Burberry Company: Management Models, Theories, and PESTLE Analysis

This report provides an analysis of Burberry, a British luxury fashion house, focusing on its management models and macro environment. It examines rational and human relations management models, detailing their characteristics and associated theories, including the importance of motivation and social interaction within the workplace. The report further conducts a PESTLE analysis, exploring political, economic, social, and technological factors influencing Burberry's operations, highlighting both opportunities and challenges. The analysis emphasizes the significance of understanding these external forces for business expansion and risk mitigation, ultimately concluding with the importance of effective management and environmental awareness for sustained success.

Contexts

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Task 1...............................................................................................................................................1
Task 2...............................................................................................................................................1
From chosen organisation conduct an analysis of Macro environment of its operation
discussing at least 3 factors under Pestle analysis. ....................................................................1
CONCLUSION................................................................................................................................3
References:.......................................................................................................................................4

INTRODUCTION
Business is define is an organisation on enterprising entity engaged in commercial,
industrial or professional activities. The term business also encompasses to organised efforts and
activities to better manufacture and sell for quality of good and services for profit motive. The
importance of business is very productive towards country's economy because business provide
both good and services and jobs opportunity driven (Smith, Skinner and Read, 2020). It creates
more opportunities because business need manpower to handle overall operation work
effectively. For this report, the organisation is selected Burberry company, which is a public
limited company and it is British base luxury fashion house headquarter in London, England. It
currently design and distributes ready to wear including trench coats, leather goods, footwear,
fashion accessories, eye wear , fragrances and cosmetics. In this following report, the topics are
concerned regarding with management model business theories and conducting Pestle Analysis
to examine any three factors.
MAIN BODY
Task 1
Management model and characteristics of the model
Management model is defined as the choices which are made by an organisation top level
executives with respect to how they define goals and objectives, motivate efforts and assign all
resources. There are four types of management models which are internal process, rational goal,
open systems and human relations. In context with chosen organisation, it is being described
below: -
 Rational model: - In association with this model, it is considered as scientific
management. The model mainly focus on the capability of the business organisation to
achieve all objectives. The aim of this model is to increase profit with the help of
enhanced and best quantitative information in terms of decision making. The main
strength of this model is that it accounts for all the executives and managers in providing
structure and implementing action (Santos and Gonçalves, 2021). This model is involved
with five steps which are establishing a goal, identification of the criteria, determining
alternatives, performing analysis and making a final decision. In context with Burberry,
the demands of people has always been on the luxury and fun fashion products so on the
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basis of this, the company applied this model by providing exciting and innovative
opinions which are based on people's lifestyle.
Characteristics: -
1. Rational model is logical in nature and is based on entire reasoning.
2. The executives who follows this model knows about several alternatives which are being
available and will always be in a position to analyse them rationally.
3. This management model assumes that all decision makers would have entire and perfect
information about each alternative.
 Human relations model: - In context with this model, it states that all the people always
desire to be a part of a supportive group which facilitates both growth and development.
The main focus is on the individual needs and behaviours and makes the usage of an
interpersonal approach in order to manage human beings. There are several elements of
this model such as the focus is always put up on people instead of economics, human
relations are significant for motivating people and many more. In context with chosen
organisation, all the employees gets motivated with the help of financial rewards and
sense of belonging. With the help of this, effective relations are being maintained and
performance gets enhanced.
Characteristics: -
1. In this model, the satisfaction which is desired by workers might be social or economic.
2. Human relations are defined as an integrated approach which is determined from several
types of disciplines like management, sociology and many more.
3. The employees of the business organisation do their contribution in order to enable group
satisfaction.
Theory and its proponents
Human relations theory refers to a belief that focuses on informal workplace
organisations, workers satisfaction and enhancement of employee productivity. There are several
elements which is engaged with the associated theory like motivation, social interaction,
communication and so on. In terms of public sector organisation, this approach concentrates on
supporting each worker to boost growth and entire fulfilment. In context with chosen
organisation, it is being explained below: -
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 Motivation: - In order to boost up the performance level, the most significant thing is to
motivate all employees. In accordance with Burberry, they also motivate all their
workers through various methods such as providing rewards as per the performance
being done by employees, sharing positive feedback, offering flexible time period and
many more (Sarkies and et. al, 2021). Through this, effective human relations are
maintained within all the employees and every worker gets encouraged to give best
performance.
 Social interaction: - In order to achieve growth, human relations with all audiences is
important and it can be efficiently done with the help of doing social interaction. In
context with chosen organisation, they implemented a social media and payment
application known as We-chat which is considered as a mini-program that connects and
reward customers whether they explore in the store or online.
Characteristics: -
 Effect of social and human factors in productivity: - It is one of the main feature of
human relation theory which determines that output is affected by all social as well as
human factors in terms of both technical and material ones. In order to enhance the
productivity level, development of human relations is very important and it is done by
achieving all human needs and wants, high morale and so on. In context with Burberry,
good relations with all the audiences are important so they always provided luxury
fashion products to consumers as per their needs and wants.
Human relations skills: -
 Conflict resolution: - All individuals working in the business organisation has different
types of personality through which it becomes difficult for the company to achieve their
goals and objectives. In order to enhance growth, it becomes important to encourage all
employees to work together and become comfortable so that conflicts could be easily
resolved (Aliabadi, Gholamrezai and Ataei, 2020). In context with chosen organisation,
it is important for them also to build up good human relations so that in future if any
kind of conflict gets arise, then all employees could solve them by themselves.
 Communication: - In a business organisation, communication is the most important
thing in order to develop good human relation management. It not only helps a company
to enhance their growth but also assures employees that their performance is being
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valued (Viviani, Komura and Suzuki, 2021). In context with selected organisation, they
used the method of social media which is considered as the most efficient way to
communicate with people around the world and maintain good human relations.
Task 2
From chosen organisation conduct an analysis of Macro environment of its operation discussing
at least 3 factors under Pestle analysis.
A Macro environment is the type of condition that exists in the economy as a whole
rather than a particular sector or region. In general, the macro environment includes trends in the
gross domestic product, inflation, employment, spending and monetary and fiscal policy (Khan
and Qudrat-Ullah, 2021). From the macro environment is having Pestle analysis which helps to
determine about challenges and opportunities in regarding with better business expansion to
generate positive way of outcomes.
Pestle Analysis: It is a framework to analyse where the key factors which explain
political, economic, sociological, technological, legal and environment. It mainly offers people
professional information which are external basis and also that specific information create huge
impact on their organisation. In following there is an explanation of at least three Pestle factors
which plays an huge role in Burberry company are:
Political: In this factor it involves tax policy, environmental regulation, trade restriction
and reform, tariffs and also political stability. These factors determine the extend to which a
government may influence an industry or company. In perspective of Burberry company as they
operates across the world and not just in London as they operate in larger scale within countries.
If there is higher political stability within country and the better ease of operations and other
political opportunities. But there is uncertainty that can create drastic impact on Burberry
business growth where it would not allows to trade in European region. There is also some
political restriction imposed through European commission. For example: The UK government
brings new tax reforms that might fluctuates where whole revenue generates through better
system of Burberry company.
Economical: There are some of factors which include in economic growth, decline,
interest, exchange, inflation and wage rates, minimum wage, working hours and cost of living.
These factor are determinants to be an economy's performance that directly impact on company
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as long term perspective. In context of Burberry company, many buyers are there who have keen
to buy products of Burberry company, but when there is decrease in tourism might lead towards
decrease in product sales. For example, Burberry company need to tab on different aspects
which is related with pricing and discounts offers to associate with product.
Social: On the basis of this factor there is cultural norms along with expectation, health
consciousness, population growth rates, age factor distribution etc. These factor are very
productive and helpful for companies to create strategic plan on the basis of market analysis. In
situation of Burberry company, as they are premium segment type of business and their customer
are upper or middle range of customer. The company main focus to satisfy their customer needs
and wants in order to sustain in competitive market place. For example: to sustain in competitive
market is having different CSR activities which provide to create change towards society and
promote their productive practises through social media platforms.
Technological Factors: On the basis of current trends changes, technology plays an
important role in business expansion within competitive marketplace and to enhance its image
and better improved sales (Capobianco, Loia and Vona., 2021). Similarly Burberry is
international fashion based business and they utilise advanced technological resources which
makes their services efficient enough. The company believes in working with synergy with
social media today which will helps on stay in competition. There is use of various e-commerce
platform to better increase its reach and through better social media platform to generate review
of their products. Different use of various analytics software that helps to predict future
uncertainties (Thomas, Williamson and Harper, 2021). For example: Artificial intelligence and
Digital marketing process helps to mitigate the risk factors and better channelise promotional
activities.
Evaluation :
On the basis of above Pestle Analysation is summarise about political, economical, social
and technological. According to this factor explanation on the basis of Burberry company aspect
which define the external power create high influence to create challenges and opportunities that
helps to expand and mitigate business factors (Phan., 2021). Each factors has it own influence
where political derive about government policies that makes business growth positive impact,
inflation and recession one of uncertain factor that decrease business profitability.
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CONCLUSION
From the above report, it summarise business context factor which specify particular
company description along with different management models and theories with characteristics
implies about systematic approach to better driven in workplace. Human relation, motivation and
social interaction plays an important role to manage and create positive workplace environment
on which employees can contributes their effectiveness skills and knowledge for long term.
Furthermore, Pestle analysis in which three factors with examples that determine positive and
negative impact of business through effective manner.
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References:
Books and Journals
Aliabadi, V., Gholamrezai, S. and Ataei, P., 2020. Rural people's intention to adopt sustainable
water management by rainwater harvesting practices: application of TPB and HBM
models. Water Supply, 20(5), pp.1847-1861.
Capobianco, N., Loia, F. and Vona, R., 2021. Toward a Sustainable Decommissioning of
Offshore Platforms in the Oil and Gas Industry: A PESTLE Analysis. Sustainability,
13(11), p.6266.
Khan, R.A. and Qudrat-Ullah, H., 2021. Technology Adoption Theories and Models. In Adoption
of LMS in Higher Educational Institutions of the Middle East (pp. 27-48). Springer,
Cham.
Phan, S., 2021. The effect of PESTLE factors on development of e-commerce. International
Journal of Data and Network Science, 5(1), pp.37-42.
Santos, S. and Gonçalves, H.M., 2021. The consumer decision journey: A literature review of the
foundational models and theories and a future perspective. Technological Forecasting
and Social Change, 173, p.121117.
Sarkies and et. al, 2021. Understanding implementation science from the standpoint of health
organisation and management: an interdisciplinary exploration of selected theories,
models and frameworks. Journal of Health Organization and Management.
Smith, A.C., Skinner, J. and Read, D., 2020. Philosophies of Organizational Change:
Perspectives, Models and Theories for Managing Change. Edward Elgar Publishing.
Thomas, P.J.M., Williamson, S.J. and Harper, P.W., 2021. A PESTLE analysis of solar home
systems in refugee camps in Rwanda. Renewable and Sustainable Energy Reviews, 143,
p.110872.
Viviani, J.L., Komura, A. and Suzuki, K., 2021. Integrating dynamic segmentation and portfolio
theories for better customer portfolio performance. Journal of Strategic Marketing, pp.1-
14.
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Online:
Depth discussion of Burberry Pestle Analysis, 2020. Available through
<https://www.totalassignmenthelp.com/free-sample/discussion-and-evaluation-of-burberry-
pestle-analysis>.
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