STRATEGIC

MANAGEMENT
Life made fabulous
Group Members:
Humna Amir 21260
Sanjana Dawani 18621
Danyal Oshaid 21230

Date: 10-April-2019
Contents
Acknowledgement....................................................................................................................... 3
Executive Summary ....................................................................................................................... 4
CHAPTER #1 ................................................................................................................................ 5
Introduction of Debenhams ...................................................................................................... 5
Mission statement:...................................................................................................................... 6
Vision statement: ........................................................................................................................ 6
Objectives: ................................................................................................................................... 6
Goal of the organization: ........................................................................................................... 6
CHAPTER #2 ................................................................................................................................ 7
PROBLEMS ............................................................................................................................... 7
SOLUTIONS .............................................................................................................................. 7
COMPANY GROWTH AND CREATING VALUE FOR CUSTOMERS ............................... 8
(Before downfall): ...................................................................................................................... 8
COMPANY GROWTH AND VALUE AFTER DOWNFALL: ................................................ 9
Brief introduction about Debenhams’ outlets: ....................................................................... 10
Shutdown of outlets:................................................................................................................. 11
CHAPTER #3 .............................................................................................................................. 12
BCG MATRIX .......................................................................................................................... 12
SWOT Analysis ......................................................................................................................... 13
STP Analysis ............................................................................................................................. 14
PESTEL Analysis of Debenhams ............................................................................................ 17
................................................................................................................................................... 17
CHAPTER #4 .............................................................................................................................. 19
MARKETING CHANNELS: ................................................................................................... 19
WEBSITE Analysis .................................................................................................................. 20
Competitors ............................................................................................................................... 21
Findings .................................................................................................................................... 22
Chart of EPS: ............................................................................................................................... 23
CHAPTER #5 .............................................................................................................................. 24
Organizational structure should be: ........................................................................................ 24
What should be the hierarchy within the outlet? .................................................................... 25
RECOMMEDATIONS............................................................................................................. 26
APPENDIX: ............................................................................................................................. 26
 Acknowledgement

The Research on Strategic Management Project has been given to the Faculty member of
Institute of Business Management, a Lecturer, Sir Dr. Dilshad, at dated 10th April, 2019.

We have tried our best to present this information as clearly as possible using terms that I hope
will be comprehended by the widest spectrum of researches, analysis and further studies.

I also thank you, Sir Dr. Dilshad, to Support us & guide us for this topic. I will be failed in my
duty if I don’t acknowledge the esteemed scholarly guidance, assistance and knowledge. I have
received from them towards fruitful and timely completion of this works.

Humna Amir
Sanjana Dawani
Danyal Oshaid
 Executive Summary

Debenhams is one of the leading fashion corporations; it’s originated from United Kingdom. It
was founded in 1950. The first CEO of Debenhams was William Clark who established a small
store in London. That has Clothing, home based accessories, cosmetics. It is mostly famous for
its clothes that it sells. It has more than 167 stores across the UK and more than 40 franchise
around the world such Australia, Bahrain, Cyprus, Egypt, Iran, Jordan, Kuwait, Latvia, Libya,
Malaysia, Philippines, Qatar, Saudis including Pakistan and so many countries. The company
was gaining a rapid increase and growth was even very rapid but unfortunately the company has
started to declined due to several reasons such as too many outlets that leads themselves in a
decline because as we all know, way too many outlets creates a burden on the organization. And
the online store of Debenhams is facing the competitor issue i.e. the rivals of Debenhams are
working way better than Debenhams as they had a good quality product and no discrepancy in
the product that they show and the product that they deliver. The competitors of Debenhams such
as amazon and alibaba have captured a big market share and they have a customer loyalty by
providing the best service to their targeted audience. Since the company faced a downfalls that
leads to losses and decreased the value of the brands as compare to others. But after studying
the case of Debenhams we (the group members) had decided to work on it deeply on their faults
and tried to figure out exact problem for their downfall and try to suggest them that how they can
strategize their organization in the best possible manner so that they can come again on their
previous position and serve the customers at its best.
CHAPTER #1

Introduction of Debenhams
Debenhams is one of the leading
corporations of United Kingdom.
That has Clothing, home based
accessories, cosmetics. It is mostly
famous for its clothes that it sells. It
has more than 167 stores across the
UK and 69 stores across Europe,
Middle East and Asia.

Debenhams traces its history back

to 1778 when William Clark
established a store at 44 in London's West End selling expensive fabrics, bonnets, gloves and
parasols. In 1813 William Debenhams invested in another firm which then merged and became
Clark & Debenhams. The first store outside London was opened in Cheltenham in 1818, an exact
replica (same as an initial store) of London’s west.

When a company wanted to invest in Debenhams named Clement Free body. It invested in the
firm in 1851 it was renamed Debenhams & Free body. As well as its retail stores, a wholesale
business was established selling cloth and other items to dressmakers and other large retailers.

Acquisitions continued into the next century and in 1905 Debenhams Ltd. was incorporated. In
1919, the business merged with Marshall & Snell grove and in 1920 purchased Knightsbridge
retailer Harvey Nichols. Seven years later the involvement of the Debenhams family finally
ended and the business became a public company for the first time in 1928.

By 1950, Debenhams properly came into being, was the largest department store group in the
UK, owning 84 companies and 110 stores. It continued to grow and in 1966 central buying (itis
the practice of locating the authority and responsibility for purchasing at one location for the
larger group. Central buying is commonly used by multi-site organizations, such as retailers,
to buy centrally for the individual units) was introduced for the first time.

From 1985 to 1998, Debenhams was part of the Burton Group. During that time the business was
repositioned with the introduction of exclusive merchandise – most notably Designers at
Debenhams which was launched in 1993 – and a significant increase in the number of stores. In
1997 the first international franchise store opened in Bahrain.

It came to Pakistan in the year 2012. The store has opened only in Karachi in the prestigious
Dolmen Mall, Clifton. Where it spreads over two floors covering a total area of 29000 sq. feet.
The store has a wide variety and ranges of clothes for men, woman and children too. Where they
sell all the commodities that are sold in the other international store with a quite higher prices.
It does not only have normal western clothing but also designer’s one such as Jullien
McDonalds, Jaspan Conran, John Rocha, and methew Williamson that are served in pakistan.

Mission statement:
“Our mission is to create an apparel company that can offer superior design, quality and value to
the consumer. We will accomplish this by being committed to offering great service and real
value to our business partners and consumers.”

Vision statement:
“We strive to be a global leader in fashion-knit and fashion outerwear by empowering innovation
and design to provide total customer satisfaction.”

Objectives:
Our objective is to build a successful future for Debenhams against a fast- changing background.
To help us deliver this, we have built a plan that is good for our customers, good for our
colleagues and, therefore, good for our shareholders. We call it Debenhams.

Goal of the organization:

 It mainly focuses on UK and Europe’s retailing and outlet stores. Improve un-invested
core stores. In order to make it competitive and offers discount to attract customer.

 Delivering a compelling customer proposition by providing the quality product to their

customers.

 Increasing availability in UK and Europe by enhancing stores and outlets. More choice
and better availability.

 Expanding the brand internationally is their second focus because as it is a UK brand so it

wants to win the heart of the UK people as their first priority, in order to get a foundation,
fame and name of the brand then to expand globally.
CHAPTER #2

PROBLEMS
 Lack of market research, the extreme western clothing that leads its downfall.

 No consumer awareness

 No promotions, discount offers and advertising.

 Lacks of understanding of culture.

 As they have so many branches across the world therefore the employees and sales
managers has a low pay Scale especially in Asian countries.

 No incentives, compensations and rewards.

 According to the sale manager; a lot of people promoted when they don’t have a clue
what they are doing, skilled staff are not rewarded, the deputy heads expect more from
you to perform above your role without rewarding you.

 Redundancy on clothing

 Online product has a discrepancy

 No design testing

 Lack of Market understanding

 Lack of Clarity

SOLUTIONS
 Social media marketing

Use of social media platforms and websites to promote a product or service. Although the terms
of e-marketing and digital marketing are still dominant in academia, social media marketing is
becoming more popular for both practitioners and researchers.

 Understand the country’s culture

Each country has different cultural activities and cultural rituals. Culture includes material goods,
the things the people use and produce. Culture is also the beliefs and values of the people and the
ways they think about and understand the world and their own lives.
  Content marketing

Sharing of online material (such as videos, blogs, and social media posts) that does not explicitly
promote a brand but is intended to stimulate interest in its products or services.

 Innovation

Innovating by hiring new designers who can design creative designs

 Proper rewards and incentives

Proper rewards and incentives to employees and managers to motivate them

 Tailor Messaging

Different audiences require different message styles. You must learn how to tailor your message
to the specific audience or audiences it is aimed at.

 Targeting Strategies

They should choose which segments of the market are appropriate, and determining the products
that will be offered in each segment.

COMPANY GROWTH AND CREATING VALUE FOR CUSTOMERS

(Before downfall):
1. Innovation and culture:
They are developing a culture that puts their customers on the first place, enabling product creation and
development in an inspiring environment, supported by data-informed decision-making.

2. Developing and managing brands:

They develop and manage their brands by, approximately half of their sales come from their own
exclusive brands. They keep doing researches and interviewed from 19 million customers in order to gain
the firsthand knowledge that what their customer actually wants.
 3. Serving customers:
They are still serving their customers by making shopping easier and more fun for them by opening an
online purchase facility for their beloved customers, by hiring professional sellers to influence a customer
purchase decision, by structuring elevators and wheelchairs for the handicap and disable customers and
by offering deals and discounts on their festivals such as Christmas, eastern, black Friday and so on…

4. Creating inspiring place to shop:

Creating inspiring places to shop, they are reducing clutter in stores, reducing stock options and
improving visual merchandising. As they have continued to upgrade our digital presentation for mobile
display to improve conversion.

5. Leveraging partnership:
They continue to strengthen their relationship with the third parties to broaden their reach. In order to
access new customer both in the UK and overseas through partners for their own brands, and working
with service providers to exploit growth categories such as cosmetics, clothing and home accessories
services in brands.

COMPANY GROWTH AND VALUE AFTER DOWNFALL:

1. Declining sales:
Debenhams with 165 UK stores and sales of £2.9bn previously has sunk below of about 24
stores approximately to shut down.

2. Too many stores:

Debenhams has 165 stores around the country, which is too many mouths to feed at a time when
its sales are falling and costs are rising rapidly. The company had previously outlined plans to
close 10 loss-making stores within five years but as its finances continue to deteriorate, it has
issued three profit warnings this year, that figure has risen to 50.

3. Too much rent expense:

Many Debenhams stores are on long leases agreed in the years when high street sales were more
buoyant. The firm’s annual rent bill is nearly £300m, or about 13% of its annual turnover. Its
chief executive, Sergio Bucher, says that it is paying too much rent for the majority of its stores.
 4. Threats from online rivals:
Department stores, once a popular choice for branded merchandise corporation, are under threat
from online rivals, including beauty specialists such as Cult Beauty and Feel unique as well as
the likes of Amazon and AliBaba.

Brief introduction about Debenhams’ outlets:

Debenhams is the UK’s leading department store with a turnover in excess of £2bn, over 140
department stores in the UK, and further 40 franchised stores around the world, and significant
online stores. The original Debenhams store founded in 1913 was based in London.

Franchise stores are currently located in:

 Armenia  Latvia
 Australia  Libya
 Bahrain  Malaysia
 Cyprus  Malta
 Egypt  Pakistan
 Estonia  Philippines
 Gibraltar  Qatar
 Iran  Saudi Arabia
 Jordan  United Arab Emirates
 Kuwait

In the UK Debenhams have a top four market share in women’s wear and menswear, and a top
ten share in children’s wear. Debenhams is available online in 70 countries and in March 2012
Debenhams was awarded “Multichannel Retailer of the Year” at the Oracle Retail Week Awards.

Debenhams has been investing in British design for 20 years. Current designers include Ted
Baker, Jeff Banks, Frost French, Henry Holland, Julien Macdonald, Savannah Miller, Jenny
Packham, Richard Quinn, Aliza Reger, John Rocha and Matthew Williamson.
Shutdown of outlets:

Debenhams made confirm plans to shut down their 50 stores all over the world and putting also
4000 job at risk. Debenhams is which currently has 165 stores and employs 27,000 people.
Sergio Bucher, the chief executive of Debenhams said: “It has been a tough year for retail in
2018 and our performance reflects that. We are taking decisive steps to strengthen Debenhams in
a market that remains volatile and challenging.” In the last year of 2018 September the
department store group lost £491.5m, against profits of £59m the year before. Debenhams
which has 165 branches, previously said it planned to close 10 stores in the last year.

He said the company was “taking tough decisions on stores where financial performance is likely
to worse over time” and working with its new finance director to get “rigorous cost discipline.”

And now the main reason is that why 50 stores has been shut down because the chain was
plunged into loss by exceptional write downs of £512.4m, including reductions in the value of its
goodwill, stores and IT systems. The company’s share price has dropped 75 per cent in the last
year.
CHAPTER #3

BCG MATRIX

STAR:
In star we have high
growth rate and high market share but in Debenhams there are no star products.

CASH COW:
In cash cow we have low growth rate and high market share, but in Debenhams there are no
cash cows.

DOGS:
In dogs we have low growth rate and low market share.

For E.g. Cosmetics

QUESTION MARK:
In question mark high growth rate and low market share.

For e.g. Furniture, Clothing

SWOT Analysis :-

Strength:
1. Debenhams has high brand equity in
fashion world and high brand recall among
consumers
2. The company has stores spread in UK,
Ireland and Denmark with 150+ stores and
presence in around 20 countries
3. Strong multi-brand retail stores with
excellent customer services
4. Products and services include Fashion
clothing, shoes, accessories, cosmetics, home
5. and furniture, electrical, gifts, toys
6. Nearly 30,000 employees are working for Debenhams

Weakness:

1. Presence of many retail stores makes the market share capture slow.

2. Debenhams has not tapped all types of customer segments and has limited global geographic
presence.
Opportunities:
1. Franchise model would help Debenhams spread to make global presence

2. High opportunity to spread in European territories

3. Consumers preferences and choices evolving at a fast pace in fashion industry

Threats:
1. High competition from domestic players in fashion industry can affect Debenhams' margins

2. Rising prices of raw commodities would increase input costs

3. High brand awareness and choice for specific products could lead to brand switching

STP Analysis:

Segment:
Style and premium class

Target:
Upper middle class individuals

Positioning:
Debenhams is a retail brand that
offers style that defines you.
Debenhams Marketing Mix (4Ps) Strategy

 Product:
Debenhams is one of the
leading multi brand retail
stores based out of UK.
Debenhams offers its own
brand as well as international
brands. The line of product
offerings in its marketing mix
is categorized as:

• Men’s Clothing and

Footwear

• Women’s Clothing and

Footwear

• Home products like Kitchen

and Cookware, Small
Appliances such as Kettle, dinning furniture, glassware, coffee pots, linens and mats, soft
furnishing, bedding, bathroom accessories and towels, Home décor and accessories, Lighting,
Garden and outdoors accessories and luggage

• Beauty care like hair care, body care and perfumes

• Furniture for home and garden

• Kid’s clothing ranging from school dresses, boy’s, and girl’s casuals to baby clothes

• Gifts & Toys

• Electrical Appliances for households, beauty and health, audio, vision and technology

• Holiday shopping ranging from clothing to luggage

• Wedding wears, shoes, and bags

Debenhams also offers a range of services like restaurant and cafes, hairdressing and beauty
treatment, celebration gift services and personal shopping assistance. Debenhams invests on
design for Debenhams branded product through its exclusive designers like Laura Oaks, Andrew
Fionda and several others. These designer products are exclusively available on Debenhams.
Debenhams’ website provides a range of product and services to its online customers.

 Price:
Debenhams prices its product competitively because of volatile market conditions and disruption
caused by online shopping sites which eating away sales from brick and mortar retail stores.
Debenhams has been giving long duration discounts for clearance sales of its stock, however
such discounts have negative impact on company’s bottom-line and due to investors pressure, it
has decided to cut down on deep discount offers and duration. Debenhams direct channel which
is online retail also offers deep discount for extended period to increase the volume of sales. On
fresh arrivals and fashion clothing it charges slight premium than the market base price due to its
exclusive designer’s stock.

 Place:
Debenhams has over 240 departmental stores spread across 27 countries. The company has
grown through the strategy of acquisition and thus increased its number of stores by acquiring
smaller retail outlets. Company’s distribution channel has two segment UK and International.
Ireland and UK is part of UK segment. Debenhams international channel has 67 stores in 22
countries. Debenhams follows a strategy of local adaptation in its marketing mix so its stores are
designed and products are stocked according to the local preferences and cultural requirements.
However, a considerable effort is made to ensure that these stores immediately reflect
Debenhams brand. Company’s strategy is work with small number of regional franchise partners.
Debenhams is present over mobile app and online retail under its Debenhams direct channel.

 Promotion:
Debenhams utilizes 360-degree marketing for promotion. It invests on TV commercials, digital
media marketing using YouTube and Pinterest. The company is also present on social media
platforms like Facebook, Twitter, Google plus and Instagram. Debenhams has restructured its
promotion strategy after succumbing lower profits with the previous strategy. Under its new
strategy, the company has decided to have a more clearly defined sales period and fewer days of
promotion. Debenhams’ promotion is focused on customer mindset and not on what competitors
are doing. The company has been focused on providing premium delivery options which include
next day click and collect and increasing hours of operation under this program. The company
has also increased the space allocated for click and collect. Debenhams has used TV sponsorship
to increase the customer recall. It is involved in CSR activities such as charity works to improve
the community relationship.
PESTEL Analysis of Debenhams

 Political
Political changes-E.g. a change in
government or a change in government
policy.

Government plans to implement the

scheduled VAT increase (back to 17.5 per
cent) on New Year’s 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
government’s decision on Local
Employment Partnership Scheme (LEP)
to create employment and will create
1200 jobs between 2010 and 2011and receive government assistance in meeting its training
needs.

 Economical:
Economic changes-Relate to changes in the wider economy such 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 crunch. 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
economy is predicted to grow out of recession in the coming year. As the US economy, the
world’s 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 buy the Debenhams brand.

The continuous fall in the value of the Pound Sterling against the Euro is likely to bring in more
tourists from the EU and beyond who will purchase Debenhams products at a competitive price.

As most of the world recovers from the current economic crisis. Debenhams are likely to
spearhead their expansion into the international market, introducing new customers to new
brands in an exciting retail environment.
  Social:
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 shopping experience and drive sales. Debenhams’ customers don’t just have to rely on a
brand’s 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 size, as well as product reviews and surveys.

The call for fair trade is also another thing that Debenhams has to observe. For example
Debenhams restaurants now stock only Douwe Egberts Good Original Coffee. Every cup of
Good Original Coffee can be traced back to the farm where it was grown and has been certified
by Utz Kapeh, a global non-governmental organization. This is ensuring we are helping farmers
look after their workers, their families and the environment in which they live and work.

 Technological:
Technological changes-Relate to the application 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 effects 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 compete favorably in this
harsh environment. Positive performance online is helping lift yearly profit at Debenhams, this is
despite the harsh economic turmoil in the domestic and international market

 Environmental:
Environmental changes-Relates to what is happening with respect to the ecological and
environmental aspects.

Debenhams have also joined calls to reduce impact on global warming by driving a Store energy
saving plan, reviewing timings for lights, escalators and air conditioning. Overnight shifts have
been reduced with light focused only in the areas it’s needed. As a result of these efforts the
organization 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 Electrical and Electronic Equipment) collection centers to ensure that more WEEE gets
recycled. Debenhams offer a collection service on a like for like basis, for example if you buy a
washing machine we can take away your old one. All the appliances we collect are then sent to
be recycled. More eco-friendly measures have to be implemented, 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:
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)
directive 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.

CHAPTER #4

MARKETING CHANNELS:

Debenhams uses some specific channels for marketing that are:-

1- Facebook
2- Twitter
3- Instagram
WEBSITE Analysis
 75% of the website is aimed at women.
 25% of the website is aimed at men.
The way the website is organized shows us that it is easier for women to use.

Problem: On each product it says ‘more color options’ as a banner to make you think the colors
may automatically come up when you hover or select it when it doesn’t do anything

Solution: Create a setting so that it shows you the color options. This is obviously a dead
link/bug within the website. This also makes it easier to select the desired color and click
purchase.

Problem: When clicking on the beauty tab at the top, it shows irrelevant information such as
must haves instead of showing them important info such as categories.

Solution: Move the categories section on the left to the top of the page and show them as
clickable block categories.

Problem: There are no options to define the suits by color, size or material anywhere under the
suits section.

Solution: Include filters so that you can define the suits by color, material and size so that it is
easy for customers to select the required suit.

Problem: The suggested products are not relevant to the filtered products.

Solution: Include suggested products that relate to the filters applied beforehand.
Competitors

 CLOTHING:
 Mango
MANGO is an internationally
famous multinational which
designs, manufactures and
markets women's, men's and
children's clothing and
accessories. At present,
MANGO has more than
15.000 employees, 2.200 of
whom work at the Hangar
Design Centre and at its
Headquarters in Barcelona.

 Yellow
Yellow is a Bangladesh-based fashion brand and clothing retailer owned by Beximco.Its
corporate headquarters is located at Beximco Industrial Park, Dhaka, Bangladesh. The
largest of the Yellow stores are located in Bashundhara City Shopping Complex, Sanmar
Ocean City Chittagong and Jamuna Future Park. There are several stores located in
Pakistan. In 2014, Beximco announced the opening of new outlets in Dubai, Toronto, and
New York City

 ORANGE
Marks & Spencer Group (also known as M&S) is a major British multinational retailer
headquartered in Westminster, London that specializes in selling clothing, home products
and luxury food products. It is listed on the London Stock Exchange and is a constituent
of the FTSE 100 Index.

M&S was founded in 1884 by Michael Marks and Thomas Spencer in Leeds. The
company also began to sell branded goods like Kellogg's Corn Flakes in November
2008.M&S currently has 979 stores across the U.K. including 615 that only sell food
products.
  Cosmetics:

 HUDA BEAUTY
Huda Beauty is a cosmetics line launched in 2013 by Huda Kattan. The founder, Kattan,
was chosen as one of "The 25 Most Influential People on the Internet" by Time in 2017,
listed as one of The Richest Self-Made Women and one of the Top Three Beauty
Influencers by Forbes. In the span of 5 years, the brand has built a positive reputation on
some of its products, such as fake eyelashes series, a collection of foundation, and some
face palettes.

 NYX
NYX Professional Makeup is a cosmetics company that is a subsidiary of L’Oreal. The
company was founded in Los Angeles by Toni Ko in 1999. It was named after Nyx, the
Greek goddess of the night. NYX Professional Makeup is certified and acknowledged by
Peta as a cruelty-free brand, and they offer a wide range of vegan-friendly products. NYX
products are sold in over 70 countries at thousands of retailers

Findings
Good progress on five priority actions under Debenhams Redesigned strategy:
 Delivered above-market digital growth of 12% supported by improved mobile and
customer experience
 Sustaining market leadership in Beauty with new strategy designed to drive more choice
and digital innovation
 Revitalizing fashion product under new leadership; held share in clothing, and gained in
women’s wear
 Improved in-store experience for customers, with 9 stores trading in new design format
and new service model
 Accelerated cost reduction activity with £12m savings achieved, annualizing to £20m
Chart of EPS:
CHAPTER #5

Organizational structure should be:

1. They should follow a Decentralized SBU structure.

2. Because as the have so many outlets all around that world that would be easy for them to
manage the entire outlet with competitive people such as they should make a VP of entire
countries as the outlets are expanding, should haire VP accordingly.
3. After that they should be having managers of manufacturing, marketing,
finance/accounting and development.
4. And under those maangers they should be having their working staffs.
5. The latest designers should come under development process because designers are the
part creativity and innovation, it is better to keep them in the development department
along with the tailors and other working staff to assist them.
What should be the hierarchy within the outlet?

1. This is the hierarchy that should be enforced within each outlet around the world.
2. Where there is a store manager that deals with all the staff under him.
3. Selling support manager and deputy store manager should be there, as a single manager(
either selling support or deputy store) would not be enough for dealing the customers and
lower staff.
4. Sales managers would report to selling support and deputy store manager.
5. Then they each outlet should be having a person who can deal with other useful contacts
such as suppliers of their outlet furniture, cleaning staff, electricians and so on. The main
purpose is to maintain the outlets.
6. Sale advisors are also important people.
7. And then comes the store trainer who trains the staff how to guide a customer, how to
influence his purchases an even how to communicate to a customer if he comes to
Debenhams.
RECOMMEDATIONS
 Increase Sales Opportunities
Whether you're up-selling to a customer or planning an expansion into a multi-channel
environment, retailers should learn to notice and take advantage of every possible opportunity to
sell.

 Provide Training for Staff

Your retail employees are the ones on the front-line every day and should be trained to reduce
shrink, improve customer service and increase sales opportunities.

 Get Out of the Store

Attend a trade show or other retail expo. These conferences are developed in order to give retail
owners, buyers and managers the opportunity to meet existing suppliers, conduct business
meetings, network with others in retail and investigate new products.

 Lower Expenses
To better your business and return more profits to your bottom line, learn where you can cut
operating expenses. Look around your shop.

 Increase Marketing
How often have you said you can't afford to advertise right now? Maybe once business picks up
you'll place an ad. Or maybe you're holding those advertising dollars until the holiday shopping
begins.
Either way, you could be losing potential customers right now. Begin tailoring your marketing to
your target market. If you don't spread the word, no one will know you exist.

APPENDIX:
1. Who are our main competitors?
2. What tasks, when executed incorrectly, directly impact sales?
3. A product is selling well at our competitors’ stores but not at our store. Why do you think
this is?
4. How would you address shrink in your store?
5. What strategies do you prefer for motivating employees?
6. Are store prices fair?
7. How would you rate your social media marketing?
8. Which marketing initiatives, promotions, and customer segments are the most profitable,
once you consider all costs including returns?
9. How is my technology working to optimize marketing campaigns efficiently?