Burberry: Navigating the Global Business Environment Context

This essay examines the context of business, focusing on Burberry, a British luxury fashion firm operating internationally. It explores the dynamic nature of organizations within the global business environment, addressing social, cultural, economic, and environmental issues. The essay delves into the challenges Burberry faces, such as adapting to changing customer needs, cultural differences, currency fluctuations, and environmental regulations. It highlights the importance of Corporate Social Responsibility (CSR) and effective leadership in managing these issues responsibly and sustainably. The analysis covers how CSR impacts leadership, the development of policies, and the motivation of employees to achieve business objectives in a global context. The conclusion emphasizes the interconnectedness of these factors and the necessity of responsible and ethical business practices for long-term success.

Context of Business

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Business refer to the process of trading and purchasing and sales goods and services to
satisfied the needs of customers and earn profit. Context of business refers to a specific
employed which may be an individual firm and a larger business community. This assignment
related to Burberry which is a British luxury fashion firm and headquartered in London, UK
(Bell, Bryman and Harley, 2018). This organisation was founded in 1856 by Thomas Burberry
and this firm operate its business internationally by producing clothing products, accessories,
perfumes and cosmetics etc. This essay will be discussed about the dynamic and changing nature
of organisations within the global business environment. Further will be defined about the
requirements of individuals and organisations to manage responsibly and sustainably and behave
ethically in context of social, cultural, economic and environmental issues.
MAIN BODY
In current era, most of the organisation are operating their business at international level
so that they can fulfil their customers needs and demands and earn profit. When they run their
business internationally, there are various kind of issues which are facing by them in global
business environment. Burberry is also operating its business globally and face different social,
cultural, economical and environmental issues.
When Burberry operate its business globally then it face various social issues related to
change in customer needs, demands, taste and preferences, values and beliefs etc. In UK, the
needs and desires of the peoples are changed according to the fashion and trends because they
are more fashion conscious. Another issues are related to communication when the company
hiring employees then they face issue communication relate issues. So the management of this
company need to do market analysis so that they can identify market trend and provide products
according to their demands and culture.
There are, various problems related to culture, faced by the management of Burberry. For
example, when this company expand its business in UK than is manufacture clothing according
to the culture of that country. But when it operating its business in Pakistan then it designed
garments according to the culture of this nations because people of this country prefer that kind
apparel which are covered whole body (Sprout and Sprout, 2015). Other problems can be related
to values and beliefs like in UK most of the people believe in online shopping but some of them
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do not believe in it cause of beliefs. To manage, these issues the management of Burberry can
manufacture products according the culture of different nations and values of them.
At global level, there are various issues that can be faced by Burberry related to
international accounting, currency rate, global pricing strategy, universal payment methods etc.
This company operate its business internationally and each country have different currency rates
(vom Brocke, Zelt and Schmiedel, 2016). The fluctuation in currency rates also impacted the
balance of business expenses and profits. For example, if the company is paying suppliers and
production cost in UK currency but selling in other nations market with a weak or more
unpredictable currency then it affect the profit margins of the firm and economic condition of it.
It is necessary to mange these issues responsibly, sustainably and behave ethically so that the
firm can make improvement in its economic condition and properly operate its business at global
level in various nations.
When the organisations operate their business internationally then they face various
issues related to environment. Each nation has their on environmental norms, laws and
legislations which affect the business of organisation. For example, In Burberry, the
management of this company burn the unsold goods which create negative impact on
environment and the main environmental issue. Now it stopped this activity and to manage this
issues it use recycling process. So that it can properly follow environmental laws and regulations
and manage environmental issues in various nations sustainable, responsibly so that it can
behave ethically.
CSR refers to corporate social responsibilities which can be known as a part of an
organisation's business model. It is an activity which is organised by the company for the
welfare of the society and it can be helpful for positive publicity. It is beneficial fro attract and
retain qualified person and make improvement in relationship with customers. CSR influence
the leadership of an organisation when the company operate its business globally. In Burberry,
to manage the business of the company responsibly, sustainably and behave ethically in context
of social, cultural, economic and environmental, the management of the company required that
the leader help in it by using their leadership skills (Souto, 2015). The leader should developed
polices and strategies so that the firm can properly and effectively operate its business in global
business environment.
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CSR create impact on leadership in modern organisation in various terms like; in
Burberry the leader should design polices and rules according to the CSR of the company so that
the firm can attain its aims and objectives on time. The leader should motivate and encourage
employees by using their leadership skills so that they can do their work with more effectiveness
and help in increasing the productivity and generating profit fro the company. This help the
company to work for the welfare for the society and building a strong image in the market when
it operating its business internationally (Phillips-Wren and et. al. 2015). Effective leadership is
beneficial for the sustainable running and development of the firm. It help in providing a support
to the company in their modification from economically familiarized entities to company and
operated business ethically in global business environment.
CONCLUSION
From the above information it can be analysed that when a company operated its
business globally then it face various issues related to social, culture, economic and
environment. The impact of these factors change the nature of business and consideration of the
future of firms within the international business environment. Social, cultural and environmental
issues affect the business of the company in various manners in terms of profit, productivity and
others. CSR and CSR activities are also create impact on leadership in modern organisation.
With the effective leadership, the leader can mange all the impact of social, cultural and other
factors responsibly, sustainably and ethically.
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REFERENCES
Books & Journals
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Phillips-Wren and et. al. 2015. Business Analytics in the Context of Big Data: A Roadmap for
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Herrmann, N. and Herrmann-Nehdi, A., 2015. The Whole Brain business book: Unlocking the
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Schniederjans, M. J., Schniederjans, A. M. and Schniederjans, D. G., 2015. Outsourcing and
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Prajogo, D. I., 2016. The strategic fit between innovation strategies and business environment in
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pp.241-249.
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