Introduction
Information and knowledge of management play an important role in the Retail sector. Information and technology knowledge is useful to deliver multiple benefits to the company. Operations and knowledge help to face specific challenges in the retail sector (Menidjel et al. 2020). The information helps to enhance flexibility and marketing speed in the uprising retail industry. Vast knowledge in the retail sector is very effective in improving business processes. Operations and sources of advantages of the current market are discussed in this report.
The work process and management system of Burberry group plc are described in the study. Management and operation workings of the retail company are consulted in the report. The retail industry’s information management and marketing studies are also described in the report. Information structure, the management process, importance and impact of the retail industry are discussed here. Technology, the global market, and information’s influence on the retail industry are widely described here in this report (Jocevski, 2019). The report includes the challenges related to information technology management, the company’s cost-saving benefits, and customer feedback management. Customer data and observation of information, its monitoring, and implementation in the management are discussed in the report.
2. Current operations and source of advantage based on the perception of the chosen organisation
2.1 An illustration of the identified current operations of the organisation
The chosen organisation to move further with this section is a well-known retail store Burberry Group Plc. It is a global fashion retail store headquartered in London. The organisation works in the high fashion market globally. It tends to use its operational activities based on the context of organisational resources (Caro et al. 2020). People such as working members and customers are counted as the prime objectives of this organisation. It is noticed that this organisation is going to evaluate its distribution channels. This is counted as a current operating strategy followed by Burberry Group Plc. It helps in ensuring that products and services are delivered with the help of proper talented employees.
Its working procedure is underpinned by different operational strategies to enable a high amount of self-fund. A total of £105 million is delivered as a part of operational activities (Burberryplc.com, 2022). The commitment of the organisation is going to be maintained to revalue the amount of wastage for further sustainability. Real fur is not used by this organisation to maintain the sustainability of the environment (Burberryplc.com, 2022). It helped in putting a better brand image for Burberry Group Plc in the luxury fashion market of the UK. At the same time, the commitment provided by Burberry Group Plc is being deepened and broadened as well.
On the other hand, one of the major competitors of Burberry Plc., namely Armani Operations have extended their operation based on manufacturing of accessories, apparels, leather goods and home appliances. In addition, another competitor of Burberry, LVMH has built their internal business operations based upon six fundamental pillars. These pillars of LVMH operations have included Organic growth, decentralisation of organisation, implementing vertical integration and creating synergies as well. Based on these six fundamental pillars, the company has operated in manufacturing of handbags, wallets and other luggage essentials. In addition, their IT infrastructure has also been based upon incorporation of Aura Blockchain technology to derive customer feedbacks regarding their products. On the contrary, unlike Burberry’s emphasis upon Lexicon Visual Technology and image-recognition facilities, Armani has made an incredible use of IoT and AI for mitigating their Information technology.
The supply chain system of this organisation is a major part of its operational management system (Gong et al. 2019). The supply chain of this organisation is going to develop community-based factors in the upcoming days. This is designed by this organisation to form a more sustainable future by using aspects known as collaboration and innovation. Another factor that is maintained by the current operation of this organisation is its responsibility towards factors of society and the environment. In addition, it can be stated that this helped the organisation to develop the context of well-being to maintain sustainability. Production is counted as the prime function of its current operating system, and it gives out a huge amount of competitive advantages.
Figure 1: The operational areas of Burberry Group Plc (2015-2019)
(Source: Burberryplc.com, 2022)
Manufacturing facilities are completely owned by this organisation in the high-fashion market of the UK. Simplification is counted as a procedure that helps in gaining a huge amount of advantages for this organisation. Adaptation of a better supply chain procedure is also counted as a current operation maintained by the organisation. The organisation is completely focused on operational excellence to turn the revenue rate. It is going to be supported by the cumulative cost spent by the organisation. The operating synergies are being increased for the successful optimisation of the product flow (Wei et al. 2020). Both agility and flexibility are going to be developed by Burberry Group Plc as a part of organisational excellence.
It is going to change the business environment for the organisation as a part of a positive outcome. Over the years a good progression is made by this organisation that involves areas of the supply chain system. It helped in supporting the new business ambitions of the organisation. New technologies are delivered by this organisation to enhance the customer experience within stores (Ali and Haseeb, 2019). Market-based emissions seem to be reduced since 2016 after the implementation of current operations. 68% of electricity got procured after implementing the current operations in this organisational context (Burberryplc.com, 2022). Another current operation proposed by Burberry Group Plc is to reduce the amount of carbon emission.
The organisation aims to become carbon neutral by reevaluating the rate of the waste. By using different energy sources it is going to become carbon neutral. Facilitated by the forum of the organisation, Burberry Group Plc is going to use new and advanced technologies to become carbon neutral. This is going to enhance the long-term goals of the supply chain system of this organisation. Human rights policy is going to be developed to uphold necessary instances of potential infringement (Akdil et al. 2018). In relation to the current operations, the organisation is trying to increase its revenue from emerging risks.
The current operation of the organisation is trying to stay focused on three specific areas known as career development, well-being, and operational efficiency. Extensive communication is maintained by this organisation to get associated with the sale rate of the entire retail industry (Silva et al. 2019). It helps the organisation to make a transition to create new products. Burberry Group Plc paid £73 million as a part of business taxes (Burberryplc.com, 2022). On the other hand, on behalf of the UK Exchequer Burberry Group Plc collected £32 million as the taxable amount (Burberryplc.com, 2022). The risk framework of this organisation is developed based on the management systems of current operations. The organisation is trying to stay focused on its current operations to develop the concept of key shareholder value [Refer to Appendix 1]
2.2 Advantages of the current operations based on the organisational context
Based on the above discussion it can be stated that the mentioned operations are going to help the organisation to gain a huge amount of competence advantages. It is going to help in the sufficient transformation to undermine the ability of better delivery of products (Caro and Sadr, 2019). Developing environmental standards is one of the anticipated goals of this organisation. It is going to help the organisation to gain a proper competitive edge in the UK market (Teller et al. 2018). Developing health and safety measures is going to put a better brand image for the mentioned organisation in the retail market. Burberry Group Plc does not seek to manage its structural foreign exchange risk factor related to retail operations in the overseas market.
Having a resilient technology is counted as an opportunity based on Burberry Group Plc’s perception. It helps in developing digital strategic pillars and gains competence advantages.
2.3 The interconnection between the current operations of the chosen organisation and competitive advantages
This organisation is trying to gain a competitive advantage because it helps in receiving higher profit margins. It is going to help Burberry Group Plc to frequently attract customers through innovation (Sah and Dadwal, 2018). Brand loyalty can be maintained properly by competitive advantages. The context of predictability can be induced to maintain consistency in the revenue stream of the mentioned organisation. In addition, it also helps in attracting more brand alliances, potential investors and new talents [Refer to Appendix 3]
2.4 Theoretical perspective regarding the above discussion
In this regard, the most accurate theory related to the matter is the business process redesign (BPR) theory. It is mainly a procedure that handling the overall performance of the organisation. It is counted as a key business procedure that helps in achieving the proposed objectives for the organisation. Return on investment (ROI) is counted as one of the main procedures of operational management. It is handled by this theory to maintain the concept of quality of service. Extra cost reduction is done by this and is going to help the organisation to maintain further sustainability (Yu et al. 2018). It is counted as an important theory for the organisation because it helps in increasing the rate of revenue [Refer to Appendix 2]
In addition, the concept of customer service is improved after the implication of this theory. Higher employee retention is also another beneficial factor of this theory. It includes the concept of faster processing time as a beneficiary objective (Stevenson and Cole, 2018). Thus, it is to state that based on this discussion, further incorporation of this theory is going to improve the business procedures. Burberry Group Plc needs to incorporate this theory to achieve better outcomes for its current operations.
3. Role of information management
Retail is an important element of supply chain marketing. Products and merchandise are sold to the customers through retail. Retail persons and companies produce goods in huge quantities and sell them to the customers in minimum quantities (Giannakis, Spanaki, and Dubey, 2019).
Information plays a very important role to communicate with the customers and suppliers. A retail company needs to have information when a new product is about to launch in the market. The company should have wide information about the product if it is a new product or a new variant of an older product. Retailers need to be trained by the manufacturer about the product. Retailers should have information about the pricing of the product. Pricing plays an important role in the retail section. According to Khan, Kamran, and Bino (2021), the retailer company needs to have information about sales presage by the manufacturer of the product.
Customers play an important role in the retailer. The retail company needs to know what kinds of products are attractive to the customers. The good or bad points of the product are what consumer likes or dislikes. Reaching new customers online the company publishes many social media advertisements. A retail company can manage its business skillfully when they have proper information about the retail section. Larger retail companies have their shops around the globe.
Burberry group plc aims to be one of the leading luxury brands based in the UK (burberryplc, 2022). The brand delivers sustainable and high-quality products to its customers. Burberry wants to reach top growth and the market and get value to its stakeholders (Pantano, Priporas, and Dennis, 2018). In order to achieve the top growth, Burberry follows some strategies. The retail company communicates with its consumers and seeks an emotional connection with them. The company’s vision is to inspire the fashion lovers out there and form a strong community. The company maintains to focus on its purpose which can be helpful to differentiate them from its competition retail companies. Burberry promises to deliver the best product to the consumers. The company built a strong luxury product range for its customers in a few years. The company mainly focuses on leather goods. The main focus is to make the best leather product and have good feedback from its consumers. Burberry focuses on upgrading its fabric quality and elevating the product. The company will come up with ready-to-wear collections and hold a strong everyday luxury product variety.
In the future, the company will be also producing quality shoes for its consumers. In order to distribute the product to its consumers, Burberry mainly focuses on some key actions (Mahroof, 2019). These actions are to open new stores around the globe. The company is trying to focus on the local customers. The local costumes play an important role in the company’s future possibilities. Burberry promises to simulate the store performance. The store plays an important role in the product distribution so the retail company tries to display the best products at a minimum cost in the stores. Burberry pioneers its social retail concept in order to take lead in the retail competition. The company boosts its digital sales through online advertising, social media promotions, and online websites.
In order to reach its highest possible potential, Burberry comes up with many pragmatic supply chains. The company focuses on recruiting the world’s top talents in retail in order to grab the best possible place in retail marketing. Burberry focuses on implementing secure customer technology, which will help consumers to grab the best products from its online chains and make payments securely. The company’s efficiency may help them reach the top.
In order to establish a perfect business structure, Burberry focuses on resources. They influence people who are skilled in producing retail goods (Düzenli, 2020). The retail company offers skilled people to produce goods and express their creativity. Creativity may help people develop themselves personally and professionally. In order to produce goods and thrive, Burberry offers people a vast range of tools and resources. Burberry is stable in financial terms as the company is listed on the “London Stock Exchange” and the company is a participant in the FTSE 100 index. Burberry invests properly in the business in order to generate growth in the business. The company also delivers shareholder value in order to ensure a good long future for the company. Burberry invests in the customers in order to keep the relationship and understand consumers’ needs.
The retail company inspires its customers with beautiful and long-lasting luxury products. Burberry produces products that are good-looking and people can use them for a long period, which may help consumers interact more with the brand (Caro, Kök, and Martínez-de-Albéniz, 2020). Burberry invests in the manufacturing of its products as they produce their products from their own sites via suppliers around the globe. Burberry distributes its products through its owned franchise stores and also from its online stores. Online stores let consumers grab their beloved Burberry products easily at their homes. Burberry produces well-designed luxury products that are beautiful and can be worn for a long time. They promise to provide a wide range of long-lasting products.
The company’s marketing strategy leads them to get the highest place in the retail field. The company ensures to provide a wide range of sustainable products. Burberry promises its consumers that the product they provide is good and can be used for a long time. Burberry always uses the finest materials to produce luxury products (Wright, 2018). The company works with suppliers throughout the globe to ensure the highest quality standards. They also make sure that the quality of the product is best and sustainable. Burberry produces products that are environmentally friendly which means the products they produce do not cause harm to nature. The company sells its products through franchised stores also by online wholesale stores. The marketing strategy of Burberry is so creative that it can provide the best luxury products possible to customers. The customers also enjoy the quality products the company offers, resulting in the company’s growth in the retail and online market. Burberry keeps the potential to have a good future ahead.
4. Conclusion and recommendation
4.1 Conclusion
Burberry Group plc is a leading retail brand based in the United Kingdom. The company has grown its market widely in recent years. In order to achieve this position, Burberry mainly focused on its information management and pushed its sources of advantages. The company focuses on high-quality and long-lasting fashion goods. They focus on luxury products as well as everyday wearing products. In order to achieve the top growth, the retail company advertises its products through social media. The company also opened some of its branded franchise stores. Burberry provides goods around the world in order to help skilled people produce quality goods for the company. Burberry is listed on the “London Stock Exchange” and they are a part of FTSE 100 index which is a healthy financial sign. To ensure the products made by Burberry do not harm the environment, they produce environment-friendly goods.
The company uses the finest material possible in order to produce the best product. The products made by Burberry are fashionable and can be worn for a long time. In order to elevate sales, the company sells its products in retail as well as online fashion stores. Advertising on social media helps the company reach a wide audience and it helps them achieve good product sales. Burberry hires excellent talented tailors who are fine at the job. They make sure the products are as their finest as possible. Burberry uses the finest material in order to develop the products. Finest and eco-friendly products help the company get a new high in the retail market. Products made by Burberry can be used for a long time and the consumer gets satisfied. Burberry’s vision is to produce the best product and make a mark in the retail market.
4.2 Recommendations
In order to eliminate risk factors related to information management and operations management of Burberry Group Plc recommendations are going to be depicted.
- In order to eliminate risk factors of information management systems first, complexity needs to be recognised.
- Adoption of strategies needs to be focused on for better interpretation.
- It is necessary to deliver visible and tangible benefits based on the perception of the organisation for its information management system.
- The business needs to be prioritised as per its importance for the betterment of information management.
- A strong leadership approach needs to be developed as a probable recommendation regarding the context of information management.
- An extensive communication method needs to be developed for a better illustration of the information management of this organisation.
- Mitigating the risk factors by adopting new and advanced technologies is also counted as a recommendation regarding this.
- Based on Burberry Group Plc’s operations management system, it is to state that reviewing company values can be helpful.
- Operation tactics of rivals need to be estimated by the organisation to eliminate risk factors of operations management.
- Cross-training and regular training on procedures and systems can also be helpful in this matter.
References
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Websites
(Burberryplc.com, 2022).ANNUAL REPORT 2020/21.Available at: https://www.burberryplc.com/content/dam/burberry/corporate/oar/2021/pdf/Burberry_2020-21_Annual_Report.pdf[Accessed on: 9th May, 2022]
(Burberryplc.com, 2022).Burberry.Available at: https://www.burberryplc.com/en/index.html[Accessed on: 9th May, 2022]
(Burberryplc.com, 2022).STRATEGIC REPORT.Available at: https://www.burberryplc.com/content/dam/burberry/corporate/oar/documents/Burberry_201819-Annual-Report_Strategic-Report.pdf[Accessed on: 9th May, 2022]
burberryplc.com, 2022. OUR PURPOSE. Available at <https://www.burberryplc.com/en/company/our-purpose.html> Accessed on [9/05/2022]
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