Multi-national operation and risk management of Debenhams plc Essay

Multi-national operation and risk management of Debenhams plc - Essay ExampleIt is in light of this that Debenhams has been brought under the spotlight for a through trade analysis on how the company presents itself on the international market and seeks to better its financial per turnance through the engagement of discordant forms of globalisation strategies. Whiles initiating globalisation strategies, it is besides admitted that there argon risks that can easily prevent the company from growing to the level it desires. Risks management strategies within the company are therefore scrutinised to balance the discussion. attach to Description Not only is Debenhams listed on the London Stock Exchange but it is also a member of the FTSE 250 index (Davidson, 2010). Currently, the company emphasises on UK, Ireland and Denmark as its major market destinations. This notwithstanding, there are number of international franchise that operate under the name of the company. As of 2012, the t otal number of UK, Denmark and Ireland based locations for the company were 172 and those operating as international franchise were 68 stores across 25 countries (Alter, McLaughlin & Melniker, 2008). The company is currently engaged in retail chain departmental stores, which performer that it is not a manufacturer of the products that it sells out to customers. In effect, the company does not source raw materials but depend on suppliers who deal directly with the manufacturers of the various products that the company displays on its shelves. The operational industry of the company mainly focuses on the sale of electrical and electronic products, clothes, accessories, cosmetics, gifts, toys, shoes and home furniture. The operating income with which the company went into the 2012 yearly market was ?158.3 million, out which ?2,229.8 million was produced as revenue and ?125.3 million as net income (Kingdon, 2013). The operations of the company in all its local and international stores are run by a powerful 29,000 employee base that undertake all forms of duties ranging from managerial positions to cleaning (Kloha, Weissert & Kleine, 2005). Financial Performance and Globalisation Strategies Gross transaction nourish Since 2008, Debenhams has focused its strength on competitive global marketing on two larger market segments, which are UK and International market segments. Together, these two form the group market for the company. To measure its profitability ratio, there is a lot of emphasis on the gross transaction prize that the company creates, as this value represents the unadulterated quantum of revenue accrued by the company over given period of time (Groves, Godsey & Shulman, 2012). From the table below, it would be noted that there has been a tranquilize rise in the physical quantum of gross transaction value for both UK and international markets. However, these increases have not come at an even interval of return as the figure shows that there are yea rs that the percentage rise goes down even though they do not represent negative harvesting trends. What is more, the margin of percentage growth has always only been minimal, indicating that the company