Strategic Management Analysis of Burberry: Issues and Concepts

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This strategic management report focuses on Burberry, a luxury fashion and retail company, analyzing key strategic business issues and decisions within its organizational setting. It evaluates the role of stakeholders, organizational structure, and processes in shaping Burberry's strategy, emphasizing the importance of stakeholder expectations and effective communication. The report applies strategic management concepts and principles to Burberry's context, addressing challenges like lack of alignment, inability to track progress, and uncertain outcomes of strategic plans. It further explores the significance of stakeholder engagement, customer relationship management, and clear strategic planning for Burberry's success. The report highlights the need for Burberry to adapt to external factors like Brexit and internal issues like employee performance, advocating for strategic decisions that foster competitive advantage and long-term organizational health. Desklib provides access to this and other solved assignments for students.
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Strategic Management
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Table of Contents
MIAN BODY...................................................................................................................................3
Task 1...............................................................................................................................................3
Critically evaluate about strategic business issue –explain why it is strategic; contextualised
within the organisational setting.............................................................................................3
Task 2..............................................................................................................................................6
Evaluate about the role of stakeholders, structure and process and how stakeholder
expectation shape strategy.....................................................................................................6
Task 3..............................................................................................................................................9
Illustrate and apply appropriate concept and principles of strategic management in an
organisation context................................................................................................................9
CONCLUSION................................................................................................................................1
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INTRODUCTION
Strategic Management is the constant ongoing planning, directing, monitoring, analysis
and assessment to enhance for access necessities which organisation. It fulfil their needs to meet
their goals and objectives. Change in business environment will require organisation to
constantly assess their strategic and success (Abutabenjeh, 2021). As Strategic management
provides overall function plan or polices designed to accomplish objectives and then allocating
resources to implement the plans, ultimately strategic management is for organisation that helps
to gain a better competitive advantages from competitors.
As per the following report, the organisation is considered Burberry company which is
luxury fashion as well as retail business venture where the headquarter in London, United
kingdom. They mainly design and distributes ready to wear including trench coats, leather goods,
footwear, fashion accessories, eye fragrances and cosmetics. In this report the topic is character
tics of strategic decision that explain what is meant through strategy within better management
system. Evaluate about the role of organisation stakeholder, structure which elaborates about
how stakeholder expectation to shape strategy. Better assess about appropriate effective concept
and principles of strategic management is an organisation context (Adizov , 2020). Thus overall
staretgic management report is based on Burberry company that mainly operates rerail and
fashion industry in which different types of strategic evaluation would be exists.
MIAN BODY
Task 1
Critically evaluate about strategic business issue –explain why it is strategic; contextualised
within the organisational setting.
Overveiw of Strategic management in business.:
Strategic management involves about the formulation ad implementation of the major
changes that enhance to accomplish goals and initattives to taken by organisation. As the
role of strategy formed by manager where they a examine different type of strategy to
bring new innovation and attain their objectives in successful manner. The decision and
goals are undertaken by manager in behalf of stakeholder that based on consideration of
resources and an assessment of internal and external environment in which organisation
operates within different manner. By implementing better strategic management it provides
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overall positive guidance to organisation in which it also includes organisation specific
goals and then allotment of resource to execute the plan. In perspective of Burberry
company, as it is fashion as well as retail business their manager also implement strategy
management practises for better positive outcomes (Agarwal and Sambamurthy., 2020). by
consider overall decision making consider in behalf of stakeholder who are Customer,
Staff, Government, Suppliers etc. it is important to having strategic management as it
development decision making power and allows different types of opportunities to explore
in business.
There are some strategic business issues which bring challenges to business in which
business could not get optimum outcomes for succeed. A Strategic issue first of all issues
which unsolved question needing a decision or waiting for some clarifying as per future
events. Second, it is strategic and has a major impact on the course of and direction in
which business follows that as per situation according. External strategic: this issues arise
due to the factor which not in control. For example: polices and norms which formulated
by government which can be changes and organisation need to follows weather it in favour
or against. Similarly in United Kingdom Brexit laws is one of situation through which
entire bsiennss segment of UK based companies need to abide Brexit laws. As context of
Burberry plc it is also based in United Kingdom and Brexit enhance decease in growth to
their business growth, because it is not allows trade in European Union.
Internal issues strategic: These issues are those which organisation use to faces where
their client are global technology company that struggles to scale to better deliver against
revenue and growth (Ateba and Prinsloo., 2019). That’s an internal strategic issues where
internal strategic issues are create big problem which direct influence impact over. For
example: An organisation usually faces lack of productivity in terms of employee
performance through better technology company which is struggled to scale measure the
company. As by consider Burberry company in this their employee performance may
decrease through lack of leadership, guidance and training. Some how manager or leader
of business need to form a strategic to address concerned issue which they are facing in
current situation where these are known as strategic decision.
Strategic Decision:
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A Strategic decision are those decision that are concerned within whole
environment in which firm better operates, this entire resources and the people who form
company and interference between two objectives. The major focus of strategic decision is
to provide a competitive advantage and try to change the overall scope as well as direction
of company Barbosa, M., Castañeda-Ayarza, J.A. and Ferreira, D.H.L., 2020). They are
important for an organisational health as well as survival. This is been refer as strategic
because it provide proper way of outcomes planning, alternatives and other resources
which help to gain success in complex situation to company. There are some strategic
decision characteristics which help to Burberry business to grow their sales volume
strategic decision.
Strategic Decision have major resource proposition for an organisation. These decision
ay have concerned with processing through new resources organising better other
recollected resources.
Strategic decision makes deal with better organizational resources capabilities with
threats and opportunities for mapping further competitive advantages attained within
proper manner.
It also deals with various range of organisational activities, as it all about what they
want through from organisation.
Strategic decision majorly involves the change of important aspect that serve the
environment which organisation operates from longer period of time.
As the overall strategic decision is undertaken through top level of management which
are uncertain where they deal with future and involve a lot of risk.
Strategic decision are different form of administrative and operational decision. As
Administration decision are routine decision which help or rather facilitate better
strategic decision or operational decision (Bogers, and Teece, 2019). Operational
decision are technical decision which help execution for productive strategic decision.
This would reduce the cost which having better strategic decision of reducing the
number of employees.
Issues in strategic implication on Burberry company perspective.
Lack of Alignment: In the situation of goal setting team and potential employees can
challenge within lack of alignment that typically causes prioritization issues with having
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better collaboration conflict with having that day to day accomplishing goals. Burberry
company team could face biggest drawback on strategic misalignment on that people
would use to doing and their objective is having priority as they are routine within easily
attained objectives.
Inability to track progress: As many of organisation are still using spreadsheets to
measure objectives. This can be work between a manager and employee. But if there is
disengagement in manager and employees then it could crate barrier to tracking
performance progress.
Uncertain outcome of Strategic plan: It is not accurate always that whatever manager is
decided to pull off negative outcomes and implies strategy plan but it might not generate
positive outcomes until unless overall structure not perform as per plan accordance.
People are not connected to the strategy: People are in general are like order and routine,
so more likely to focus into operational tactical focus with having efforts to optimise the
result. As in Burberry there could be situation when people will not be agree on certain
strategy at the time of implementing (Drobyazko, Okulich-Kazarin, V.and Marova.,
2019). Manger and leader they need to make convince ro their peers one for it that
whatever the strategy is having professional goals along with personal interest.
Task 2.
Evaluate about the role of stakeholders, structure and process and how stakeholder expectation
shape strategy.
Stakeholder of organisation which is an individual, social group, or pretend who possess an
interest, with legal obligation within moral right or to other concern to undertaking decision. As
key stakeholder are involving in planning which involve those interest in the success of
organisation. This includes employees, union, customer, vendor, shareholder, better regulatory
agencies, owner with better supply chain facilities that depend upon on serving specific
organisation. Some of the steps which follows about role of stakeholder in Burberry company
which help to make strategy shape effectively.
Effective Communicate: This is one of first rule engagement which is all about to
sharing information in purposeful and consistent way. As all the key stakeholder which
is need to know about understand that why organisation is get to exist as well as what
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actual values to provide towards their vendor as well as market. Through better internal
stakeholder as it essential to know about that where is organisation is follow their vision
on which direction. In fact, stakeholder also mapped their investment track for
example: Burberry is one if premium retail and fashion multinational venture then their
stakeholder would also be customer, suppliers, government, etc who constantly invests
their capital for attaining major part of company as well as profitability (Dvorský and et.
al., 2020). It would all happen through better communication level between stakeholder,
if they coordinate and work in compliance oriented manner then it would easier to gain
expectancy outcomes. Stakeholder creates organisation shape structure improvised
through representing the plan as well as also discuss about the contribution have helped
of what choices which they made (Dzwigol, 2020). Through sharing the result on which
different positive outcomes such as performances that get to attained in proper manner.
by making contact with stakeholders to forming visible and messages to mapped
roadmaps that could be posted for organisation to remind people of the people of
importance the company’s mission, vision and strategies
Actively involve stakeholder within in the process: By making involvement of
representatives of stakeholder group in discussion for better strategic planning to the
greatest extend to possible. There is no limit to great extend for effective planning
towards review sessions as many as key stakeholder. On the basis of department
meeting as an opportunity to solicit inputs on the plan and the results. To helping
employees understand through better differences as in strategic initiatives on long term
perspectives. If there is greater understanding between stakeholders then it leads
towards great ownership. By sharing of message in continuous manner that could
generate different sources of ideas and also provide feedback that how that specific idea
generate new opportunity.
Must have clarity about strategic plan: As it is one of most valuable aspect that
creates proper planning process itself which helps build the ownership with the
organisation. To mentioned about directly involved process as however make sure that
they know what exact plan is that contribute to its goals (Ivanova, Holionko and
Yakymchuk., 2019). Through give them to discuss and making efficient channelising it.
The role of employees is to understand the plan which designed by stakeholder. If the
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employees not properly understand the plan as what is actually describing then it would
be difficult to understand about the plan which having remaining engaging and moving
towards in desired direction. To develop measure of their work that shows them about
how which it contributing to generate desired outcomes within effective manner.
Customer relationship management: It is also comes under stakeholder work
engagement in which they have to maintain better relationship with their client and
customer for longer period of time. In perspective of Burberry company, if the long term
customer are late with their payments because as they are struggling and also eliminate
interest through charges on work out payment plan. This will customised around cash
flow projections but it further may help to maintain valuable customer. Many
organisation use their customer relationship management on which data driven business
marketing process. Through this process company are use to collect data on customer
and targeted to more important customer.
Try to retained employees: Businesses must also make employee recruitment and
having retention a focus of their better business operation. To treating employees and
making valued assets, promoting a nondormitory work environment and actively
involving employees in important decision through an examples about how these
stakeholder influence the business (Ketchen Jr and Craighead., 2020.). As Burberry
company also enhance their potential employees to retained by providing them rewards,
bonus, proper appraisal etc.
Investor and Partners: People use to lend the money or afford the business through
balance the desire to spend profit for better improve better business with brand.
Obligation to share with profits enhance investors. As investors pays money on time
accordance but partners situation profit and loses need to bear equally manner. through
investor on make more demand as well as profit sharing in equal for effective operate.
Impact of Strategic Decision on Competitive performance:
On the basis of above part there are some issues which is been shared regarding with
strategic implementation which having impact on competitive performances. As in perspective of
Burberry company there is possibility of uncertain and certain outcomes generates strategies
from the top level management. Lack of coordination., people not engage with strategy,
uncertainty these are some of factor which create issues in strategy implementation as well as it
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impact on competitive performance of Burberry company. If the employees are not satisfy with
the strategy then it would difficult for manager to coordinate among with employees as because
many of negative factor could causes unproductivity and decrease the growth of company in
competitive market place.
Task 3.
Illustrate and apply appropriate concept and principles of strategic management in an
organisation context.
Strategic principles is defined about the memorable and actionable phrase that having
company which they implement strategy of company’s which help to communicate throughout
the organisation (Nekhaychuk, Kotelevskaya and Trofimova,., 2019). On the basis of motive
about strategy management principles that created through having planning better company to
maintain strategy focus to gain better competitive advantages. In following there are some
principles which implemented tin strategy management in perspective of Burberry company:
Focus on the most important aspects: To setting up priorities which is an important
step in accomplishing through better strategic objectives because of main priority that
generates positive way of outcomes. In perspective of Burberry company their
employees and manager need to focus on specific objective which teht need to
accomplish in better time period.
Better channelising mission and vision: To bearing highly successful organisation
which have “north and star to build strategy around. This helps to gain people energise
or motivate to making them understand some senses of purpose or motive. After that it
help to having better clarity which govern the enterprise.
Corresponding measures or indicators used to monitor progress: To major defining
the clear goals alone is not enough to ensure where long term sustained success. This is
essential that leaders which are specific which about to measure of effectiveness to track
progress as well as opportunity.
A unique value proposition: Strategic organisation which are keenly aware about how
to access or add to contribute within better economic success of major important key
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stakeholder and customers. Organisation used to create last bond with customer by
provide fulfilment of requirement within better manner.
Differentiate with business stand out within market: As to having differentiate idea
or strategy get everyone associated through business practises such as suppliers,
competitors and customer which need to aware about strategy. The strategy is having
differentiate reduces the perception. The business product and services is having better
commodity which effectively requires that compete to cost alone. This makes is more
challenging to accomplish superior return on investment.
Awareness about opportunities and threats within external environment business
environment: Business usually operates within dynamic and changing world.
Organisation that recognise and adapt to the challenges as well as to mapped for
opportunities that will be better acquired to attain enough competitive advantages.
Enables Effective strategy: A good strategy requires than good tools concept and
skills, the heart of good strategy which is having better conversation (Srai and Lorentz.,
2019). Strategy is process of leader as well as manager where they examine situation on
the basis of modification is needed to be added different manner.
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CONCLUSION
From above report of Strategy management is summarised about overall topic of about
briefing strategy management which support and guide about to attain organisation business
goals. Apart from it, discussing about issues and characteristics of implementing strategy at the
time of brining some new innovation that enhance to attain positive outcomes. Impact of strategy
decision making in organisation would effect the competitive performance in terms of lack of
productivity, alignment, employees not feels engage with strategy planning. Different principles
of strategy management which help to generate better business outcomes within effective
manner.
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RECOMMENDATION
As per discussing of issues related with strategic management in Burberry company
context where many organisation also face similar issues that are like face of lack in
productivity, alignment and not having engagement with other management activities. As the
recommend to Burberry company is that people need to make their own strategy that enhance to
their positive as well as negative outcomes.
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