Business and Business Environment Analysis Report: Burberry Case Study

This report provides a comprehensive analysis of Burberry, a luxury clothing brand, examining its business operations within the context of the business environment. It begins by categorizing Burberry as a private organization and contrasts it with public and voluntary organizations, outlining their legal structures and purposes. The report then delves into the scope, size, and objectives of Burberry, including its mission, vision, products, and organizational structure. It explores the interrelationship between different organizational functions, such as marketing, human resources, finance, and IT, and how these functions contribute to achieving organizational goals. Furthermore, the report employs a PESTLE analysis to assess the positive and negative impacts of the macro environment on Burberry's business operations, including political, economic, social, technological, legal, and environmental factors. Finally, the report includes a SWOT analysis to evaluate Burberry's strengths, weaknesses, opportunities, and threats, along with an analysis of the interrelation of strength and weakness with macro environmental factors, concluding with a summary of the key findings and insights.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Types of Organization and its legal structure....................................................................1
P2 Scope and size of different types of organisation.............................................................3
Public (CPS) .........................................................................................................................3
TASK 2 ...........................................................................................................................................5
P3 The relationship between different organisational functions and their link with
organisational objectives and structure..................................................................................5
TASK 3............................................................................................................................................7
P4 Positive and negative impacts of the macro environment upon business operations........7
TASK 4............................................................................................................................................8
P5 SWOT analysis of an private and public organisation......................................................8
P6 Inter-relation of strength and weakness with macro environmental factors...................10
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Business is define as the process or combination of different activities that is operated by
single entity or group of individuals to earn their living without any difficulty. It is the
combination of external and internal factors which impacts on the performance and profitability
of the organisation. The organisation chosen for this assignment is Burberry which is a luxury
clothing brand of UK. Along with these they offer sunglasses, cosmetic and other fashion
accessories among overall world. The task of this assignment cover different types, scope and
size of the organisation and their interrelationship with different departments. At last to
determine the negative and positive impacts on business activities PESTLE will be discuss in
these report.
TASK 1
P1 Types of Organization and its legal structure
Several types of organisation are surviving in the industry, Like private, public and
voluntary whose goals and purpose are different due to its size, legal structure and scope. As
some organisation perform their activities to earn money. While some other organise and
complete their activities with motive of serving the society (Abraham, 2013). In this task legal
structure along with purpose of different organisation are explain that helps to achieve
organisational goals is mention as follow:
Private Organisation (Burberry)
Private firms are operated, owned and controlled by an individual who is whole-sole
responsible to control the organisational activities. Usually private organisation has major
purpose is to earn profits. In context of Burberry they are operates their business with purpose of
developing competitive edge and revenues for organisation through satisfying customer needs.
Legal structure
 Sole proprietorship – It is the simplest structure that is followed by private organisation
in which an individual who is only right and authority to make decisions that impact on
profitability of an organisation.
 Partnership – In an organisation where there are two or more individual operates
business activities by making mutually consent with each others. It determines that they
1

share agreed amount of profit and loss that generates by selling products and services of
organisation.
 Private limited company- This companies are legal entity the raise funds from market.
The major positive point of these type of companies is that their shareholders has limited
liability as per their investment.
 Public limited company- It is similar or parallel with private limited company in which
members are in position to make decision for the benefits of organisation. The major
benefits of these companies is that they raise funds from the public.
Voluntary (World Vision International)
Voluntary organisation are specifically world vision international is developed for
removing and reducing the inequalities from the society (Al-Araki, 2013). This results that they
improve the living standard of society. For these they provide necessary resources to the
organisation to the needy people so that earn their spend their life without any difficulties. Legal
structure of voluntary organisation is as follow:
 Trust - Trust are generally developed to managing the money, property and activities for
a specific purpose. In a trust there are three trustee, donors and beneficiaries are involved
in the organisation.
 Association- It is the group of individuals that perform their duties in order to attain the
organisation goal rather than making profits.
Public Organisation (Crown perspective service)
The organisation which are holds and operates by the government of a country falls under
the category of public organisation. Major purpose of these organisation is to satisfy customer
needs rather than earning profits (Chokheli, 2014). Crown perspective services is performing
their operation in UK in which they defend the cases that police has investigated with the aim of
delivering justice. It determines that their decision are independent and unbiased. Legal structure
of these organisation is as follow:
Legal structure
Local government – This is also called the local authority who are in position of to maintain
their business within small boundary i.e. town or district.
State government – It is the government structure that monitor and controls the rights of
industry that operates their business in the state of country.
2

National government – Legal formalities, rules, policy that are made by governments or
directors, which is followed for defending service in the nation.
P2 Scope and size of different types of organisation
Private (Burberry)
 Background Details – Burberry was founded in the year 1856 which focus on clothing
sector but in present scenario they offer wide ranges of products which includes
accessories, cosmetic etc. due to which they recognise as luxury brand of UK.
 Size & Scope – Organisation is operating their business in around 498 countries which
determines that the size for their business is expanded at global level. The net income of
company is in billion which show the scope of industry (Cotter and Fritzsche, 2014).
While they are operating their business in retail sector which is growing rapidly due to
which there is high scope in organisation.
 Mission and Vision- The major mission of Burberry is to make strong presence among
overall world through satisfying the needs of customers. For accomplishing the vision
which is to earn high amount of profits they provide high quality goods to its customers.
The specific vision of Burberry is to open their stores in all world.
 Business Objectives – Objective of Burberry is to provide wide range of products in
market or industry which determines that they want to gain top position retail sector.
 Products and Services – Burberry provides cosmetic, perfumes, clothes and accessories
in the market for satisfying need of customer.
 Organisational structure – Company follow hierarchical structure in the organisation
because they are operating their business at global level.
 Legal structure – Burberry is a private organisation so it is essential for them to operate
their activities under rules framework of private industries (Demir, Esbah and AKGÜN,
2016).
 Stakeholders – Investors, employees, board of directors are the important stakeholders
of organisation specifically Burberry.
Public (CPS)
 Size & Scope –There are more than 6000 employees are working with CPS which helps
organisation to maintain law and legislation among the UK. The annual budget for
performing all activities of organisation is near about 5000 million.
3

 Background details- CPS was founded in the year 1829 which regulates and provide
regulates security services in England and Wales.
 Mission and Vision – CPS mission is to increase their security of individuals and defend
them through various perspective so they stops the unethical activities in the country.
 Business Objectives – Objective of CPS is to defend the individual of society from
different aspects such as discrimination, theft and injustice.
 Organisational structure – CPS is a public industry which relates with security of
people. So they execute line organisation structure through which they provide necessary
information among all employees by establishing scalar chain in organisation (Duarte and
Cruz-Machado, 2013).
 Legal structure – Company precede the legal cognition which is applicable on public
organisations of UK.
 Stakeholders – Employees, investor, government officers are the important stakeholder
of CPS.
Voluntary ( World Vision International)
 Background Details – WSI was established or founded in the year 1950 with the
purpose of removing inequalities from the nation.
 Size & Scope – There are more than 22000 employees are working with WSI that help to
operate their business in more than 100 nations.
 Mission and Vision – The mission of world vision international is to remove
inequalities from the society. Moreover the vision is is to reduce poverty in the country.
 Business Objectives – Objective of CPS is to increase the living standards of peoples by
providing them education, basic rights and necessary resources.
 Products and Services – Usually they organise different CSR activities that help to raise
funds which helps in fulfilling the basic needs of individuals.
 Organisational structure - Voluntary organisation has to perform different activities so
they implement divisional structure due to which vast functions of organisation are
managed easily (Everett, 2014).
 Legal structure – Company is doing functions for removing inequalities and poverty
from the nation so the legal structure of trust is applicable on it. All the legal structure
that is formulated for trust and association are applicable on WVI.
4

 Stakeholders – Volunteers, donors, trustee are important stakeholder of organisation.
TASK 2
P3 The relationship between different organisational functions and their link with organisational
objectives and structure.
Each and every kind organisation complete their activities with the support of various
departments that are working for them. With the support of these department an organisation is
able to achieve their goals in specified period. For this they all the functions of business need to
completed in systematic process (Hamilton, and Webster 2018). In context of Burberry if there is
mismanagement in important functions then it impact negatively on organisation. Inter-relation
between functions of Burberry are mention as follow:
Marketing with Human Resource- The function that is performed by Burberry
marketing team is to formulate effective strategy like creative advertisement, unique approach to
target segment that help to influence more customers. Similar role of HR department is to recruit
skilled employees so they work for effectively for marketing department. So they both work in
parallel way because skilled employees helps an organisation to implement new ideas due to
which market area of Burberry will be increased.
Marketing and Finance department- It is the responsibility of finance department to
collect funds so that organisation is able to start their new project. In context of Burberry
marketing department decided the estimated budget to perform the essential functions of the
organisation. This results that Burberry collect sufficient funds and invest them properly to earn
sufficient income from them.
Marketing department with IT department- Information technology is the major
factor that exists in the current business environment. With the help of information technology
marketing department is able to gain competitive advantage from their rivals. Within Burberry
employees of marketing and IT department are interact with each others in order to give effective
competition to its rivals (Hillary, 2017).
In case if each department of the organisation will complete their work efficiently and in
co-ordinated manner then the task of Burberry will be achieved in limited time period. To adopt
essential changes it is easy for organisation to modify their departments. It is because
departments will guide employees to implement new change in appropriate manner.
5

In context of Burberry it is essential for them to inter-relate their functions with the structure and
objective of the organisation that helps them to ensure that their goals will be achieved in
minimum time period. For this the first step that is developed by management is that they define
their goals effectively to its employees. So the management follow function framework which is
sub part of hierarchical structure which helps to delegate different roles of the organisation. This
assist different departments to identify their roles and responsibilities.
6

TASK 3
P4 Positive and negative impacts of the macro environment upon business operations
To analysing the market environment by which the organisation is surrounded is included
in these task. To conduct these PESTLE is implemented in context of Burberry.
Political factor- It includes all the policy that are generated by the government of country
as it impacts on organisational activities and affected their performance. Burberry is operating
their business in different countries so they need to follow all domestic rules of the country
which negatively impact on the organisation. While positive impact is that organisation sustain in
market for longer period if they follow local laws.
Economical- The economic downturns impacts on spending money of individuals. When
there is high inflation in country consumer prefer to buy luxury products which is positive factor
for country (Hockerts, 2015). While the negative impact on organisation is that consumer will
not spend money if there is low interest rate are in organisation.
Socio-cultural- Customer that are targeted by Burberry follow different attitude and style
that represent their society. Like In East Asia country consumer prefer western style clothing it
signifies positive factor for organisation. While in Asia its clothes sale is not high because
individual prefer traditional style clothing.
Technological- Management of Burberry adopted updated technology in order to reach
out their target customer. In context of positive side it helps to gain competitive edge from rivals.
While negative aspect is that Burberry need to invest huge amount to purchase updated
technology.
Environmental- In order to attain positive side of environmental factor Burberry started
to manufacture their products like socks, pants from organic cotton that not impact on
environment. While it is hard to predict natural diaster raise due to environment change so
negative factor is always work parallel with environment (Jaber, J.O., and et. al., 2015).
Legal- For ensuring the success in market it is essential for Burberry to follow all laws of
the organisation and country. Like the negative impact is that Burberry has to face unfavourable
conditions if they dose not follow laws of country. While patenting their products helps to retain
high sale of their products.
7

PESTLE analysis of World vision international
Political factor- WVI is providing their services in numerous countries so it is essential
for them to explore those countries which are political stable. This create positive side for
organisation through providing support to CSR activities (Menet, 2016). While negative impact
is that if there is conflict among countries it creates challenges to aware people about rival
country.
Economical factor- The present economic performance of industry is above 9% which
bring more funds for charity purpose. It creates positive impact on WVI to complete their work
smoothly while in negative side it creates issue because exchange rate creates hindrances in
achieving their goal.
Social factor- WVI is working for the benefits of society so they positive side is that they
reduce or decrease the income inequality of individuals. While in negative perspective it creates
issue in because customers are not much interested in changing their life style.
Technological factor- it is the fast rapid changes that is taking place among industries as
well as in global business. Transfer of information quickly, innovation in product etc. are the
positive aspects of technology. While negative side is that consumers are not so much aware
about technological changes.
Environmental factor- In recent years consumer are much aware about environment
practices that is impacting on business activities. In WVI develop methods or technique to
reduce waste management through which environment is affected. While negative impact is that
organisation need to invest more money to execute new method of organisation (Orr, 2013).
Legal factor- The level of laws that are formulated for environmental safety need to be
implemented in the society. Like health and safety norms positively impact on organisation.
8

While if the organisation does not follow rules than ruling government has right to stop the
organisational activities of organisation.
TASK 4
P5 SWOT analysis of an private and public organisation
This table cover the SWOT of Burberry which is private sector organisation.
Strength
 Burberry is huge network in world
which determines that they has strong
supply chain.
 Burberry is operating their business
from a century so they faces all up and
down that exists in market. It is one of the Luxury brand of UK
which provide clothes, perfumes and
cosmetic products to customers.
Weaknesses
 Burberry only provides luxury products
to its customers due to which price of
their products are high in range.
 Company is not producing goods that
are affords by the middle class society.
 Burberry has to face competition form
local as well as international
organisation that decrease market size
of their products.
Opportunities
 Collaboration with other brands
provide opportunities to manufacture
those which are affordable by society. Burberry does not promote their
products so expense in advertisement
helps them to promote their products in
market and attract more number of
customers.
Threats
 Market are grown at global level in
present scenario. So customers follow
dominant nature as they has low cost
switching option.
 There is high competition in market
from different brands is decreasing the
market share of Burberry.
The below contain the SWOT analysis of WVI which is a voluntary organisation
Strength
 Good reputation and large donor base
are the major strength of world vision
international that help to perform their
Weaknesses
 Decentralised leadership is
implemented by WVI which creats
delay in decision that impact negatively
9

function quickly. In WVI international large number of
individuals are working with the them.
It includes all persons such as leaders,
volunteers, employees that work for
satisfying the customers needs.
on organisation.
 Organisation is expanding the area to
provide effective services due to which
their structure has been changed many
times.
Opportunities
 Charity organisation work for the
welfare of society which governs that
they remove different issue from
organisation. There are lot of problems exists in the
society which determines that there are
more chances to expand their business.
Threats
 Competititon from other chartiy
organisation creates more challenging
situation for the society in order to
determine their goal.
 Each region has different perspective
that determines each of them follow
different religion which creates gap in
communication.
P6 Inter-relation of strength and weakness with macro environmental factors
This task covers that how Burberry is interrelates their strength and weakness with the
factors that are present in environment.
Political factor- Burberry is expanding their business in different countries so it is
essential for them to follow domestic law of each country. Like Burberry pay good amount of tax
in to government which develop infrastructure of organisation. While negative factor is ruling
government support local industries then Burberry has to face complication that decreases profit
for organisation.
Economical- All the monetary aspects are related with the economical factor. Like
Burberry is operating their business in developed countries due to which consumer easily afford
their products. While the tax and foreign exchange rate stops Burberry to expand their business
and impact negatively on its profits (vom Brocke, Zelt and Schmiedel, 2016).
Social factor- Burberry is operating their stores at global level due to which they provide
more employment opportunities to society individuals. It work as strength for organisation while
10

the weakness is that they offer luxury products to customer that are not affordable as per all
segments of society.
Technological factor- With implement of technology changes organisation is increasing
their business at global level. Burberry expanded their business with execution of technical
change in company. While it increases the cost of production because technique changes rapidly
in production process.
CONCLUSION
In the end it is concluded that different types of organisation like public, private and
voluntary that contribute for the growth of success. Each of them has different purpose and
motive because they are different in size and scope. It is essential for every organisation to
analysis the macro environment of in which they are operating their business. Along with these
their inter-relation with macro environment factors of the company are explained in these report.
At last by executing SWOT analysis organisation predicted their strength and weakness that
helps them to develop effective strategy in order to accomplish their goals.
11

REFERENCES
Books and Journals
vom Brocke, J., Zelt, S. and Schmiedel, T., 2016. On the role of context in business process
management. International Journal of Information Management. 36(3). pp.486-495.
Orr, B., 2013. Conducting a SWOT Analysis for Program Improvement. Online Submission.
3(6). pp.381-384.
Menet, G., 2016. The importance of strategic management in international business: Expansion
of the PESTEL method. International Business and Global Economy. 35(2). pp.261-
270.
Jaber, J.O., and et. al., 2015. Employment of renewable energy in Jordan: Current status, SWOT
and problem analysis. Renewable and Sustainable Energy Reviews. 49. pp.490-499.
Hockerts, K., 2015. A cognitive perspective on the business case for corporate sustainability.
Business Strategy and the Environment. 24(2). pp.102-122.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Everett, R.F., 2014. A crack in the foundation: Why SWOT might be less than effective in
market sensing analysis. Journal of Marketing & Management.
Duarte, S. and Cruz-Machado, V., 2013. Modelling lean and green: a review from business
models. International Journal of Lean Six Sigma. 4(3). pp.228-250.
Demir, S., Esbah, H. and AKGÜN, A.A., 2016. Quantitative SWOT analysis for prioritizing
ecotourism-planning decisions in protected areas: Igneada case. International Journal
of Sustainable Development & World Ecology. 23(5). pp.456-468.
Cotter, R.V. and Fritzsche, D.J., 2014, March. The business policy game. In Developments in
Business Simulation and Experiential Learning: Proceedings of the Annual ABSEL
conference (Vol. 21).
Chokheli, E., 2014. About modern methods and instruments of Strategy analysis.
Al-Araki, M., 2013. SWOT analysis revisited through PEAK-framework. Journal of Intelligent
& Fuzzy Systems. 25(3). pp.615-625.
Abraham, S., 2013. Will business model innovation replace strategic analysis?. Strategy &
Leadership. 41(2). pp.31-38.
Online.
Burbeerry PESTLE analysis 2018. [Online]. Available through:
<https://businessteacher.org.uk/pestel/burberry.php>
12