Burberry's Business Strategy: A Comprehensive Strategic Report

This report provides a detailed analysis of Burberry's business strategy, examining both the internal and external factors influencing its operations. It begins with an introduction to Burberry, highlighting its vision, mission, and objectives. The report employs the PESTLE analysis to assess the macro environment, followed by a SWOT analysis to evaluate Burberry's internal strengths and weaknesses, as well as external opportunities and threats. Stakeholder analysis and the Ansoff matrix are also utilized to understand growth strategies. Furthermore, the report delves into Burberry's internal environment using the McKinsey 7's model and the VRIO framework to assess its resources and capabilities. Porter’s Five Forces model is applied to evaluate the competitive forces in Burberry's market sector, and the report concludes with an interpretation and strategic planning for the organization, including strategic priorities and objectives. This comprehensive analysis aims to provide a thorough understanding of Burberry's strategic positioning and potential for future growth.

Business Strategy

Table of Contents
INTRODUCTION ........................................................................................................................1
MAIN BODY ...............................................................................................................................1
P1 Implementing befitting
model analyse the effect
and power of the macro
situation on a given
arrangement and its scheme.......................................................................................................1
P2 Analyse the internal environment
and capabilities of a given
organisation using appropriate
.....................................................................................................................................................5
Frameworks.................................................................................................................................5
P3 Applying Porter’s Five Forces
model evaluate the competitive
forces of a given market sector for an
organisation................................................................................................................................7
P4 Applying a range of theories,
concepts and models, interpret and
devise strategic planning for a given
organisation................................................................................................................................8
M4 : Strategic management plan that includes strategic priorities and objective.......................9
CONCLUSION ...........................................................................................................................10
References:.....................................................................................................................................10

INTRODUCTION
Business is the commercial activity which is being done with the aim of making money
by offering goods in the market place. For running a business effectively the management
require to make a strategy that is a set of competitive moves and actions that a business uses
to attract users, compete successfully, transformation show and attain organisational goals.
It designs how business must be reach out the wanted goals (. Heinicke, 2018.). The report
is based on Burberry it is luxury fashion house its headquarter is in UK London, England.
It was founded in 1856 by Thomas Burberry. It deals as a clothing brand that includes ready
to wear clothes , goods, footwear, fashion accessories ,eye wear and many others. This
report will explain the concept of business strategy and various models which is being used
to make business more effective as internal and external analysis. Further it will explain the
porters five forces and business strategic management .
MAIN BODY
P1 Implementing befitting
model analyse the effect
and power of the macro
situation on a given
arrangement and its scheme.
Burberry is a British based multinational company its operations from UK. It
provides fashion accessories , latest trendy clothing and many other things are the goods
offer by the brand in across many other reasons.
The Strategic context :-
Vision : it is the future situation of an enterprise. It clears the upcoming position of
the company. It can attained by long term goals and also there are requirements to
attain the goals and objectives. Burberry vision is to enhance their affirmative social effect.
This visualisation will not attained in short span of time. There is need of long duration. It
is reliable on the mission and goals of the company.
Mission : From the prospective of vision mission set. It is the regular operation of
concern in the reality. The pieces of little goal creates big objective. As the Burberry
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vision is to grow their business without any issues in the surrounding and create a
positive social effect. it w ill outline can focus on the vision. After finishing a long
duration a company can attain a goal successfully (.Centobelli, ., Cerchione,. and Ertz,
2020).
Objectives : Little steps of the organisation actions are the company goals. Regular
assignments and offers are the parts of the objectives. These goals are the smaller,
supporting factors which support the company for users. Here Burberry objective is to
raise the workers service ability. To grow the consumer service skill Unilever aims are
recruiting expertise and capable person and train them so that they can satisfy the consumers.
Business strategy makes to attain the business objectives must follow planning
management theory. To create an effective functioning the company adapt some models and
theory that can be relatable to the organisation and give them success in the workings
(Whittington, ., 2019).
PESTLE Analysis :-
It is a framework which helps in analysing the external factors that effect the business in
positive and negative both ways. Further discussion is in below :-
1. Political factors :- this factor includes the changes in political norms ans taxation
policy and many others that effect the business. Burberry workers across various
nations. It works on large scale, it requires to abide by the different rules and
regulations laid down by the various places. The movement Brexit has left the risky
surrounding, where the enterprise functioning in the country are in the dilemma as
in what are the rules that will modified, and what will it impact on profitability
(Morais-Storz, Platou, . and Norheim, ., 2018).
2. Economic factors : this considers the factors like change in taxes, inflation and the
modification in the currency rate. Since, Burberry manufacture goods in elite range so
alteration in these components will not effect the business much more. The reduction in
tourism can leads to a reduction in the sale of the goods. The value associated with
the goods will be demanded . The company requires to keep a tab on different factors
linked to value, and discount and what the contest is working.
3. Social factors :- this is considered with the taste and preferences of the users and
changing trends of the market place. Burberry is the premium brand and is usually
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preferred by the affluent. Since the company recognize the capableness in the class
of the users. It has introduced different range goods to capture this segment. By
fulfilling the wants of these users , the company wants to expand, yet in a
sustainable manner. There are different segments that the company operates in,
encompasses various groups with various needs.
4. Technological factor : this factor includes the Considered factors like changing
trends and technology that is effective for the business. Burberry has managed to
be updated. Various digital media platform that are used by the brand to grow its
picture and develops sale. The company use various e-commerce stage to grow its
reach, various digital media to produce reviews of its goods.
5. Environmental factor :- this factor includes climate and weather and surrounding
that effects the business. The Burberry has been operating on various components of
sustainability and has recently its different aspects of sustainability, and they have
wrapped up to reduction of carbon stuff and other green house gas discharge
from different business process it carries out.
6. Legal factors :- it includes the laws and judiciary that impact on the company.
Burberry, needs to follow various labour laws and employment laws that prevail in
these sections. If any of these laws are violated the company has to face lawsuits
from different stakeholders and repairing the brand value. The company have to
keep a tab on the alteration policies linked to content of the goods in assorted
nations (. allis, ., Gripsrud, Olsson, and Silkoset, 2021.).
Swot analysis :-
it is model which helps in analysing the internal factors that effect on the business and give
them opportunity to develop the brand value. It is a proven management framework which
capable a brand like Burberry to standard its business and performance in comparison of its
rivals.
Strength
1. it is a leading fashion brand and has a huge
network of retail, wholesale and licensing
transmission in world wide.
2. the company concentrate on digital
Weakness
1. High competition other premium fashion
labels leads to lower equity market.
2. the brand has to continuously fight with
cheap imitation which reflect the bran value.
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marketing to spread awareness through
social media drive, online advertising and
video content.
Opportunity
1. By collaboration with other brand the
company can reduce their cost in order to
attract the lower market.
2. Expanding business in international market
could help the brand in order to grow
internationally, that grow the brand value in
worldwide.
Threat
1. The company faces threat from others
rivalry on daily basis in relation of valuation
as well as availability.
2. the bargaining power of the users could
effect on the sale scale of the company.
Stakeholder Analysis -
It is a process of determining these people earlier the task begins, grouping them as
per their levels of involvement, interest and influence in the assignment in the project and
determining how best to consider and communicate each of these respective units end-to-
end. The main aim of analysing these personality for considered company is to enlist the assist
key organization players. To add early alignment among all individuals on goals and
strategy (Reinhold, Beritelli, and Grünig, ., 2018).
Ansoff matrix :-
It is a growth matrix defined as a strategic tools for planning which is utilised by
manager of a company so that correct strategy for growth can be implemented. In relation
of Burberry.
1. Product development :- in this factor a company establish a new commodity in
market so that their existing and possible users can purchase them in huge quantity.
Because to this sales of Burberry will gain because of which high income can be
earned.
2. market development :- in this growth matrix existing goods of company are offered
to new user so that consumer base of Burberry can raise. This will advantageous the
company in gaining sales and profit ratio.
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3. market penetration :- In this factor a company tries to grow its equity with the
help of existing goods in same market where they were working earlier. In this
planning company reduces their value complementary offers to users so that
market shares can grow because of high income.
4. Diversification :- it is most risky way that states that new goods are offered to
buyers in new market. If company losses to impress users by their goods it can
be a huge loss for the revenue of company. In case bew users will like new goods
Burberry will attain high market share and revenue.
As per above study the company can adopt the market development strategy that grows the
market share and increment in customer base as well as in income (Routzouni,., and et., al.,
2021,).
P2 Analyse the internal environment
and capabilities of a given
organisation using appropriate
Frameworks.
McKinsey 7's model :-
It is a framework for company administration powerfulness that proposition that there
are seven internal section which are listed in below:-
1. Strategy :- it is plan which is created by the organisation with the aim of attaining
competitive benefits so that challengers can compete in appropriate ways. If
Burberry will not have a booming planning them concern have to face issues like
deduction in sales volume.
2. Structure :- It acquires the style in which arrangement and divisions are organised
and parcel details with each other. If Burberry will have improper structure then it
will reduce the ratio of the organization because of which rivals companies will
add benefits (Vivares, ., Sarache, and Hurtado, 2021).
3. System :- this is a process of industry that mission to depict the regular basis
activities and decisions making of a company. Managing proper system will
beneficial for business manager in utilise organisational alteration appropriately.
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4. Skills :- it includes competences and ability of workers in Burberry during
performing company operations. Capable staff of Burberry will permit them in
operating with typical condition in effective manner.
5. Style :- this shows the ways in which a company is managing by management and top
level manager and the manner in which they interact with their workers. In Burberry
contestant style is utilised where thoughts of work force are considered majorly.
6. Staff :- This factors is linked with the kind and number of workers which are
operating in Burberry . It considered the ways in which necessary individual hired,
trained and rewarded and encouraged.
7. Shared values :- It is the last factor of this model as it includes the benchmark and
rules which guides the actions of company like Burberry of workers in an
appropriate ways.
Vrio framework :-
It is abbreviated as value , rarity, imitability and organisation. It is a strategical
instrument that is utilised by industry to determine their provided resources and internal
ability. This will assist them in achieving high rivalry advantage over challengers. In
relation of Burberry. The discretion is in below :-
1. valuable :- it is crucial for the management in Burberry to appropriately use their
value point so that typical challenge can be have in correct manner. If an industry
acquire certain precious root, they can earn high revenue from it. Just as, Precious
resources for Burberry is their workers, distribution and supply unit management.
2. Rareness :- this factor beneficial a concern if the goods which is being created by
them is rare or not. These goods provided by the Burberry will assist them In adding
users faithfulness because of which their sales and revenues will gain in a
included ways. These services of industry are their production tools. Burberry deals
in giving unique and creative goods that makes them rare in the market.
3. Imitable :- Burberry is needed of offer those goods can't be copied by competitors
in company. If goods provided by Burberry can sold them in less amount because
of which individual will not prefer to purchase those offers which are offered by
Burberry.
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4. Organisation :- it is important such as Burberry to balance their existing resources
in an optimal ways. If factors and resources of a concern will not utilise in proper
way. It will leads in growing value of industry. This will reduce income for
organisation because of which competing against challenger will be a hard task.
Various resources in this order are workers, provider, investors and stakeholders
(Kang,, Diao, and Zanini, ., 2020).
Resource based view :-
It is referred as a social control model which is used by business arrangement to determine
those important resources which can be employed by a institution to gain property and
competitor vantage. In context with this strategy, there are two benignant of resources that are
impalpable and touchable resource. The tangible resources include physical resources such as
machinery, buildings, lands, capital, equipments etc. whereas intangible resources do not have
sensual being but they can be ordered by considers company such as intelligence property,
hallmark, brand repute etc.
P3 Applying Porter’s Five Forces
model evaluate the competitive
forces of a given market sector for an
organisation.
It is a strategic framework which takes planned decisions by including up coming
rather than determining results in comparison of current rivals. There are five fcators
of this model which is mentioned in relation with Burberry :
1. Threat of New comer : it is not so huge as Burberry Is a renowed company
which is operating at international level during actioning their concern activities and
operations. Because of this new company in market are not capable to challenge
with consider company in relation of the users base, equity shares and providing
benchmark goods to the buyers.
2. Bargaining power of Provider :- there are many huge scale company which are
dealing in manufacturing sector particularly clothing. Because of this discounting
power of users is high. On other hand company will pay providers high, they may
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not be capable to supply Burberry all the needed material and resources because to
which business of company to have high ratio of earnings.
3. Threat of substitute :- there is opportunity for wearable, due to this risk from
other retailers goods in less in relation of Burberry. Hence, if provided goods will
not be best, users will feel unwilling in purchasing the offers of company.
4. Rivalry among Existing challengers :- There are many retail and luxurious
brand that deals in clothing and wearables . But in relation of Burberry is well
recognised trade name in the market where as it is treated as brand and premium
name in the market that gives them a benefit in the market.
5. Bargaining ability of purchaser :- in relation of buyers, it is high in relation of
Burberry as rivalry in manufacturing industry is very high. If industry will charge
high value without giving satisfactory goods then they can move their taste
towards which will be offered by challengers.
P4 Applying a range of theories,
concepts and models, interpret and
devise strategic planning for a given
organisation.
Porters generic strategy :-
this model is determining the way by which they can achieve competing benefits
with the market place. In basic terms there are commonly three types of sources which is
listed in below :-
1. cost leadership : with the aids of this planning, value sensitive can be simply
marked by a business . In this planning Burberry can provide their goods to users in
less value . Whereas enterprise can grow and they will assist the industry in
growing their sales because to which high profit can be attained.
2. Differentiation :- In this planning a company can offer new and creative goods to
their users so that they can be differentiated from another commodity which deals in
similar goods. In this Burberry cab offer creative and new goods to their buyers so
that sales can be grow in an appropriate manners.
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3. Focus :- this strategy considers two sources that are cost and differentiation. In
context of cost focus , Burberry will purchase them. Whereas in differentiation
company will required to offer current goods so that people can purchase without
being valued delicate (Pusparani,., and et., al., 2020).
Bowman's clock strategy :
It is a model which assist a business organisation in exploring correct situation the
manner by which Burberry can position the goods so that high benefits over competitors
can be attained in an appropriate way. Further discussion is in below :-
1. low value and low value added - this is less competing situation for Burberry.
As goods are not differentiated, users comprehend less cost of goods even if their
value will be less.
2. Low cost - in this Burberry can positioned themselves as low valued in market value
by utilising value reducing instruments. Here goods for every goods will be low
but because of this sale can be raised.
3. Hybrid - This strategy include elements of low price and product differentiation. This
positioning strategy will be every effective in context with M&S.
4. Differentiation - In this strategy Burberry is needed at high value customer can
offerings to their users so that sales can be grow well.
5. Focused Differentiation :- This planning are placed at big cost users can buy
because to its highly sensed value.
6. Risky high margins - in this planning company have to face high uncertainity
which can also leads in business loss. Here Burberry can set high cost without
offering anything complimentary .
7. Monopoly pricing - in market monopoly only individual can offer goods. In this kind
of strategy a dominant business is not concerned about the value or creativity.
8. Loss of market shares: This strategic position is a disaster in competitive market. In
this, a company is required to set standard price of middle range for product. Due to
which, market shares earned by company are less (Lohrke,, and et., al., 2021).
M4 : Strategic management plan that includes strategic priorities and objective
Strategic management plan :-
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Summary Burberry is the multinational brand that deals in clothing . It is
treated as lavishness in the activity place. This serves employment in
global areas.
Vision The arrangement visual percept at present itself as a top leading
brand in the market by having a uninterrupted betterment in the
branding the trade.
Mission The operation of the institution to serve services in global reach
and by accelerative the brand value in global marketplace.
Objectives  To widen the country of business activity of the institution.
 To create more and more outgo.
Tactics  Product - they deal in good quality clothes.
 Price - company uses the premium pricing.
 Place –the brand provides services in the high and well
settled market or in big malls.
 Promotion - the company promotes services through the
video advertising, digital platform and other ways .
Controlling and
Monitoring Evaluation
Measure method can be used by the formation. In this tool, the effect
brought up by the brand-new kind will be compared with that of the
contestant of the concern and an inquiry will be finished to change the
arena which are propulsion the beginning reversed.
Implementation:-
It is very crucial for the company to execute the plan so created for which they
required to allocate their goods. Burberry can assign their capital with the assistance of
marketing budget.
CONCLUSION
It is concluded from above report that without implementing a proper business palnning
it is impossible for a concern to attain wanted success and results. Analysis like
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pestle,stakeholder analysis , swot and many other that is being analysed in relation of
considered company. With the aid of VRIO model, organisational capableness can be known.
By exploitation Porter's five forces, a institution can admit their competitor border in market. By
victimization antithetic explanation, model and Bowman strategy, porter's generic strategy, a
company can apply right strategical thinking for themselves.
References:
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Morais-Storz, M., Platou, R.S. and Norheim, K.B., 2018. Innovation and metamorphosis towards
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