Strategic Analysis of Business Case Studies

This assignment presents a collection of diverse business case studies, requiring students to apply strategic analysis frameworks to understand complex situations. The provided case studies span various sectors, including renewable energy, publishing, technology, education, and the fashion industry (Burberry). Students are expected to analyze these cases, identify key challenges and opportunities, and propose strategic recommendations using relevant tools and concepts.

STRATEGIC ANALYSIS

Table of Contents
INTRODUCTION...........................................................................................................................1
Question 1: Strategic Issues.............................................................................................................1
Issue 1 Pestle..........................................................................................................................1
Issue 2: Porter's five forces.....................................................................................................3
Issue 3: Internal Competence.................................................................................................4
Question 2: Strategic capability and advantage...............................................................................4
CSFs.......................................................................................................................................4
Unique resources of the business firm....................................................................................5
Unique capabilities of luxury fashion industry......................................................................5
Various advantages of CSFs:..................................................................................................6
Porter's Generic model:..........................................................................................................6
Evaluation Suitability of strategy to environment:.................................................................7
Evaluation of Acceptability of the strategic plan of Burberry to key holders:.......................7
Evaluation of feasibility of the action of plan in external marketplace:.................................8
Improvement to strategies:.....................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
The purpose of this report is to highlight the strategic issues faced by Burberry
Organisation. Strategic issue is a critical challenge which affects organisation's missions, values,
stakeholders, resources, structure, processes, service level and management (Burberry - Statistics
& Facts. 2017). And strategic issue analysis means a set of method which is proposed to resolve
the strategic issues through forming a strategic issue information model. This formation is done
through joining manager analyst teamwork approach together (Laudon and Traver, 2013). Every
business has a strategic objectives, these goals are important for the current and future health of
the organisation. Objectives differs on the basis of priority given to them. This references is on
the basis of certain analysis like PESTLE, Porter's 5 Forces and Internal examination of the
organisation.
Burberry PLC is a British luxury fashion house. It is ranked 8th position under top 15
Brand contribution (BrandZtm). It is popular for selling trench coats and its fashion houses has a
main focus on ready-to-wear outerwear, fashion accessories, fragrances, sunglasses and
cosmetics. It was established in 1856, that time it was focusing on outdoor attires but later it
moves towards high fashion market (Reports. 2017). Currently the value of Burberry's personal
luxury good in market is around 249bn EUR and global revenue is 2.77bn GBP (Büyüközkan,
Çifçi and Güleryüz, 2011). It produces and distributes luxury outerwear for both men and women
across the world. But major part of its revenue is generated through accessories. It's adjusted
annual profit before tax as at the end of the year 31st March, 2017 is £462m (BURBERRY annual
report).
In this report, key strategic issues facing by Burberry is been discussed. Critical success
factor's of Burberry like selling tartan, celebrity endorsements and tactical product placements
has been explained in this report. The report begins with PESTEL, porter's 5 forces model and
Internal analysis of Burberry.
Question 1: Strategic Issues
Issue 1 Pestle
It is a critical challenge which affects an organisation's missions, values, stakeholders,
resources, processes, management and product services. Hence the three key strategic issues of
Burberry is explained below with the help of the diagrams:
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 PESTLE
Source: Google Images, ©2016
Economically, fanciful “luxury” itself has been somewhat hijacked and disappearance
into knock-off ordinariness and aim commoditization. Burberry with other top brands like Prada
and Louis Vuitton, must compete sharply for getting high valuable customers in this competitive
market. Sales management strategies attracts economic growth of Burberry through brand
survivability in this challenging market (Yoo and Lee, 2011).
One of the major economic challenges faced by Burberry is raising its capital because
government has directly controlled over its financial institutions by law. But still Burberry can
overcome from this situation through moving its business in Asian pacific nations like china,
because there is no income tax on interest on bank deposits (ANNUAL REPORT 2016/17. 2017).
Various economic factors like changes in inflation rate, exchange rates, taxes and duties
on export and import of products largely influence the internal functionality of the of the firm.
The company should act responsibly towards these economic aspects of external environment in
order to conclude to the efficient and profitable strategic plan in action. The Burberry
profitability can be affected by the financial crisis or higher debts in the country due to which
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exchange rates and inflation rates influenced and company have to faces huge losses. So,
company should act strategically and tactically to deal with such situation in marketplace.
Issue 2: Porter's five forces
Industry rivalry: If the rivalry among existing players in an industry is big then it will
drive prices down and decrease the profitability of the company. Hence Burberry Group Plc run
in a very competitive Private and Household goods industry. The Porter's five forces model
access the various micro level factors which are influencing the internal capabilities of Burberry
organisation. The company is fashion hub engaged in delivering services to the people who loves
to be fashionable and loves to carry decent style with them (van Wijngaarden, Scholten and van
Wijk, 2012). There are many different attributes of Industry rivalry like large number of exist
barrier, lower business growth etc. which affects the level of the competition in marketplace
some of which is discussed as follows:
Equally balanced competitors- When the different companies are deadening in the equal
level of competition for every firm than the businesses are engaged in competitive battles. The
complies fights of gaining higher competitiveness in marketplace through utilising internal
competence effectively. Burberry rivalries are like Prada, Luis Vuitton and Mulbery all are
engaged in developing almost similar products to the customers hence developing equal and
close competition with each other.
The Prada is ultra-luxury brand while Burberry is dealing in luxury products. The price
range of both the firm is also having comparative differences. The product of Burberry is having
lower prices as compared to the Prada. The Burberry is delivering its services to the upper
middle class of the society while Prada customers belong to the upper class of the society. The
products of the Prada are status symbol of user.
In order to compete with the Prada company the Burberry can develop various strategy in
relation with the positioning and targeting of business product. The Burberry can go very
developing a different brand for catering in various segments of society (Lee, Ahn and Bang,
2011). In order to increase the brand value the Burberry can introduce a new brand with
providing status symbol to the customers and targeting to upper class people. This will helps in
dealing with industrial rivalry successfully.
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Issue 3: Internal Competence
Supply chain operations are one of the most important functionality of blueberry. The
sited company is focusing on maintaining the inventory effectively and is engaged defining
various norms and working values in delivering luxury products ton customers with higher
responsibility and efficiency. One of the most important advantage to the internal environment of
Burberry is its supply chain department. This respective operation of firm is working very well
and contributing in reducing various cost and wastage of raw material and engaged in developing
effective functions department of business. This helps in contributing higher profitability of firm
through brining effectiveness in functions of firm (Abraham, 2013). The Burberry supply chain
involves a third party wholesaler customers who is purchasing company goods both online as
well as offline.
The supply chain network of Burberry supports the functionality of different department s
like products of apparel, accessories and beauty products and its delivery to the customer of the
company. The supply chain of the company is responsible in maintaining the various business
activities, maintaining raw material and delivering raw material to the operational department on
time. The company is focusing on the protection of human right and bring motivation in the
employees to carry out various supply chain operations effectively in workplace and contribute
in developing effective strategies in practice to gain competitive advantage in marketplace.
Question 2: Strategic capability and advantage
CSFs
This can be defined as the critical success factors. The companies growing the luxury
fashion industry should be complied with the different attributes of CSF in action in order to
contribute in business growth. Critical success factors are the attributes or aspects which must be
accomplished by the business in order to flourish the luxury good market in commercial place
(Walker and et. al., 2014). This is every much necessary that the management of respective
industry should have focuses on accomplishment of all the aspects of critical success for firm
profitability. The various CSF to the luxury fashion industry are discussed as below-
Status symbol: The luxury goods industry should provide symbol to the people who are
purchasing company products. This is critical success factors for growth of luxury fashion brand
without which the success of firm can not be imagine. This is the most important aspects for the
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companies who are dealing in luxury products as status symbol in society helps in accomplishing
esteem needs of individual and attract t the customers towards luxury products.
Premium quality products: The quality of the product delivered by luxury fashion brand
should be premium in order to satisfy the various needs of upper class people. This is the critical
factors which contribute in the growth of the the business. Premium quality factor is determining
attributes for the success of the firm in respective industry and helps in increasing the sales of the
luxury fashion products (Aslani, Naaranoja and Wong, 2013).
Unique resources of the business firm.
The various resources of the business or companies dealing in luxury fashion industry are
compatible human resources, efficient machinery to contribute in operational efficiency and
supply chain management system and the financial resources of the firm. In order to target the
customer who belong to the upper class of the society the company should have sufficient
amount of funds to make investment in marketplace and develop a good brand image in the
marketplace. While the company should have skilled workforce who brings perfection in
function of the firm and contribute in success of the industry (Hua, Cheng and Wang, 2011). The
industries dealing in luxury fashion goods should be required resources in adequate amount in
order to carry out various operation of firm effectively and deliver quality services to the
customers and adding on in their social status. The industry should have proper raw material in
order to accomplish the demand of the customers effectively in marketplace. This will largely
contribute ion profitability of the firm.
Unique capabilities of luxury fashion industry.
The capabilities of the industry can be defined as the skills and the competence level of
an business firm in order to deal confidently with the available growth opportunities in
marketplace and reacting towards uncertain conditions or contagious situation in external
environment responsibly and with higher efficiency (Thonnard and Dacier, 2011). An business
firm should have various capability in order to achieve the targets and goals of firm effectively.
The firm should have capability to execute various development strategies in order to delver the
action plan in marketplace effectively. This will ultimately contribute in growth of the firm. The
luxury fashion goods companies should have capability to access the market and deliver the
quality services through using advanced technology in their machinery and operation in order to
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deliver effective services to the customers. This will results in higher satisfaction level of
customers and contributing in increasing the brand value.
Various advantages of CSFs:
The critical success factors is having greater advantage in accomplishing the targets and
goals of the growth and development of the business firm. The luxury fashion brand is having
great importance in using their capabilities and accomplishing all needs of the critical services
factors for the firm. The firm is having motivation workforce who is having capability to bring
perfection in work and maintaining the quality standards of the product as per the premium needs
of upper class people (Monsonis, 2010). This helps in accomplishing the needs of quality
constraints of the CSF which will ultimately contribute in the luxury fashion brand to flourish in
marketplace. While another capabilities of the industry is brining new technologies in workplace
which will results in brining standardisation and uniqueness their products and developing a
status symbol for the customers who are engaged in purchasing the products of luxury fashion
industry. This helps in contributing to the attaining all the required aspects of critical success
factors for growth and profitability of the firm.
Question 3: Evaluation and Recommendation
Porter's Generic model:
The various strategies can be developed by implementing Porter generic strategies in
practices of the luxury fashion industry. The company should be complied with various action of
plan which helps in delivering better services to the customers as per the requirement of defined
critical susses factors for industry and strategic implementation both. They company is dealing
with the upper class of society. So, the industry need not to develop strategies in relation with
cost leadership and cost focus line of action in practices of business. The specific fashion
industry dealing in luxurious products should go for the differentiation focus strategies in order
to develop competitive advantage in marketplace (Stokke, 2013). This will results in brining
newer competence in the action of firm and helps in competing confidently with other
competitive brand of luxury fashion industry. The differentiation focus is the strategies in which
the action plan is defined by the business firm in order to develop focus on the differentiated
products. This having narrow scope in the market and lesser targets numbers. But this particular
strategies is beneficial in accomplishing the needs of critical success factor of the luxury fashion
industry as this helps in creating niche market for differentiated products which focuses only on
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the needs and desires of the upper class of they society and deliver to this particular segment
only.
Evaluation Suitability of strategy to environment:
The developed strategies should be evaluated on the basis various grounds and accessing
its suitability with respect to the external commercial environment. The current market trends
and the market conditions should be contribute for implementing the developed strategies in
practices and should have positive impact in the accomplishment of targets in the marketplace
effectively. The luxury fashion industry is developing strategies to expand the business shares
and brand value through following differentiation focus strategies in practices. The company
should evaluate the strategies in the existing external environment (Hallinger and Bryant, 2013).
This should be defined that the action plan developed by luxury fashion brand to achieve
success in the marketplace should suits the markets needs. The strategies of the firm the should
responsibly act towards the various needs of the upper segment people like premium quality
services and products, the cloth should provide comfort to people and also adds on the social
status of the customers. All these are the critical success factor for implementation of the
strategies of the business growth in marketplace. The strategies develop by the luxury fashion
industry like Burberry in order to develop competitive advantage in the marketplace should be
suitable as per the external environment conditions and contribute in developing efficient amount
of positive competition in marketplace (Yoshihara, 2012).
Evaluation of Acceptability of the strategic plan of Burberry to key holders:
Burberry is the company which deals in fashion designing of the luxury goods makes the
plan for the future development of their products. The company has various stakeholders and the
permissions of all the stakeholders necessary to take for making the plan effective (Hallinger and
Bryant, 2013). These stakeholders are the pillars of the company so their permission is must to
start the project. The various stakeholders from which they have to take the permissions:
 Employees: Employees are the asset of the company and whole working is depends upon
them. So, it is necessary that to take the permission from them.
 Government: Government are those stakeholders which have great influence on working
of company. It is always need to take approvals from government.
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Evaluation of feasibility of the action of plan in external marketplace:
The plans made by Burberry has to pass the feasibility test to get permissions from
various stakeholders. In feasibility test the most important thing which considered is that it is not
opposed the policies of the government and not against the view of the shareholders. It is so
because if the plan is not feasible as per the policies of government and the views then not
approved by the government (Kumar, 2010). In feasibility it also includes that it not opposed the
interest of the employees and doing any work which is inconsistent with the policies of the
company. A plan is approved by the all stakeholders only if it fulfils all the requirements of
feasibility. To become feasible it should be accepted by the employees, government,
shareholders.
Improvement to strategies:
If the plans made by the company are not feasible then it is need to improve them as per
the recommendations. Some of the improvements are mentioned below:
 To make changes as per the guideline of government
 To make changes in the plan as per the suggestions of employees.
 To make the plan which not oppose the objectives for which the finance are raised from
the share holders and if they want to make changes then take prior permissions from
them.
 Evaluation of the whole strategy to find out the problems in them and to make changes in
the according to that (Aslani, 2014).
 To collect the feedback from customers and to make the changes ion the plan
 To identify the variation by comparing the actual plan with standard plan. This helps in
identifying the problems associated with the plan and make the changes to fulfil the
criteria
CONCLUSION
This can be concluded form the above discussion that the firm working in luxury fashion
industry like Burberry, Prada and Luis vuitton all are facing high level of competition in
marketplace. In order to gain the competitive advantage in marketplace the Burberry have to
develop various strategies which are feasible and suitable to the needs of external environment in
order to satisfy the upper class customers through premium quality of products like clothes,
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accessories and beauty products. It has been concluded from the above report that the strategic
planning helps the company to make the better plans. This helps to make plans feasible for
stakeholders as per their requirements. Overall, it helps Burberry to achieve their organisational
targets of implementing the new plan effectively.
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ANNUAL REPORT 2016/17. 2017. [Online]. Available through:
<https://www.burberryplc.com/en/investors/annual-report.html>.
Burberry - Statistics & Facts. 2017. [Online]. Available through:
<https://www.statista.com/topics/3458/burberry/>.
Reports. 2017. [Online]. Available through:
<http://www.wpp.com/wpp/marketing/brandz/brandz-reports/>.
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