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Business Strategy of Burberry Group Plc

   

Added on  2020-11-12

13 Pages4498 Words487 Views
32 Business Strategy
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Table of ContentsINTRODUCTION...........................................................................................................................1PART A...........................................................................................................................................1Analysis of PESTEL and SWOT analysis of the organisation...................................................1Analysis of the competitive environment by applying Porter's Five force model......................4PART B............................................................................................................................................5Evaluation of the different types of strategic directions available to the organisation...............5Justification and recommendation to the most essential growth platform and registries\..........6A strategic management plan which contains strategies, objectives and tactics.........................6CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................8
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INTRODUCTIONBusiness strategy refers to those strategies which are designed and developed by themanagement department of the company for the proper running of the organisations functionsand operations. It can be the firm's working plan for achieving its vision, prioritizing objectives,competing successfully and optimizing financial performance with the business model of theorganisation (Bocken and et. al., 2014). This assignment is related to Burberry Group Plc whichis a British luxury retail fashion house and was founded in 1856 by Thomas Burberry. This firmdeals in fashion accessories, fragrances, sunglasses and cosmetics etc. This report will bediscussing about influence of macro environment and internal environment on a company.Further it will define the results by using Porter's five force model and a strategic managementplan will be formulated for understanding strategic direction available to a firm. PART AAnalysis of PESTEL and SWOT analysis of the organisationPESTEL AnalysisIt is a tool and technique that can be used by the management of the company andmarketers for analysing the external environmental factors and their influence of the firm'sactivities, operations and functions. Pestel analysis of Burberry is mentioned below:Political- This factor consists tax rate, government policies and others. Burberry runs itsbusiness in major three regions as Americas, Asia Pacific and EMEIA ( Europe, Middle East,India and Africa). In some nations government is not stable so terrorist attack activities in Europeleads to drop in sales and cause of it tourist visits are lack. In Chinese market fight againstcorruption affect the buying behaviour of the customers. But Brexit positively affect thefirm bybringing benefits which help in enhancing notion of Britishness and brand image of the firm. Ahigh level of taxation would demotivate Burberry from maximizing their profits.Economical-It include interest rate, inflation, deflation, foreign exchange rate, currencyrate and others. In Burberry, Brexit help in increasing the sales of the company in the UK by30%. But the recession situation in some nation affect negatively and people tend to spend lesson luxury products and identify substitution with lower price (Bocken, Rana and Short, 2015).When the economic slowdown occurs , the customers prefer to buy affordable goods to fulfil andprovide satisfaction to their basic needs.The exchange rate of the nation Burberry operates in1
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would affect the profitability of this company, septically if this firm engaged in global trade. Thestability of the currency is also essential an unstable currency discourages international investors.Social-This factor consist culture, values, societal roles & norms, traditions,demographics and others. In Burberry, the company target different customers who belong fromdifferent cultures and lifestyles (Boyd and et. al., 2017). Change in consumer needs and demandshighly affect the business of the firm. For example, this company manufacture new scarf colouraccording to it which is liked by 61% of 16-34s as personalized service before purchasingclothes. With it, the firm provide satisfaction to its consumers who want to DIY their scarf with30 colours and want to embroidering initials. The class distribution between the population is ofparamount importance; Burberry would be unable to promote a premium product to the generalpublic if the majority of the population was a lower class rather they would have to rely on veryniche marketing.Technological-It consist those technical activities that can be generated andimplemented by the management department of the firm for the proper running of the business.In Burberry, the management of the company use Facebook, Instagram, Social media, Internetand others for providing information and promote the brand rather than traditional advertisementand social media. For example, Burberry can use live streaming promotion which attractconsumers and allowed them to buy goods online and get them delivered. Fast delivery of thisorganisation is considered by the customers which provide a competitive advantage to it.Environmental-This factor considers the laws and regulation of environment such aspollution act, environmental act, emission act and various others. In Burberry, the managementof the company use organic cotton in its products such as inner clothing, socks, pants etc. whichdo not harm the environment. This company properly follows the carbon emission act so that itcan make contribution in saving the environment. The current weather conditions maysignificantly impact the ability of Burberry to manage the transportation of both the resourcesand the finished product. This would impact the delivery dates of the final product in the case ofan unexpected monsoon. Legal- It consist discrimination laws, data protection laws, intellectual property rightsprotection and others. In Burberry, the management of the company properly followed equalityand diversity law so that they can provide equal rights to its employees so that they can help thefirm by using their efforts and making contribution in the growth of the business. The main legal2
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