Debenhams: Business Context, Leadership and Motivation Report

This report presents a comprehensive analysis of the Debenhams case study, a British multinational retail organization. It begins by examining the impact of the macro environment on the company, utilizing a PESTLE analysis to assess political, economic, social, technological, legal, and environmental factors. The report then delves into Debenhams' leadership styles, including democratic, strategic, situational, and coach styles, and their relevance to the company's current situation, which involves declining profits and market value. Furthermore, the report suggests a motivation theory, specifically Maslow's Hierarchy of Needs, to motivate employees during this challenging period. The application of each level of the hierarchy is discussed to illustrate how management can address employee needs. Finally, the report offers recommendations for improvements, including proposed leadership styles, management practices, and strategies to help Debenhams overcome its challenges and improve its business performance. A personal reflection on the report-writing experience is also included.

Context of
Business

Table of Content
INTRODUCTION.................................................................................................................3
MAIN BODY.........................................................................................................................3
1) Discuss the impact of macro environment had on the current situation......................................3
2) Research on Debenhams leadership style and its relevance to their current situation.................5
3) Discuss any one motivation theory that you would suggest that would help motivate their
employees in this situation.............................................................................................................7
4) What could be your recommendations as an improvement (the proposed leadership styles,
management practices and the various strategies that can be undertaken by this firm based on
research done) to your company.....................................................................................................9
5) The second part of the project will involve writing a reflection report on your experience in
writing this report.........................................................................................................................11
CONCLUSION....................................................................................................................11
REFERENCES....................................................................................................................12

INTRODUCTION
Business is defined as the activity of making money through buying and selling of
products and services (Bargiela-Chiappini, Nickerson and Planken, 2013). The person who
runs business is called businessman. The failure or success of enterprise depends upon way
they run and operate their activities and operation at marketplace. It is very important for
business to analyse need and demand of market and consumers and produce accordingly in
an effective and efficient manner. The given assignment is based on case study of
Debenhams which was established in 1778. It is British multinational retail organisation
which operates department stores and deals in variety of products such as household items,
clothing, furniture and so on. The main aim of report is to discuss about impact of macro
environment which had on current situation of business and their management leadership
style. It also covers motivation theory to motive employees and recommendations for
improvement are discussed. The personal reflection has written to share own experience.
MAIN BODY
1) Discuss the impact of macro environment had on the current situation
Macro environment is defined as condition which exists in business that has impact
on external factors of surrounding. In order to run business at marketplace, it is very
important to analyze each and every external component so that positive outcome can be
achieved. The business environment is dynamic which keeps on changing. Debenhams has
impacted through macro environment which is described with help of PESTLE analysis.
They are:
PESTLE Analysis
It is defined as framework which helps in analysing and monitoring external factors
that influence business from outside (Bell, Bryman and Harley, 2018). They are described
in context of Debenhams are:
Political Factors- This factor includes interest rate, political condition, income tax
and so on. Due to change in political condition, Debenhams has faced issued which leads to
decline in sales and profits. According to the case study given, in 2006 stock market price
was decline that leads to dropped value by 95%. The share price decline from £2 to 11.5p.
Sudden change in share price leads to loss to respective business.

Economic Factors- These are the pertain economy of country like foreign
exchange, interest rate, current stage of economic cycle, gross domestic products, and so on
(Berger and et. al., 2015). The change in these factors leads to impact on demand, business
climate and loss to business. The share price of Debenhams has decline that leads to impact
on economic as well as demand of people. With decline in prices, the consumer has
lowered their need and demand for buying of product and service.
Social Factors- This includes age, income level of people, demography, values and
others. It is the most important factor which should be considered by each and every
organisation running their business at marketplace. Debenhams is large retail store in
United Kingdom which has captured many market and expanded in business. As need and
demand of consumer changes with change in time and trends. The respective organisation
does not focus on new fashion trends and busy in expanding their business to other places
that leads to fail to business and reduced brand image.
Technological Factors- These factors includes innovation, technical, research and
development. Debenhams believe in outdated fashion trends and does not focus on adopting
new and current technology for business which leads to decline in sales and profits. The
rise in latest and updated technology has greatly impact Debenhams and their profits.
Though respective organisation has used online mode for selling their products but relying
on old and outdated fashion trends.
Legal Factors- There are many legal factors which includes health, safety, labour
law, equal wages and many more. It is very important for business to run their operation
ethically and legally so that goal and objectives can be attained. This factor has impacted
Debenhams in positive way as it believes in following values, belief, norms. It has caring,
enabling, daring, encouraging nature for their employees and management provide full
support in case of challenging work. Therefore, it follows all legal laws which are required
for business and their employees in appropriate manner.
Environmental Factors- It means to protect environment in an effective and
efficient manner in terms of pollution, global warming and others (Bucchiarone and et. al.,
2012). Debenhams is retail and departmental business which does not produce harmful
gases and pollution to environment. As it follows all environmental laws and regulations
that are required to carry business in positive manner.

The above analysis has concluded that business environment is impacted through
political, economic, social, technological, legal and environmental factors in both positive
as well as negative way.
2) Research on Debenhams leadership style and its relevance to their current situation
Leadership is defined as procedure through which manager and executive provide
direction, influence and guide behavior and work of other people in order to achieve goal
and objectives in given situation (Burkhart, Werth and Loos, 2012). This is the ability of
manager to assist and induce employees, staff and subordinates for working with zeal and
confidence to get maximum output in effective manner. It is very important for business to
have good leader for their organisation so that positive results can be attained and
accomplished in effectual manner. They should be capable to influence other very easily for
better work performance. In order to perform business operation and activities, different
types of leadership style can be followed to get outcomes. The leadership style includes
democratic, autocratic, laissez faire, strategic, situational, transformational, coach style and
bureaucratic.
Debenhams has followed democratic, strategic, situational and coach style
leadership. The respective organisation has faced situation where profits margin and share
value has declined. In order to resolve from such situation, they have to follow different
leadership style so that profit can bring back to normal or previous stage. In democratic
leadership, leader makes decisions on basis of input of team members. This allows lower
employees to exercise authority for work performance. The respective organisation is going
through profit and share value declination stage so in order to improve this employee can
provide direction to leader along with decision related options during meeting. They can
take feedback from other employees for improvement.
The second leadership style is strategic where leader act between growth
opportunities and company’s main operations in effective and efficient manner (da Cunha
Mattos and et. al., 2014). They take burden of executive interest to ensure about current
working condition to remain stable for everyone. This supports multiple kinds of working
staff at once. The respective organisation can adopt such style also to take direction and
help from leader for improving their current situation. This helps them to achieve success
and growth at time by adopting new technology and trends for their consumer to
manufacture products. The respective company was fall because of outdated fashion trends,

debts, costs, too many stores and frequent discounted sales. With this style, they can adopt
some strategy to come out with such situations in an effective and efficient manner.
The other strategy is coach style leadership where leader focus on identification of
strength of each team members (Types of Leadership Styles, 2019). They focus on strategy
which helps in working together to achieve goal and objectives. The leader of Debenhams
has to work as coach for their team so that each and every members focus on achieving
business objectives. Leader focus on employees building team with different skilled and
capable employees to perform something different for overcoming situation. With this they
can focus on better work performance by using their skills and knowledge for better
outcomes. For example, with use of this style, manager of Debenhams can improve
employee’s skills and ability by assigning new tasks to them for better outcomes.
Management is defined as coordinating and organising business activities for
achievement of defined goal and objectives in appropriate manner. They are called
interlocking functions of enterprise to accomplish objectives of business. The management
of every organisation should be proper structure so that activities and work can be
performed in effective manner. For managing business of Debenhams, different practices
can be followed in diligent way so that it does not have to go through any situations which
they are currently facing that leads to loss. In order to manage business, different practices
can be applied like engaging workers, rewarding efforts, seeking clarity, creating good
culture, focusing on team effort, holding regular meetings (Deng and Chi, 2012). These all
mentioned management practise are required to run business successfully and effectively so
that maximum output can be achieved. Debenhams is large business which is running their
activities and operations in different parts of world so it is mostly required for it to apply all
these practices without any default.
Therefore, the above mentioned leadership styles and management practices has to
be applied by Debenhams in their business to overcome situation. These assist business to
run their activities and operations in effective and efficient manner to achieve goal and
objectives.
3) Discuss any one motivation theory that you would suggest that would help motivate their
employees in this situation
Motivation is defining as a term help or encourages a person or an organization to
achieve their desire or pre determine goal in effective manner. This can be taken by two

ways either by internally or by others and it will be to totally depend on the person or
situation. There are various theories that can be used by a firm such as Maslow’s Need
Hierarchy, Herzberg Motivation, McGregor’s Participation, Vroom’s Expectancy Theory
and many more (Gangeshwer, 2013). In respect of Debenhams they are going through
situation where they are facing huge loss and decrease in market value. So at this time in
order to motivate employees of respective company they may adopt Maslow’s Need
Hierarchy theory because it helps their manager to motivate their staffs according to their
requirement, explanation of respective theory is given below:-
Figure 1: The 5 Levels of Maslow's Hierarchy of Needs. 2019
(Source: The 5 Levels of Maslow's Hierarchy of Needs, 2019)
 Physiological Need: This is considering as basic need of a person which help them
in their survival. This factor which include food, water, breathing, home and so on.
In respect of respective company, according to this stage of Maslow’s need
Hierarchy theory their management must insure that their all staff have sufficient
amount of amount that they fulfill their basic need in effective manner. By this all
staff feel motivate as well as conduct their work properly which directly help
Debenhams in gaining huge succession and profitability.

 Safety Need: The next stage which motivates a person after fulfilling of basis needs
is safety and security. The safety may be considering as financial safety, health and
wellness, Safety against injuries or accident and many more (Iivari and et. al.,
2016). By this a person feel motivated as well as encourage working in effective
manner in order to fulfill more desire. In respect of Debenhams in order to satisfy
this stage they must provide job security to their so that they get motivated. Along
with this they also provide training and development in order to save them from any
kind of accident or injuries. These practices will help them in motivating staffs.
 Love / Belonging Need: It is a third level of motivation which will include love,
belonging and acceptance from others. This will include factors like friendship,
romantic attachment, family, social group, religious organization and many others.
This will help a person in being happy as well as motivated which directly leads to
improvident in their work and life quality (Lankoski, 2016). In respect of
Debenhams they must conduct nitration and attractive session on regular basis
which help staffs in interacting each and enjoying. This will lead to employee’s
engagement as well as attainment of goal in effective manner.
 Esteem Need: It is a fourth stage of Maslow Hierarchy of need theory at which they
a person gets motivated through their self esteem like respect and appreciation. This
is one of the important factor which motivate a personal highly as well as encourage
to them conduct work more effectively and impressively. In respect of respective
company they can insure that they must fulfill their staffs self esteem by providing
them appraisal, rewards and other motivational elements in order to ensure that they
feel motivated. This is so because it will help them in conducting work in effective
manner.
 Self actualization Need: It is the last stage of the Maslow Hierarchy of need theory
which is related to mental growth of a person. According to it essential for a person
to conduct working to their way as well as they also want to get appropriate
appreciation of it because through it they fell motivated and done their work in more
impressive way (Rosemann, Recker and Flender, 2015 ). In respect of Debenhams
they must develop programmes and training session where they can training their
staff in order to enhance their knowledge, skills and capabilities so that they can
accomplish each and every work in effective manner.

By adopting respective motivational theory Debenhams management able to motivate
their staffs in effective manner which lead to enhancement in goal and objective by
appropriate quality of work which are done by motivated employees.
4) What could be your recommendations as an improvement (the proposed leadership
styles, management practices and the various strategies that can be undertaken by this firm
based on research done) to your company
By conducting evaluation of each and every topic it can be analysis that there are
several factors on which Debenhams need to work so that they can improve their condition
or they can overcome their issues of reducing market. Some of the major recommendation
for respective company are mentioned below so that they can motivate their staffs as well
as improve their condition at marketplace:-
 Leadership Style: It refers to the method or technique which is adopted by a
company leader in order to develop or take effective decision that will help them in
gaining high profitability and market value (Rychkova, Kirsch and Le, 2013). In
respect of Debenhams their leader may adopt situation leadership style because it
provide guideline to leader for taking most effective decision according to the
situation company is currently facing. Along with this it will also help respective
company manager to develop decision according to their staff requirement and
issues.
 Managerial practice: It is consider as practices or techniques which are adopted by
a firm management in order to resolve issues or problems through that they are
currently going. The managerial practice help management in developing solution
of those issues so that employees conduct work accordingly that will lead to
attainment of goal effectively (Sandkuh, Koç and Stirna, 2014). In respect of
respective company in order to improve their condition at marketplace as well as
motivate employees they may adopt various managerial practices such as reward
employees according to their work performance. Along with this they may also
develop as well as maintain effective working culture so that staff accomplishes
work in effective manner which also improve company’s market value.
 Other strategies: There are also several other strategies or plan of action which can
be adopted by respective company in order to motivate employees as well as
improve their market value such as they may provide training to their staffs. This is
so because through it employees feel valuable at workplace which increase their

motivation level and that directly lead to accomplishing of wok in effective and
successful way (Zdravkovic and et. al., 2013).
These are some of the major recommendation which can be adopted by Debenhams in
order to motivate their staffs so they work effective which lead to enhancement in their
productivity and market value.
5) The second part of the project will involve writing a reflection report on your experience
in writing this report
I am very happy that I get this opportunity to do my initial report on such a huge
topic which is related to the case study of Debenhams which was established in 1778. They
are conducting their business as department stores in which they offer variety of products
such as household items, clothing, and furniture and so on. Through conducting this
research I am able to learn various things as well as it also help in enhancing my several
skills. Such as through this I am able to enhance or improve my communication,
understanding, decision making skills and many more. But the starting me and my team
members go through several issues which lead directly impacting on our performance and
quality of work. Issues through we are going are conflict because every members belong to
diverse culture, language and so on due to which our thinking or idea are also different
which lead to conflict. But when we see these all issues are impacting on our outcome then
we decide to resolve these issues and interact with each other which help us in
understanding each other and resolving conflict. For this project I also know that running a
business is not an easy task because in this a person needs to conduct several activities
which help them in attaining their desire goal. For example they need to conduct market as
well as workplace evaluation on regular basis so that they can develop strategies in
effective manner.
CONCLUSION
By analysing above discussed point it can be analyse and summarise that for a
business man it is not easy to run a business because while operating a business they go
through various ups and downs. While a company is operating in effective manner then it
can be consider as up situation and when they are not gaining profitability ration then it can
be seem as downward situation. This can be occur due to several reasons such as company
not able to cope up with trends, liabilities at marketplace get increased, competitors get

increase and many more. So it is essential for a company to conduct analysis of market on
regular basis because it will help them in developing more effective decision according to
the situation. For which they can adopt several methods such as PESTEL analysis as well
as they may also adopt different leadership and motivational theories for conducting work
in more effectual as well as impressive way.

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