Burberry Group plc Report

This report examines the leadership and management strategies of Burberry Group plc, a luxury brand, analyzing its history, rationale, and implementation of key management theories. It also provides recommendations for improvement based on other leadership theories.

INDIVIDUAL REPORT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. History and Rationale of Burberry group plc.....................................................................3
2. Study of Leadership strategy and Management strategy adopted by Burberry group.......4
3. Analyse how the above have been achieved or implemented by Burberry........................6
4. Recommendations as an improvement in Burberry...........................................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................9

INTRODUCTION
Individual report is the part of the report which is self-explanatory. This type of report
identified students and the level of test for students (Boljunčić, and Hat). Here, for preparing
individual report the Burberry group plc is taken. Burberry group plc is retail industry of
London. It deals with luxury products like, fashion accessories, ready-to-wear outerwear,
sunglasses, trench coats, cosmetics and fragrances. This report will cover history of Burberry
group plc along with rationale of the company. The report will lay emphasis on study of
Leadership strategy and Management strategy adopted by Burberry. Also, the report will discuss
about achievement and implementation by Burberry. Recommendations will also be included in
the report for better achievement of goals.
MAIN BODY
1. History and Rationale of Burberry group plc
Burberry Group PLC is a company which is best in manufacturing, wholesaling and
retailing of luxury goods and headquartered in London, England. The Burberry trademarks
are also used by the third parties to produce and distribute products. It was established in
1856 and is founded by 21-year old Thomas Burberry which was focusing on the fashion
market and in 1879, developed a new type of fabric called Gabardine which was
completely breathable and waterproof and patented gabardine. In 1891, Burberry set up the
first store at Haymarket in London. In 1901, they created their first logo of the Equestrian
Knight which in Latin means 'Prorsum' means 'forwards' (BOOTH III, and et.al., 2016). In
1914-1918, for exploring and expedition to Antarctica, explorer wears gabardine and also
designed for military and aviators purposes. In 1964, the designed clothes for the women
team who participated in Tokyo Olympics. In 21st century, it has become a global luxury
brand and reflecting the brand's status as iconic. In 2002, London Stock Exchange listed
Burberry in July and by 2004 it launched its first website in United States. In 2008, to help
young people to get aware about their dreams and potential through their creativity they
launch Burberry Foundation which donates charity to the foundation. They increased their
production by setting up stores at different parts of the world like India, Saudi Arabia,
Dubai etc. and changing the physical environment of the stores to natural atmosphere of
life. In 2018, Riccardo Tisci became the Chief Creative Officer introduces a new logo and
monogram. The main reason that Burberry became successful in fashion market because of
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its priorities which they have given to the clothes, fashion accessories, sunglasses and
cosmetics. In early years 19th century, it was a company which was controlled by family
until 1955, then the ownership was reincorporated to Great Universal Stores (GUC). It
became so famous brand that the stars of the modern world started to wear it. The company
started to manufacture complementary products like suits, trousers, sportswear etc and
signed agreements with worldwide manufacturers. The products were manufactured under
the strict vision in the headquarters of London and distributed worldwide through retailers
and increasing the growth of the brand and creating profits in late 90's (Dehmer, Maciosek,
and Flottemesch, 2015). For the quotation of the products they signed a professional
photographer named Lord Litchfield.
2. Study of Leadership strategy and Management strategy adopted by Burberry group
Henry Fayol Management Theory
The 14 principles of management can led any organization to the successful
management. In 2006, Angela Ahrendt took over Burberry as CEO of the company and
followed the strategies using these principles (Hauber, and et.al., 2016). Those principles
are explained below: Division of Work: In contrast with Burberry, CEO studied the competition around them
and made strategies to overcome them. They started to target Millennial market as the
future growth depends on it (McGuire, 2016). By managing the staff who can speak the
language to communicate with millennial audience digitally or socially. Authority and Responsibility: The CEO made the decision to re-launch all the brands
which are on edge by hiring the senior managers from all over the work which will give
company a better management for the authority and responsibilities (Helsper, Van
Deursen, and Eynon, 2015). Discipline: As a child Ahrendt father gave lessons about faith, strong family values and
work ethics (Muraro, and et.al., 2016). The luxury brand was back in the game by
targeting more youthful market and attracting digital and social media and the company
stock market has increases to 200%.
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 Unity of Command: This principle means that orders are given by the manager and
received by the employees and must be answerable to that manager. Burberry's CEO
appoints the best manager from all around the world so that they can give clear
commands and responsibilities to the employees. Unity of Direction: As the CEO of Burberry said always do what's good for the brand
which unites everyone around one particular activity. Subordination of Individual Interest: Similarly as CEO of Burberry has faith, strong
family values and work ethics which is applicable to every member of the organization. Remuneration: For Burberry's employees salary was not an issue for the employees, they
just followed the consistency to take total control and singular vision. The Degree of Centralization: As Burberry's management was under the CEO, which
has all qualities of leadership and management so there was not a problem in making
decision (Muraro, and et.al., 2016). Scalar Chain: The same strategy was applied by CEO of Burberry where brainstorming
sessions go on to increase the productivity between the employees and managers. Order: Burberry's work environment was always safe, tidy and clean. They provided the
right resources so they can function properly in an organization (Wuebbles, Fahey, and
Hibbard, 2017). Equity: According CEO of Burberry's equity can be formed by linking team, they can
perform better than they will know about the strategy and what's coming. Stability of Tenure of Principle: Burberry's followed this principle by hiring employees
whose age is less than 30 and from different nationalities (McGuire, 2016). Initiative: Burberry's employees are used to do brainstorming with the organization
which led them to express new ideas and encourages employees.
 Esprit de Corps: Burberry's is keeping and building the relationship with their
employees. For them employees comes before customers which gains the trust of
employees and they become more loyal to the organization.
Blake Mouton's Managerial Grid for Leadership Theory
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This theory was developed by Robert Blake and Jane Mouton, also known as leadership
grid. According to this theory, leadership of any manager is defined by the relation between
people and production. Impoverished Management: This type of management have less concern with the
employees and give minimum effort but Burberry's managers were concerned and
building relationship with their employees because of the leadership style followed by its
CEO. Task Management: This strategy was followed by Burberry's CEO in which managers
had the authorities to assign task and neglecting the personal needs of subordinates so
that production can increase. Middle of the Road: As compared to Burberry's leadership, the CEO was concerned
about the production and keeping the balance between organizational goals and the
personal need of the subordinates. Country Club: CEO of Burberry was concerned about the relationship with the
employees but also concerned about the production. Its their responsibility that how they
make relationship and also maintain the production by their work ethics and consistency.
 Team Management: Burberry's followed this strategy to gain the trust, empowerment,
respect and nurturing team relationships which helps in rising production and employees
satisfaction.
3. Analyse how the above have been achieved or implemented by Burberry
Henri Fayol administrative management theory implementation and success in Burberry
Burberry implemented the 14 principles of management in their business. They are following
this theory since many years (McGuire, 2016). The reason of their growth and successful
establishment is these principles stated by Henri Fayol only. Here the implementation of this
theory in Burberry will be discussed.
 Division of work
Burberry distinguishes various tasks to employees on basis of knowledge and expertise. The
company offer tasks to their employees like, Sales, budgeting, marketing, management etc.
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which is properly managed by right individual. This helps organisation like Burberry group in
growing and attaining success in luxury market.
 Authority and Responsibility
In Burberry, the person at highest authority say, sales manager, or department head is wholly
responsible for their departments completion of task. So, to overcome this these persons allot
different tasks to lower executives that is they need to undertake that task. The manager gives
power and authority for completion of the required task and responsibility comes with authority.
Hence, subordinates of the companies are answerable for particular task if not completed. This
makes subordinates confidence and responsible (Samans, and et.al., 2015). Also, the success lies
in improvement of Superior subordinate relationship in Burberry.
 Discipline
The employees of Burberry are self disciplined and obeys their seniors. This way they give
respect and in return superior also give them respect and value them. By this subordinate
superiors create a bond of belonging and they work together to accomplish goals of Burberry.
This helps organisation to grow and attain succeeding future (Samans,and et.al., 2015).
 Remuneration
Employees of Burberry are satisfied with their working as the company offers them timely and
appropriate remuneration. This helps the company in motivating employees as their basic needs
gets fulfill. Also, the employees' retention ratio is improving due to monetary reward system and
offering of incentives to their employees. Therefore, the company is successfully accompanying
their goals with the efficient working of employees.
 Equity
Burberry treats all their employees with equality. Management personnel of Burberry group
supervises the employees and properly monitor all of them. This kept employees awake with
their working and there is no biasness or favoritism in the company. The Burberry group is
attaining this much success from the support of their employees.
 Initiative
Employees of Burberry are allowed to share their ideas and suggestion with the company.
Management personnel appreciates their valuable ideas and their involvement towards their
organisation. The employees feel satisfied with the companies' attitude and they feel motivated.
Therefore, they contribute more innovative ideas towards Burberry's growth and development.
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Although Burberry group follows all the 14 principles laid by Fayol but mainly they focus on
these principles as an important element in their development and growth.
Blake and Mouton’s Managerial Grid for Leadership theory
The Burberry group is also following leadership theory which is Blake and Mouton's
managerial grid leadership theory. This theory is all about a grid system where organisation
concern for people and sales are measured by x axis and y axis. In this grid of managerial, the
Burberry group is (5,5) that is middle of the road. This means they are equally maintaining
companies goals and needs of their employees. The leader does not force employees for
excellent performance. They succeed in getting following benefits:
 Employee retention ratio increases by following this leadership theory.
 Efficient working in the organisation(Wuebbles, Fahey,and Hibbard, 2017).
 Fewer conflicts with superiors as they did not force them to achieve goal.
 Good relationship between superior and subordinate.
 Substantial needs of employees and organisation are met in Burberry.
 Employees work with motivation and not by any pressure in Burberry group plc.
4. Recommendations as an improvement in Burberry
Recommendations for Burberry group plc for their improvement are:
 Trait theory of Leadership
This theory can be used by Burberry as to improve their goal achievement because this theory
identifies traits of employees (Kimberlin, 2018). The leaders of organizations like Burberry who
is dealing with huge number of customers should have leadership trait like creativity with their
ideas, can motivate people, Skills to deal with people and trustworthy. These traits in leaders
could enhance the goal achievement capacity of Burberry and also improves working of the
employees as they know how to deal with them and make them work.
 Path goal theory of Leadership
This theory also can be adopted by Burberry as the prevailing theory of leadership offers them
only substantial sale. The company can use an element of Path goal theory which is directive
leadership style. In this the leader, provide guidance to employees in accordance to their task.
Here, the employees are clear with their tasks and companies expectation with them. By
following this style of leadership, Burberry can attain goals more efficiently and effectively then
now. The employees also feel motivated and work for the Burberry with dedication.
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 Bureaucratic management theory
Bureaucratic management theory can also be followed by Burberry. As the theory is based on 6
key principles. Proper division of work among labour or employees can be found profitable for
organisations such as Burberry. Also, company can follow appropriate chain of command to
maintain hierarchy in organisation. Other elements of this theory can be apply in Burberry for the
growth and efficient working of employee as well as Burberry group plc.
CONCLUSION
This is an individual report which is all about leadership and management tactics. The
report was begun with history of Burberry. After that rationale of Burberry were also discussed.
Then comes theories of leadership and management. A brief study was highlighted in the report
for the same. After that a proper analyses was done for these theories. Burberry group
implemented management theory of Henry Fayol that is 14 principles and Management grid
theory of Blake and Mouton's was highlighted in the report. In this, the achievement and
implementation were properly explained regarding this theory. At last, report ends with some
recommendations for leadership and management for Burberry like path goal theory, trait theory
and bureaucratic management theory can be adopted by Burberry for better achievement of goal
and accomplish goals with effective and efficient efforts of Employees. Also, employees needs
are kept in mind while recommending these theories.
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