Debenhams Case Study: Business Strategies and Recommendations

This case study examines Debenhams, a prominent UK-based departmental store, analyzing the impact of the macro-environment using PESTLE analysis. It explores political, economic, social, technological, environmental, and legal factors influencing the company's profitability and survival. The study investigates Debenhams' democratic leadership style, its relevance to the current business situation, and its limitations in adapting to market changes. It also delves into motivational theories, particularly the Expectancy Theory, to inspire employees. Furthermore, the case study recommends competition-based pricing strategies, effective management practices, and transformational leadership to enhance Debenhams' performance. The analysis includes a reflection on the insights gained regarding leadership, motivation, and strategic adaptation within the retail sector.

Debenhams Case Study
1

Contents
Questions.........................................................................................................................................3
REFERENCES................................................................................................................................9
2

Questions
Discuss about the impact of macro environment on current situation of business.
Debenhams is type of leading organization which based on departmental store in UK.
The organization has its presence in different cities and considered to be most recognizable
British brand. It is oldest operating multichannel departmental stored that easily traced 1778
when it opened as a drapers store at 44 Wigmore street in London (Alexander, 2019).
Pestle analysis is based on strategic tool to analyze macro environment of Debenhams.
The change in macro environment factors have directly impacts on organization that identify the
business competitive advantage and profitability of company.
Political Factor
Political factors play an important role for identifying overall profitability and
productivity of Debenhams departmental store in certain market. The organization is operating in
retail market more than dozen nations and expose itself. In this way, political factor impacts on
profitability and chances of survival of company are quite diverse slowly. It has increase risk of
sudden changes occurs in existing political regimes (Boardman, Henninger and Zhu, 2019).
There are following factors considered before taking any investments such as political stability,
politician integrity to take part in act of corruption etc. Apart from that country law enforces in
term of business where Debenhams is not allowed to do.
Economic Factor
This factor is those that pertain to economy of country that Debenhams like change in
inflation rate, foreign exchange, interest rate and current age cycle etc. these are important
factors that directly impact on the aggregate demand, investment and climate of business. they
have potential to make Debenhams department store firm highly profitable and incur their loss
(Hossen, 2018). In context of Debenhams, economic factor may sensitive and depend on the
overall business profit rate. For example- GDP growth rate will affect on Debenhams which are
expected to grow in the near future. However, it efficiently operates the entire financial market
that impact on how Debenhams increase capital at fair cost and price.
3

Social Factor
The social factor impact on Debenhams, which are directly reflect of society that operates
different countries. It describes belief, culture, values and attitude of population that may hold
entire community. Sometimes, impact of social factor is not only important for operational
aspects of business but it also essential for marketing aspects. This factor affect on the
Debenhams which may include social aspects: demographic of population in terms of respective
gender and age that directly impact on the certain product where it only participation of women
and less involvement of male (Jones and Livingstone, 2018). Debenhams need to be aware about
the standard level and records reaction towards harassment, which important of protect
environment and culture at workplace.
Technological Factor
Modern technology can rapidly grow the competitive level and price structure in
Debenhams department store where it is important for constantly maintain the innovative idea
that seek to increase possible profit rate and now becoming leader in global marketplace.
Technology may influence Debenhams where encounters new technique that is gaining more
popularity in retail industry. It helps to monitor the overall level of popularity and how it quickly
growing business.
Environmental Factor
The factor that may impact on Debenhams which including current weather conditions, it
directly impact on the resources and finished item that uses in Debenhams stores. In this way, it
affect on the delivery date to final item (Jones and Comfort, 2019). The Debenhams is based on
department store that product extremely large waste materials which may require to manage by
using environmental law that maintain overall habits of business otherwise it will increase
pollution rate in global world.
Legal Factor
Legal factors impact on the Debenhams because policies and procedures of company is
not enough to protect the employees and making desirable place of worker. In this way, it will
increase the chances of repel talented and skilled people. In context of Debenhams, they can
implement the legislation related data protection, intellectual property and discrimination law
etc. these legislations will help for improving the quality of services and also create an efficient
business environment.
4

Research on the Debenhams leadership style and relevance to the current business situation.
As per research, it has found that Debenhams use Democratic leadership style so that
every staff member participates or share their own opinion regarding business operations. In this
leadership style, group members take more participative role in decision making process. The
leadership can be applied to organization from private enterprises to government (Pasae, 2018).
Every one is given proper opportunity to equally participate and exchange idea and encouraged
discussion, while it tends to concern about the team equality where they are freely share their
idea to leader. In Debenhams, Leader have decided, who is in group and contribute to participate
in decision making. As per research, it has found that Autocratic leadership style is one of
common approach for increasing productivity and profitability of organization in global
marketplace.
Apart from that Democratic leadership relevance to the current situation of Debenhams
where they are taking decision of business development with the help of groups and its members
but it will not implement the new changing approach in the business (Boardman, Henninger and
Zhu, 2019). By using Democratic leadership, it cannot predict the changes in fashion trends.
Eventually, Debenhams also failed to maintain its brand image due to lack of consistency
through leadership style. It only focused on the providing better facilities of staff group member
but failed to target the individual in terms of expansion.
On the other hand, Debenhams failed to plan of business expansion according to current
situation because of increasing financial crisis. The organization is not properly handling the
sales and raise cost/price-based mistake which ultimately affect on the overall business growth.
Furthermore, expansion of physical stores in other countries have been not possible properly
because rate of properties is higher and also required large need of staffing which difficult to
invest more money (Taylor, 2018). It unable to adopt fast changing technology in business
environment because democratic leadership only provide power of other group members to give
their own opinion regarding business development but implementation depend on the leaders,
how they can change the process according to current trends. In this way, it will increase chances
of loss and face many problems in current situation.
5

Describe about motivational theory that help to inspire employee in the situation. Justify the
choice of motivational theory.
Motivation is a type of force that lead to increase performance of employee and also
defined the desirable goals to improve quality of level of efficiency. It refers to motivate
employee in organization so as individual is trying hard to accomplish certain task in proper
manner. In terms of development, motivation is important factor which identify performance of
people and successfully design an efficient product without require any talent (Hickman, Ozuem
and Okoya, 2019).
The Expectancy theory states that workers motivation in which how much individual
wants rewards and awards. In this way, it helps to inspire employee for putting extra efforts on
performance to achieve goal and objective. Valence is mainly associated by individual person
about the results and outcome. Employee satisfaction will be achieving through rewards and
receive expected goals (Boardman, Henninger and Zhu, 2019). This theory will help for inspiring
the employee that handle current business situation in proper manner. it also increased the
productivity and profitability of Debenhams in global world.
Expectancy is faith that putting some efforts will result in efficient performance and also
influenced the workers by different factors such as resource availability, availability of important
information.
Figure 1 The Expectancy theory
(Source: The expectancy theory. 2018)
Instrumentality is in faith that employees perform well and generate valid results.
Sometimes, instrumentality is affected by different factors of outcome, relationship between
6

outcomes and performance. This type of relationship will require for motivating employee to
handle the business process(Boardman, Henninger and Zhu, 2019).
It justified that use of expectancy theory is to inspire employee with the help of rewards and
recognition. It is based on the self-interest individual who always achieve the worker satisfaction
that directly improve business production in marketplace. It will reduce the dissatisfaction level
in the organization. This theory is based on the expectation and perceptions in the organization.
It is helping to find out better decision in business development. In this way, theory is focused on
the psychological extravagance where individual try to increase the maximum profitability
(Hickman, Ozuem and Okoya, 2019). it is effectiveness for Debenhams store, where manager
can build strong correlation with other staff members and focused on the aim to increase level of
performance. As per analysis, reward system must be fair and just give an appropriate direction
of employee to achieve business goal and objective.
Recommendation as improvement of company by using different strategies, management
practices and leadership styles.
It has recommended that Debenhams apply the competition-based pricing strategies that
help for establishing the best prices for particular product and services. It helps for people to
choose best prices that will increase the profitability and productivity of retail business. This
strategy is mainly focused on the existing market rate (Boardman, Henninger and Zhu, 2019). In
Debenhams departmental store, who compete in highly saturated space that may choose strategy
to easily compare between one product to another. In this way, it has recommended that apply
strategy in the retail business to improve quality of product and services in marketplace.
In Debenhams enterprise, A great business leaders who always motivate their staff
members and follow an appropriate management practices for success of business. It is a type of
process in which employee to produce an efficient outcome and results. It has recommended to
use different types of management practices by leaders in organization (Hickman, Ozuem and
Okoya, 2019). It involves worker engagement, reward efforts, committed towards company,
clarity and create cohesiveness culture etc. these are different type of management practices
required to implement in business activities which increase capabilities and abilities.
It has been recommended to use transformational leadership style in the business because
it helps for leaders to change the business policies by using innovative idea. this type of
leadership style is creating vision to change the need of business and also committed towards
7

specific goals of organization. It is an essential leadership style that enhance morale, motivation
and performance of workers.
As above discussion, it can be identified to recommend multiple management practices,
leadership style and appropriate strategies in the Debenhams stores to increase production and
sales in global marketplace.
Reflection
As per my experience, I could analyse the current situation of Debenhams retail business
where macro environment factors directly impact of organization in both positive and negative
manner. It was great experience for me to understand about the performance and efficiency of
organization. I found various type of leadership styles that can use as per requirement of business
growth and development. In this way, I could improve my skill and knowledge regarding
particular topic. Furthermore, I understand about the motivational technique that always helpful
for leaders to inspire their potential employees towards goal and achievement.
I found to implement expectancy theory that motivate employee in which how much
individual wants rewards and awards. Being a leader, I always inspiring employee so that they
are putting extra efforts on task to achieve goal and objective. I also determined that Employee
satisfaction is another essential part of business growth and development because it directly
improve productivity of organization. I could find that leaders are giving rewards to employee
and also receive expected enterprise objectives. According to own experience, It was greater
challenges faced by organization due to lack of proper strategy management that’s why, it is
necessary for organization to use proper strategies for acquiring all information and data related
to the demand of customer.
8

REFERENCES
Book and Journals
Alexander, R., 2019. Emerging roles of lead buyer governance for sustainability across global
production networks. Journal of Business Ethics. pp.1-22.
Boardman, R., Henninger, C.E. and Zhu, A., 2020. Augmented Reality and Virtual Reality: New
Drivers for Fashion Retail?. In Technology-Driven Sustainability (pp. 155-172). Palgrave
Macmillan, Cham.
Hossen, M., 2018. Examining barriers to lean six sigma implementation in supply chain: a case
study.
Jones, C. and Livingstone, N., 2018. The ‘online high street’or the high street online? The
implications for the urban retail hierarchy. The International Review of Retail,
Distribution and Consumer Research. 28(1). pp.47-63.
Jones, P. and Comfort, D., 2019. “Better Retail, Better World”: A commentary on British
retailers and the sustainable development goals. Journal of Public Affairs, 19(2), p.e1910.
Pasae, A., 2018. THE INFLUENCE OF TECHNOLOGICAL FACTORS, CUSTOMER-
RELATED FACTORS, PRICE AND PRODUCT TOWARDS ONLINE PURCHASE
DECISION (A CASE STUDY OF MDS CUSTOMER IN JAKARTA) (Doctoral
dissertation, President University).
Taylor, L.A., 2018. Consumer reaction and perception of the physical, visual presentation of
Debenhams’ Discounting Prime Trading versus Sale Visual Merchandising
Standards. Bloomsbury Fashion Business Cases.
Hickman, M.K., Ozuem, W. and Okoya, J., 2019. Gender Fluidity in the Age of Technologically
Mediated Environments: Implications for Fashion Industry. In Gender Economics:
Breakthroughs in Research and Practice (pp. 135-174). IGI Global.
9

Online
The expectancy theory. 2018. [online] Available through:< http://www.bms.co.in/explain-the-
expectancy-theory/ >
10

11