Strategic Management Plan for Burberry

Strategic Management
Plan

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Application of frameworks to analyse the impact and influence of macro environment on
the organisation and its strategies................................................................................................1
M1 Critical analysis of macro environment to determine and inform strategic management
decisions.......................................................................................................................................3
TASK 2............................................................................................................................................3
P2 Analysis of internal environment and capabilities of the organisation with the help of
different frameworks....................................................................................................................3
M2 Critical evaluation of the internal environment to assess strengths and weaknesses of an
organisation's internal capabilities, structure and skill set...........................................................5
TASK 3............................................................................................................................................5
P3 Application of Porter's five forces model to evaluate competitive forces of the market
sector for an organisation.............................................................................................................5
M3 Appropriate strategies to improve competitive edge and market position based on the
outcomes......................................................................................................................................6
TASK 4............................................................................................................................................7
P4 & M4 Application of rage of theories and production of strategic management plan...........7
D1 Critique and interpretation of information applying environmental and competitive
environmental analysis to produce set of valid strategic directions, objectives etc...................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategic management plan can be defined as a program which is focused by business
entities for the purpose of attaining growth in future by communicating actual position of
company with stakeholders, formulating strategies and organisational goals. In order to reach all
the predetermined objectives it is very important for organisation to pay attention towards it as it
helps to align resources for executing operations successfully (Ansoff and et. al., 2018). The
company which is selected for this report is Burberry which is operating business under fashion
industry. It was founded in year 1856 by Thomas Burberry. Its headquarters are in London, UK
and it is one of the well known large global enterprises. This report covers various topics such as
impact and influence of macro environment on organisation and its strategy, assessment of
internal environment and capabilities, and application of porter's five force analysis.
Additionally, a range of theories and concepts is also applied for the purpose of strategic
planning.
TASK 1
P1 Application of frameworks to analyse the impact and influence of macro environment on the
organisation and its strategies
All the conditions which are there in the economy are considered as the part of macro
environment. In order to formulate strategic decisions for betterment of companies it is vital for
management to pay attention towards it. Corporate Strategy Manager of Burberry is being asked
to product an environmental analysis so that actual position of business could be determined. For
this purpose PESTLE is being used which is as follows:
PESTLE analysis: It is a strategic management tool which is utilised by business entities
for the purpose analysing external business environment to determine the forces which are
affecting organisation and its strategies. It is being used by Corporate Strategy manager of
Burberry. All the elements of it are discussed below in context of the company (Baker, 2014).
 Political: The factors such as political stability, integrity of politicians, laws and trade
barriers are the part of it. Burberry is operating in multiple nations and these forces are
influencing and affecting its strategies in negative manner because there is instability in
its operations due to variation in the policies of different countries.
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 Economic: The components such as trade policies, exchange rates, inflation, deflation
are economic factors which may affect companies in positive or negative manner. The
Corporate Strategy Manager in Burberry analyse all of them on regular basis because
due to them organisation and its strategies may get affected. For example, if the rate of
inflation or deflation fluctuates then it result in lower or higher purchasing power of
customers. By keeping detailed information of such situations the managers makes sure
that appropriate modifications are made in the strategies to increase demand of its
products.
 Social: Culture, demographics, beliefs and attitudes are considered as social factors
which should be focused by all the business entities for the purpose of executing
operations in systematic manner. As Burberry is operating business in multiple countries
therefore corporate strategy manager of it makes sure to take all the social factors in to
consideration. Ignorance of them may influence and impact strategies and the
organisation because new policies are required to be formed according to them to reduce
their negative impact (Cowley and Domb, 2012).
 Technological: The factors such as innovative techniques, technological enhancement
etc. are the part of this element of PESTLE analysis. In order to be the first choice of
customers Burberry use latest technologies to perform all its activities related to
advertising and promotions. Sudden changes in such components result in influence and
impact of them on organisation and its strategies because the corporate strategy manager
of the company will be required to find new ways to reach its clients.
 Legal: There are various laws, rules, regulations and policies which are imposed by
governmental bodies of different countries which are required to be followed by global
companies to execute operations in systematic manner. As Burberry is operating at
international level so it is very important for the company to comply with labour and
employment laws of the nations where it operates. Due to them, the enterprise and its
strategies gets influenced and impacted because if these are changes suddenly then it is
very difficult to make quick changes in organisational policies (Crandall, Parnell and
Spillan, 2013).
 Environmental: It covers the components such as climate change, CSR etc. In order to
carry out operational activities appropriately it is very important for companies such as
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