...BURBERRY’S MOVE TO CHINA THE CASE STUDY STUDENT NUMBER: 1017357 INTERNATIONAL BUSINESS ENVIRONMENT STUDENT NAME: OVIE G. AKPOVWA TUTOR; Dr SAMAR BADDAR SHR027-6 WORD COUNT: 2,498 SUBMITTED: 12th May 2011 EXECUTIVE SUMMARY In this report, focus on the issues facing Burberry movement to china will be discussed. Burberry is a luxurious British brand trying to move from Wales in Britain to China in order to reduce cost of production of their product. This report was done in stages, the first a PESTLE analysis was conducted on China. The analysis consisted of the political environment of china; the economic condition of china was also reviewed, technological development, social values, legal and ecological factors that might affect the Chinese market were also discussed. Secondly, SWOT analysis of the Chinese market was conducted, while the advantages and disadvantages of moving to china were given. However, in the conclusion given, Burberry was advised to move to china because it will definitely reduce cost of production and it will give them opportunity to gain from china’s big market size. Thirdly, this report discussed the best HR policies that the company can used to meet the demand of...
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...The political situation in china is such that there was existed communism where the administration activities control over everything (Shafiq, 2008). There is an outlook that anybody working in china work for the country and the legislature of china. The legislature in China has given a board approach to the extravagance merchandise industry. (Ban, 2011). Since the legislature in china is abusive, there could be a ton of distress in china and this can act like one of the dangers for Burberry to work in china. It might be contended that part of strength in china is because of the way that the subjects don't have any contribution in government's say (Bloom, 2011). In the meantime there is modern and business development in china because of modest work (Ditmanson, 2011). It may be troublesome for Burberry to enter into Chinese market on the grounds that the legislature forces strict regulations for organizations from different nations (Reny, 2011). Remote subsidized endeavours will appreciate the same expense strategy as the Chinese local ventures. The Chinese government seeks after a procedure of opening up in outside speculation, and treats remote financed ventures and local endeavours similarly without segregation. Additionally the extravagance merchandise industry has made a commitment for the advancement of monetary improvement. In China, so as to draw in remote financing and push financial advancement, the levy lawful framework gives different types of duty ...
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...STRATEGY Brand and Business From its founding in 1856 when Thomas Burberry constructed his first outerwear garments for the sportsmen of Basingstoke, England, Burberry has become a leading luxury brand with a global business. The Burberry brand is defined by its: • • • • Authentic British heritage Unique democratic positioning within the luxury arena Founding principles of quality, function and modern classic style, rooted in the integrity of its outerwear Globally recognised icon portfolio: the trench coat, trademark check and Prorsum horse logo The Group management and their teams are challenged with the responsibility of maintaining the integrity and vitality of this extraordinary brand while continuing to develop a business which remains relevant to ever-evolving markets and consumer tastes. The following pages outline Burberry’s strategy under each of its five key strategic themes. Our strategic themes Leveraging the franchise Intensifying non-apparel development Accelerating retail-led growth Investing in under-penetrated markets Pursuing operational excellence Today, the business built upon this brand is distinguished by: • Multi-category competency: womenswear, menswear, non-apparel and childrenswear – with innovative outerwear as the foundation Channel expertise in retail (including e-commerce), wholesale and licensing Global reach: operations in markets throughout the world, with a balance across major geographic regions A unified, passionate and seasoned...
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...Burberry ____________________________________________________________ __ By Satish S. Kamble (Student ID no.1033395) Submitted a report of (Course No.-SHR027-6) “International Business Environment”. On May 11, 2011. …………………………………… Particulars Page A. Executive summery ............. 1 B. Contents 1 – Introduction ............. 2 2 – Main body A- PESTE analysis of China ............. 3 B- Opportunities and threats of China ............ 5 C- HR issues and challenges of China and Wales ............. 5 I-HR issues of China ……… 5 II-HR Challenges of China ………. 8 III-HR issues of Wales ……….. 8 IV-HR Challenges of Wales ………… 9 3 – Recommendations ............. 10 4 - Action plane a. For Home Country (England) ...
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...grow in previously under-penetrated markets. By applying a lot of focus in this area, the company would be able to optimise on the lack of existing focus in the countries, and make a name for themselves worldwide. Burberry have already positioned themselves to be able to do such a thing in China with the acquisition of the Burberry business in China. For about £65m, the Group acquired 50 stores across 30 cities, which had previously been operated by its Hong Kong based franchisee. This acquisition gives the Group control of the Burberry brand in the fastest-growing luxury market in the world. Ten new stores have already been opened since the acquisition, including the brand’s most digitally-advanced flagship in the world in Beijing. Merchandising and inventory initiatives have successfully driven productivity in existing stores, with comparative store sales up about 30% in the second half of the year. By continuing with this focus in China specifically, where they have already had signs of success and growth, the company would be able to build on their brand name and attract new markets throughout China, and also the rest of the Far East as China tends to be a trend setter in that part of the world. This strategy would be a relatively low risk one for Burberry, as they already have the foundations there that are showing success and so, with use of good market research to find out specific locations, this could be a very successful strategy. Following on from this strategy...
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...STRATEGY Brand and Business From its founding in 1856 when Thomas Burberry constructed his first outerwear garments for the sportsmen of Basingstoke, England, Burberry has become a leading luxury brand with a global business. The Burberry brand is defined by its: • • • • Authentic British heritage Unique democratic positioning within the luxury arena Founding principles of quality, function and modern classic style, rooted in the integrity of its outerwear Globally recognised icon portfolio: the trench coat, trademark check and Prorsum horse logo The Group management and their teams are challenged with the responsibility of maintaining the integrity and vitality of this extraordinary brand while continuing to develop a business which remains relevant to ever-evolving markets and consumer tastes. The following pages outline Burberry’s strategy under each of its five key strategic themes. Our strategic themes Leveraging the franchise Intensifying non-apparel development Accelerating retail-led growth Investing in under-penetrated markets Pursuing operational excellence Today, the business built upon this brand is distinguished by: • Multi-category competency: womenswear, menswear, non-apparel and childrenswear – with innovative outerwear as the foundation Channel expertise in retail (including e-commerce), wholesale and licensing Global reach: operations in markets throughout the world, with a balance across major geographic regions A unified, passionate and seasoned...
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...Type: public company Traded as LSE:BRBY Industry: Fashion Founded: 1856 in Basingstoke, England Founders: Thomas Burberry Headquarters: London, England No. Of locations: 497 Area served: worldwide Key people | * John Peace (Chairman) * Christopher Bailey (CEO * and Chief Creative Officer) | Products | * Clothing Accessories Perfumes Cosmetics | Revenue | £ 2,330 million[1] | Operating income | £ 461 million[1] | Net income | £ 332.3 million[1] | Employees | 10,600[1] | Website | www.burberry.com | Brands Burberry operates under three brands: (2014)[1] * Burberry Prorsum – The most fashion forward collection, centred around runway shows, providing the design inspiration for the brand * Burberry London – The tailored collection, typically what a customer wears on weekdays for work Burberry Brit – The most casual collection, typically worn on weekends http://adjmi95.blogspot.co.uk/2013/09/chapter-4-marketing-environment.html http://www.slideshare.net/MadhuMalesh/strategies-at-burberry http://www.studymode.com/essays/Burberry-Strategic-Analysis-650914.html Content Abstract I. Introduction II. Burberry macro business environment a. Macro environmentPEST Customers III. The current market IV. Targeting &competitors Competitors V. Competitors VI. Porter 5 forces Company VII. Segmentation strategy VIII. Positioning strategy IX. Marketing mix 4Ps X. SWOT XI. Conclusion and recommendations...
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...1.0 Introduction Burberry was founded in 1856 by Thomas Burberry，which is England's luxury brand. Burberry’s classic plaid (Figure 1) and the prorsum knight icon (Figure 2) are Burberry’s symbol. Burberry’s continuity product - trench coat (Figure 3) has a long Product Life Cycle and seasonal products are mainly reflecting the season's popular style trends (Moore & Birtwistle, 2004). Burberry products are divided into three categories, which are Burberry Prorsum, Burberry London, Thomas Burberry and Burberry blue and black label (Figure 4). Burberry gained customer loyalty and target profits through the use of different price range to meet its consumers’ needs. 2.0 Success of Burberry Burberry can be said to be successful by their outstanding financial performance. Burberry’s annual review 2012-2013 (2013) states that Burberry has opened 25 new stores from 2012 to 2013, 19 stores out of 25 were in emerging markets such as Hong Kong. The revenue has decreased by 15%. However, the retail and wholesale gross profit margin and net profit margin has increased to 70.6% and 17.8% respectively, which shows persistent improvements over the past 5 years (Figure 5). 3.0 Marketing Strategy Phan et al (2011) showed that Digital Marketing is Burberry’s core marketing strategy, which involves the interactive publicity, digital interactive fashion shows. Burberry used 60% of its marketing budgets on digital technology and started digital marketing since 2009. The photo-sharing site...
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...Annual report 2010/11 burberry An iconic british luxury brand established in 1856 leverages its rich heritage, proven strategies and talented team to assure sustainable, profitable growth on a global scale Contents 4 8 12 18 22 28 44 54 58 66 68 71 76 86 87 88 89 90 91 92 93 Financial highlights Chairman’s letter Chief Executive Officer’s letter Executive team Burberry Group overview Strategy Business and financial review Risk Corporate responsibility Board of Directors Directors’ Report Corporate governance Directors’ Remuneration Report Statement of directors’ responsibilities Independent auditors’ report to the members of Burberry Group plc Group income statement Group statement of comprehensive income Group balance sheet Group statement of changes in equity Group statement of cash flows Notes to the financial statements 133 Five year summary 135 Independent auditors’ report to the members of Burberry Group plc 136 Company balance sheet 137 Notes to the Company financial statements 141 Shareholder information 143 Executive team 1 FINANCIAL HIGHLIGHTS DELIVERING RECORD PROFITS Total revenue (Year to March) £1,501m 11 10 10* 09 08 07 0 1501 1,501 1,185 1,280 1,202 995 850 Retail revenue (Year to March) £962m 11 10 10* 09 08 07 0 962 962 710 749 630 484 410 Wholesale revenue (Year to March) £441m 11 10 10* 09 08 07 0 489 441 377 434 489 426 354 Revenue by channel in 2010/11 Retail 64% Wholesale 29% Licensing 7% ...
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...BU5003 International Business operation Tutor Dr Neil Moore Assessment number G35691 Number of words 2015 Date 14/11/2012 Essay topic: “The decision to develop and grow business operations can be a daunting prospect for any galvanization. In particular, the decision to expand into overseas markets generates a broad range of challenges and issues. Using contemporary examples and concepts considered in this module discuss the challenges and issues faced by business organizations as they decide whether or not to internationalize their operations.” As a company expands, it begins to get itself involved in marketing programs that may not have been part of the original business plan. Businesses evolve, and plan change and a company may begin to realize that it needs to get involved in international markets. Obviously, it has a lot of benefits when a company enters into a foreign market. Expanding sales, acquiring resources and minimizing risk are the three principal operating objectives that why companies engage in international business. Normally, these three objectives guide all decisions about whether, where and how to engage to be international business. So in order to seek high sales and profits, gain global market share and reduce dependence on existing markets, it is inevitable for any companies to go abroad. However, it also generates enormous number of challenges and issues...
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...evaluated through PEST analysis. PEST analysis of Burberry to evaluate strategic capabilities: The PEST analysis looks into the Burberry’s exposure to Political, Economical, Social and Technological factors, which may affect its strategy formulation capabilities. The following factors may be considered in this regard (Wetfeet, 2008): Political: (Kluyver, 2010) The Group operates in many countries including the emerging markets. These countries subject to changes in laws and regulations, including accounting standards, taxation, (tax rates, new and tax laws) and environmental laws in domestic or foreign jurisdictions particularly in times when public sector debt is high and tax revenues are falling. Burberry faces intense competition from developing countries due to cheap copies of his brand where no copyright law exist. Political conditions like civil unrest, unstable governments historically and have been subject to political instability and restrictions on the ability to transfer capital across borders.Ability to penetrate developing and emerging countries, which also depends on economic and political conditions, and how well they are able to acquire or form strategic business alliances with local fashion trends and make necessary changes which also affects the luxury brand of Burberry The Burberry has strong luxury brand, which is only feasible in some geographic environments and demographics. Economical: (Griffin, 2006) The global economic downturn affected the...
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...Burberry square by Diane O'Brien June 16, 2003 Even if you don’t recognize the Burberry name, chances are you’re familiar with the company’s signature plaid. The trademark red, camel, black and white checked pattern adorns everything from scarves to coats to umbrellas. If you happen to view one of these items while still on a store shelf, you can count on it having a shockingly high price tag attached. | | | | | This London-based brand dates back to 1856 when it was founded by Thomas Burberry. Now known more for its style, early attention focused more on function -- Burberry invented gabardine, a durable, breathable and waterproof fabric. Ernest Shackleton was even outfitted in Burberry during his 1914 expedition across Antarctica. Several decades later the famous check was introduced (1924), and shortly thereafter, trademarked. (Someone obviously had a keen understanding of the counterfeit value in the signature look.) Burberry’s rabidly vigilant copyright department is still thriving to this day (see threatening trademark section at Burberry.com). The small UK brand didn't cross the pond until the 1970s when it opened a flagship store in the appropriately posh location of the Upper East Side of Manhattan. At this point the narrow product line expanded from coats to scarves, umbrellas and luggage. Despite worldwide reach (stores in upscale locales only), by the 1990s the brand started to look like your grandmother’s pocketbook. Burberry turned to Rosemary...
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...with as little disruption as possible. In this essay, British traditional brand Burberry and well-known bargain clothing retailer Primark are the objectives. The triggers of their changes, means they used to change, how their employees reacted, and suggestions about how can the managers implement changes more effectively will be discussed. There is a common triggers for them to change which will be discussed first. For both of them, they are facing the problems of increasing costs. Burberry use to manufacture products in Britain, but along with the higher costs and the boosting demand in China, Burberry was planning to move the factory to China and so they can produce goods at a much lower cost. In 2007, Burberry decided to close down the factory in South Wales which leaded to over 300 job losses. The employees reacted fiercely, there was high-profile protest and they arouse the awareness from the English society saying 'Keep Burberry British'. The management tried comfort the employees, Burberry's chief financial officer Stacey Carwright said, "The most important thing now is to look after the employees ". Burberry pointed out that the remaining plants e.g. in Yorkshire, will offer jobs to those who lose jobs in South Wales. Burberry tried to show that they cared about employees' interests and they would not abandon the staff, nor be an irresponsible employer. (Burberry.com, N.D). Unlike Burberry, Primark always tries to minimise the cost as much as possible, so when the...
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...INDUSTRY REVIEW REPORT SUBMITTED IN PARTIAL FULLFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREEOF BACHELORS OF BUSINESS ADMINISTRATION BY: T. Samuel (1211643) Yash Singh Dabi (1211646) Aakriti Tyagi (1211647) UNDER THE GUIDANCE OF Prof. Nagendra Nayak Department of Management Studies CHRIST UNIVERSITY BANGALORE 2013 DECLARATION We, T.Samuel Pongen, Yash Singh Dabi and Aakriti Tyagi hereby declare that the industry review report on the performance of the FASHION INDUSTRY with specific reference to Chanel, Tommy Hilfiger and Burberry submitted to Christ University, in partial fulfilment of the requirements for the award of the Degree of Bachelor of Business Administration is a record of original and independent research work done by us during 2011 – 2012 under the supervision and guidance of Prof. Nagendra Nayak Department of Management Studies and it has not formed the basis for the award of any Degree/ Diploma/ Associate ship/ Fellowship or other similar title of recognition to any candidate of any University. DATE: FEBRAUARY 2013. COMPILED BY: T.Samuel Pongen (1211643) Yash Singh Dabi (1211646) Aakriti Tyagi (1211647) Acknowledgement We would like to express our profound gratitude to all those who have been instrumental in the preparation of this Entrepreneurship Development Report. We wish to place on records, our deep gratitude to our project guide, Prof. Nagendra Nayak, for guiding us through this project with...
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...BURBERRY AUDIT Company overview Burberry Group (Burberry) is engaged in the designing, sourcing, manufacturing and distributing luxury womenswear, menswear, non-apparel and children swear through a association of retail, wholesale and licensing channels global. (marketline, 2014) McDonald defines Marketing audit is a systematic, critical and unbiased review and evaluation of all the external and internal factors that have affected an organization’s commercial performance over a defined period.(2008,pg.39) Mission Statement The mission of Burberry is to meet customers’ needs and tastes by continuously providing high quality and fashionable products. In addition, the vision is to be the first company to be fully digital and partnering with sales force to build the social enterprise for customers to have full access to Burberry across to any device. (Burberry, 2014 online) Marketing Innovation Extended luxury leadership position in social media and improved Burberry site online. In addition transformation of fashion shows in many countries. Competitor Analysis Competitor Market Strategy Tarket market Strength Weakness Ralph Lauren Magazines,Lower pricing Middle& upper segment, youth Multiplex brand Lack of first rate design Gucci Limited quantity, endorsement, expensive Middle &upper class, hip Established brand image & international presence Instability in management &fashion base Prada Exclusivity, product differentiation, pioneers Middle & upper segment, fashion...
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