced gre3ta loss in thei business
because people are demanding new fashioned products. This has affected the firm because their
old stock are not sold and they remain as it is.
Technological:
Technological factors helps the organisation to increase their productivity. Debenhams
has adopted e-commerce and online facilities of the market. They have launches website of their
company which provides easy access to the consumers. Further, it has provided various essential
technical equipments to its employees so that they increase their productivity (Climent Barba and
et.al., 2016). This factor helps the company to reduce uncertainties of economic and social
changes.
Changes in information technology and invention and development has forced
Debenhams to buy new technical equipments which are very costly. Speed of technological
obsolescence has forced the orgfanisation to pace with it so that they can expand their business.
Legal:
Legal factors plays an important role in affecting business operations. These factors
include legal laws like tariff, custom duties, trading policies. The organisation has to follow all
the legal laws which are developed by the government. Debenhams has given more
concentration on empolyee-employer relationships, customer and firms bond and supplier
producer relationships. This has helped the organisation to raise their position in the competitive
market (Smith and et.al., 2016).
Tax policies, employment laws, safety regulations has played an important role in
affecting the business of Debenhams. Different countries have different rules and regulations
which directly impacts the growth and profits of the company.
Environmental:
Debenhams has great band varieties which creates pollution and other environmental
damage. They have created different policies which helps in creating low carbon emission and
environmental problems. They have make use of limited resources to make effective products.
The organisation has concentrated on packaging the products which are environment friendly so
that can minimize the environmental impacts (Igliński and et.al., 2016). These factors have
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increased the popularity of the organisation. They have achieved the customers trust and
satisfaction by promoting green policies.
The organisation has to develop its products according to environmental protection. This
requires equipments and other resources to make the products environment friendly. Debenhams
has focused on manufacturing and delivering their goods by different environment friendly
mediums.
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REFERENCES
Books and Journal
Atighechian, G. & et.al., (2016). Are Macro and Micro Environment Affecting Management of
Fresh Water Resources? A Case from Iran with PESTLE Analysis. Materia socio-
medica.28(4). p.307.
Climent Barba, F. & et.al., (2016). A technical evaluation, performance analysis and risk
assessment of multiple novel oxy-turbine power cycles with complete CO 2 capture. J.
Cleaner Prod..133. pp.971-985.
Igliński, B. & et.al., (2016). Renewable energy production in the Łódzkie Voivodeship. The
PEST analysis of the RES in the voivodeship and in Poland. Renewable and Sustainable
Energy Reviewe.58. pp.737-750.
Sarwar, D., Ramachandran, M. and Hosseinian-Far, A., (2017), January. Disaster Management
System as an Element of Risk Management for Natural Disaster Systems Using the
PESTLE Framework. In International Conference on Global Security, Safety, and
Sustainability (pp. 191-204). Springer, Cham.
Singh, A. K., (2016). Selecting Regional Postponement Centre Using PESTLE–AHP–TOPSIS
Methodology: A Case Study in a Pharmaceutical Company. Global Business
Review.17(5). pp.1266-1268.
Smith, E. K. & et.al., (2016). Modeling Breastfeeding and Weaning Practices (BWP) on the
Coast of Northern Chile's Atacama Desert During the Formative Period. The Journal of
Island and Coastal Archaeology. pp.1-14.
Sridhar, R. & et.al., (2016). A Political, Economic, Social, Technological, Legal and
Environmental (PESTLE) approach for assessment of coastal zone management practice
in India. International Review of Public Administration.21(3). pp.216-232.
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