PESTLE and SWOT analysis Burberry Group PLC
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Added on 2020-10-23
PESTLE and SWOT analysis Burberry Group PLC
Added on 2020-10-23
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BUSINESS AND BUSINESSENVIRONMENT
EXECUTIVE SUMMARYPresent report explained macro and micro environmental factors that affect decisionmaking and organizational structure of organizations. PESTLE and SWOT analysis areconducted to identify these factors of Burberry Group PLC, UK which highlighted positive andnegative impacts. The research also investigated Burberry’s internal and external environmentwhich clarified strengths and weaknesses of London based fashion house. Further, this report hasdiscussed the organizational objectives, legal structures, mission, vision, business objectives andinformation about stakeholders of Burberry Group PLC.
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................5LO 1.................................................................................................................................................5P1. Types and purposes of public, private and voluntary organizations and legal structures ofBurberry Group PLC....................................................................................................................5P2. Size and scope of a range of different types of organizations ..............................................7LO 2...............................................................................................................................................11P3. Relationship between different organizational functions and the way they are linked toorganizational objectives and structure......................................................................................11LO 3...............................................................................................................................................13P4. Positive and negative impact of macro environment upon business operations of BurberryGroup PLC.................................................................................................................................13LO 4...............................................................................................................................................14P5. Internal and external analysis to identify strengths and weaknesses of Burberry Group PLC....................................................................................................................................................14P6. Interrelation of strengths and weaknesses with external macro factors of Burberry GroupPLC............................................................................................................................................16CONCLUSION .............................................................................................................................17REFERENCES..............................................................................................................................18HISTORY. 2018. [Online]. Available through:<https://www.burberryplc.com/en/company/history.html>..........................................................19
LIST OF FIGURES
INTRODUCTIONBusiness is a process followed by the firm or economic system including the exchange ofgoods and services with an aim of making profit. Business environment consists of the factors,forces, individuals and entities which influence an organization where it operates. Report onbusiness and business environment is prepared with the purpose of understanding micro andmacro environmental elements which impacts business operations with organizational structureof Burberry Group PLC. The present report will investigate internal and external environment ofBurberry to understand the micro and macro factors which affect its operations, andorganizational structure. It will explain these factors by conducting PESTLE and SWOTanalysis. Also, its positive and negative impacts will be discussed. Strategies needed to bedeveloped by business for coping up with uncertain and turbulent business environment afterUK’s referendum decision to leave European Union will be explained as well. LO 1P1. OverviewBusiness environment is the collection of several conditions i.e. institutional, political,social, legal and economic factors that are uncontrollable has and have impact on functions ofBurberry Group PLC with affecting its organizational structure and business (Boons and Lüdeke-Freund, 2013). Business environment includes internal factors comprising employees, objectives,culture, vision and mission that are under its control. External factors include economy, market,government, stakeholders and media which are beyond business control which might cause athreat to the organization. It is the collection of internal and external factors that affect a businessin its operations, performance, functions, growth and survival. BackgroundBurberry is a PLC firm enlisted at Stock exchange of London (LSE) is a part of the stokeexchange of Financial times top 100 index. It was founded by Thomas Burberry in 1856 with theconcept of developing fashion garments which later on shifted to a high fashion market afterdevelopment of Gabardine fabric which is breathable and waterproof (HISTORY, 2018). Thebrand has multiple stores and franchises all over the world which began selling online in US andUK in 2006 October.5
Different types, size and scope of organizationsPrivate Sector Private sector is run by private individuals, groups and companies with the motive ofearning or generating profit by employing workers. It is the part of national economy that isclosely-held, handled and disciplined by forming a new firm or privatizing a PLC sectororganization. Sole proprietorships, Partnerships, Small and Medium Enterprises, Trade unionsare some private sector businesses which are diverse area and has a huge role on economy of acountry. Virgin Group is a leading investment company with a global identity and brand imagewhich renders various products and services including mobile telephony, travel, holidays, music,health and financial services. It has operations around 50 countries with more than 50000employees. Their purpose is to serve society through delivering quality products and serviceswith a profit making motive. Public SectorState sector or Public sector is the part of a country’s economy which is controlled bynational, state or provincial and local governments that comprises of public services andenterprises (Bughin, Chui and Manyika, 2010). These part of national economy offers goods andservices to the public which cannot be delivered by private sector and is composed of all levelsof government and government controlled enterprises. London North Eastern railway is a Britishtrain operating company that operates long distance inter city services and is owned bydepartment of transport. It manages 11 stations and intend to render services until a new public-private partnership is established. Voluntary SectorCommunity or voluntary sector are the organizations whose primary motive is to createsocial impact rather than generating profits. They are self sustained firms which are called associety, tertiary or NPO sector in contrast to private and public sector. National Health services(NHS) England is the world’s largest publically funded healthcare organization. Its purpose is toserve nation and people for the betterment of society and communities.Legal structure of Burberry Group PLCBurberry Group PLC is larger than a joint stock company is an incorporated business runby Board of directors on shareholder’s behalf where they can vote on certain issue and problemsrelated to the organization (Cantwell, Dunning, and Lundan, 2010). They are listed company in6
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