How Debenhams Manages the Stakeholders - Case Study Example

? The Responsible Leader and Manager, Stakeholder Essay The Responsible Leader and Manager, Stakeholder Essay Introduction Debenhams, headquartered in London, is an international retailer of men’s, women’s and children’s clothing, gifts, electrical goods and furniture (Baker 2010). The company operates more than 240 stores both directly and under franchise. Its management team is made up of managers located in different stores. They include Helen Tully, who manages the operations, commerce and customer focused retail business in London, Chris Halstead, the stores development and projects manager in London, Soleta Oliver, the commercial and stores services manager in London, Andrew Parnell, the operations and visual merchandising manager in Redhill and Shahin Rahnama, who is a store manager in Iran (Baker 2010). As a team, the managers coordinate the company’s operations with a focus on satisfying customers and the community and maximising profits. This paper will explain how they use their personal, interpersonal and societal values to manage the stakeholders, including how they demonstrate their awareness of social issues and corporate citizenship responsibilities. Stakeholders The manner in which stakeholders are treated and managed is a crucial component in the revenue generation and success of a corporate outfit. It is the managers’ duty to ensure that stakeholders’ interests are met for the sake of creating beneficial relationships for business continuity. Some of the stakeholders of Debenhams are the customers, employees and corporate shareholders. Customers form the core purpose of any business’ existence. Employees bridge the gap between the company’s operations, products and services, and the customers. Schroder PLC, in its corporate shareholding capacity, has 202.9 million shares, representing a 16 percent shareholding (Baker 2010). The managers integrate their personal values with corporate values to lay strategies to manage the unique needs and interests of each group of stakeholder. Customers The managers at Debenhams understand that their customer base, running into millions, works hard to earn and afford their purchases. They know that quality products alone, without personal attention and appreciation, do not represent full value for customers’ money. They are motivated by the virtue of customer satisfaction to improve their services. They aim to be responsible and active participants in their communities of operation, which are basically made up of their customers. As a corporate entity, the company supports both national and local charities towards the well being of their customers. In a bid to acknowledge their customers’ choice to do business with them, the managers put them at the heart of their decision making. In an appreciative gesture that works both for the customers and the company, the customers’ shopping experience is made more exciting by modernising stores, introduction of new brands and products and a proactive customer service department. Products are manufactured to meet customers’ expectations in socially ethical environments and an assurance of quality compliance. The managers display their charitable cause by volunteering and fundraising. Reading this gesture as leadership by example, more volunteers and donors are attracted towards the events. In response to the ever increasing customers’ expectations of a fully fledged multi channel offer, the managers proposed an outsourced customer service department to a professional service provider (Irvine 2008). The outsourced service is committed to allow the customers several shopping options, and the company recorded an increase in sales within four months. This shows the managers’ awareness of the requirement to respond to customers’ queries promptly, professionally and effectively. In another show of valuing customers, the company apologised publicly to a customer who was given wrong prices for dresses at the Newcastle branch. After paying for the dresses following an attendant’s confirmation that they would not be included in an approaching sale, she learnt that the dresses were actually on sale and sold at 30 pounds less than what she had paid. When she complained and the matter reached the management, they apologised and sent her a gift voucher. They also set new standards for the training of their stores attendants. That was a perfect example of using personal and corporate values by the managers in order to retain a customer. Employees Managers at Debenhams are aware that they can only realise the goal of emerging as a leading international brand with the cooperation, commitment and skills of their employees who number over 30,000 (Irvine 2008). The employees are the customers’ first personal experience with stores. The managers ensure that they are trained in handling customers courteously and professionally. Basic civility is a virtue instilled in the employees by the managers. Training on specialised knowledge of products is also offered. To ensure that employees are treated equitably and fairly regardless of differences, progression opportunities are given to all to gain new capabilities that are beneficial to individuals as well as the business. This is informed by the fact that a motivated employee is a motivation to a customer. Several other benefits are available for employees. They are entitled to purchasing top quality products at staff prices. This, which is an extension of the managers’ generosity, makes them feel part of the family, no matter an individual’s background. Employees are also assisted in planning for their future by being given access to defined pension schemes. They have the liberty to decide where to invest and build their pension. They are also entitled to tax relief so the contributions cost less. The company also contributes towards the employees’ pension scheme of choice based on company regulations. This plan by the managers is a clear indication that they care for their employees even beyond retirement. With the managers’ understanding that workers need to rest, they have incorporated a schedule that balances the employees’ working hours and personal time. Depending on field of employment, the employees may choose their own contract types that suit the hours they wish to work (Baker 2010). This is topped up with a holiday plan that allows them to take time off above the statutory requirements. It is flexible because one can choose to forfeit part of his salary for additional time, or forfeit the holiday in exchange for payment. Finally, the managers celebrate the success of individuals and teams through the employee recognition plan. Employees who successfully recommend customers or friends and family for positions with the company are rewarded with tax free monetary gifts. Schroder PLC Every manager knows that shareholders are a critical group of providers of capital for the future growth of a business (Bolman & Deal 1995). A shareholder should be given confidence in a company driven by the managers’ strength of strategising. The shareholders should see in their managers a reflection of commitment and longevity to service and product excellence, and a healthy environment of control. The managers at Debenhams recognise that to fully meet their obligations to all stakeholders, the shareholders cannot be overlooked. It is their duty to involve the company in corporate social responsibilities by engaging in projects that can be approved by the shareholders. That implies that the company, through its managers, has an obligation towards the improvement and protection of the welfare of the organisation as well as the society DeGregor, D. (2011). In their philanthropic virtues, the managers have engaged the company in charitable exercises through the Debenhams Foundation. In their Welsh operations, the government passed a legislation that five pence be charged for each carrier bag. Within six months, the company had raised 23, 326 pounds and forwarded all the money to charity. Among the beneficiaries were ABCD, Interplay, Merthyr Youth and North Wales Superkids. This is an exhibition of the managers’ awareness of social issues. As an initiative to raise awareness and support the search for cure of breast cancer, the company runs the Think Pink project. Involvement in such positive activities is an encouragement to the shareholders to contribute towards universally recognised causes. They can see their managers’ human side apart from being aggressive money makers (Kotler & Keller 2006). Balancing their initiatives between the sexes, the managers also formed Movember, which supports research work on men’s health matters with particular interest on the escalating problem of prostate cancer. Men who sign up for the initiative raise awareness by shaving their heads clean and maintaining an untrimmed moustache, for the month of November. That is a unique and clever way to raise awareness to one of the fastest growing killers of men in the UK. The company also formed a disaster emergency committee that supports efforts in supply of relief to areas and victims of natural disasters. It is any manager’s wish to show credibility to share holders by involving his company in such activities that portrays to the world how aware they are of what is happening in their communities (DeGregor 2011). Managers at Debenhams understand that share holders are aware social responsibility and business success have a way of working together to empower and grow the other, hence their participation in worthwhile projects (Irvine 2008). Conclusion In conclusion, my opinion is that the managers at Debenhams have successfully portrayed the business as taking all the necessary steps to be of service to all stakeholders. They believe that the company’s strategies should meet the unique expectations of many different stakeholders. They should be creative enough to bring their personal, interpersonal, societal and corporate values together to work towards the objectives of the company, employees, customers and the community in general. Good managers should base all their values on ethics that keep the business going, leaving customers and employees happy and developing communities while, ultimately, paying back the owners of the business their investment (Bolman & Deal 1995). References Baker, R 2010, “Debenhams has faith in shoe chain”, Marketing Week, 2 July 2010. Bolman, LG & Deal, TE 1995, Leading with soul: An uncommon journey of spirit, Jossey-Bass, San Francisco. DeGregor, D. (2011). Customer-transparent enterprise: beyond 20th century CRM, Motivational Press, New York. Irvine, C 2008, “Debenhams to open first store in Iran”, Daily Telegraph, 16 December 2008. Kotler, P & Keller, KL, 2006, Marketing management, Prentice Hall, New Jersey. Read More