Multi-national operation and risk management of Debenhams plc Essay

Multi-national operation and risk management of Debenhams plc - Essay ExampleIt is in nimbleness of this that Debenhams has been brought under the spotlight for a through marketplace analysis on how the fraternity presents itself on the worldwide market and seeks to better its financial performance through the engagement of various forms of globalisation strategies. Whiles initiating globalisation strategies, it is too admitted that on that point are risks that can easily prevent the union from growing to the level it desires. Risks management strategies at bottom the company are therefore scrutinised to balance the discussion. Company Description Not completely is Debenhams listed on the capital of the United Kingdom Stock Exchange nevertheless 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 operat e under the gens of the company. As of 2012, the total number of UK, Denmark and Ireland householdd 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 delegacy 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 yearbook 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 dealings honour 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 regard as 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 add-in below, it would be noted that there has been a steady rise in the physical quantum of gross transaction value for both UK and international markets. However, these increases have not come at an even int erval of result as the figure shows that there are years that the percentage rise goes down even though they do not represent negative growth trends. What is more, the margin of percentage growth has always only been minimal, indicating that the company