Organizational Strategy Analysis: A Case Study of Burberry's Success

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Added on  2022/08/10

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This report provides an organizational strategy analysis of Burberry, examining the company's actions to achieve its long-term goals. The analysis covers key aspects such as the importance of organizational strategy, the implementation of organizational learning strategies like method optimization, and the expansion of retail outlets. It highlights Burberry's approach to brand image enhancement, particularly the hiring of a brand czar to design globally appealing garments. The report also explores Burberry's adaptation to target millennials through digital marketing, including extensive use of social media platforms like Facebook, which provided a competitive advantage. References to academic sources support the analysis, providing a comprehensive overview of Burberry's strategic initiatives and their impact on the brand's performance in the luxury market. The report emphasizes the importance of adapting to market changes and leveraging digital technologies to maintain a competitive edge.
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Running head: BURBERRY: ORGANIZATIONAL STRATEGY ANALYSIS
BURBERRY: ORGANIZATIONAL STRATEGY ANALYSIS
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1BURBERRY: ORGANIZATIONAL STRATEGY ANALYSIS
Answer 1
Organizational strategy refers to the sum total of actions undertaken by an
organization to achieve their long-term goals (Kalkan, Bozkurt & Arman, 2014). All these
actions together are referred as the strategic plan of the organization and these plans need
almost a year to form with the help of other functional departments of the company. The long
term strategies are created by the top level management whereas the middle and lower level
management implements short action plans for achieving the organizational goals step by
step (Grünig & Kühn, 2015).
Burberry is facing problems of low sales and it was due to the inefficiency in the
organization. This inefficiency can be understood from various points such as the
organization and the employees did not have any goals, no proper between different
departments and the employees did not favour the products of the organization due to the
poor brand image. This lead to lack of long term vision. Thus organizational strategy is very
essential for Burberry.
Answer 2
Organizational learning strategies is of three types, method optimization, method
selection and goal selection. Method optimization is the process in which the current
organizational goals are improved for efficiency and used. Method selection refers to finding
the best method which can help to achieve the organizational objectives. Goal selection
determines whether the selected objective is achievable, worthy or not (Steensen, 2014). In
this case study CEO Ahrendtz has used method optimization to make Burberry an iconic
brand once again in luxury products. It can be observed that the CEO believes in improving
the traditional methods rather than implementing new ones. For instance, Ahrendtz opted for
improving the brand image by hiring a brand czar. The brand czar designed garments which
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2BURBERRY: ORGANIZATIONAL STRATEGY ANALYSIS
could be sold in any place across the globe, this gave a sense of unity to their brand. Day by
day more and more authenticity was brought in the brand. Burberry also increased their target
market by opening new outlets in areas where there competitors are ruling. The company also
gave training to their sales associates so that they communicate effectively with the
customers and thus close the deal.
Answer 3
Burberry expanded their retail outlets to reach to their customers and acquire more
new customers. Earlier Burberry focused on every people in any place of the world now their
target customers are the young adults or rather millennial. However to capture the attention of
the millennial they implemented new advertising strategies such as creating online platforms
for the purpose of storytelling to their customers. The organization made extensive use of the
social media platforms such as Facebook to retain in the minds of their new target customers.
Hence today Burberry has the highest number of users on their Facebook page than their
other competitors. As Burberry was the first company to make an extensive use of the digital
technology and social media platforms among their competitors, it gave a competitive
advantage in the market. Thus, becoming the fourth fastest growing brand in the world.
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3BURBERRY: ORGANIZATIONAL STRATEGY ANALYSIS
References
Grünig, R., & Kühn, R. (2015). Strategy Planning Process. In The Strategy Planning Process
(pp. 41-52). Springer, Berlin, Heidelberg.
Kalkan, A., Bozkurt, Ö. Ç., & Arman, M. (2014). The impacts of intellectual capital,
innovation and organizational strategy on firm performance. Procedia-social and
behavioral sciences, 150, 700-707.
Steensen, E. F. (2014). Five types of organizational strategy. Scandinavian Journal of
Management, 30(3), 266-281.
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