Analyzing the Impact and Influence of Macro Environment on Burberry's Business Strategy

Business strategy

Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1/ M1 Application of appropriate frameworks to analyze the impact and influence of macro
environment on the company and its strategies.......................................................................................3
TASK 2.......................................................................................................................................................8
P2/ M2 Analyze the internal environment and its capabilities of the company by using effective
frameworks..............................................................................................................................................8
TASK 3.....................................................................................................................................................10
P3 Application of Porter’s five forces in order to evaluate the competitive force of company..............10
M3 Devise appropriate strategies to improve competitive edge and market position based on the
outcomes................................................................................................................................................11
TASK 4.....................................................................................................................................................12
P4/D1 Devise strategic planning for the company using range of model, concepts and theories...........12
M4 Produce strategic management plan that has tangible and tactical strategic priorities and objectives.
...............................................................................................................................................................13
CONCLUSION.........................................................................................................................................15
REFERENCES..........................................................................................................................................16

INTRODUCTION
The Business strategy is referred to as those means by which the pre- determined
objectives of the business can be achieved by way of planning. It is also called as long term plan
wherein the organization is engaged to work according to it so that it can gain the competitive
advantage in the market and focused to achieve its goals. There are many aspects of business
strategy which involves the offering of the company, target customers, market which is to be
served, target and objectives and many others. It consists of the guiding principles that help the
organization to make efficient decision with the aim to expand and grow the business. When a
company has a definite business strategy, it can allocate the resources and then prioritize them in
an appropriate manner so that the goals of the organization are achieved on time and effectively
(Aveh, 2018). The organization chosen for this report is Burberry which is a leading luxury
fashion house that is headquartered in London. It was founded in the year 1856 and serves its
product worldwide. This report shall cover the impact and analysis of external environment,
analysis, the analysis of internal capabilities and environment, competitive analysis and lastly the
strategic planning using various frameworks and models.
TASK 1
P1/ M1 Application of appropriate frameworks to analyze the impact and influence of macro
environment on the company and its strategies.
The external environment consists of the macro environmental factors which have a huge
influence in the working of the company. There are various frameworks which are used to
analyze the macro environment which are discussed below for the Burberry -
PESTLE Analysis
It is a tool that is used in identifying the external factors which influences the decision
making of the organization (Jain and et. al., 2018). In relation to Burberry, it is narrated
thereunder -
 Political- It is concern with interference of government in the working of company.
Burberry operates across the globe so it is required to comply with different rules and

regulations that are laid down by different countries. The states which have stable
political environment make it easy for Burberry to operate. Brexit in UK has left the
uncertain environment where Burberry is under the dilemma as to what rules will change
and what will be the impact on its profitability.
 Economic- It deals with the economic factors such as inflation rate, economic growth,
etc. Due to the impact of pandemic of COVID-19, there is an economic downturn where
the purchasing power of the people reduced. This resulted in changing of customer
preference to buy affordable goods instead of luxury. This affected the brand of Burberry
and resulted in reduced profit and sales.
 Social- It includes the demographic characteristics of the society. The target audience of
Burberry has different lifestyles and culture so Burberry has to consider all these factors
when distributing its product. It uses social media platforms to increase the customer
engagement so that it can collect important information about the customer experience.
 Technological- It is concerned with the adaptation of technological advancements in the
organization. Burberry uses advanced technology in advertisements so that it can reach
the target customers. It introduced online shopping that created efficiency as the
customers were assessing the products online. Its fast delivery added more efficiency in
taking competitive advantage.
 Environmental- It is concerned with the working of organization that affects the ecology
and the environment. Burberry make sure that it offering does not cause any damage to
the ecology so its product like inner clothing, socks and pants are made from the organic
cotton which does not harm the environment.
 Legal- It involves compliance with the legislation and rules. Burberry abides the legal
laws of every country where it operates. The favourable regulations heads in placing
positive impact on its performance while the unfavourable regulations can result in
compromising the profitability of the firm (Martí, 2017).
SWOT analysis