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Internal & External Analysis of The Environment of Burberry

University: University of Manchester

  • Unit No: 1
  • Level: Post Graduate/University
  • Pages: 21 / Words 5193
  • Paper Type: Assignment
  • Course Code: L/508/0485
  • Downloads: 35
Question :

This assessment will cover following questions:

  • Generate the interrelationship of the various functions within an organisation and how they link to organisational structure.
  • Implement contemporary examples to demonstrate both the positive and negative impact the macro environment has on business operations.
  • Burberry Group is a British luxury fashion house. Analyse and explain the different types, size and scope of organisations.
Answer :
Organization Selected : Burberry

INTRODUCTION

Business Environment is sum or collection of all internal and external factors such as employees, customers’ needs and expectations, supply and demand, management, clients, suppliers, owners, activities by government, innovation in technology, social trends, market trends, economic changes, etc. Burberry Group is a British luxury fashion house headquartered in London, England. Its main fashion house focuses on and distributes trench coats, ready-to-wear outerwear, fashion accessories, fragrances, sunglasses, and cosmetics. This report covers issues such as type and purpose of different type of organization, size and scope of different companies, functions of different departments of companies, positive and negative impact of external environment, internal and external analysis of the environment and interrelationship of strength and weakness of the company with the external environment.

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Activity 1

A) Different type and purpose of organization

Public Limited Company-

In order to serve as a public limited company in the market at least 7 members are required with a legal motive which is known as public company (DeConinck, Moss and Deconinck, 2018). These type of companies are allowed to list and trade under stock exchange. People who hold the shares of these type of companies can easily transfer their shares to anyone. These type of companies can take as many members they want as there is no limit. Apart from these type of companies has many type of subsidiaries which is also listed as a public limited company. Company raises money by selling a part of their capital to many people who are known as shareholders of the company. Major decisions for the company can only be taken by the people who are in the list of board members and other shareholders do not have the right to sit at the table for general meetings. They will just have the details and knowledge about the decisions taken by the company

Purpose-

NHS is a public limited company which serves in the sector of healthcare and is publicly funded. The company is situated in England. Purpose of NHS is to provide healthcare services at no cost for the people who cannot afford medical services and need emergency treatment. Their motive is to keep the health of people better. They want to extend their services to general public. Apart from this they are also looking to expand their operations in different areas of the country.

Private limited company-

In order to make a company private 2 members are required so that the company can be registered under the companies act. Not every private company lists their company under the FTSE or stock exchange. Private companies do not have the power to raise money through shares and debentures. Only the members of the company which are listed as owners can buy it. Apart from this they also do not have the power to transfer their shares to other people. Companies operating as private sector can not list more than 200 members. After receiving the certificate of incorporation private companies can begin their operations. In comparison with public limited companies there are less restrictions and rules on private companies.

Purpose-

Burberry wants to be the sole provider for their customers. The company is focusing on improving their experience for their consumers by analyzing the needs and preferences and make changes in their structure according to the current trends in the market (Veselovsky and et.al., 2017).

Voluntary Company-

Companies whose motive is to serve for the welfare, benefit of public and not considering motive of earning profit. They provide help to people who are underprivileged and does not have enough resources to fulfil basic needs. These type of companies have different pattern of working as they raise their capital by inviting those people who are ready to donate a part of their income for the well being of others. Oxfam is one of the most famous and popular company who is dealing in this sector. They commenced their operations in 1942 and they have divided themselves into 20 companies according to particular section and hire the team who were interested to serve in that particular area (Akhmetshin and et.al., 2017). 

Purpose-

Purpose of the company is that they want to help those people who are suffering from poverty and injustice. Aim of the company is to not earn profits and focus on the betterment of society. Oxfam wants to bring peace in the en

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