The Organisational Challenges Faced By Debenhams Commerce Essay

The Organisational Challenges Faced By Debenhams Commerce EssayThe future(a) reputation looks at an organization (Debenhams) the authors employer, its indite, finale and how the genuine economic climate has advert its profile and elaborationWhat is an brass instrument?Organisations are social arrangements for achieving controlled proceeding in pursuit of collective goals, Buchanan and Huczynski (1997). The collective goals at Debenhams are aimed at, identifying, creating and hold backing consoling relationships with customers resulting in value for both the customer and the arrangement.ProfileDebenhams Plc is a valet de chambreity limited naughty society. Founded in 1778 as Flint Clark, Debenhams operated as an independent company until its hostile createover by the Burton conference in the late 1980s. In 1998 Debenhams regained its independence when it was demerged from the Burton Group, which subsequently stird its name to Arcadia Group plc. The Groups princi pal activity is merchandising of fashion array and glide slopeories, cosmetics and point of intersections for custom in the home. It retails womens crack, menswear, homewares, health and beauty, accessories, lingerie and childrenswear. The Group trades from plane section stores and small store formats .Brands include Designers and Debenhams, including third-party brands. The Group has 161 department stores including 10 Desire by Debenhams stores, across the unite Kingdom and Ireland with approximately 11 million square feet of trading space and around 27,000 employees.The Group has a portfolio of much(prenominal) than 55 own brands much(prenominal) as De only when, Maine New England, red Herring and Thomas Nash including 25 Designers of Debenhams brands. Company brands account for about 70% of gross revenue. Debenhams also offers a wedding gift service, in-store continueaurants and cafes. The company has 51-plus international licence stores in 19 countries including, Bahr ain, Egypt, In makesia, Malaysia, Saudi Arabia and Turkey and go forth soon be opening 8 in Denmark. Debenhams also extends its customer reach by making direct sales by its website. Debenhams is company that is registered and trades its donations on the capital of the United Kingdom Stock Exchange (LSE). Its registered office is at1 Welbeck StLondon W1G 0AAUnited KingdomThe companys key people are the Chairman John D. Lovering, chief executive officer Rob Templeman and Deputy CEO and Director Michael Sharp.StructureAn arranging social system according to Mintzberg (1979) is the sum total of the ship spateal in which it divides its labour into unadorned tasks and then achieves coordination between them An brass expression determines task allocation, reporting lines, and established coordination mechanisms and inter work patterns. According to Basset and Carr (1996) an organisations structure should emphasise flexibility of solvent to mart and purlieual forces, this is ac complished by appropriate variability in the leadership role to fit the circumstances. As a retail organisation, Debenhams emphasises its structure in response to market and environmental forces by identifying and developing raw(a) talents to suit whats happening in the market and the retail and work environment in general.Wright and Burns (1998) state that, organisation structures largely depend on what kind of business the organisation is e.g. primary (e.g. extraction of raw materials, secondary, (e.g. reincarnation of raw materials to finished goods) and tertiary (e.g. services). The structure of an organisation is also affected by ownership and soma of employees in the business. Debenhams is a public buzz off company. Its functional organisation based on product/brand nevertheless has a flat organisational structure headed by a Chief decision maker Officer (CEO) and organises employees into different departments selling different products The functional structure groups employees to pretendher based upon the functions of specific jobs within the organization. Melissa Bushman (2007). The author belongs to the Home department where they deal in home wares including wedding gifts. Other departments include Mens wear and Womens wear. The dividing of employees according to departments in Debenhams allows managers to exert control on a littler number of employees, making it easier to manage, be more efficient and allows for easy dialogue between employees and way.CultureThe culture of an organisation refers to the unique configuration of norms, values, beliefs, slipway of behaving and so on that modify the manner in which groups and individuals combine to appropriate things done, Eldridge Crombie (1974). At Debenhams they have a unique configuration of norms, values and beliefs that characterize the manner in which they work as a group to get things done. They have a way which sets them apart from separates. Drennan (1992) defines culture as, how things are done around here. It is how things are done at Debenhams that makes them who they are. Its about their brand, their people and how they market themselves. Schein (1990) suggests a view of organisational culture based on distinguished trine levels of culture, from the shallowest to the deepest artefacts and creations, values and prefatorial assumptions. The Debenhams culture is about excellence, its about design and base. The culture at Debenhams goes with the times plainly its traditions remain intact and have been so for two centuries.Debenhams culture is based on cosmos a agiotage department store retailer. A family friendly store who supply motive labels at affordcap fitted prices. The best relation to Debenhams culture is its people.Retail is a fast-moving, exciting business where teamwork really makes an have-to doe with. At Debenhams they think everyone can have an impact on their success.Wherever you go in Debenhams you will interpret friendly, wel comin g people who will care about your well being and support your development but also expect you to be a valuable member of the team. If you want to push your boundaries and take the enterprise, they help you do it.Whether you are a sales advisor or merchandiser, Debenhams produce and pretension of opportunity and nidus on personal development makes it the ideal cast to develop your career. From the sales floor where people can influence customers to basis the scenes roles, every person can influence the performance of Debenhams. Our senior management team listens and acts on feedback.At Debenhams they want people who have a real passion for what they do, people who are self-motivated. People who will occasion their initiative to act on the freedom they are given and will drive their own development.Sutherland Canwell (1997) say if employees share the cultural values of the organisation then they will be more likely to be perpetrate to it. At Debenhams employees are committed to the organisation as they believe and share in its culture and values.Certain organisations stress the importance of personal initiative and achievement indeed they reward employees for personal performance. On the other hand, other organisations positively encourage competition between departments or sub-division of the organisation, Sutherland et al (1997). The Debenhams culture stresses personal initiative and achievement and at the same time positively encourages competition between departments of the organisation. Both individual and team initiative and growth are encouraged.The culture in Debenhams is one that is caring, daring, enabling and encourages sharing.According to Blanchard and Bowles (1998) and their Gung Ho culture, an organisation should aim to make water a culture of committed employees who bang what they do by adhering to the following three principlesWorthwhile work dictated by goals and values- An organisation should focus on worthwhile work, use of causa studies, review goal standards for individuals and team members.Putting workers in control of achieving the goal. shouting each other on- the power of feedback, rewards and recognition and action supply.The Gung Ho do aims to address the followingImprove morale and productivityReduce employee disorderDevelop a sense of purposeImprove creativity and innovationImprove service to internal and external customersEmpower individuals and teamsThe author feels Debenhams their employer, fulfils principles as described in the Gung Ho process by Blanchard et al (1998). This is so because the work is driven by goals and values. Good standards are maintained by dint of with(predicate) regular training and review of individuals and team members. By setting honest and realistic targets workers are put in control and are able to achieve set goals and even outdo themselves by release beyond. The organisation recognises the power of feedback by h anileing regular meetings where everyone parti cipates. It also recognises the importance of rewards and action planning. Rewards help boost morale and productivity while action planning and develop a sense of purpose.Current Economic Climate and how it world power affect profile and CultureThe past eighteen months has seen the deliverance of the UK and the rest of the world badly hit and seriously bruised by the credit rating c dissolvech. The ongoing economic climate could have great impact on the profile and culture of Debenhams as an organisation. These impacts could be semipolitical, Economic, well-disposed, Technological, Environmental and Legal, shortened to PESTEL.PESTEL Analysis of DebenhamsPolitical changes-E.g. a change in government or a change in government policy.Government plans to implement the scheduled VAT augment (back to 17.5 per cent) on New Years Day. To change every price in all of its 161 stores at that time would take 250,000 man hours.Debenhams has been encouraged by governments decision on Local Employment Partnership Scheme (LEP) to realize employment and will create 1200 jobs between 2010 and 2011and receive government assistance in meeting its training of necessity.Economic changes-Relate to changes in the wider delivery much(prenominal) as rises in living standards or the general level of demand, rises or falls in interest rates, etc.UK markets have been affected by economic concerns through the credit romance. Lower available income will impact and strategic focus may need to change to lower priced basic products with less focus on higher priced brands suggesting a switch in price architecture.The frugality is predicted to grow out of recession in the coming year. As the US economy, the worlds biggest has started growing the growth of exports to that country will create more jobs in the UK economy and as a consequence more consumers will vitiate the Debenhams brand.The continuous fall in the value of the hammering Sterling against the Euro is likely to bring i n more tourists from the EU and beyond who will purchase Debenhams products at a competitive price.As around of the world recovers from the original economic crisis. Debenhams are likely to spearhead their working out into the international market, introducing new customers to new brands in an exciting retail environment.Social changes-Relate to changes in wider society such as changes in lifestyles e.g. more women going out to work, changes in tastes and buying patterns.Debenhams has added customer ratings and reviews to its online shop to enhance its customers online shop experience and drive sales. Debenhams customers dont just have to rely on a brands professional opinion they will also now be able to hear what fellow shoppers think.The group is also improving its web site, adding features such as social networking capability, video and catwalk/outfit projection, an online outlet that leads to current offers and promotions, a facility that allows customers to shop by coat, as well as product reviews and surveys.The call for fair trade is also another thing that Debenhams has to observe. For pattern Debenhams restaurants now stock only Douwe Egberts Good Original Coffee. Every cupful of Good Original Coffee can be traced back to the arouse where it was grown and has been certified by Utz Kapeh, a global non-governmental organisation. This is ensuring we are aid farmers look after their workers, their families and the environment in which they live and work.Technological changes-Relate to the natural covering of new inventions and ideas such as the development of the Internet and websites as business tools.New internet and television technology which use special set up in advertising will make Debenhams products known and attractive to more customers as more people are now making use of the internet.Debenhams has opened online stores due to advancement in technology of the internet and can now sell its products without using shop space. This will allow it to argue favourably in this harsh environment.Positive performance online is helping creep yearly profit at Debenhams, this is despite the harsh economic agitation in the domestic and international marketEnvironmental changes-Relates to what is happening with extol to the ecological and environmental aspects.Debenhams have also joined calls to reduce impact on global warming by driving a terminus energy saving plan, reviewing timings for easygoings, escalators and air conditioning. Overnight shifts have been reduced with light focussed only in the areas its needed. As a result of these efforts the organisation has achieved the Energy Efficiency Accreditation awarded by the energy Institute.Debenhams is now contributing to a national fund which will help to develop specific WEEE (Waste galvanizing and electronic Equipment) compendium centres to ensure that more WEEE gets recycled.Debenhams offer a collection service on a like for like basis, for example if you buy a w ashing machine we can take away your old one. All the appliances we collect are then sent to be recycled. more than eco friendly measures have to be utilise, for instance Debenhams have developed a more eco-friendly packaging for the bra collars on Lingerie, by using a new type of board and are now able to maintain the print quality, whilst introducing 20% recycled content.Legal changes-Relate to changes in legislation. This may impact employment, access to materials, quotas, resources, imports/exports, taxation etc.Debenhams has been affected by the WEEE (Waste Electrical and Electronic Equipment) directional from the government and is doing its bit to help care for the environment.The directive states that as a retailer we are responsible for increasing the amount of WEEE (Waste Electrical and Electronic equipment) that is recycled in the UK.Debenhams reactions to the current economic climateTrigger events like the credit crunch affect organisations in many different ways. Towar ds the end of 2008, Debenhams struggled as customers were no longer buying much of their products as the economy slid into recession.The current economic climate is likely to impact on Debenhams profile and culture. The report by Graeme Wearden, in the Guardian of (21st October, 2008) gives a clear example of how the current economic climate has affected Debenhams.Debenhams has slashed its dividends after a discriminating fall in sales during the past few weeks as the economy deteriorates,Debenhams is planning cost-cutting measures to reduce debt of 994m, which it admitted was causing uncertainty over its future.It also plans to break up out 15m of costs, and is cutting almost 40m from its capital expenditure.The profile of the organisation talent change as it could be more difficult to raise cash in hand for new ventures or expansions and also might reduce the current size of the company as there could be downsizing. The negative trends in the economy also might affect the cult ure of Debenhams as its employees will be operating in a culture of uncertainty.However, the negative trends in the economy have had some positive effects on Debenhams as account in the Waterford Today (6th January, 2009).On the day (6th January 2009) Debenhams released its interim management statement for the 18 weeks to the 3 January 2009, it also reported that sales of designer geartrain normally associated with boom times rather than bust, are back in vogue thanks to a new type of shopper, the recessionista.Spring/ spend 09 at Debenhams draws the latest influences from catwalks around the globe with a strong focus on wearability all with famous name designer influences but with high street price tags.ClickPress (14th January 2009)The retailer reported double digit sales growth across its Designer at Debenhams offer in the run up to Christmas, as well as seeing sales and earnings increase and market share gains in all major clothing categories, while reducing its debt.The curre nt economic climate has shaken Debenhams, but the Debenhams culture that encourages initiative has seen them shake off the initial fall in sales which shrunk the organisations profile and brought a culture of uncertainty as Debenhams struggled to survive. Whilst Debenhams is a premium department store retailer the external factors of banks going bust, climb unemployment adversely affected their operations. The public could no longer afford their products.The organisation strategized and came up with the idea of selling designer labels with famous name influences but sold at high street prices.Despite the credit crunch Debenhams has been able to maintain its culture of hard work and excellence through its people. The outgoing Chairmans words sum up the Debenhams culture.John Lovering saidI am proud of what Debenhams has achieved over the last six years whilst I have served as chairman.We have set direction for a upright future. Debenhams is a well managed, square-toedly financed c ompany with a clear and sure-fire strategy and a number of exciting development opportunities. I look forward to my successor enjoys the role as much as I have.Debenhams has interpreted advantage of the recession its combination of quality, price and design in its products has continue to attract customers. set up News (17 March, 2009). The companys profile will expand as in 2010 theyll open eight new stores bringing the total number to 161 stores across the UK and will employee 1200 new people. The culture of the organisation has altered passably as the perceived credit crunch crisis initially shook the organisation and drastic measures had to be implemented, the crisis brought a culture of uncertainty across Debenhams. The measures implemented have seen the UKs second biggest department store chain continue to take market share from its competitors in all major product categories. Sky News (March, 2009).The culture change which has taken place at Debenhams is what cook (1998) terms, specific evolution, which is the adaptation of particular organisational functions (such as research and development, data process and marketing), to fit the environment. People at Debenhams had to adapt to the credit crunch and put working ways to rise above the crisis. The Debenhams culture has been sustained through new pattern- maintenance symbols, beliefs and structures.Debenhams has been able to weather the storms of the credit crunch because of proper planning and effectively managing todays business dangers. Reuvid (2005) points out that organisations should spend time researching the gap of a venture occurring and the probability of that risk occurring and interrupting businesss flow, then find ways to reduce and mitigate these risks. The organisation should continuously be evaluating the overall risk management infrastructure and investments necessary to look beyond financial statement, risk to enterprise and external risks should not be undervalued and cannot be underscored enough. The organisation needs to protect itself from excessive risk. This should be top priority for management and the canvass team. They should understand the extent to which the company is exposed to financial, operational or strategic risks. Because of its preparedness and strategic use both of its financial, creative talent and its human capital Debenhams has survived the worst recession in decades and remains standing strong.