Burberry's Operational Management Strategies

The report explores various approaches such as Total Quality Management, Six Sigma, and Just-in-Time to understand how Burberry manages its operations. It emphasizes the crucial role of leaders and managers in increasing productivity, customer satisfaction, profitability, and reducing operational costs. The study also touches on organizational culture, sustainability development, and social responsibility as factors impacting operational management decisions.

Management & Operations

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different roles and characteristics of leader and manager.....................................................1
TASK 2............................................................................................................................................4
P2 Role of leader and function of manager apply in different situational context.....................4
P3 Different theories and models of approach............................................................................5
TASK 3............................................................................................................................................7
P4 Approaches of operations management and role of leader and managers.............................7
P5 Importance of operation management...................................................................................8
TASK 4............................................................................................................................................9
P6 The factors within the business environment impacts upon the operational management....9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Operations management consist of managing business day to day operations like production,
sales, marketing with proper handling and controlling in order to achieve business goals and
objectives. It includes designing of goods and services in the production function. The project
report will outline the difference between various roles of manager and leader in Burberry
Company. The report will highlight the role of leader and the function of manager in different
situational contexts in Burberry. The report will further apply different theories and models of
approach. The report will explain the key approaches of operations management. Then the report
will outline the importance and value of operations management. Lastly the report will assist the
factors within the business environment that impact upon operational management.
TASK 1
P1 Different roles and characteristics of leader and manager.
Burberry
Burberry plc is a British fashion house Industry. The Burberry was established in the year 1856
by Thomas Burberry. Originally the company's focus on the development of outdoor attire. Now
in present, the fashion house has moved into high fashion market. Burberry deals in trench coats,
ready-to-wear clothes, fashion accessories, sunglasses and cosmetics products. The
headquartered is situated in London, England.
Leader - The leader refers as the person who command and lead the group of the people in an
organization.
Manager – The Manager refers as the person who manage the resources, business operations
and tackle the employees in an organization in order to achieve the Organisational goals and
objectives.
Basis of various Roles Leader Manager
Delegating authority The leader of Burberry
command and lead the whole
team of employees in order to
achieve job and tasks which is
assigned by the manager.
The Manager of Burberry
delegates responsibility to the
employees about what are their
roles and responsibility with
regard to assign job and task.
Training and development The role of leader in training The role of manager is to give
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and development is to sharpen
their own skills in order to
lead their team for better
performance and to increase
productivity in Burberry.
training to new recruited
employees of Burberry in
order to achieve organisational
goals and objectives of
Burberry.
Problem solving The Leader role is to command
their team to maintain
discipline and to create healthy
work environment in the
Burberry so that there are
fewer chances of arisen of any
problem.
The Manager listen and tackle
the problems which is arisen
by the employees of Burberry.
The Manager solves the quires
and problems of the
Employees regarding their
work in the Burberry.
Conflict Handling The Leader role is to help in
team building. The leader
teaches the employees in
Burberry to work as a team in
one direction. The leader treats
every one equal so that there
are fewer chances of
happening of any conflict in
the Burberry.
The role of manager is to
handle the conflicts and
disputes among the employees
of Burberry. Through using
various techniques of Conflict
management such as Forcing,
Collaborating, Compromising
and withdrawing.
Motivating The leader motivates the team
members to work at their
optimum level and fully utilize
their efficiency and getting
things done on time in order to
achieve the Burberry
objectives.
The Manager motivates the
employees of Burberry
through giving them incentives
and rewards on timely basis
(Beierle and et.al., 2017). This
leads to boost the morale of
Employees in Burberry.
Hiring and staffing The leader guides about the
work and tasks to new
The Manager conducts the
interview of the candidates for
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recruited employees in
Burberry. The leader also
provide familiarity to new
recruited employees about the
work culture and environment
of Burberry.
the vacant job in Burberry. The
Manager take decision to hire
the most suitable candidate for
the vacant job.
Communication and Guide The Leader built good
communication skills in order
to command the whole team.
The leader communicate in
effective way so that the
employees of Burberry paves
attention towards the
command and work in
efficient manner as guided by
the leader.
The manager communicate to
employees of Burberry in
order to make them understand
about their job responsibility
and duties in Burberry. The
Manager communicate to
know the employee problem
and in order to solve their
queries.
Performance evaluation The leader helps through
guiding the team to perform
better in the Burberry to
achieve the sales targets and to
define the good results
(Bazargan, 2016). The leader
concludes the result and on the
basis of that leader pays
attention on that particular
employee which performance
is below average in the
Burberry.
The Manager evaluates the
performance of each and every
employee of Burberry and on
the basis of that the manager
gives the promotion to
employees who outperform
and on its optimal level. The
Manager also gives resignation
to those employees who
perform poor in the Burberry.
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TASK 2
P2 Role of leader and function of manager apply in different situational context.
Different situation in Burberry
Labour Turnover – The labour turnover refers to the proportion of the work force and
employees who leaves the Burberry.
Role of leader – The role of leader in Burberry is to tackle and guide the team members or
employees in calm and polite manner and address each of them with a sweet gesture. During the
Labour turnover it's a leader responsibility not to be so harsh and rude and not showing arrogant
attitude towards the team members (Choi, Chan and Yue, 2017). This makes the employees or
team member to lose their morale and this create dis-satisfaction among the team members and
employees. Eventually this reduce the Labour turnover.
Function of manager – The function of manager is to greet employees with giving them
incentives, salary increments, bonus and rewards on timely basis so the labour turnover in
Burberry get reduced. This leads to increased the employee's retention in the Burberry. The
manager is also responsible to give promotion to the employees who outperforms in the Burberry
(Chiarini, 2015). The role of Manager is to insure the employee's health and safety in the
organisation. Better work culture reduce the dissatisfaction among the employees.
Conflicts – Conflicts refers to disagreement and disputes among the employees working in the
Burberry.
Role of leader – The role of leader in Burberry is to manage conflict on the right time and to take
action against the employee when there is hard evidence or proof that employee has track record
of negative behaviour. The role is to punish the employee at the right time and reduce the
chances of having any conflict in Burberry. The role is to guide the employees about there limits
and boundaries. The role is to respect the culture differences in the Burberry.
Function of manager – The function of Manager is to use various conflict management
techniques to resolve the conflicts among the employees in Burberry such as Forcing, Win- Win
(Collaborating), Compromising, Smoothing and Withdrawing (Slack ssand Brandon-Jones,
2018). In forcing the manager gives direct orders to provide quick resolution to resolve the
conflicts.
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New Technology – Upgrading technology in Burberry leads to impact the operational
management in Burberry. The Burberry is using technology such as artificial intelligence and big
data analytics.
Role of leader – The role of leader in Burberry is to manage the virtual team of employees
through technology such as E-mail, Skype and go to meeting software.
Function of manager – The function of manager is to give training to the employees about the
use of Artificial intelligence and Big data analytics in Burberry. The function of manager is to
incorporate new technologies in Burberry in order to manage the employees. The function of the
manager is to provide self directed learning to the employees through digital monitors in
Burberry (Grant, Trautrims and Wong, 2017). Through Talent management software the
Manager provides the ongoing feedback to the employees of Burberry.
P3 Different theories and models of approach
Situational leadership – The situational leadership is a dynamic leadership style. The
Situational leadership style is developed by Kenneth Blanchard and Paul Hersey. In situational
leadership style the leader changes its decision to lead or tackle the team on the basis of
analysing the current situation in the organisation. This leadership style changes by observing
current situation of the organization.
This theory identifies four leadership approach in Burberry :-
 Telling - Through applying the situational leadership style in Burberry the employees
simply do what exactly assign to them or told them, by their leader. In this theory the
leader makes the decision and tells the employee what they exactly want to do to
accomplish a particular task or project in Burberry (Hitt, Xu and Carnes, 2016). This is
helpful to achieve the organisational targets of Burberry on timely basis.
 Selling – In selling the leader of Burberry is still the decision maker but the leader also
communicate the team members about the work to persuade. The leader explains in detail
about the task which is assigned to them so there are fewer chances of confusion. The
leader shows clarity about the work assigned to the employees of Burberry rather just
simply directing them.
 Participating – The leader of Burberry participate and show interest in employees work
and even encourage them to work together so that the assigned tasks get completed soon.
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The leader encourages and supports the team members to perform even better in order to
increase the overall productivity of Burberry.
 Delegating – The leader of Burberry delegates the different job responsibility to the
employees on individual basis. This is helpful to manage and balanced systematic work
culture in Burberry. Through this the leader avoid the misconduct of work among the
employees in order do smooth operations in Burberry (Holweg and et.al., 2018). This will
helpful in enhancing the productivity of Burberry.
System leadership – System leadership enables the leaders to create the favourable conditions in
an organisation where people work with their optimal potential they have. To lead the
organization towards greater productivity and profitability. The system leadership theory is
developed by Dr Ian MacDonald.
Applicability of system leadership style in Burberry
The system leadership helps to create good leadership in Burberry. The system leadership uses
sound principles about human behaviour to create organisational strategy, system designs and
effective social process in Burberry. It provides as a tool for leaders in Burberry that helps to
build effective systems which is helpful to create productive behaviour among the employees.
This helps the employees to work at their optimal level. This leads to achieve the organisational
objectives of Burberry.
Contingency Theory – The Contingency theory of leadership is founded by Austrian
psychologist Fred Edward Fielder. The fielder wrote an article in 1964 which named as, A
Contingency Model of Leadership Effectiveness. The contingency theory is based on the internal
and external analysis. It refers as an organisational theory. The Contingency theory claims that
there is no best way to organize or to lead a Company to make the effective decisions instead, the
optimal course of action is based on internal and external situation of an organisation.
Applicability of Contingent theory in Burberry
The Contingency theory facilitates the leadership style in Burberry to match up with the current
demand of Employees in the Organisation. The leaders take decision in Burberry by analysing
the internal and external situation and in accordance with that they guide the Employees. The
leader insures that there is no disapproval is being made by any of the employee while taking
important Organisational decision like Product plan and marketing strategies in the Burberry.
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The wrong decision making of leader also act as a Contingent factor in Burberry Organisation
(Laudon and Laudon, 2016). So before taking any decision mutual consideration with the
employees is also necessary. The degree of uncertainty is also drives on the number of
employees in the Burberry and number of leaders per group is availed by the top level of
management of Burberry.
TASK 3
P4 Approaches of operations management and role of leader and managers.
Total quality management
Total quality management is systematic management that improve the quality of product to
satisfy the customer. Also involve the employee to improve there work in process of production.
So the role of leaders and manges in this quality approach that is they mange the work in the
work place. For example Leaders are focus on the different principles of quality management.
They focus on providing the best quality of product to their customer (Total quality management.
2017). So managers of the Burberry is organized the training facility to thesss employees also
design process to increase the integrity of the work. Burberry can also improve their systematic
approaches and strategy to improve the quality of product and make better decision in order to
achieve the targets.
Six sigma
Six sigma is systematic approach of schedule and managing the operations in the Burberry. So
which is help to improve the capability of the Burberry production process. Leaders are use this
method to improve the process. They can Use the different philosophy to increase the
productivity. For example process are required the best input to make best output. If Burberry
control the raw material(INPUTS) so output is easily controlled. Also, use the different tools to
improve the techniques of use the machinery also use the different statical charts, statical process
control, that help to increase the efficiency of work. In six sigma managers use the different
methodology to find and analyse the different situations and their solutions.
Just in time inventory management
Just in time inventory is managed the inventory system by use of different strategy. Managers are
use the different strategy to mange raw material and use in diffident production process.
Burberry use this approach to mange raw material from supplier and utilize the material in the
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production process. That help to increase efficiency of work and reduce the waste by order the
sufficient material to the production. Which help to reduce the inventory cost. So this method is
help to manager to forecast the demand of raw material. For example Burberry uses the JIT
inventory management in their business so they easily manage the raw material and produce the
product in specific time. So that is help to meet the customer needs and wants.
Lean manufacturings
Lean manufacturing is the best approach to promote the productivity and reduce the cost of
production. That is help to Burberry for increase their capacity of the production. Manager of
Burberry use this method to managing capacity of the employee by use different tools. And
improve quality of the product that is help to increase customer satisfaction. Also, managers are
design a simple manufacturing system that improve the profits of Burberry (G and et.al., 2018).
This approach is also helped to reduce the inventory and utilize the capacity of equipments
which helps to increase the productivity. For example managers of the Burberry use the lean
manufacturing to increase the capacity of production and help to increase the customer.
P5 Importance of operation management
Increase productivity
Operation management is help to Burberry to increase the productivity. Because this method is
help to utilize the employees work in work place. Burberry provides training facility to the
employees so employee are more understand their work and improve their efficiency of work.
Also, this method have provided the different approaches that help to minimising the inventory
cost and proper utilize the machinery that directly impact on production activity.
Manage customer satisfaction
Operational management is continues process to manage, control and implement the process in
the production. That is help to company for increase the customer satisfaction. Because Burberry
is use this method to improve the production process and increase the quality in their product by
the help of different strategy and tools (Mahadevan, 2015). Operation is important part of the
Burberry because which is help to increase the customer satisfaction by use different strategy of
production.
Increase profitably
Operation management is help to increase the profitability of company. When Burberry increase
productivity so they also increase the profitably. Productivity improves the economic growth of
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the company and also satisfy the customer so Customer are improved their standard of leaving.
So this is advantage of the company to improve the productivity as well as customer satisfaction
that increase the Burberry profitability.
Help in decision making
Operation management is help to decision making. They provide the long term perspective to the
Burberry. Operational management mange the inputs according the requirement of the
production so this is help to increase the better output. Also, help to making a long term decision
to future growth of the Burberry (Moutinho and Vargas-Sanchez, 2018). So Burberry use
different ideas through operational management and improve their production and reduce the
inventory cost and increase the future growth.
Reduce cost
Operational management is help to reduce the cost of production by the use of different
approaches. Also, Burberry have use the different strategy to minimize the waste of raw material
and utilize the raw material in systematic manner. That is help to reduce the waste and increase
the production. So operational management is reduced the cost of inventory and provide the
quality of product to the customer.
Enhance innovation
By use the operational management Burberry builds the innovative ideas to use the skills and
knowledge of the employee and managers. Operational management is provided the training and
development to the employees. Also, employees are increase their capacity of work which help
to company for implement their innovate ideas in fixed time period. (Ravindran, 2016) So
Burberry easily introduce their innovative product in the market and easily attract to the
customer to buy the product.
TASK 4
P6 The factors within the business environment impacts upon the operational management.
Organizational Culture – Organizational culture refers as the underlying beliefs, assumptions
and corporate values of an individual organization. The organisational culture shows the ways
through which organizational people interact with each other.
There are four types of organisational culture
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 Clan culture – This culture creates friendly environment in an organisation. In clan
culture success of organisation is defined by fulfilling needs and caring of the employees.
 Adhrocracy culture – This culture creates dynamic work environment for the employees.
The employees take higher risk in such culture.
 Market culture – This culture is based on competitive spirit among the employees in an
organisation. This puts emphasis on getting things done
 Hierarchy culture – This culture is in formalized and structured form. This shows
hierarchy from top to bottom. The crucial decisions are taken by the top level
management.
The Burberry follows the Clan culture in order to manage the operations of Burberry. The Clan
Culture facilitates the Burberry organization to put emphasis on long term development of
employees and to maintain bonds with employees in order to boost employees morale in
Burberry. This leads to increase employees retention in Burberry.
Impact on decision making of Leaders and Managers
The leaders take decision to empower the employees in Burberry. The leaders and managers of
Burberry act as a mentor for their employees in order to guide them in right direction so that the
Burberry objectives get fulfilled. The leaders and managers helps in team building process of
employees in Burberry so that the assigned task get accomplished on timely basis (Schönsleben,
2016). The leaders and managers facilitates the open communication channel to their employees
so that the employees freely discussed about their problems and quick decision is being made by
the leaders and managers to resolve the Employees problems in Burberry.
Sustainability Development - The Burberry is known for most sustainable and luxury brand.
The Burberry launch sustainability development agenda. The Burberry takes many initiatives
such as the recent pledge to stop destroying the unsold clothes.
Impact on decision making of Leaders and Managers
The leaders and managers takes crucial decision in sustainability development program of
Burberry. The leaders and managers carve out the sustainability initiatives through gathering
hard data on social and environmental benefits in order to manage the work force in Burberry
organization to achieve the target of Sustainability development program of Burberry. The
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leaders and managers of Burberry give training to their Employees about the sustainability
development program.
Corporate Social responsibility – The Burberry follow the Responsible sourcing policy in their
operations. The Burberry takes commitment to preserve natural resources and take initiatives to
ensure animal welfare. In their retail packaging they used 100% of Paper and baseboard (Scott-
Jackson and Michie, 2017). They are following the target to eliminate the chemicals that are
negatively impacting the environment in their supply chain.
Impact on decision making of Leaders and Managers
The Burberry Leaders and managers are influenced by the corporate social responsibility
decisions. The leaders and managers guide their employees about the removing PVC from the
Burberry products. The leaders and managers provide training to their employees about the
chemical testing of cosmetics products of Burberry in order to reduce the impact of chemicals in
environment through their supply chain in order to attain the corporate social responsibility
programs of Burberry.
CONCLUSION
The conclusion is being drawn from this project report of management and operations that the
leaders and managers plays crucial role to manage the operations of Burberry. Through using
different approaches such as Total quality management, Six sigma and Just in time in the
Burberry is helpful to achieve its organisational objectives and goals. The report concludes that
the operation management in Burberry is important for increase the productivity, customer
satisfaction, increase profitability and helpful in reducing cost of operations. It is been concluded
that organisational culture, sustainability development and social responsibility are the factors
which impacts the operational management and decisions making of leaders and managers in
Burberry.
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Online
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