Analysis of Internal and External Factors Affecting Burberry Business

This report provides a comprehensive analysis of Burberry's business environment, examining the impact of both internal and external factors. The report begins by outlining the internal strengths and weaknesses of Burberry, such as its brand recognition and product offerings, and the challenges it faces in terms of pricing and product lines. It then delves into the external factors, including political, economic, social, technological, legal, and environmental influences, and their impact on Burberry's operations. The report highlights the effects of government regulations, economic fluctuations, consumer preferences, technological advancements, and environmental sustainability on the company. It also discusses the opportunities and threats that Burberry faces in the market, such as changing consumer lifestyles and competition from counterfeit products. Finally, the report explores how Burberry can navigate these external factors and make strategic decisions. The report also highlights the importance of adapting to economic changes, leveraging technological advancements, complying with legal requirements, and addressing environmental concerns for business success.

Business in Practice

Table of Contents
1. Impact of internal and external factor in business...................................................................2
2. Different ways in which business can impact external environment.......................................4

INTRODUCTION
Business environment refers to external and internal factor including employees,
customer, suppliers, supply and demand etc. Burberry is multinational company which has
various products such as clothing, beauty, home products. This report explain about impact of
internal and external factor in organization along with different ways in which external
environment gets affected by business.
1. Impact of internal and external factor in business
Impact of internal environment in Burberry company:
Strength:-
Burberry is mainly known for trench coat, which has become more popular. As it is
manufacturing brands of clothing, fashion and other products accessories. They promoted
business to advertising through websites as well as magazines. Burberry sales their products to
end of customer in form of retailing and wholesale channels.
Weakness:-
Pricing range must be in pocket of customer along with this Burberry products price
young ages people cannot afford due to having high prices products. The company consist of
only products line, whereas some other companies have furniture, décor and personal grooming
segments.
Impact of external environment:
Political:-
Brexit have left behind many circumstances, that companies have to change their rules
and regulations as per their government norms and that will have major affected to profits.
Burberry business has several impact by political. Due to having taxes that imposed to lower
profits, under developing countries and foreign goods.
Economic:-
The middle class people get more affected with the changing price of products in
Burberry. With the increasing in price but lower growth of disposable income. In order to stay
with company needs they have to work with various aspects such as pricing, discount and value
that being associated in their products.
Social:-

Burberry needs to satisfy all wants just to stay with their competitors in market. The
company is being engaged in CSR activities, that could lead to change in market and also
utilized various social media platforms, for taking their more customer feedback it means that
they can easily serve in society.
Technological:-
With the various trending changes company needs to keep themselves more advance
technology while by using various social media channels for making them more developed.
Online shopping is major focused to Burberry just to stay with their customer in long term and
generate more reviews to products.
Legal:-
Burberry follows various employments and labour laws for prevailing them in different
areas. The company needs to keep changes policies that is related to products in developed
countries, in order to avoid laws suits by their consumers.
Environment:-
Burberry has also committed for reducing green gas emission from the various
manufacturing process and have more sustainability targeted that wishes to be completed within
year.
Opportunities:-
In changing lifestyles of developing economics, the changing of preferences and tastes
that can be results in demands of premium products and services. Developing their more stores in
various countries, and they are ready for competition as well increasing their Burberry market
penetrations.
Threats:-
Burberry have more competitors in market along with changing lifestyle that can be
major fear for company. One of major issue the company facing of fake products which can
directly affected to brand equity.
2. Different ways in which business can impact external environment.
Dynamic changes in economic environment of countries in which they have developed
Burberry stores and unaware of structure changes that can easily make poor managerial
decisions. In technological innovation required for having more developing in market and used

social media platforms for making more customer. Government laws must be followed in
employments and customer rights that could have more impact in their business. Environment
factor have major impact as Burberry make their own products in which green gas and carbon
reduce projects play important roles in business.