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Academic Models and Literature of Burberry Group Plc.

University: UK College of Business and Computing

  • Unit No: 9
  • Level: Undergraduate/College
  • Pages: 7 / Words 1672
  • Paper Type: Assignment
  • Course Code: M/508/0494
  • Downloads: 418
Question :

The purpose of this report is to evaluate particular issue, financial operations, organisational functions and set of circumstances related to performance of a business. These kind of practices assist in determining organisation’s strategic practices for attaining target objectives and goals.

  • Discuss research relevant academic models and literature in the context of Burberry Group plc.
  • Evaluate several things that Burberry Group needs to consider to enhance growth opportunities.
Answer :
Organization Selected : Burberry Group Plc.


A business report can be described as a document that provides data and a set of record, that are valuable to gain essential information and make sound decisions in order to run a successful organisation (Manyika,and et.al., 2013).  It is helpful to share desired information to shareholders, executive staffs, board of directors or clients. These reports can be formal or informal which are written and submitted in a routine as they are useful for making an accurate decisions in future of conduct required activities for attaining better outcomes through running a business properly. This report is based on Burberry Group Plc which is commonly known as British Luxury Fashion house which is headquartered in in London, England. It was founded by Thomas Burberry almost 162 years ago in 1856. this companion put efforts to provide several products which are considered as its main goods such as clothing, accessories, perfumes and cosmetics. It was dealing at global level in terms of coverings around 498 locations worldwide. There are various kinds of targets and goals set by the enterprise to complete them in appropriate manner through attaining desired outcomes. Mission of Burberry Group Plc is all about to conduct required procedures to provide an accurate product to client as per their needs, wants, demands, taste and preferences for achieving their satisfaction. They put their efforts to improve quality of their goods or services through increasing efficiencies of strategies or policies to perform to gaining more better outputs. The prospective mission of this firm is to improve brand image in market through increasing effectiveness and efficiency  by making an appropriate decision (Collis and Hussey2013). They want to maintain strong goodwill in marketplace in front of different competitors to grab more market share. It is mandatory for them to distinguish themselves as brand from other and perceive like an icon which reflects luxury and standard. Vision of Burberry Group Plc is all about to focus on innovation to introduce new concepts of providing creative and attractive goods to satisfy consumers in more effective way. They have long history of exploration to feel proud that involves innovative and desires to improve qualities or products manufactured from heart of work. This company has concentrate on increasing features of goods through maintaining the greatest standards of their product in accurate way to gain better profits. The brand of company is defined by their principles of boosting up quality, functions of production and modern classic style (Charles Jr, Schmidheiny and Watts,2017). They has unique strategics or policies in simple way to adopt and control new innovative technologies to attain profits. An important factor which is concentrated by Burberry is about enter or participate in those markets in which they can gain better profits share effectively. This assignment will discussed about comparative analysis of the company's competitive position in various types of markets in which it deals to earn desired profits (Broda, Oracle International Corp, 2013). It includes to observe, analyse and evaluate several risks and opportunities to expand business at global level on other nations such as Japan and China for making future decision properly. There are different types of issues which are faced by firms while trading across the borders and necessary to consider them as an important aspect to solve is discussed below.

TASK1 : Research relevant academic models and literature

A: Comparative Analysis of the Company's Competitive position in its various markets

Burberry is the company target customers who want luxury while being functional. They want to create image of accessible luxury. Although, market positioning of Burberry is unique and it varies because of trendy targets as well as classic customers. Common theme is using by same company for targeting their customer is “functional luxury”. There are several competitors of given brand such as Armani, Gucci, Polo, Coach and several other. These all are top fashion company of United Kingdom and doing business at global level. Burberry expand their brand in several countries for high volume of profit (Klapper,Lewin and Delgado,2011). Brand extension is also named as brand stretching, leverages as well popularity of company for increasing demand of new goods. This done for the organisation who is already well known by everyone in several other countries. It is important for growing business and market share in numerous places. The term brand extension can be described as market strategy in which various kinds of marketing of product should be done in more effective as well as efficient manner with mane of same brand name. This technique can be considered as an appropriate policy to promote brand in context of different product category. It is helpful to improve the brand equity along with make people more aware about particular brand or company in respect of motivate them to become regular client as well. Burberry Group plc can implement this technique to increase their brand image in front of competitive organisations which facilitate to earn better profits in accurate way.

When organisation do this then their will be several benefits to them this can be possible in the situation only when enterprise have loyal customers in present market (Shaheen, and et.al., 2014).

Global Expansion – Burberry is the brand which is serving their products in several countries but still they are doing expansion. Currently they are thinking  about high growth market of India and Brazil (Sharda, Delen and Turban,2013). Total revenue for six months in the end of September risen by 8% £883m. While given firm underlying profit rose, £111.9m from £158.7m a year before. Respective organisation diversify its goods range away from outerwear and introduce their new stores in Hong Kong, Rome, Milan and London. Men's accessories range grown up-to 40% in 6 months at the end of September.

Company's competitive position in various market place in given below:-

China expansion – when brand expansion take place in Chain its sale increase by 30 per cent. They control 50 stores from their Chinese franchise partners and opening of these stores digitally enhanced flagship stores in Beijing (Lewis and Dart, 2014). As per current information this organisation have its 53 shops in China and they want to be 100 in next five years. While expansion take place in this country it increase sale by 10 per cent this done with not any other market (Lea-Green and wood, 2013). Because of online stores its sales increase with the help of iPads, mobile Apps and several other things people are purchasing various clothes and fashion accessories as per the current market trends (Besley,2015). Burberry is dealing in Wholesale market also in which brand is sold through third party whose revenue raise up by 15 per cent (Purcell, 2014). With the expanding business in the same nation enterprise gain several competitive advantages.

Japanese Expansion – When Burberry get better financial results with expansion then they think for expanding in Japan also for achieving growth. Respective firm become one of the most recognisable brand of Britain's in market at global level. At the end of March revenue increase by 17 per cent to its total of £2.33 billion. Apart from this, retail sale increase by 15 per cent as well making up 70 per cent of the total profit (Hair Jr and et.al., 2015). Burberry says that continuing efforts to incorporate its digital and physical existence have played an crucial role in its success, as has the judgement to combine its beauty business rather then working on a licensing basis. Brand expansion take place in the same company then it became second largest luxury brand market in the world.

Brand expansion in both the country is beneficial of Burberry. It increase their revenue as well sale of particular category products. Instead of this, when they will introduce their stores in Brazil and India then also it directly generate competitive advantage. Because fashion industry have several companies and they all are competitors of each other.

BCG matrix – This model is developed by Bruce Henderson in 1970. it says that organisation  business unit is divided in four categories which are based on combination of market growth and share related to largest competitors (Olson, Avaya Inc, 2014). Thus, its name is Growth – share. Entire framework assume that when market share increase it will result in generating more and more cash. Its four quadrants is explained below:-

  • Dogs – products come under Dogs are with low growth and market share.
  • Question marks or problem Child – Goods have high growth and low market share.
  • Stars -  High growth market with high market share (Macaulay,2018).
  • Cash Cows – Low growth market with high market share.

These four are totally depend on market growth and share of particular products offering by Burberry at global level (Source: Hanlon, A, 2018)

Use of BCG matrix in companyThis shows portfolio of products and services offering by the Burberry Group Plc. It is suitable for Burberry because it is large business which is supplying variety of products at worldwide (Newman and et.al., 2017). In the situation when market is small it help in easy boosting sales. All the four major pints are given below:-

Dog Products -  In this situation products are taken in such a way to market that their will be no low market growth.

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