Report on PESTEL Analysis of Burberry: Global Business Environment

This report offers a PESTEL analysis of Burberry, a luxury fashion house, examining the macro-environmental factors impacting its operations. The analysis covers political factors, highlighting the need to comply with global regulations and tax structures. Economic factors are discussed, focusing on consumer spending and the impact of tourism. Social aspects include cultural considerations and the use of social media for customer engagement. Technological factors emphasize online sales and the importance of fast delivery. Environmental factors address the impact of natural disasters and the need for strategic store placement. Legal factors focus on employment and production laws. The report concludes by emphasizing the importance of minimizing negative impacts and maximizing positive ones to enhance profitability and customer base.

GLOBAL BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
PESTEL ANALYSIS OF BURBERRY..........................................................................................3
REFERENCES................................................................................................................................5

PESTEL ANALYSIS OF BURBERRY
PESTEL analysis is basically a tool or a framework which is used to analyse and monitor
the macro-economic factors which impacts the organisation. The impact of these PESTEL
factors on Burberry which is a house of British luxury fashion headquartered in London is as
follows:
Political: As the company perform its operations throughout the world, it has to abide by all the
laws and regulations of different countries. Some countries impose high taxes as it will help them
to promote the domestic production. Operating costs increases due to the high tax rates.
Therefore, Burberry must follow all the laws so that it can lead itself in the steep competition.
Economic: The downturn in these factors affects the extent of investment the customers make in
order to buy the products. Maximum customers of Burberry are the tourists which forces it to
compete with the international as well as local brands (Le, 2020). Due to less travellers, the
customer base of Burberry becomes less. The company must strive hard to expand sales locally
along with attracting the tourists.
Social: The customers of Burberry belong to different culture and have different dressing senses.
Therefore, the company must consider all the dressings while distributing the products. Burberry
also tries to involve the people of UK in its activities under the CSR initiative. As the people of
UK are socially active, the company must also make use of social networking sites like
Facebook, Twitter, Instagram etc. to engage the customers with its products and services.
Technological: The target customers of Burberry prefer ordering and buying the items through
the advanced technologies. It uses the latest technology form for the purpose of promoting its
products to the customers. The live streaming of Burberry also helped the company to convince
the customers to buy the products online and get them delivered at their preferable places
(Banerji, 2020). The company must also deliver the products fast which can help in gaining
competitive advantage.
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Environmental: These factors such as terror attacks and the hazardous effects have a great
impact on the way in which Burberry carry out it different activities. Though, it is hard to predict
the natural catastrophes, but they are able to disrupt the global stores and the supply chains
which leads to great losses. Therefore, before establishing the stores in certain areas, it must not
take risk to establish in the locations which are prone to attacks.
Legal: Though the legal factors affected positively on the overall performance of the company,
but on the other hand the unfavourable regulations restrict the company’s operations and forces
its profitability to be compromised. The major laws which are to be followed by the company are
employment laws and labour laws (Burberry Group SWOT & PESTE Analysis, 2020). The
company must also ensure that the production of its products is also performed by following all
the laws of the country.
Therefore, Burberry must analyse all the macro-environmental and must strive hard to minimize
the negative effects and maximize the positive effects to increase its profitability and customers
base.
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REFERENCES
Books and Journals
Banerji, A., 2020. LAXMI BAI GOT DRUNK AT MALINI’S DINNER AND
VENTUREWELL BECAME AN UNDERWEAR BARON. Western Theatre in Global
Contexts: Directing and Teaching Culturally Inclusive Drama Around the World.
Le, T., 2020. Business model for an online clothing store in Finland.
Online
Burberry Group SWOT & PESTE Analysis, 2020. [ONLINE] Available through :<
https://www.swotandpestle.com/burberry-group/>
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