Burberry's Environment: An Analysis of Internal & External Factors

This report provides an analysis of Burberry's business environment, examining both internal and external factors that influence its operations. The internal analysis considers Burberry's strengths, such as its 156 years of experience and extensive retail presence, and weaknesses, including its premium pricing strategy and limited product lines. The external environment analysis incorporates political factors like Brexit and high taxes, economic factors such as currency exchange rates and the impact of COVID-19, and social factors like changing customer preferences. The report uses PESTEL analysis to identify potential impacts on Burberry's operations, highlighting the importance of understanding and adapting to these dynamic environmental elements. This resource is available on Desklib, where students can find a variety of solved assignments and study materials.

Introduction
In the present scenario of business environment,
it is very necessary for organisation that they
should analyse the market in order to identifies
the risk and opportunities (Li, Zuo and Huang,
2021). This is need to understand by every
organisation that there are many factors which
includes positive as well as negative impact and
that's why it is very necessary for organisation
that they need to focus on analyse all the areas.
Burberry And Its Environment
Name of the Student
External Environment
Political factors: Political factors include the political
stability of country that gives a great impact on policies
and procedures or organisations. Due to Brexit, Burberry
has in a situation of unpredicted situation in which they
can be face a negative impact. Along with this, high tax
increases the product's prices that definitely reduces the
sales of Burberry.
Economic factors: Changing in exchange currencies,
inflation rates, economic growth gives a great impact on
Burberry. This is very necessary for organisation that they
need to identify economic factors. One important factors is
COVID-19 which gives a great impact on economic
situation of every nation and this one also gives a impact
on organisation as all stores was closed due to CIOVID-
19.
Social factors: Fashion industry is the industry which
faces a great change in customers' tastes and preferences
(Wasak, Andaki and Pengemanan, 2019). One thing that
should considered by Burberry is tastes and preferences
that changes every day. It creates complications for
Burberry as how they can understand the tastes of
customers. They are not just depending on online as they
have many stores in 50 countries.
How the company impact its
context External Environment
It is analysed from the above discussion that
every organisation need to analyse internal as
well as external factors as it gives a great
impact on every function or operations of
organisations. For that purpose, PESTEL
analysis is used which consider 6 important
factors that helps to identify all the possible
areas that can be impacted on the organisation's
operations. Burberry is the fashion designer
company that run their business at international
levels so they can be faces many external
environment factors. It can be providing
negative as well as positive impact. This is one
the organisation that how they can deal with it..
Internal Factors
Strengths
• Burberry is the organisation that has an
experience of 156 years.
• They have approximate 500 stores or
more than this in 50 countries.
Weaknesses
• Burberry is using premium pricing
strategy that reduces the sales as every
person are not able to afford their
products.
• They have very limited product lines
which reduces their sales.
References
• Choi, H. U., Lee, S. H. and Moon, S., 2018.
Concrete Strength Prediction Neural Network
Model Considering External Factors. Journal of the
Korea Academia-Industrial cooperation
Society, 19(12), pp.7-13.
• Li, C., Zuo, X. and Huang, L., 2021. The influence
of external factors on the development of China's
banking industry: a system dynamics modelling
approach. Wireless Networks, pp.1-10.