Pestle Analysis of Burberry
Added on 2020-11-23
11 Pages2790 Words339 Views
Burberry PLC
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................11. The management structure and the governance of Burberry PLC...............................................1Overview of Burberry PLC.........................................................................................................1Management Structure of Burberry............................................................................................12. THE EFFECT OF EXTERNAL ENVIRONMENT INFLUENCES ON BURBERRY PLC.....4Pestle Analysis ...........................................................................................................................4CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................8
INTRODUCTIONThe collection of external and internal factors that influences a company's operatingsituation as it includes customers, client, suppliers, management, demand and businessregulation. Management structure of an organisation is very important to defined as it is the wayhow an organisation organizes its management hierarchy (Ndzi, 2017). It is very essential fororganisations to manage the structure of organisation in a systematic manner. There are variousfactors in external and internal environment by which organisation function, operation,profitability is affected. This present report is context to Burberry PLC which is a British Luxury fashion house inUK. Further this report will examine the management structure and governance of sitedorganisation. Moreover, this report will also evaluate the effects of external environmentinfluences the chosen company. MAIN BODY1. The management structure and the governance of Burberry PLCOverview of Burberry PLCBurberry Group PLC is a British luxury fashion house in United Kingdom. It is a publiclimited company. Company was founded in 1856 by Thomas Burberry. Its headquarter is locatedin London, England as it is listed in London Stock Exchange and is constituents of the FTSE 100Index. It is one of the top international brands especially in clothing. Company is recognised forits super quality. Its main fashion house focusses on and distributes trench coats for which it ismost famous. There are many other products of Burberry like ready to wear outwear, fragrances,sunglasses, perfumes accessories and cosmetics. There are 498 stores of Burberry in 52countries. Management Structure of BurberryManagement structure is the hierarchical arrangements of lines of authority,communications, duties and rights of an organisation. In simple words, it is structure that how acompany organizes its management hierarchy (Bayer and et.al., 2018). It determines how theresponsibilities, roles, power and duties are assigned, controlled and coordinated and howinformation flows between various levels of management. There are mainly three ofmanagement structure which are as follows-1
Functional Structure- This is one of the most common organisational structure. Underthis structure, the organisational groups employees as per the specialised and similar set of taskand roles. This is called as one of the most simplest as well as prevalent form of organisationalstructure. In this structure, departments are created on the basis of functions performed in thecompany such as marketing, sales, IT, human resources, operations etc. All the departments hasa coordinating head and can be further segregated into various sections (Management Structureof Burberry PLC, 2018). Organisations which have functional organisational structure enjoysmany benefits like effective managerial efficiency, specialisation, good coordination etc. Thistype of structure is economical as repetitions in function are not there in this type of structure andit is suitable for simple and small organisations (Stevenson and Cole, 2018). Divisional Structure- This is a type of organisational structure which groups eachorganisational functions into a division. This is one of the organisational structure used byBurberry PLC. In this type of organisational structure employees are responsible for specific typeof market services or product as per the workflow. In this structure, managers of each divisionenjoys autonomy to some extent. This structure is suitable when organisations maintains chain ofstores as well as any subsidiary within nation or internal level. This type of structure is somewhatexpensive because there are repetitions of resources. This type of structure is suitable fordynamic and large firms. Matrix Structure- This is the type of structure in which reporting relationships are set upas a matrix or grid instead of traditional hierarchy. Basically, employees of organisation havedual relationship of reporting like to both a product manager and functional manager. This typeof structure is somewhat complex reporting structure as compare to functional and divisionalstructure (Parkinson, 2018). The operations of organisation at global and giant level so they areusing this organisational structure. 2
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