Strategic Management Plan for Burberry: Analysis of Macro and Internal Environment, Stakeholder Matrix, and VRIO Model

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
P1: Apply macro environment on selected organisation.............................................................1
M1: Analyse macro environment to determine strategic management decisions.......................5
P2: Analyse internal environment and capabilities using appropriate framework.....................5
M2: Evaluate intrinsic environment to access strengths and weaknesses of organisation
internal capabilities.....................................................................................................................7
P3: Apply Porter forces model for assessing competitive forced in given field.........................8
M3: Devise strategies to enhance competitive edge and market position through outcomes.....9
PART B............................................................................................................................................9
P4: Apply range of theories, concept and models for device strategic planning........................9
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business strategy perform an effective activity that represents the accumulation of all the
decisions taken and the actions performed by business to attain business objectives in effective
manner (Aula and Mantere, 2020). It is a outline or action that is crucial to reach the goal on
time. This particular report is based on Burberry. It is a leading British Fashion luxury house,
headquartered in London, England, UK. The company distributes and design the ready to wear
trench cloths, footwear, fashion accessories, fragrances, cosmetics etc. Therefore, to gain
profitable results company emphasis on several strategies so that best one is chosen. It involves
macro environment on Burberry using Pestle, SWOT, ansoff matrix and stakeholder matrix.
Further it also imply internal environment using Mckinsy and VRIO based analysis. This also
includes porters five forced model to gain competitive advantage that helps in developing
strategic plan for longer sustainability in marketplace.
PART A
P1: Apply macro environment on selected organisation
Burberry is a famous British Grandeur fashion products since 1856 in London, UK. The
company mainly emphasis on developing the outdoor attire such as leather goods, fashion
accessories, eye wear, cosmetics, fragrances etc. There are around 9892 employees on worldwide
who works for gaining more profitable results within marketplace (Pedersen, Ritter and
Andersen, 2020).
The vision of Burberry is to become one of the British Luxury brand that deliver high
quality sustainable products to customers. The company also emphasis on value for out
stakeholders.
The mission on which Burberry works is to create open spaces by unlocking the power of
imagination for pushing boundaries to open new possibilities for people, communities and
customers.
Objectives of Burberry is to recognising beauty in every detail by committed in
excellence. They also challenging the ordinary to pursue extraordinary. Core values is to excite
or encourage glamour in fashion by developing strong Burberry community.
PESTLE Analysis
1

It is very useful to analyse external environment. For Burberry it is useful to prepare this
because it influence productivity and performance of company. Pestle analysis is presented
below:
Political factor It involves government stability in nation, democracy, law and order
in market etc. In UK political condition is stable that helps Burberry
to make strategies effectively that represent strength for company.
Therefore Burberry perform activities on worldwide that are
connected with different government risk (Haghighi and Jalali, 2018).
However, it present as threat for organisation because they follow
different country rules and regulation to sustain on international
market.
Economical factor It represent the growth rate, interest rate,spending power of customers
etc. In case of UK, growth rate is high due to which customers spend
high on purchasing luxury products that create opportunity for
Burberry in terms of developing their profit market. But in UK
interest rate is also high on pay taxes especially on luxury products
due to which Burberry profit margin is not so high that reflects as
weakness.
Social factor This aspects shows demographic trends, power structure in
community and many more. In this demographic determinant is key
factor in forecasting demand of economy . As Burberry is dealing on
worldwide basis due to which they develop their products by examine
demographic trends that creates an opportunity for company to
maintain high brand value. Hence it also create difficulty for Burberry
to fulfil customers demands on demographic basis along with
different growth rate. As it affects sales of business.
Technological factor Technology is fastest growing sector within business industry due to
which it avail competitive practices for Burberry. Therefore UK is a
country that is highly technological advanced. In terms of Burberry
the organisation is emphasis on using advanced technology so that
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