Impact of Business Environment on Burberry: Analysis of Purpose, Stakeholders, Policies, and Culture

Business Environment

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1. Difference between purpose of private and public sector organizations.................................3
2. Mind map showing stakeholders of company and its objectives............................................4
3. Impact of fiscal and monetary policies on the businesses.......................................................4
4. How resources are allocated in the capitalist, socialist and mixed economy..........................5
5. Diagram showing Impact of demand and supply on business.................................................6
6. Diagram explaining Michael Porter’s five forces....................................................................9
7. Effect of market decision on the business policies................................................................10
8. Impact of various elements of the culture on business..........................................................11
9. A graph showing value of the international market to UK business over last 70 years........12
10. Diagram showing global factors on the UK business..........................................................12
11. Diagram showing impact of EU policies on UK Business..................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
The business is the entity which is entrusted with the role to provide such offering to the
people so that they can fulfil their aim to maximise their profitability and revenue generation.
Every enterprise operates in the business environment which is a sum totals of every factors that
is external to business firm and which influence greatly their functioning. It mainly covers the
forces and factors such as competitors, customers, government, suppliers and other conditions
such as technological, social, political, legal and many others (Uluskan and Godfrey, 2018). The
company chosen for this report is Burberry, a leading fashion house which is headquartered in
London. It was established in the year 1856. This report will cover purposes of private and public
sector companies, main stakeholders of organizations, monetary and fiscal policies, Porters five
forces and elements of culture. Further it will include effect of the market decision, value of
international market to UK businesses, impact of EU policies and global factors on the UK
business.
MAIN BODY
1. Difference between purpose of private and public sector organizations.
Basis Private sector organization Public sector organization
Purpose These types of companies pursue a
primary aim of the profit
maximization. Although there are
many secondary objectives such as
protecting environment, creating
value for the people, etc.
The main aim of the public sector
companies is other than profit
maximization. Also, the objective of
these organizations can also relate to
wide range of the areas like
providing education, policing, etc.
Funds They are mainly funded by their
own resources of the directors and
founders
The money of taxpayer’s is a source
of funds for these organizations
Public scrutiny They are subject to more public
scrutiny in media and from
government due to source of their
funds (Kirchmayer, Remišová and
Lašáková, 2019).
They are subject to less extent of
public scrutiny.

2. Mind map showing stakeholders of company and its objectives.
Burberry is a large organization which comprises of various stakeholders. These are
categorized into different groups such as people, shareholders, customers, partners, communities
and government. In the category of people includes the human resource of organization such as
employees who are the greatest asset of company. The board of directors of the keeps regular
interaction with people on the global scale so that there is employee engagement. Then are
customers who continuously look for the quality products which can reflect their personal style.
The board is continuously engaged with customers by taking insight of it. Then are shareholders
who are interested in the financial growth and performance of company. The board provides
regular updates of the company’s financial health, market sentiments, share price, etc. to
shareholders. Then is communities whose support is required by company and the company
support them by various initiatives and programs so that positive change can be brought. Fifth is
partners which includes civil society groups, NGOs, suppliers and the retail third parties and last
but not the least government which have high influence on the company so it engages with the
government in such countries wherein it operates so that an understanding is gained of their
concerns (Xu and et. al., 2021).