Report on Burberry's Internal and External Environmental Analysis

This report provides a detailed analysis of Burberry's business environment. It begins with an examination of Burberry's internal factors, including its strengths (brand awareness and customer base) and weaknesses (high pricing and limited customer diversity). The report then explores opportunities for cost reduction and customer base expansion, as well as threats such as market competition and changing trends. A PESTLE analysis is conducted to evaluate the external environment, covering political, economic, social, technological, legal, and environmental factors. The analysis highlights how external factors, such as changing international relations and economic conditions, impact Burberry's operations and strategic goals. The report emphasizes the importance of adapting to technological advancements and market trends to maintain profitability and competitiveness. References to academic sources are provided to support the analysis.

BURBERRY And Its Environment
External Environment
PESTLE Analysis
Political- Company provide its product all across the globe and UK's
changing international relations forces organizations to change its working
strategies accordingly and as per international regulations (Morrison,
2020).
Economical- Burberry has to change pricing on products according to the
economic conditions of country and buying capability of customers, due to
which it makes negative impact on profit margin.
Social- Burberry has to make sure that product is developed according to
the current market trend and customer requirements, due to which working
has to be changed accordingly which affect work productivity.
Technological- Organization has to implement technological advancement
at the work area by which product development cost can be reduced and
also high productivity can be achieved by it will increase expenditures.
Legal- Organization has to work according to legal legislations otherwise
it has to face penalties.
Environmental- Burberry has to develop organizational structure such that
it reduces the negative impact on environment and develop positive image
for customers.
How the company impact its
context External Environment
External factor are those factors that influencing the situation,
conflicts in business which cannot be control in taking decision
by owner and stakeholders. Burberry's companies have large
number of factor that affected the impact of external
environment in achieve their business strategies goals. If
government changes laws as per their organization required than
that could affect to their business in achieve goals as well
objectives. Number of goods which are imported by Burberry
can make some difference in selling their products to conducting
visibility online business. It is important for operating macro
environment and that could make appropriate respond to
business (Ivančić and et.al.,2017). Technological factor can be
had more impact in rapid changing and that company do not
used that can easily make huge amount of profits. So Burberry
needs to adopt some technologies that are required them while
conducting business online as well offline. Income can easily
have impact on their business if customer do not spend much
money on buying their products than companies have to bear
loss. Several numbers of families spend their money on luxury
products and have highly demanded of lifestyle with high
quality of goods. In having multiple lifestyles can help them in
growing more to their products and services and most of them
more money to spend them on purchasing any goods.
Organization are facing problems in rapid change of
environment, political factor changing along with variation
number of changing in economic factor this all can lead to have
poor external environment in performing organization.
Internal Factors
Strength- Burberry is having high level of brand awareness and
customer base because of which it is having strong economic
background.
Weakness- Burberry tends to provide high quality products at high
pricing because of which its customer count is limited to high
class of the society and also not having diversity in customer base.
Opportunity- Company can establish cost reduction techniques
and offers through which it can increase its customer count and
achieve diversity in customer base.
Threat- Increasing market competition and changing market trend
is a high level threat for Burberry because new entrance will
create chances of brand switching for customers.
References
Morrison, J., 2020. GLOBAL BUSINESS ENVIRONMENT:
Towards Sustainability?. Red Globe Press.
Ivančić, V. and et.al.,2017. Strategy implementation–external
environment alignment. Management: journal of
contemporary management issues. 22(Special Issue). pp.51-
67.