Debenhams: Impact of Macro Environment, Leadership, and Motivation

This report examines the challenges faced by Debenhams, a UK-based departmental store, analyzing the impact of the macro-environment, including political, economic, social, technological, legal, and environmental factors. It evaluates Debenhams' democratic leadership style, highlighting it...Read More

DEBENHAMS

Table of Contents
INTRODUCTION...........................................................................................................................3
1) Impact of macro environment had on current situation..........................................................3
2) Debenhams leadership styles and its relevance to their current situation...............................4
3) Motivation theory which helps in motivating the employee in dealing with current
situation.......................................................................................................................................6
4)Recommendation to an improvement of company..................................................................7
5) reflection of report..................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Debenhams is one of the departmental store which is located in UK. There are several
issues which are beuing faced by the company. The report will highlight all issues which are
been facing by the organisation. And how macro environment impacts the current situation of
organisation. The report will further highlights the leadership style followed by Debenhams and
how the style impacted current situation. Further the study describes motivation theories and how
the theory helps in raising the motivation level of workers in current situation. Further more
recommendation would also be given so that any improvement required in the leadership style
followed can be made. At last study will highlight the overall reflection of report.
TASK
1) Impact of macro environment had on current situation
Macro environment is an external condition which affect the business development and have
efforts either negatively or positively.
Political factors
As each business is limited by political factors. It involves laws, pressure group and
government agencies. This restrict and influence organisation and individual in society. Because
of instability in Political factors Debenhams company facing various problems out of it. As
various law which may limit the ability to became success. Because of this currently the
company is facing fight for survival as company values are dropped droped by 95% in share
market(Fozer and et.al., 2017).
Economic factors
Economic factors that includes inflation rate, economic growth, exchange rates and
interest rates. This factors affect the Debenhams company to make decision and operate
business. Company facing various problem it creating problem to make decision in the company.
And exchange rates have greater impact on the exporting goods and supply and rate of imported
goods in the economy. Inflation rates affects the company in such manner that when the prices
goes high more profit can be achieved.
Social factors
It include the cultural aspects such as population growth rate, health consciousness,
career attitude, age distribution and have emphasis on safety(Bismark and et.al., 2018). As high
trends in social factors which affect the demand of Debenhams company's product. Because of

this company has to change various strategies that adapt the social trends. As company has not
adopted the latest trends and market fashion because of which Debenhams company currently
facing the problems and decline in sales and profit and also finding difficult to maintain
traditional brand and fail in it. So it is necessary for the company that it must analyse the buying
behaviour of customers so that company can deal with the competitors.
Technological Factors
This factors affect the Debenhams company in various ways as it an technological
aspects such as automation, R&D, Technology incentives and rate changes. It has impact on
Debenhams company for minimum efficient production and it affect the cost, quality and also
lead to an innovation(Rastogi and Trivedi, 2016). Because of this company facing in the business
market as many other competitive are their who using the latest technology to increase their sale
and providing various discount on sale. As Debenhams company not adopting the latest
technology because of which currently it facing the problem in business market.
Legal Factors
This factors affect the company's cost, operates demand of its products. As the company
expand the business in the market and make the plan and implement in action without reading
the legal instruction and hence it fail in its plan Because of this Debenhams company currently
facing the problem and fight for its survival in the business market(Rastogi and Trivedi, 2016).
Environmental factors
This factor include environmental factors such as climate change and weather. It
especially affect the industries such as farming, tourism and insurance and also making
awareness of potential impact of climate change. Because of this factors company facing the
various problems as changes in the environment it also impact the company products. Some
products which are not suitable in specific environment and the company have to plan for the
new products again which suit the environment. Thus environmental changes have great impact
on Debenhams company(Moro Visconti, 2016).
2) Debenhams leadership styles and its relevance to their current situation.
Debenhams is one of the oldest multi channel departmental store in UK. The brand name
is considered to be one of the most recognisable British brand name. The leadership style used
by the company is democratic leadership style.

Democratic leadership style
This leadership style is also known as partnership leadership style which provides
subordinates with opportunities top collaboration with the decision making process. This style is
is followed by the company as the environment is friendly(Yahaya and Ebrahim, 2016). The staff
is friendly and welconme the customers in a decent way and support them and enchance their
buying experience. All the work is done in groups. The staff is treated as a valuable assets to the
firm. This style is beneficial for the company as they have successfully established the brand in
the market. Democratic leadership style impacted the Debenhams in such a way that company
got some success also but faced many problems too. Because of democracy the employees
becomes too lenient about work and not willing to take their assigns roles seriously. Company
faced the drastic fall down in then sales. The financial condition is not so stable in the
Debenhams. The leadership style may be reason behind the low sales and other issue the
organization is facing(Arnold and et.al., 2015).
As the democratic leadership style is followed by the company no employee insist to
take the responsibility to search about new market trends, buying behaviour of consumers and
what other competitors are offering so this result in fall down of sales. This may is the negative
impact of this type of leadership style which affected the overall sales of Debenhams. Another
situation which the organization is facing is that they have open too many stores at various places
and the firm is offering frequent discount sales. The plans made by the leader were very quick as
they failed to analyse the each situation which impact the expansion plans. Due to lack of
attention while expanding the business they faced many problems, as Debenhams open
Birmingham store in Bull Ring, which was not so successful and lead to financial crises. The
democratic decision of giving frequent sales to the customers impacted in such a way that to hold
the customers giving discount becomes necessary(Anderson and Sun, 2017). Thus, by this less
revenue is generated by the company.
Debenhams is facing the current situation of high debts and cost. By following
democratic leadership style the company decided to expand the market but failed to analyse the
situation in expansion plans. The company opened large stores in the prime areas which results
in this way that huge rent are raised, high rates and lease liability also arises. The situation is
very tough to be faced as large staffing needs and leases were difficult to be paid off.

3) Motivation theory which helps in motivating the employee in dealing with current situation.
According to the needs various theories of motivation are prepered. As motivationn
creates willingness among the employees to do work more efficiently towards the organisational
goals, and satisfy the needs of individual(Keshavarz and Karami, 2016). There are many
motivation theories available but Frederick Herzberg two factor theory must the be followed by
Debenhams.
Herzberg's Two factor theory
Herzberg founded that there are certain characteristics which can be allied with job
satisfaction and other characteristics which are consistent with job dissatisfaction. According to
Herzburg the characteristics of job dissatisfaction are called hygiene factors. To motivate the
workers Debenhams should focus on satisfaction like recognition, responsibility and
achievements. Two factors theory distinguish between motivators and hygiene factors.
Motivators
Debenhams to motivate their employees should start giving recognition for their work.
Giving recognitio to workers for good work motivates the employee to do more work. The
management must give higher responsibility to the workers so they feel that they have value and
thus helps in increasing morale of the employee(Wulf and Lewthwaite, 2016). According to
herzberg employees should be involved in the decision making as this helps the company in
taking fruitful decisions and also raise the motivation level of the workers. As company is facing
many financial as well as sales issue so the suggestion from workers may help in taking an
effective decision. Giving recognition and assigning higher responsibility top the staff helps not
only helps in raising motivation but also assist in personal growth of the employee, which
impacts overall function of business(Nicholls, 2017).
Hygiene factors
According to author hygine factors cause dissatisfaction among employees in the
workplace. In order to remove dissatisfaction these factors must be eliminated. As to motivate
and remove dissatisfaction among the workers the company should start giving various binusses
and incentives so that the feel motivated, because there are different types of workers in the
organisation the means of motivation is also different. Those employees who are not motivated
by recognition those are motivated by these monetary rewards.

Hygiene factors also includes job secutrity and create positive culture in the workplace.
The Debenhams should provide job security so that the workers feel safe and secure about the
work and raise the motivation level, which helps the organisation in achieving its target. As the
sales of the firms decreasing the motivated employee will search about, what are the reasons and
why this this happening and find out measure in improving(Keshavarz and Karami, 2016). The
culutre of the organisation should also be good as all the employees must be respected and
values, positive environment must be created so staff feels great and thus gets inspired to do
work with more sincerity.
4)Recommendation to an improvement of company
Implementation of situational leadership style
As company using the democratic leadership, it facing lot of current problems. Company
should implement the situational leader instead of democratic leadership for better improvement
of the company. The prospect of Brexit makes them more urgent, but no easier to deliver. A
renewed focus on all six priorities will likely be needed to generate significant productivity
gains. Brexit has helped the company in increasing their productivity and profitability aspects.
As situational leader will analyse the thinks before it goes for action. Like it analyse the situation
where the company is lacking. By this companies can have higher productivity, market value
and resilience. Brexit has improved the operational efficiency by boosting the productivity. It has
improved the quality of work. Accordingly, by keeping the situation in mind it make the plan
and also analyse the effect of the plan when it will implement into the action. It should keep in
touch within rapid changes fashion in the environment like the customers are more likely to
demand the fashionable things as compare to the existing one. Taste and preference of the
consumer changes continuously in the market(Yahaya and Ebrahim, 2016).. Regarding the
expansion plan of the company many times the company fails in its plan because company fail to
analyse the situation in the expansion plan. It is recommended that whenever the company go for
expansion of plan it should analyse the situation of the expansion plan without failing. It helps
the company for the success of the plan. In the business market other company sales the products
through or by using frequent discount sales to attract the customer. Where the customers are
getting the goods at knock-down price and retain to buy until there is sale on. If the company
want to increase the sale rate in the competitive market that it should use other strategy that can
attract the customer towards the Debenhams company.

Providing training to staff
For further improvement of the company it should provide the training to their
employees. So that it improves the work efficiency of the employee, which result in lower the
wastage of raw material and it will increase the productivity of the company(Anderson and Sun,
2017). Also it motivate the employees and increase the moral and satisfaction of the employee
which build the confident level of the employee and they work with full potential and try to give
their best. It also change the mindset of the employees and they will retain at the same company
and they will not think for the turnover and become loyal to the company(Frankel and PGCMS,
2019).
Creating healthy workplace environment
Debenhams company should provide the healthy environment to the employees at the
workplace. So that the employees get better facilities at their workplace which will motivate the
employee to become work hard and it help in making good relationship among the employees at
the workplace. Employee will considered the organisational goal as its goal, and try its best to
archive the goal. Hence it help the organisation to increase the productivity and increase in sales
in the business market(Yahaya and Ebrahim, 2016)..
5) reflection of report.
By reading the report what I understand is that leadership plays an important in the
smooth functioning of the business. While writing the report I felt that I have less knowledge
about certain topics. I learned about Brexit and various forms of leadership styles. The research
at the starting was really hard for me as I was unable to understand many concepts. It was really
difficult for me to write but after sometime by engaging in research I was able to complete my
project on time. I learned about various styles of leadership and impact of Brexit. The leadership
style followed by Debenhams is the democratic leadership style. This style is good but may be
not be perfectly suitable according to the current situation in the company. I learned that the
company is facing some issue like outdated trends, too much of frequent sale discounts are given
which results in losses and Debenhams is also facing debts and cost issues as the organisation
expanded its market without analysing the situation so if I would have been at that place I must
analyse the risky situations and then make the decisions, I must have done market research about
what are new trends and what competitors are offering so that the business can also products
goods according to that. Myself must make proper financial policies and guidelines so that the

company may not have to face the financial issues. I learnt that Herzberg two factor motivation
theory is been suggested for motivating the employee. It has been observed that this theory is
been successful in motivating the workers. Motivation helps in rasing the morale and assist in
growth of Debenhams.
CONCLUSION
From the above study it can be concluded that leadership plays an important role in the
smooth functioning of business because without proper leadership effective decisions can not be
taken. The study concluded that style followed by the Debenhams is democratic leadership style
as as in this style all the employees are involved in the decision making process. And by the
suggestion from employees desired decision can be take place. The study also conclude
motivation theories, as giving motivation to the workers increases the working ability. Various
types of monetary and non monetary rewards are given to employees for motivating. The study
also concluded that maintaing healthy working environment is necessary as it keeps employees
happy and help the management in retaining employee for a longer time.

REFERENCES
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Online:
Leadership styles.2019. [Online] Available Through
<https://blog.hubspot.com/marketing/leadership-styles>