Contemporary Growth Challenges for Business: A Case Study of Burberry

This report analyses the current state of Burberry within the fashion industry and evaluates the impact of contemporary growth challenges on the organization's profitability and decision-making process. It recommends strategies for financial and environmental sustainability and expansion in the Asian market.

Individual report
Contemporary Growth
Challenges for Business
Executive summary
An organization conducts roles and responsibility in a highly challenging business
environment which affects their growth profitability and decision-making process. In order to
assure long term sustainability and maximum consumer satisfaction company needs to
continuously evaluate the extent of the impact of these challenges and further implement
strategies accordingly. Company also needs to plan ahead in order to solve problems with the
right system and skills as well as attitudes. Business environment include different types of
elements such as crisis of leadership, communication challenges etc. These pose challenges in
front of organization, as the present report is conducted on Burberry the company implements
appropriate leaderships structure with financial strategy and communication policies. However
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due to increase in rivalry in fashion industry company is facing certain challenges. For this
organization needs to make innovation at frequent rate emphasise on taking use of artificial
intelligence, digital marketing and social media marketing strategies in order to assure growth
and environmental sustainability with financial benefits. The main purpose of this assignment is
to analyse the current state of organisation within the industry, the report evaluated that to
increase current level of competence organisation needs embrace digitalisation.
Executive summary..........................................................................................................................2
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................4
Current state of organisation (5 dimensions)...................................................................................4
Future recommended state...............................................................................................................5
Summary / Conclusions...................................................................................................................5
References........................................................................................................................................5
Introduction
Business organization operates its roles and responsibility in an environment which is
inclusive of internal and external elements that have direct and indirect impact on company
growth and decision-making process. In order to identify the impact of these elements on
company profitability it is essential for organization to continuously evaluate their strategies and
further implement changes accordingly (Fundin, Eriksson and Gremyr, 2018). This will
significantly help organization to overcome business challenges with a focused approach towards
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attaining profitability. The present report is conducted on Burberry which is operating as a
British luxury fashion house headquartered in London, England, United Kingdom. The company
is operating its roles and responsibilities in fashion industry and was founded in the year 1856.
The present report includes formative discussion on the strategies implemented by organization
to respond to contemporary global growth challenges. For these 5 dimensions has been selected.
In addition to this report also include recommendation for organization to assure financial and
environmental sustainability for long period of time.
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Current state of organisation (5 dimensions)
As a business grow there are number of elements those who create new dress challenges for
organization. It is important for company to go through the different stages in their business life
cycle has to successfully assure competitive edge in the industry. It has been evaluated that there
are mainly for faces that include development stage, start-up stage, growth, survival stage, rapid
expansion growth strategy and maturity stageconsider using bullet points`. Very long
introduction before you started the actual section Each business cycle stage includes number of
existing and new challenges which is essential for organization to work on, according to the
present organization Burberry company needs to evaluate the elements and prepare a business
plan in order to make further adjustments accordingly (Goffetti, Tillman and Zobel, 2022).
Leadership
Burberry applies democratic leadership style in order to encourage employees to work
towards complement of business objectives and goals (Barbieri and Santos, 2020). However, it
has been analysed that company is facing intense competitive rivalry from other in national and
international brands Zara etc. In this company might undertake modification in their current
leadership strategy this is a recommendation, so should be placed in a different section. To
overcome the business challenge which is affecting their global growth expansion process. In
addition to this it has been analysed that the current organization is also facing challenges
associated to conflicts and delay in decisions as democratic leadership encourage employee’s
engagement which affects the process of decision making (Kesidou and Carter, 2018). In this the
company needs to emphasise on implementing various leadership styles such as democratic
bureaucratic coaching autocratic etc. According to the situation, in this leader according to the
situation by implementing leadership strategies can overcome the challenges in the business
environment according to their extent of impact on business growth. Democratic leadership is a
type of leadership style in which members of the group take a more participative role in the
decision-making process.
Financing
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In context to this dimension, it has been analysing that Burberry is one of the renowned
organizations operates in fashion retail industry. With having a strong management system and
skilled talented employee base company perform its roles and responsibilities in order to provide
satisfaction to customers. However, it has been analysed that due to Covid-19 and Brexit and
other international issues the current level of the country currency against dollar gets affected in
adverse manner. These are posing challenges in front of organization to manage their budget
acquire raw material and access labours in cost effective manner. It has been analysed that
currently the organization is taking advantage of consumer centric approach in which they are
providing maximum quality services and facilities to customers with a strong financial plan.
However due to dynamic changes and financial fluctuations on national and international market
company is facing mini financial issues which is affecting its growth and profitability. It has
been analysed and the most challenging phase of a business is to set up their organization as
Burberry is a leading organization in which for maximum market share, they are looking over to
expand in other areas. In this the high demand for cash is generating the risk for company.
Burberry's worldwide revenue amounted to about 2.83 billion British pounds in 2022. In this it is
important for company to manage cash reserves and problem with establishing a market presence
on international platform. It has been analysed that in context with the survival and growth stage
in international market company needs to add new customers in order to generate revenue for
this company needs to manage their operating expense and grab new business opportunities with
a marketing model (Nikolaeva, 2018). In this organization needs to have strong sales mode with
proven methodologies and operation model company needs to emphasise to deal with increasing
customers demand fluctuation market competition with effective management.
Acquisition and merger potential
Burberry is operating as a Britain luxury fashion house headquartered in London,
England. The company offers wide range of products inclusive of leather goods, fashion
accessories, footwears and more. The organization offers its services with a strong employee
base and efficient management and marketing strategies, in order to increase the current market
share and maximise revenue generation sources the company is looking to expand its services in
other market areas on international platforms (Barbieri and Santos, 2020). For this company is
currently adopting changes at frequent rate and making changes in its hiring strategies. Along
with this in order to develop partnership with international companies the current organization is
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increasing the effectiveness of their acquisition and merger strategies company currently is
making partnership with local organization in the market of various Asian countries (Fundin,
Eriksson and Gremyr, 2018). However, it has been analysed that in this company can face the
challenge of survival and growth stage. In this organization needs to analyse customers
perception and viewpoint in order to assure more positive outcomes. However, it has been
analysed that in context with this theme company is facing intense competitive rivalry from other
organizations in the same sector. In this to assure competitive growth company needs to develop
skilful management strategies such as hiring employees cost effective way. This will help them
to reduce failures while assuring more success growth. Asia is a big market in which many
countries such as India is offering various business growth opportunities. In this with the help of
merger and acquisition Burberry can influence needs and demands of customers.
Control and bureaucracy
In relation with this dimension, control and bureaucracy is an important aspect for an
organization which help management to have pyramidical command structure. With the help of
having bureaucracy organization can have division of labour professional management,
permanence, coordination and control (da Silva Cezar and Maçada, 2021). In context with
Burberry, it has been analysed that, in some of its department company is having strict chain of
command as well as legal authority. With the help of having strict bureaucratic control
organization taking strict from of structure of records, rules and rewards to influence and monitor
employee’s performance. It has been analysed that the present business environment in with the
company is operating is highly competitive in which various other rivals are taking use of
different strategies to attract labour in order to conduct their performance roles and
responsibilities with talented and skilled workforce. It has been analysed that in order to retain in
a new market segment organization can face the challenge in maturity stage, in which the
business has dominated the market presence. In context with Burberry, it has been analysed at
the company is having strong market dominance in the provinces of United Kingdom, due to the
increase in competitiveness the company is facing the challenge of low rate of growth in which it
is important for company to begin the process of expansion stage the challenge (Nikodijević,
2021). This stage is inclusive of increased market competition, innovative design and services of
rival’s expansion for which the company needs to implement the strategy of moving to the new
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market in order to expand the major challenge of the stage’s rapid expansion stage. In this
modern business environment, the organization in fashion industry is thriving very fast and
already has established a market presence in the provinces of Asia. Burberry is having strong
distribution channel and mark this establishment in new market segment. However, to increase
the organization revenue company needs to capture larger market in which with the help of
taking advantage of operations model, sales and marketing model company can overcome the
challenge of expanding new business by overcoming increased competitiveness. In this, in
context with leadership and control and bureaucracy section with the help of strong leadership
the company can align goals with employees performance that will help in assuring higher
growth.
Communications and positioning
In relation with this theme it has been analysed that for an organization communication
plays important role which allow them to maintain strong relationship ties with stakeholders
inclusive of consumers, government, suppliers, employees etc. In context with Burberry, it has
been evaluated that company is undertaking advantage of strategic messaging which is a value-
based communication framework (Haseeb, Androniceanu and Jermsittiparsert, 2019). In addition
to this, with the help of strong leadership organisation is managing its strategic operations. It
allows organization to significantly interact with stakeholders and communicate the aims and
objectives along with project variables stage. In business life cycle development stage plays
important role. A legitimate communication can help directors complete their obligations related
with the gig. At the arranging phase of a venture, it is essential to convey the pre-imperatives and
fundamental data to individuals dependable. This assists in appropriate seeing subsequently
driving with correcting execution. A legitimate communication channel is expected to send
messages to representatives inside, and to outer clients staying with them generally refreshed
about data. At the point when correspondence is conveyed successfully, it increments worker
fulfilment, client maintenance and works on an organization's public picture. Ineffectual
correspondence in a business association can create turmoil, misconceptions and may bring
about a terrible workplace. Burberry utilizes different specialized techniques such as virtual and
traditional communication tools. It very well may be a notice to representatives, an ad planned
for people in general or an e-mailer to clients. Communication likewise fills in as a tuning in and
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criticism specialist. Communication in a business association likewise teaches, prepares and
urges representatives to further develop efficiency and proficiency. However, these are inclusive
of minimal challenges in which company needs to gather ideas from specialist in the industry in
order to successfully conduct their responsibilities in a new market segment. However, there are
uncertain challenges such as business structure, market acceptance, account management,
establishing profitability of business idea etc (Kesidou and Carter, 2018). In context to
significantly expand its operations in the Asian market Burberry needs to emphasise on these
factors along with this company also needs to understand the importance of financial regulations
and further implement a sound financial system. This will help organization to maintain their
responsibilities under financial regulation and protect business from any fraud.
Thus, according to the above analysis, it has been stated and with the help of taking strong
communication channels and networking company is positioning itself in number of markets.
However, in order to expand the business in Asian market Burberry needs to undertake use of
social media and digital communication in order to communicate with customers in cost
effective manner and position itself successfully in the market.
Future recommended state
Burberry is operating its roles and responsibilities in a highly competitive business environment
and he is facing certain challenges in terms of leadership, positioning and communication,
controlling leadership acquisition etc (Jalilian and Mirghafoori, 2019). However, in order to
successfully overcome the challenges in different business life cycle stage company needs to
undertake use of various strategies.
 Burberry is recommended to undertake advantage of social media marketing as it is a
cost-effective method that will benefit organization to reach maximum customers.
 The management of Burberry is also recommended to undertake use of digital marketing
strategy in order to expand that business growth in the Asian market segment and assure
maximum profitability.
 The company is also needed to ensure that financial and environmental sustainability
with the help of developing efficient CSR. These are important for organizations to
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adhere as governments around the world are making compulsory for companies in order
to execute operations. In Asians countries it is essential. In this company is recommended
to reduce wastage by taking use of renewable sources with energy efficiency practices.
As from the above analysis it has been stated that Burberry is facing certain challenges such as
high competition in the market. To overcome this organisations need to make expansions in
other segments. Asia is a big market which offers many growth opportunities. With the help of
all the above-recommended practices the company can assure higher growth and can increase
market share.
Conclusions
According to the above-mentioned report, it has been concluded that in order to assure long
term sustainability and financial advantage company needs to overcome the challenges that are
prevailing in business environment. From the above analysis it has been stated that, the present
business organization is facing intense competitive rivalry for which they need to change their
leadership, controlling, bureaucracy, financial and communication positioning strategy. The
company needs to expand their business in a new market segment for which they need to
emphasize innovation at a frequent rate, digital marketing technology and social media to
conduct its responsibilities cost-effectively while assuring maximum financial output with
environmental sustainability.
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References
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cycle assessment. Journal of Cleaner Production, 266, p.121954.
da Silva Cezar, B.G. and Maçada, A.C.G., 2021. Data literacy and the cognitive challenges of a
data-rich business environment: an analysis of perceived data overload, technostress and
their relationship to individual performance. Aslib Journal of Information Management.
Fundin, A., Bergquist, B., Eriksson, H. and Gremyr, I., 2018. Challenges and propositions for
research in quality management. International Journal of Production Economics, 199,
pp.125-137.
Goffetti, G., Böckin, D., Baumann, H., Tillman, A.M. and Zobel, T., 2022. Towards sustainable
business models with a novel life cycle assessment method. Business Strategy and the
Environment.
Haseeb, M., Hussain, H.I., Kot, S., Androniceanu, A. and Jermsittiparsert, K., 2019. Role of
social and technological challenges in achieving a sustainable competitive advantage
and sustainable business performance. Sustainability, 11(14), p.3811.
Jalilian, N. and Mirghafoori, S.H., 2019. Presenting sustainable supply chain fuzzy rotation
matrix framework to manage business challenges in the context of sustainable supply
chain management. Journal of Modelling in Management.
Kesidou, E. and Carter, S., 2018. Entrepreneurial leadership: an exploratory study of attitudinal
and behavioral patterns over the business life-cycle. International review of
entrepreneurship, 16(1).
Michelin, C., Minello, I.F., Siluk, J.C., Gerhardt, V., dos Santos, J. and Neuenfeldt, A., 2022.
Evaluation of entrepreneurial behavior of technology-based companies in stages of the
business life cycle. Intangible Capital, 18(1), pp.1-19.
Nikodijević, M., 2021. Implications and challenges of using driver-based budgeting in
contemporary business environment. Trendovi u poslovanju, 1(17), pp.49-57.
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Nikolaeva, V., 2018. Strategic management of business organizations-opportunities and
challenges. Izvestia Journal of the Union of Scientists-Varna. Economic Sciences
Series, 7(3), pp.221-230.
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