Challenges Faced by Multinational Firms in Fashion Industry

This research proposal focuses on identifying the challenges faced by multinational firms in the fashion industry, with a case study on Burberry Group Plc. It explores the impact of latest fashion trends on multinational organizations, the challenges faced by Burberry Group Plc, and strategies to overcome these challenges. The research aims to enhance knowledge and academic skills in understanding how organizations cope with and adapt to changes in the external environment.

Research Proposal

Table of Contents
Topic: Identify the challenges faced by multinational firms due to current trends in fashion
industry. A case study on Burberry Group Plc................................................................................1
CHAPTER 1: INTRODUCTION....................................................................................................1
Overview of research...................................................................................................................1
Rationale of research...................................................................................................................1
Research aim and objectives........................................................................................................1
Research Questions......................................................................................................................2
Framework of research................................................................................................................2
CHAPTER 2 – LITERATURE REVIEW.......................................................................................3
Introduction..................................................................................................................................3
Impact of latest fashion trends on multinational organisations...................................................3
Challenges of latest fashion trends on multinational organisations.............................................4
Ways to overcome from challenges of changing fashion trends.................................................4
Conclusion...................................................................................................................................5
CHAPTER 3 – RESEARCH METHODOLOGY...........................................................................6
Introduction..................................................................................................................................6
Research methods and approaches..............................................................................................6
Data collection techniques...........................................................................................................6
Sampling......................................................................................................................................7
Ethics, reliability and validity......................................................................................................7
Time Frame..................................................................................................................................7
REFERENCES..............................................................................................................................10

Topic: Identify the challenges faced by multinational firms due to current
trends in fashion industry. A case study on Burberry Group Plc
CHAPTER 1: INTRODUCTION
Overview of research
Fresh and new trends today, gives every person an excitement to get fashionable attire that
perfectly match with their lifestyle (Mejías and et. al., 2019). This put pressure on each and every
organisation that deal in fashion industry to keep updated their products with latest trends. It
would help in not only retaining the targeted customers within business, but also aid in
generating high revenue as well. But it creates a number of challenges also for both national and
multinational companies, such as meeting customer satisfaction, growing distribution, marketing
to millennials and more (Gioia, Corley and Hamilton, 2013). To analyse such challenges and
strategies to overcome from the same, a research is going to conduct in present project. Burberry
Group Plc is chosen for this case study, which is headquartered in London and operated its
business in fashion industry. Changing trends and taste of customers, highly affects its business,
as well as has shaped its organisation for maintenance of sustainability. To make investigations
on this topic, appropriate aims and objectives are framed, which helps in obtaining research
outcomes, by using various methodologies.
Rationale of research
The main aim behind conducting a research on present topic i.e. Challenges of latest trends
on multinational firms, is to enhance knowledge regarding with how today’s organisations cope
up and updated its business with changes in external environment (Flick, 2015). It would help
project makers in enhancing their knowledge and academic skills.
Research aim and objectives
Research Aim:
“To determine the challenges faced by multinational organisations due to current
trends in fashion industry.” A case study on Burberry Group Plc
Research Objectives:
 To identify the impact of latest trends on multinational organisations in fashion industry
 To determine the challenges that faced by Burberry Group Plc due to change in trends
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 To ascertain the strategies that will help Burberry Group Plc to overcome from
challenges of latest trends in fashion industry
Research Questions
 How changes in fashion trends impact on business of multinational organisations?
 What are the main challenges faced by Burberry Group Plc due to change in trends?
 Which strategies help Burberry Group Plc to overcome from challenges of latest trends in
fashion industry?
Framework of research
To conduct present project, following framework is applied –
Chapter 1: Introduction – It is first part of project that describes entire details of what is
going in present research, with aims and objectives (Strange and Humphrey, 2019). It provides
description of chosen topic with reasons to select the same, including on which company
investigation will be conducted.
Chapter 2: Literature review – It is second part of research, under which secondary
information will be gathered through articles and books. Here, many researchers’ point of view is
analysed and interpreted to meet research objectives.
Chapter 3: Research Methodology – This part gives details of tools and techniques that
are going to be taken, for conducting research. It also describes sample size, strategy and ways to
maintain ethics of research.
Chapter 4: Data Analysis – Under this part, primary data information is analysed by
representing respondents point of view in graphical form.
Chapter 5: Conclusion and Recommendation – It is the last part of research, where what
has been concluded from overall research is discussed and accordingly, recommendations are
given to chosen company, for overcoming its issues (Alvstam, Ivarsson and Petersen, 2019).
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CHAPTER 2 – LITERATURE REVIEW
Introduction
Literature review is the most important part of a research, where in-depth investigation is
done by taking a number of secondary resources (Sauvant, 2019). It includes books, articles,
journals, company’s business report, industrial statistical and theoretical data etc. Under present
research, articles and fashion industry reports are used, for gathering secondary information.
Impact of latest fashion trends on multinational organisations
According to Mejías and et. al. (2019), it has been evaluated that trends in fashion changes
continuously, where increasing demand of customers to get more trendy clothes and other attires
forces companies to offer more unique products (Fashion Forecasting in Ecommerce: How
Trends Affect your Business, 2015). With advancement of technologies, emerging concept of
globalisation and movement of organisations across countries, make changes continuously in
internal and external environment of business, in terms of production. To match lifestyle of
people and offer them fresh trendy clothes helps both national and international companies, to
retain their customers longer period of time (Nayak, Akbari and Far, 2019).
In context with Burberry Plc, this company of UK deals its business in fashion industry
and offers a wide range of apparels. It includes trench coats, fashion accessories, ready-to wear
outerwear, cosmetics, fragrances and more. However, at initial stage i.e. in 1856, this company
runs at small level but today, it has opened more than 498 stores at worldwide level, near about
in 51 countries. But as today, competition in this industry has become more intense where every
company seeks to update its business with latest trends, for attracting new audience and retaining
existing ones (Hur and Cassidy, 2019). Therefore, to sustain competition position of its brand,
management of Burberry Plc needs to keep its inventory with latest trendy attires. It will impact
positively on its business, in terms of generating high revenue, increasing brand image and
enhancing footprints of customers at its stores. Along with this, changes in lifestyle and general
trends of population also allow respective firm, including other fashion manufacturing and
retailer firms to better marketing itself, by reshaping business with changing environment (Wu,
Ma and Liu, 2019).
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Challenges of latest fashion trends on multinational organisations
As per views of Hur and Cassidy (2019), it has been identified that with opportunities to
retain customers in business, by updating organisation with latest trends of fashion industries, a
number of challenges has also been arisen. It includes fast changing demands of people for
purchasing fashionable products as per their budget; marketing business; managing inventories;
making decisions regarding with prices to maintain competitiveness, customer acquisition and
more. With respect to Burberry Plc, as it offers high quality of trench coats and attires to
customers, where making changes in design, fabric and any aspects, may affect products’ quality
(Strange and Humphrey, 2019). Along with this, offers unique designer clothes on affordable
rates as per client expectation is considered as the one of the biggest challenge. In this regard, to
quest demand of customers, both established and new retailers focus on offer trendy clothes on
high discounted offers, because new customer acquisition in fashion industry amidst only such
competition (Gioia, Corley and Hamilton, 2013). To buy fashionable and unique attires, they
only wait for discounted goods rather than on branded ones. Since, brands like Burberry Plc limit
themselves often, when they come to reach customers via distribution channels like Paid Social,
Paid Search, etc. in order to determine the payment model, which is mainly based on value of a
particular transaction, instead of understanding the lifetime value of customers. Therefore, it
arises challenge for them to meet customer satisfaction effectively. Furthermore, this retail
aggregator mainly focuses on its sales, so, growing distribution creates challenge for its business,
for finding new ways for further expansion in existing and new emerging one. So, it has a lot of
insight regarding with many brands, including from New Look to M&S, before making new
decisions to implement changes in product design and clothes, for meeting the expectations of
customers (Mejías and et. al., 2019). Growing distribution of fashion apparels on minimum rates
through e-commerce, put pressure on Burberry Plc to either sale its commodities on cheaper
rates or offer unique designer ones. It also considered as one of the major challenge of changing
in fashion trends of this firm.
Ways to overcome from challenges of changing fashion trends
As per theoretical perspectives of Wu, Ma and Liu (2019), it has been analysed that to
change business according to latest trends arise a number of challenge for organisations.
Therefore, it is suggested to management of Burberry Plc., to emphasis more on identifying what
its targeted audience prefer more, i.e. either attires of high quality or more trendy, so that proper
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decisions can be made for modification in business function. For keeping business update with
new trends of fashion, this brand needs to determine choice of both national and multinational
customers, in order to understand this metric. This would help in developing an investment
model and overall strategic planning for its distributive channels, which allow to pay for
products on desired price as compared to its competitors like M&S, H&M and other. Doing this
will allow management of Burberry Plc, to take appropriate and effective decisions for customer
acquisition in business, as through this process, they can build tactics to maintain its sustainable
position in fashion industry (Hur and Cassidy, 2019). Along with this, as increasing e-commerce
business arise challenge for Burberry Plc, to maintain its competitive position in fashion
industry. Therefore, this company required to boost its brand awareness among national and
international customers by implementation of fully-fledged outreach and designing the marketing
campaign. This would help in establishing its offline brand image and reach new customers more
easily. Furthermore, since the market within fashion industry is welcoming more and more new
competitors, where internet and social media are considered as main disruptors, therefore, it also
affects business of established brands. In such manner, having a branded and big image,
sometime reflected as burden for business (Nayak, Akbari and Far, 2019). Therefore, way to stay
relevant and competitive in business for Burberry Plc, is to stay true for brand essence and
always make sure whatever its brands must doing better and something unique than others.
Conclusion
It has been concluded from the all over secondary analysis, that trends in fashion industry
has much changes. It highly affects the preferences, taste and lifestyle of customers, where to
match with same and satisfy their demands, companies that deal in fashion industries have to
make various modifications in business. This would help in increasing their brand image and
revenue more effectively, but also create challenge for keeping business as per latest trends.
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CHAPTER 3 – RESEARCH METHODOLOGY
Introduction
To conduct the present research on trends in fashion industry, a number of tools and
techniques including the following aspects are included –
Research methods and approaches
A number of techniques and research methods are going to be applied under present
project which is based on trends in fashion industry. It includes approaches such as quantitative
qualitative and mixed research methods, that helps in getting several different techniques to
make a project (Mejías and et. al., 2019). Qualitative research is used to conduct theoretical
study while quantitative is for numerically analyse the information. The qualitative research
methods are mostly used for understanding a complex reality of a given problem therefore, it is
taken to produce illustrative and in-depth information for understanding the various dimensions.
On the other hand, rather than on theoretical perspectives, quantitative approach is concerned
with information that can be represented numerically, where large sample size is included in a
research to generalise the outcomes (Gioia, Corley and Hamilton, 2013). But major weakness of
implying quantitative approaches in a research is that it fails to provide in-depth knowledge.
While qualitative one consumes much time to gather theoretical information, which shows it
major weakness. In context with present project, mixed research methods will be used to collect,
analyse and integrate both qualitative and quantitative information.
Data collection techniques
For conducting the present research, both primary as well as secondary sources are going
to used, for addressing research questions adequately. Under this process, primary research will
be conducted through a self-questionnaire method (Flick, 2015). This questionnaire will be filled
up by stakeholders of Burberry Plc, which would help in analysing their view points on impact,
challenges and strategies to update business with current trends of fashion. Other than this,
secondary research is also carried out under present research, to conduct in-depth analysing by
summarising the previous gathered information that are available in published and un-published
articles.
For analysing primary information, thematic analysis will be taken by present researchers
which is considered as most effective tool (Strange and Humphrey, 2019). This would help in
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developing different-different themes for organising numerical data systematically and analysing
the same effectively.
Sampling
To conduct the present project, entire stakeholders including managers, employees and
others of Burberry Plc are chosen as major respondents. As this company is considered as one of
the largest fashion retailer of UK, therefore, 30 stakeholders as main participants are selected by
using random sampling technique (Alvstam, Ivarsson and Petersen, 2019). This would help in
giving each and every stakeholders equal chance to being selected in primary research.
Ethics, reliability and validity
Since making a project on a vast concept seems not to be as easy for any researcher,
because, it requires effective research skills especially for maintaining ethics and reliability.
Therefore, before gathering information, project makers are going to concern on those concepts
that may affect reliability of research outcomes and arise ethical issues (Sauvant, 2019). It
includes authenticity of secondary sources, respect for privacy as well as dignity of every
respondent who are being included in primary research. This would help in developing and
maintaining effectiveness of research outcomes.
Time Frame
Milesto
ne
Projective
Activities
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W
3
W
4
W
7
W
8
W1
1
W1
2
W1
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W1
7
W2
0
W2
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W2
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W2
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M1 Project
formulatio
n and
Project
Planning
M2 Literature
Review
M3 Methodolo
gy
M4 Data
Collection
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and
Analysis
M5 Discussion
of the
results,
including
reflection
M6 Report
writing
M7 Presentatio
n of the
manageme
nt
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REFERENCES
Books and Journals
Alvstam, C., Ivarsson, I. and Petersen, B., 2019. Are multinationals and governments from
emerging economies configuring global value chains in new ways?. International
Journal of Emerging Markets.
Flick, U., 2015. Introducing research methodology: A beginner's guide to doing a research
project. Sage.
Gioia, D. A., Corley, K. G. and Hamilton, A. L., 2013. Seeking qualitative rigor in inductive
research: Notes on the Gioia methodology. Organizational research methods. 16(1).
pp.15-31.
Hur, E. and Cassidy, T., 2019. Perceptions and attitudes towards sustainable fashion design:
challenges and opportunities for implementing sustainability in fashion. International
Journal of Fashion Design, Technology and Education. 12(2). pp.208-217.
Mejías, A. M. and et. al., 2019. Traceability management systems and capacity building as new
approaches for improving sustainability in the fashion multi-tier supply
chain. International Journal of Production Economics. 217. pp.143-158.
Nayak, R., Akbari, M. and Far, S. M., 2019. Recent sustainable trends in Vietnam's fashion
supply chain. Journal of cleaner production. 225. pp.291-303.
Sauvant, K. P., 2019. Controlling multinational enterprises: Problems, strategies,
counterstrategies. Routledge.
Strange, R. and Humphrey, J., 2019. What lies between market and hierarchy? Insights from
internalization theory and global value chain theory. Journal of International Business
Studies. 50(8). pp.1401-1413.
Wu, J., Ma, Z. and Liu, Z., 2019. The moderated mediating effect of international diversification,
technological capability, and market orientation on emerging market firms' new product
performance. Journal of Business Research. 99. pp.524-533.
Online
Fashion Forecasting in Ecommerce: How Trends Affect your Business. 2015. [Online] Available
Through:< https://www.ilovefashionretail.com/fashion-forecasting/fashion-forecasting-
in-ecommerce-how-trends-affect-your-business/>.
The 11 Biggest Challenges Facing Brands in 2018. 2018. [Online] Available Through:<
https://www.askattest.com/blog/news-and-trends/biggest-challenges-facing-brands-in-
2018>.
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