Global Business Environment

GLOBAL BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
PESTEL ANALYSIS OF BURBERRY..........................................................................................3
REFERENCES................................................................................................................................5

PESTEL ANALYSIS OF BURBERRY
PESTEL analysis is basically a tool or a framework which is used to analyse and monitor
the macro-economic factors which impacts the organisation. The impact of these PESTEL
factors on Burberry which is a house of British luxury fashion headquartered in London is as
follows:
Political: As the company perform its operations throughout the world, it has to abide by all the
laws and regulations of different countries. Some countries impose high taxes as it will help them
to promote the domestic production. Operating costs increases due to the high tax rates.
Therefore, Burberry must follow all the laws so that it can lead itself in the steep competition.
Economic: The downturn in these factors affects the extent of investment the customers make in
order to buy the products. Maximum customers of Burberry are the tourists which forces it to
compete with the international as well as local brands (Le, 2020). Due to less travellers, the
customer base of Burberry becomes less. The company must strive hard to expand sales locally
along with attracting the tourists.
Social: The customers of Burberry belong to different culture and have different dressing senses.
Therefore, the company must consider all the dressings while distributing the products. Burberry
also tries to involve the people of UK in its activities under the CSR initiative. As the people of
UK are socially active, the company must also make use of social networking sites like
Facebook, Twitter, Instagram etc. to engage the customers with its products and services.
Technological: The target customers of Burberry prefer ordering and buying the items through
the advanced technologies. It uses the latest technology form for the purpose of promoting its
products to the customers. The live streaming of Burberry also helped the company to convince
the customers to buy the products online and get them delivered at their preferable places
(Banerji, 2020). The company must also deliver the products fast which can help in gaining
competitive advantage.
3