Burberry Business and Environment Analysis: A Comprehensive Report

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BUSINESS AND BUSINESS
ENVIRONMENT
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INTRODUCTION
This assignment covers the business and the business environment where any business and
company is operating with its full productivity. The assignment discusses about various types of
organization , their size, structure, legal framework etc. Further the assignment covers a PESTLE
analysis for the chosen company and a deep evaluation followed with the SWOT analysis. The
business environment describes the macro level effects of the environment on the business
where the functions of the organization are also being described with a critical analysis of the
same will be done (Bouckaert and Verhoest, 2016).
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OVERVIEW
The organization which is selected for this assignment is Burberry which is UK based leading
fashion brand which is headquartered in London, UK. The company was founded in the year
1856 by Thomas Burberry, the net income generated by the company is £293.6 million.
Burberry deals in clothing, accessories, perfumes and cosmetics etc. and the company serves
with its product worldwide (Burberry, 2019).
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LO1
DIFFERENT TYPES AND PURPOSES OF ORGANISATIONS
Organization is the physical establishment of a place where a group of people are working who
are hired by the owner of the business to make them work for a particular purpose which is
achievement of the business goals. The organization further with increasing number o
employees, gradually makes a hierarchy in the company which enables in giving clear
instructions. There are different types of organizations which have different purpose which are
as follows:
PUBLIC ORGANIZATIONS: These are the organizations which are controlled by the government
and their employees. The main purpose of these organization is to provide services and
facilities to the citizens if the country. Example of a public limited company is British Airways
which is operated by shareholders (Bouckaert and Verhoest, 2016)
PRIVATE ORGANIZATIONS: The organizations which are owned privately, it is a non-
government type of business which is owned by a single owner or in partnership. The main aim
of such organization is to make high profit, goodwill and to become a leading brand in the
market by fulfilling the customer needs. Example of private organization is MacLaren.
VOLUNTARY ORGANIZATION: The organization which work for the welfare of the society and
not for making profit. The main focus of such organization is to help the society. Example,
British Heart Foundation
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EXPLAINATION OF DIFFERENT ORGANIZATIONS
BRITISH AIRWAYS
Background: British Airways is the official airlines of UK and is operated by the UK government.
The company offers with various national and international boing and flights to various
destinations. The hub of British Airways is London Heathrow Airport.
Mission: One destination seeks to ensure our customers fly confident that, together we are
acting responsibly to take care of the world we live in.
Vision: Meeting the rising expectations of our customer and provide with best customer
services while they fly.
Key stakeholders: The key stakeholders are employees, government and passengers
Objectives
The main objective of the company is to become the premium airline leading globally in the
aviation industry (British Airways, 2016)
Size and scope: British airways a big size organization and it has much scope in the future by
connecting the airlines with more destinations to improve the longer connectivity.
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Structure
[Figure1: Organizational Structure of BA]
[Source: British Airways, 2019]
McLaren
Background: It is a private ltd company which is into automotive industry. The company
manufactures and develops formula one car. The main purpose of McLaren is to develop safe
vehicles for the buyers (Maclaren,2019).
Vision: To achieve excellence in all our businesses
Mission: To grow, sustain and innovate our businesses by developing our people and culture
Objectives: To develop the best featured safe car for the buyers and to become the leading
brand in automotive industry.
Size and scope: The size of the company is big and it has much scope in the development of
racing cars and safety measures for the cars.
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Structure
[Figure2: Organizational Structure McLaren]
[Source: McLaren, 2019]
British Heart Foundation
Background: This voluntary organization is the heart charity foundation operating in UK and
research into heart and circulatory diseases and the things which causes them. The heart
disease like stroke, vascular dementia, diabetes etc. is related to heart diseases (British Heart
Foundation, 2019).
Vision: The vision of the organization to create a world where no one dies put of prematurely
from heart disease.
Mission: The mission is to play a leading role in the fight against disease of the heart and
circulation so that it is no longer a major cause of disability and premature death
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Objectives: To create some preventive measures of heart diseases and to make the nation free
of death casing because of heart diseases.
Scope and size: The organization is big sized organization and has scope for the charity on
international level by getting tied with more and more hospitals and universities.
Structure:
[Figure3: Organziational Structure]
[Source: British Heart Foundation]
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STRUCTURE, SIZE AND SCOPE OF DIFFERENT ORGANISATIONS
The structure of British Airways is well organized and follows a proper chain of hierarchy
services offered are the passenger flights and Boeings to different destinations. The scope of
organization is wide as it can expand by having connectivity with more of the big nations and
offer its services and can hire more than 20000 employees in the company. The structure of
McLaren is well organized with a dedicated team of TQM to control the quality and keep a tight
check on it. The scope of company is wide as it can hire more than 10000 staff in order to
expand its business and develop formula one cars and safety measures cars for the buyers and
the racers. The structure of British Heart foundation is big and well organized as it is operating
since 1961 in UK and its is serving whole of UK to make the nation free of heart disease. The
scope of the organization is wide as it can tie up with more and more hospitals, universities and
NGOs to increase their voluntary team and facilities of treatment which is to be given to the
patients (Boucket and Verhoest,2016).
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LO2
The organizational structure is the hierarchy which has various departments committee who
are working in a systematic framework to carry out the business work effectively. The structure
outlines how the activities are directed in order to achieve the organizational goal in the
company. The organizational structure of Burberry is as followed:
[Figure4: Organizational Structure, Burberry]
[Source: Burberry, 2019]
Board is collectively responsible for the activities promoting Burberry’s long-terms and short-
term business goals in a static and smart manner with the designing of various strategies. The
board is interconnected with all the other committee which is present in the company like
Nomination committee, remuneration committee etc. as the top level people who are working
in these committee gives the real status of the organization and the need which is to be fulfilled
by the Burberry, if these committee don’t gives proper information to the Board then it
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becomes difficult for Board to set the goals for the company and overcomes weaknesses and
limitations of the company (Burberry, 2019).
The middle level departments like senior manager, risk committee, global ethic committee etc.
are interrelated with each other and with the top level committees as they give all the basic
information with minute to the top level and to each other so that they can collectively take
various decision related to finances, promotion and marketing, recruitment etc. Example if the
risk committee don’t shows the real picture of Burberry to its top level committee then it will
not be possible for Burberry to make different strategies and various decisions for the
betterment of the organization in terms of funding, profit disbursement hiring etc. therefore it
can be said that the various department of the Burberry are interrelated to each other for the
proper flow of information and effective decision making process.
Finance: The finance department of Burberry look after the finances of the company how much
profit is generated, how much operating cost is to be bare by the company, funding for various
marketing strategies is done with the help of finance. The finance department is interrelated
with all the other departments like marketing, HR and upper committee. As this department
gives the report about the financial statement of the company to the stakeholders, other
department. It also gives quotation to the other departments to carry out the marketing
activities and recruitment activities (Kennerley and Neely, 2003).
Marketing: The marketing department is responsible for the promotional activity of the
company and designing the various strategies for Burberry like giving various offers and
discounts on clothes and accessories. Other than this the marketing department makes a
quotation which is given to the finance department and to HR department for the hiring of
personnel if required for the marketing and promotional activities.
HR: the human resource department is responsible for the recruitment in Burberry and the
salary disbursement of the employees working in Burberry. HR need to co-ordinate with the
marketing department, Finance department for the purpose of making the manpower planning
and salary increment.
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Production: the production department has to keep a co-ordination with marketing
department for making the strategies, HR department for the purpose of getting employees to
carry the work in production department and the finance department for getting arrangement
for the various resources machineries and equipment’s required in Burberry.
Therefore, it is very important for Burberry to be interrelated with all the departments and
their head for the proper flow of information and activities in Burberry.
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