Strategic HRM and Debenhams' Business Success: A Case Study

This case study examines the challenges faced by Debenhams, a British multinational retail chain, and analyzes the factors contributing to its decline. The assignment delves into the internal and external environments using SWOT and PESTLE analyses to identify strengths, weaknesses, opportunities, and threats. It explores the role of Human Resource Management (HRM) in addressing the company's issues, focusing on HRM approaches, strategies, and practices. The analysis covers issues such as cost-cutting measures, financial mismanagement, and changing consumer preferences. The report recommends specific HRM strategies, including maintaining a positive work culture, employee evaluation, and conflict resolution, to improve Debenhams' performance and ensure business success. The study highlights the importance of adapting to market trends and the effective use of HRM theories and practices to overcome operational challenges and achieve sustainability. The case study provides valuable insights into the application of strategic HRM in a real-world business context, offering recommendations for a turnaround strategy.

Debenhams

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
ENVIRONMENTAL ANALYSIS..................................................................................................4
PROBLEM ANALYSIS..................................................................................................................7
CONCLUSION................................................................................................................................9
RECOMMENDATIONS.................................................................................................................9
REFERNCES:................................................................................................................................11
Books and Journals:..................................................................................................................11

EXECUTIVE SUMMARY
The organisation needs to keep in mind what factors will be affecting the growth and
profit making aspects. The management team is required to keep in mind everything so that they
are not facing any problem in execution of operational framework in an organisation. The
optimal use of HRM theories and practices helps the management and subordinates to work on a
proper manner. This will further result in maintaining cordial relations with consumers also. The
customer relationship will be enhanced as they will be addressed on time.
INTRODUCTION
Every organisation faces financial or managing problems in some or the other manner. It
is the responsibility of Human Resource Manager to go under the root cause of problem and find
appropriate solutions to them. It is only possible when managers are having appropriate
knowledge of what they are supposed to do and in what way. For this purpose they are required
to be well versed with the knowledge of Human Resource Practices, Approaches and Techniques
in a manner so that they are treated well. The report is a study of both internal and factors that
affect the work process of an organisation. Debenhams is a British multinational retail chain
store working world wide on supplying a wide variety of items. It has been working as a
departmental store since 200 years (Conlon 2020). The report examines what led to the decline
of Debenhams, as the financial statements were showing it a going concern but internal health
was suffered. The involvement of stakeholders and competitors also affected the sustainability of
Debenhams. The role of HR is of high significance as he is the key that works for maintaining
decorum and link among employee and employer so that operations are worked out in an
efficient manner. The report also mentions the practices that HR performs to correct the
problems which have been came in mid way of operational functionality of Debenhams. Those
factors can help in rectifying the measures and bringing sustainability.
MAIN BODY
In Debenhams, there is an adverse decline in growth which is about to result in shutdown
of many stores. The reason are many but major ones can be seen as:
 Cost Cutting by reducing employees which is affecting productivity.
 Euphemistically blaming social and environmental change in buying preferences of
consumers.

 No proper management of investment has increased borrowings and reduced the assets.
 Showing good profits by manipulating accounts and financial statements.
 Opening new outlets, thus increasing private equity which will dilute the ownership.
 Reducing cost of refurbishments and reducing cost of innovation as compared to that of
its competitors (Hubbard 2017).
 Continuous change in ownership is also hampering functioning of Debenhams.
 Improper use of assets and savings of company by the management team.
In order to address all these issues it is required to analyse the environmental factors, both
internal as well as external ones. Other than this the management policies and strategies which
will help in proper functioning are also needed to be rectified and implemented.
ENVIRONMENTAL ANALYSIS
To gain a better understanding of an environment wherever an organisation is operating,
it is highly required to perform an in-depth environmental analysis. This is a systematic strategic
tool which examines various internal and external factors that affect the performance as it
describes the shortcomings, opportunities, profitable motives and much more. For this, there are
several frameworks like SWOT and PESTLE as discussed under:
SWOT
SWOT Analysis studies the internal factors of an organisation. This is a framework that will
describe the strengths, weaknesses, opportunities and threats which an organisation has to
undergo (Jones and Sankey 2017). This will help the organisation to get itself ready for the
upcoming challenges and tasks. These can be discussed as under:
 Strengths: These are the factors which help the organisation to grow and build a
renowned goodwill. This becomes a cause that they can create loyal and long lasting
consumers. There are various strengths which the organisation, Debenhams possesses are
like
 High brand equity as it is operating in a large number of countries and offering a large
variety of hoods and services.
 The widespread chain store is making it possible for Debenhams to cater a large
consumer market.
 The organisation's main strength is that it is providing high discounts which is leading in
emergence of consumers and advertisement as well.

 The marvellous after sale services provided by the organisation helps in retaining
consumers for a longer span of time period.
 As organisation is spread worldwide, Debenhams is adaptable to a lot of vulnerabilities
that come in mid way (Lane 2018).
 It specialises in providing exclusive and designer clothes as compared to that of its
competitors.
When strengths are known it will help Debenhams to bring data which can be used for further
development. The strengths when evaluated can be worked upon and while working in the same
direction will polish them as well.
 Weaknesses: The weaknesses can be considered as the shortcomings which are required
to be abolished so that work structure is enhanced and position as well as goodwill is
improved. Even though working with full potential and skills there are several
weaknesses, Debenhams possesses like
 A large number of retail stores in one geographical boundary makes management
troublesome and also division in customer reach which keeps several stores vacant.
 Instead of working internationally, the organisation is not completely capable of catering
needs of every segments of consumers, mainly youngsters.
 The marketing strategy is lacking which makes the existence of Debenhams vulnerable.
 Lack of financial management is leading the sustainability of Debenhams in dark as day
by day they are getting short of assets and increase in borrowings.
 There is a need of investment in research and development department so that new and
innovative products and scenarios can be brought.
The weakness of Debenhams or of any other organisation is highly required to be corrected as
they affect the smooth running of an organisation (Mokal 2020). When there is continuing
weaknesses in an organisation it will cut short the customers as they will be diverted to
competitors in search of a better deal.
 Opportunities: It is very significant for an organisation to evaluate opportunities that
longer in the environment as they help in catering future trends of market and improving
profit ratio. There are many opportunities that Debenhams possesses like
 They can make a sustainable impact in domestic as well as foreign market, because they
already are having their existence overseas.

 They have a great opportunity which can be ceased from the European Markets as there
the brand is having good value and there are less competitors as well.
 Manufacturing according to the tastes and preferences of individuals will help in catering
a large consumer market (Mukherjee 2020).
 The outlets which are being occupied are on lease which has reduced the cost of rent and
helping in reducing costs.
The opportunities of Debenhams will help them in increasing market share and improving their
existing worth. When opportunities are ceased and worked appropriately with, it will help the
organisation in giving their best as compared to their competitors. When opportunities are
catered it will make the working favourable.
 Threats: Every organisation despite of its working has some or the other threats. The
threats can affect working which will hamper the growth. The threats of Debenhams can
be
 The continuous rise in rivals is a threat to market share as it will increase competition.
 Inflation will increase cost of production and thus reduce the profits.
 Deficiency in meeting tastes and preferences will shift consumers.
When threats are evaluated, it will help in solving tentative problems which might occur in near
future and can affect the working process.
PESTLE
PESTLE analysis studies the external factors for an entity. This is a set of framework which
describes aspects like Political, Economical, Social, Technological, Legal and Environmental
ones (Overton and Greenwood 2016). This will help in evaluating the hurdles which will reduce
the chances of failures and shortcomings. They can be studied as: Political: The interference of governing bodies in working situations like change in
power, policies amended, trade restrictions and others that affect the operational process.
Political factors like corruption, trade related tariffs, laws and regulations which are
framed for industrial framework has affected growth of Debenhams. Economical: Debenhams being an international working organisation is adversely
affected from economical factors like change in rate of exchange, inflation rates, rate of

interests, growth rate and others. These factors can either heighten profits or reduce the
profitability concern. Social: Factors like intensity of population, level of education, perception of individuals
and much more affects the sale of Debenhams. This shows how company is meeting the
needs and demands of the consumers. This will design the image of company in eyes of
consumers. Technological: With modernisation there is huge need of technological advancement
which ranges from bringing updated methods of working so that tasks are executed in an
easy and quick manner. When technological factors are implemented it will create an
impressive attitude in eyes of market and thus sale will be enhanced. Legal: Every economy mends several rules and regulations which becomes mandatory
for working institutions to follow else they will be involved in legal affairs. These laws
are made in context to betterment of citizens like copyright laws, consumer protection
laws, health and safety laws. When these laws are abolished it will be infringement of
rules and image of organisation will be hampered.
 Environmental: In order to enhance and manage the environmental conditions, there are
several factors which are required to be addressed like recycling, reducing, reusing,
control on pollutants, waste management and others. This helps in trouble free execution
of operations as it will help in taking care of flora and fauna, thus support of institutions
who work for the cause of environmental protection.
PROBLEM ANALYSIS
There are many problems which are being faced by Debenhams which arises due many
reasons. These can be either due to factors that affect business or due to the deficiencies of
management staff. There are many problems in an organisation, these can be addressed by
properly analysing the problems and then finding out best approaches and strategies which can
be used for the same (Styles 2020).
Role of HR
There is an important role of HR in managing the staff and working towards their issues and
conflicts. He is responsible for managing the staff by hiring, recruiting, selecting, training,

appraisal and administering employees. He makes policies for better functioning and timely
upgrades and amends them as and when needed. At times there are conflicts among employee
and employer or among the employees, then he plays a key role in resolving the same.
HRM Approaches
There are many approaches which an HR manager follows in order to make environment work
smoothly. Such as:
 Strategic Approach: This approach deals with staff in a systematic manner by following a
set of pre determined rules and regulations.
 Management Approach: This approach tells that managers should work with better
management techniques so that work is completed without any problem (Walton and
Umfreville 2020).
 Human Resource Approach: This approach tells that managers should treat every
employee in a way which works for their betterment after evaluating their potentialities
and intellectual abilities.
 Proactive Approach: This approach tells that managers should be ready for the problems
before hand they arise. Reactive Approach: This approach comes on ground whenever any problem or any
challenge occurs.
HR Strategies and Practices
The practices and strategies which is adopted by the Human Resource Team of an organisation
can be seen as:
 Maintaining a proper culture where work can be completed without any issues.
 Evaluation of the tasks which is assigned to the subordinates as in are they performed in a
proper manner or not.
 Performance Appraisal of each and every individual who so ever is working in an
organisation according to what he is contributing in sake of growth of an organisation.
 Management of talent by timely evaluating the hardships which is coming mid way of
operational process.
 Providing training to the staff as and when required.
 Working in a manner that more and more employees are engaged in the work process.

 Setting an example in front of subordinates so that they can learn from and work in the
same path (Wyncoll 2017).
 Setting targets on basis of pre determined set of rules and regulations in such a manner
that the employees work accordingly and chances are increased that firm will conquer
more profits.
CONCLUSION
From the above report on the organisation, Debenhams it can be concluded that there
arises a lot of problems but if management team knows very well how to manage such issues it
will be a bonus point for them. As seen when external and internal factors are kept in mind, it
will make process easy and will be effective for an organisation to run its operations. For that
SWOT and PESTLE analysis is performed which shows the factors. Further various HRM
approaches, strategies and practices as discussed should be used appropriately which will result
in problem free management in an organisation. When appropriate policies or strategies are
incorporated in an organisation, it will result in higher gains and reduction in day to day
problems.
RECOMMENDATIONS
Debenhams is facing a lot of challenges in proper functioning of its operations. For this
the management of Debenhams is required to keep in mind the internal and external factors
which have been studied above in manner of SWOT and PESTLE analysis. These will help in
getting a better knowledge of market and its forces which will help in catering market at a better
pace. As the organisation is having consumers all around the world, they are needed to look to
them which makes it possible on catering a wider market reach when any new product or service
is to be launched. It should also try to keep those parties happy which can affect management
such as stakeholders, governing bodies and others.
As discussed earlier, there is a lack in management policies which is highly required to be
modified by taking precautionary measures. This can be done by implementing appropriate
strategies and approaches of Human Resource Management in a way that it works for overall
development of the organisation. The policies and rules made by the management team is
required to be flexible so that they can be amended whenever required. The accuracy of financial
statements is significant as it will be showing true and fair position of the organisation. There

should be reduced frauds and mistakes so that correct evaluation can be done. Instead of
planning for short term objectives, long term goals should be given more significance so that
profits are increased and focus is made in respect higher attainment of profits. Instead of blaming
the climatic environment, the management team should focus on the organisational culture can
be changed so that they are working according to meeting tastes and preferences of the
consumers.

REFERNCES:
Books and Journals:

Conlon, E., 2020. Workers, resistance and Covid-19. Irish Marxist Review, 9(27), p.44.
Hubbard, P., 2017. Going Out of Town. In The Battle for the High Street (pp. 45-66). Palgrave
Macmillan, London.
Jones, R. and Sankey, G., 2017. To let.
Lane, L., 2018. ReceiptRetriever App: IEEE Requirements Specification Document (Doctoral
dissertation, Dublin, National College of Ireland).
Mokal, R., 2020. The Two Conditions for the Part 26A Cram Down.
Mukherjee, M., 2020. Could scenario planning have saved Robinsons?. Business Times, pp.31-
31.
Overton, P. and Greenwood, R., 2016. British retailing giant store Debenhams is on its way to
Australia, with fresh, serious competition for Myer and David Jones.
Styles, V.L., 2020. HOT POST. Differences.
Walton, P. and Umfreville, C., 2020. Bargain Hunt–CVAs and the future of corporate rescue.
Wyncoll, A., 2017. The effect of firms reporting to the Carbon disclosure project on their CO2
emissions.: An empirical study based on the synthetic control approach (Doctoral
dissertation, Université de Fribourg).