The Multinational Organization

The Multinational Organization

Introduction

The current expansion strategy under implementation by Debenhams is one that is essentially reactive in nature. The expansion strategy takes influence from the business environment and adjusts to cope with developing trends. The expansion strategy is somewhat traditional in nature when considered with respect to the fact that business development measures begin from the roots of the value chain and converge upon value creation for the end-user. Debenhams' approach to business management appears to have reduced the attention that Debenhams chooses to give to business development measures. In addition, Debenhams is faced with the challenge of facing off rapidly developing SMEs that chose to enter the industry due to entrepreneurial efforts.

International Expansion Challenges

The business environment that currently surrounds Debenhams is of a somewhat unpredictable nature. It is riddled with unexpected fluctuations in industry trends that are caused by rapid innovation and development. The eventual outcome becomes apparent in the form of expansions in the product range, alterations in supply chain practices and consumer friendly pricing structures (Ghorbani, Tavassoli & Nikookar, 2011). Debenhams' current strategy is essentially outdated. It is a strategy that has roots in traditional business management practices and takes minimal advantage of recent innovations and developments.

As consumers continue to experience a decrease in disposable income, Debenhams' current target market continues reduce intake and rely on more sustainable food products that have a stable price tag. Debenhams' current expansion strategy would have continued to deliver results if the political, economic, social and technological dimensions of the market had not experienced a major shift in the last decade (Jung, 2009). Debenhams' current expansion strategy is vulnerable to the fact that the political environment is riddled with increasing pressure from industry national and international specific regulatory agencies. In this regard, it would not be incorrect to highlight that Debenhams is at the business cycle and heading towards the wrong end.

Debenhams has managed to sustain performance in the past but this is only as a result of Debenhams' sound foundations. In essence, Debenhams is failing to take advantage of the modernization that is riddling the industry. Debenhams needs to shift market approach and such an approach will most certainly demand the implementation of forward integration and/or backward integration. Debenhams will survive without difficulty in the next few years, but it is critically essential to note that Debenhams' competition has taken lessons from the fundamental expansion strategy that ...