subject: Debenhams-Public Company [print this page] Debenhams-Public Company Debenhams-Public Company
Debenhams is a public limited company which was founded in the eighteenth century, precisely around 1778. It deals in retailing and its headquarters are based in London, United Kingdom. Its products are clothing, shoes, house wares, accessories and so forth. It is currently chaired by one Rob Templeman (www.hoovers.com) and under him is a workforce estimated to be close to twenty four thousand employees in this year only. Since the year it was founded, it has now grown to over one hundred and sixty shops and is listed in the London stock exchange. It is said to cover over 10.373 million square feet of retail space across the United Kingdom and Ireland and has an operating income of close to one hundred and eighty two million. It is therefore one of the most thriving companies in our world today. (Debenhams) (2003, p. 67)
The following is Five forces analysis of the company:
Threat of entry of new entrants
There is threat of new entrats. Consdiering that there are few governmetn regulations, entry of new players in the indsutyr would incrase competitoin meaning the company would lose its market share.
Rivalry
The degree of rivarly is high within the indsutyr. With hundreends of firms in the industyr and global names like ZAR, G-Star and others, the degree of rivarly is quite high. This has an effect on competitivenss of fashion trends and price wars.
Threat of substitutes
There is a great threat of substitues from the competiting firms. Although companies in the industry strives to come up with unique fashion, customers have options of chooing other brands over Debenham's brands.
Bargainign power of customers
Customers have a higher bargaingn power. With hundrends of brand compeiting on the same makret ,customers have higher bargainign power to chooose the brand they want. There is low cost of swithcing to other brands which means customers can buy the brand they want.
Bargainig power of buyers
Suppliers also have a higher bargainig power. With many companies looking for the same raw materials, suppliers have power and can dictate the price of raw materials. Suppliers of labor have power thorugh labor unions as well.
The following is the PEST Analysis of the industry:
Political nad Legal
There is less political interference with the industry on matters pertainign to rights of workers, payment, and working conditions. The governemtn provides incentives for the gorwth of the industry considering its impact on the people. For examle American AGOA is a government initiative to accerelate economic growth.
Economic
The indutry is labor intensive industry. This means that to survive in the industry, the company must employe more workers. The industry also require heavy capital investment and economies of scale.
Social
Fashion is a social phenomenon. This means that the industry is one of the most important social players. The industry gets a lot of social support from the society considering how people feel close to it.
Technological
The fashion industry is one of the most technologicaly advanced industry. Current competition in the industry is pegged on technical advancement in the way technology is being applied in different areas like market research, product development, supply chain, and others.
Even with its great history and its ever impressive successes, Debenhams continues to be a company that values ethics and the society as a whole. Its managers have ensured that among their many objectives, one is to ensure that it does not offend or infringe in any of its social or ethical obligations during any of its undertakings. Its managers have also taken heed to the fact that a healthy and safe working environment is a right of every employee working within that company. Hence this company is an example of many other companies that actually consider their social and ethical obligations because after all who do we work for if not for the people. These are some of the ways in which Debenhams has and is fulfilling its social and ethical responsibilities.
Debenhams has ensured that there is no use of child labor within it (2003, p. 57). There is so much pressure for companies especially clothing and textile companies to produce very quickly and indeed very largely and this has led to very unethical practices such as employment of young children for such long and tiresome hours; which would drive a whole adult very weary. It is against the law to employ a child not to mention very inhuman. Children deserve to be in school and to play; they need time to be what they after all naturally are children. Therefore companies that deal in apparel have sometimes been known to overlook this but not Debenhams. A child must be at least fifteen years old to work and should not even at this age be given work that is too demanding or difficult. Otherwise it is termed as trafficking or slavery (Debenhams Case Study, 2009). So close to the use of children for labor is the use of forced labor to provide you with quick inexpensive returns. This is also a major form of slavery. If an employee is at Debenhams it is because he or she wants to be there and is therefore part of the objectives and is considered equal to everyone else.
Debenhams also meets its obligation to its employees. It ensures that they have legal working contracts and that they are entitled to benefits and insurance and even time off should they need it. There is no case of foul contracts or contracts that have no much benefit for the employee. Young or new employees are also entitled to some allocated time of training and education about what their job will entail. Hiring and firing of employees is also not haphazardly done. It is possible to file a law suit against your employer if you feel you have been fired unfairly or without reason (1982, p. 204). This company is so brutal to meet ethical expectations such that it is so strict on an employee getting the right amount of wages just like it is owed to them. It is ensured that whatever wage an employee is getting should be enough to feed him or her and family and that in whatever may happen, an employee should never receive anything lower than the minimum wage that should be agreed on before hand. Deductions in the amount of salary for matters of discipline is completely unacceptable unless under a legal command of some sort. Employees are to be told in due adequate time about all the details of their payment including after how long payment is made just before they join the company to avoid matters of confusion or mis-interpretation (Haywood, 2002, p. 247).
This company has also provided and respected the right of its employees to form associations and to join trade unions or collective groups. It is their right to have opinions and to collect together and express these opinions without any disturbance or prejudice whatsoever. It is the right of an employee to associate with whomsoever he pleases. Employees should also be in a position to elect their own head; someone who will air their grievances and some how reduce the bureaucracy in today's companies. Also employee representatives are to be given total respect and are to be allowed access to all areas of the work place and not undermined or treated like they have no authority. Debenhams has ensured that all this is taken not very lightly.
