• Posted on December 18, 2023
• Unique Submission Team

Assignment Sample on RBP020L056A Strategy in Practice

1.0 Introduction

1.1 Basic Information about the Industry

The particular industry that is related with fashion might encompass various different types of sellers and various small stores are thriving on it. Various types of niche industries are also related with the fashion industries. Now the fashion industry is becoming one of the retailing industries who are capable of grabbing the market. The things or markets that are also related with the fashion industries are the designing houses, brand operating houses, magazines related with fashion designing and many other things. So, the craftspeople and the industries are the other factories or the manufacturers who are also related with the fashion industries. The fashion industry also consists of four different levels. The four levels are namely, the production of the raw materials, the collection of the raw materials that are related with fibres and textile industries, collecting leather and furs, manufacturing of fashion goods by the manufacturers and designers, retailers and selling observations, various different types of advertising for promoting the brand. So, the industry that is taken to be analysed in this particular project is the fashion industry or mainly the fashion company based on the fashion industry. There are various scopes in this particular company or the company that is based with the garment industry.

1.2 Company background

The company that has been taken to analyse and to complete the project is Burberry. It is primarily a British company that is related or associated with the Luxury fashion companies that is headquartered in London, in the country of England. For this particular project, the UK Fashion are taken to be analysed rather than in comparison of the entire fashion industries of the entire world. This company is currently designing and distributing the clothes that are ready to wear (Pelletier, C., et al. 2020). These types of clothes include trench coats, leather goods, eye wears, fashion accessories, fragrances, cosmetics, footwear and many other things. This particular company is mostly famous for its trench coats. This particular company was established in the year of 1856. The particular company was established by Thomas Burberry. He was focusing on the improvement and development of outdoor attire and moving to the highly fashionable markets. This particular house is moving to the highly fashionable brands that are exclusive (Yoshikuni, A. C., et al. 2019). The first outlet of this company was opened in the year of 1891. Burberry was an independent company that was controlled by families since the year of 1955. In the year of 2005, this particular company was reincorporated by the former majorities of the shareholders. The main fashion houses of this particular company focus on the manufacture of ready to wear clothes, outwear, fashion accessories, trainers, sunglasses, cosmetics and other types of attires.

Figure 1: Burberry United Kingdom

(Source: https://www.google.com/search?q=Burberry+Uk&tbm)

2.0 Analysis of the External Factors

2.1 Porter’s Five Forces

Porter’s Five Forces Model is a very simple yet very powerful tool for identifying and analyzing internal and external conditions that affect an organization’s operations. This model is powerful enough to determine and analyze the attractive quality and strength of business conditions and various business-related problems and factors (Kohtamäki, M., et al.2021).

Threats of new parties

For this particular organization of this industry, the risk of new congregations entering the market is very high. First of all, the industry is at high risk for new entrants, which is the extreme reason for the various variables. The main factor is the improvement of interesting articles that fulfill the order of events or the organization’s patents. New gatherings can affect the brand loyalty of each organization. This can be achieved by focusing on the important parts of the article. But the positive reality is that these types of giant organizations can handle unrefined material suppliers and planners who work for them.

The threat of substitutes

The next power of Five Forces is the danger of agents. Based on different types of test strips and research, it is very certain that different types of organizations are working with design companies today (Linneberg, M.S et al. 2019). Therefore, it is a major challenge for current organizations to keep up with items, as there are different types of alternatives for certain items that are modest in both cost and quality. That way, the risk of replacement for a particular organization is much higher, and it’s a sure excuse to get angry with the organization.

Bargaining Powers of buyers

The next of the five most important and successful forces for an organization is the bargaining power of buyers. Negotiations are very high between buyers of certain items sold by that particular organization. Because there are different types of costly alternatives in the economic sector, customers need to buy different results from different organizations, which helps to gradually destroy the problems of that particular organization. (Strachan, H.2019).

Bargaining Power of the Suppliers

The next force is the vendor’s trading power, which is very small for this particular organization. Since this particular organization is looking for a brand and profiting, it is possible to trade with suppliers of unrefined components and also manage the reasonable cost of natural ingredients by governing the suppliers. (Sami, W et al. 2019). Vendors are one of the key structural barriers that help organizations improve their business and establish a strong position in the modern business sector. Vendors can target specific businesses, customers, and real organizations associated with style companies (Kearney, A., et al. 2019).

Competitive Rivalry

The last power among the Five Forces is the Competitive Rivalry. This cutthroat competition for this specific organization is very high. As there are as of now different brands who are having contests with the results of this specific organization. This multitude of serious organizations additionally have generosity on the lookout and steadfast items and the appropriate portions of the overall industry. In this way, it very well may be not difficult to reach the determination in view of the Five Force Model of Porter that these powers are turning out actually for the organization to make the results of the organization and the actual organization extremely appealing.

 

 

Figure 2: Porter’s Five Force Model

(Source: https://www.google.com/search?q=porter+five+forces)

2.2 PESTEL Analysis

Political

There are some factors that are related with the political factors of the entire country. As this particular company not only just operates in London, but also the entire world as it is a fashion brand across the world. Political stabilities of the country, sudden changes in the political parties, brexities, political rules and regulations of the country, several political factors are affecting the business of the Burberry. The high rate of taxes, first copies of the brands that are available in the industrial markets, further affects and disrupts are some of the political factors that are affecting the company (Iasbech, P. A. B et al. 2018).

Economic

The particular company is also having some economic factors that are affecting or might be helpful for the business of the company to grow. The company also has some negative and positive sides just like the coin has two sides in it. The changes in taxes, the changes of the values of the dollar. The revenues of the employees, the maintenance costs. The costs of the technologies, disposable incomes, competition of the industrial market, selling prices of the products are some of the factors that are affecting the business of this particular company to enrich and prevent the company from running very smoothly (Whittington, R. 2018).

Social

The social factors that are affecting and left their impacts on the company and moreover the business of the company forever would be discussed in this particular section. Segmentation of the industrial markets, satisfaction of the customers, expansion of the company, reaction of the customers, maintaining the sustainability of the company, grabbing the market, observing the trends that are going in the market.  Maintaining and designing dresses according to the preferences of the customers, providing best services to the customers are some of the social factors that the company is facing or going through (Maritz, R., et al. 2018).

Technological

The factors of the company that are associated with the technology would be described here. The great factor of technology is to maintain the costs that have to be carried by the company using the technology. Staying updated and upgraded with the help of technology, utilizing the brands, advertising the brands. Working in synergy with the help of social media, using multiple platforms that are related with E-Commerce, generating websites for the customers to give the reviews of the products, using multiple analytics to predict the trends that would emerge in future that are based on the recent trends and scenarios are done by the help of technologies (Chanias, S., et al. 2019).

Environmental

There are some kinds of factors that are affecting the environment as well as the business of the company are the multiple aspects of business and sustainability, reduction of carbon gasses from the factories, various harmful gases are emitted from the factories that are affecting the environment and also affects the health of the residents of that region. Various research papers and studies had proved the harmful effects of the gases that are being emitted by the factories of that particular company and this company had given word that they would take steps to reduce the gas emission process as soon as possible (Czauderna, A et al. 2020).

Legal

There are legal factors also that are helping the companies from facing any kind of legal problems, that type of factors are including various types of laws, rules and regulations that are decided by the company itself or the government of the particular company. Different types of laws that are made for the labourers, employees, laws of recruiting and so on. If any of the laws are getting violated by the employees or workers of the company or the management bodies of the company.  The company has to face the multiple types of lawsuits from the stakeholders for the brand repairing. Multiple kinds of anti-bribery laws that are existing throughout the entire country need to be followed by the particular company (Bainey, K. R., et al. 2019).

Figure 3: PESTEL Analysis of Burberry

(Source: https://www.google.com/search?q=pestle+analysis)

 

3.0 Analysis of the Internal Factors

3.1 Resources Factors

There are various factors that are acting like the resources of the particular company. The first thing that is taken to analyse as the resource is the human resources of the company. The factors or things that are directly working as the networking and the key sources are the advantages that are quite competitive (Genç, S. Y et al. 2010). Searching for new talents and recruiting them as the employees of the company are some of the important roles that are played by the human resources managers of the company. The intangible resource is another important resource that is helpful for the company to evaluate the brands and recognize the patent branded products (Berisha Qehaja, A., et al 2020). Trench coats are the patent and branded products that are made and available from this particular company only. These are the strengths of the company.

Physical Resource

The physical resources of this particular company are the raw materials and the units that are working with the manufacturing of the products. These two are also working as the strengths of this particular company (Bourgoin, A.,  et al. 2018). Hence, it is quite difficult for the existing companies to maintain the products as there are various kinds of substitutes of the particular products that are cheap in prices and as well as in quality. So, the substitute threat of the particular company is very much high and a strong reason to worry about the company. This competitive rivalry for this particular company is quite high (Pelletier, C., et al. 2020). As there are already various brands who are having competitions with the products of this particular company. All these competitive companies also have goodwill in the market and loyal products and the proper market shares. For this particular company the threats of new parties who are entering the market are quite high (Paulik, G et al. 2018). This industry initially has the high threats of the new entrants that are the severe causes of various factors. The main factor is the development or improvement of the unique product that would achieve the patent for the company.

Entrance of new parties

New parties might be able to affect the loyalties of the brands of the particular company. This might be achieved by focusing on the tangible aspects of the products (Matsuda, Y., et al. 2019). But the positive fact is that this type of large companies is able to control the raw material suppliers and the designers to only work for this company. The bargaining power is quite high among the buyers for the particular products that are being sold by this particular company. As there are various kinds of substitutes available in the markets and that ranges in prices, so the customers might want to buy the other products of another company and this is helpful to ruin the business of this particular company gradually (Sydow, J., et al. 2020). This company is currently designing and distributing the clothes that are ready to wear. These types of clothes include trench coats, leather goods, eye wears, fashion accessories, fragrances, cosmetics, footwear and many other things.

Brand for the products

This particular company is mostly famous for its trench coats and branding of the products.  The things or markets that are also related with the fashion industries are the designing houses, brand operating houses, magazines related with fashion designing and many other things. So, the craftspeople and the industries are the other factories or the manufacturers who are also related with the fashion industries (Ravasi, D., et al. 2020). The fashion industry also consists of four different levels. Apart from these, there are also some other resources like the financial resources, this type of resources is based on the explanations of the costs and other things that are related and associated with cost.

Development of outdoor attire

The particular company is focusing on the improvement and development of outdoor attire and moving to the highly fashionable markets. This particular house is moving to the highly fashionable brands that are exclusive. Various types of niche industries are also related with the fashion industries. Now the fashion industry is becoming one of the retailing industries who are capable of grabbing the market. The things or markets that are also related with the fashion industries are the designing houses, brand operating houses, magazines related with fashion designing and many other things. So, the craftspeople and the industries are the other factories or the manufacturers who are also related with the fashion industries. The fashion industry also consists of four different levels.

Key Sources

The factors or things that are directly working as the networking and the key sources are the advantages that are quite competitive. The suppliers of the company who supplies the raw materials, the recognitions of the brands and the values of the brands are working as the strengths of the company that are helping the companies to run the business smoothly and to enhance the workflows among the employees of the company. Searching for new talents and recruiting them as the employees of the company are some of the important roles that are played by the human resources managers of the company.

4.0 Evaluation of the Strategic Recommendations

4.1 Strategies and Other factors of the company

The ambition and strategies that the particular company is following are the inspirations and excitements of Fashion Vanguard; this helps to foster the strong and potential community. During the leveraging the potential community network that influences and helps in amplifying the brands that are patent and only available at the outlets of this particular company. This particular company uses some pricing strategies that are premium for selling the products. The appropriate mixing of low and high cost are the main aims of the company that has to be achieved. This luxury brand does not completely and directly compete with the price of the other companies and the products of the other companies. The competition is very high in the industry and the qualities of the products and prices are the main things to compete with the other products. The customer has initially pursued the products of this particular company as the products are affordable for everyone to purchase. The company has taken the differentiation strategies that would help them to enhance the market techniques and keep the market positions. These are the strengths of the company. The physical resources of this particular company are the raw materials and the units that are working with the manufacturing of the products. These two are also working as the strengths of this particular company. Hence, it is quite difficult for the existing companies to maintain the products as there are various kinds of substitutes of the particular products that are cheap in prices and as well as in quality. So, the substitute threat of the particular company is very much high and a strong reason to worry about the company.

5.0 Risk Factors of the company

There are several risk factors that the company is facing or going to be faced in the future. The main and top competitors of this particular company include “LVMH, Prada. Hermes, Christian and Michael Kors” and some other companies. This particular company is the manufacturer, retailers, and wholesaler of luxury goods and branded products. During the leveraging the potential community network that influences and helps in amplifying the brands that are patent and only available at the outlets of this particular company. This particular company uses some pricing strategies that are premium for selling the products. The appropriate mixing of low and high cost are the main aims of the company that has to be achieved. This luxury brand does not completely and directly compete with the price of the other companies and the products of the other companies. The competition is very high in the industry and the qualities of the products and prices are the main things to compete with the other products. The popularity of this particular company skyrocketed after the launching of the trench coats, the most popular patent product of this company. This type of coat was used by the British forces during the time of the 1st World War. The outpour of the patriotic feel was boosted by the identification of the brand and the clamouring of the public who wanted to buy the products after the end of the 1st World War. The brand admitted in July 2018, in the annual report the goods should be demolished and the strategies that are related to preserving the reputation related to the exclusive and unique look of the products.

6.0 Analysis of the Stakeholder

The stakeholders are involving various types of people in the company. The people are normal people, customers, partners, shareholders, governments and so on. The Human Rights Policy sets out the four keys that are involved in the groups of the stakeholder groups. The people or workers in the supply chain, the customers and the communities are the people who are deeply involved in the business of this particular company. The producers have to choose the places that protect and uphold human rights. This particular mechanism includes some addresses that uphold the instances of the potential infringements. The company has taken the differentiation strategies that would help them to enhance the market techniques and keep the market positions. These are the strengths of the company.

 

7.0 Conclusion

This particular project is based on some sections. The particular industry that is related with fashion might encompass various different types of sellers and various small stores are thriving on it. Various types of niche industries are also related with the fashion industries. Now the fashion industry is becoming one of the retailing industries who are capable of grabbing the market. The first part or the introduction is basically divided into two different sections that are based on the basic information of the fashion industries. The second part of the introduction contained the information about the particular company that was taken to analyse and complete the project. After that the Porter’s Five Forces Model is analysed to describe the internal and external factors that are affecting the business of the company. After that the PESTEL Analysis has been done to complete the project and analyse the factors with more detail. The necessary steps are taken to complete the project and to analyse the factors with more details. All information has been collected from all of the possible perspectives and the data are readily available in the internet and easily understandable. The information is given wisely in the particular sections to complete the project.

 

 

 References

Journals

Kohtamäki, M., Whittington, R., Vaara, E., & Rabetino, R. (2021). Making connections: Harnessing the diversity of strategy‐as‐practice research. International Journal of Management Reviews.

Retrieved from: https://onlinelibrary.wiley.com/doi/pdf/10.1111/ijmr.12274 [Retrieved on: 7.01.2022]

Tsoukas, H. (2018). Strategy and virtue: Developing strategy-as-practice through virtue ethics. Strategic Organization, 16(3), 323-351.

Retrieved from: https://journals.sagepub.com/doi/pdf/10.1177/1476127017733142 [Retrieved on: 7.01.2022]

Strachan, H. (2019). Strategy in theory; strategy in practice. Journal of Strategic Studies, 42(2), 171-190.

Retrieved from: https://research-repository.st-andrews.ac.uk/bitstream/handle/10023/21130/Strachan_2019_Strategy_in_theory_JSS_AAM.pdf?sequence=1 [Retrieved on: 7.01.2022]

Kearney, A., Harrington, D., & Kelliher, F. (2019). Strategizing in the micro firm: A ‘strategy as practice’framework. Industry and Higher Education, 33(1), 6-17.

Retrieved from: https://journals.sagepub.com/doi/pdf/10.1177/0950422218816232 [Retrieved on: 7.01.2022]

Genç, S. Y., Sesen, H., Castanho, R. A., Kirikkaleli, D., & Soran, S. (2020). Transforming Turkish universities to entrepreneurial universities for sustainability: From strategy to practice. Sustainability, 12(4), 1496.

Retrieved from: https://www.mdpi.com/2071-1050/12/4/1496/pdf [Retrieved on: 7.01.2022]

Berisha Qehaja, A., & Kutllovci, E. (2020). Strategy tools in use: New empirical insights from the strategy-as-practice perspective. Management: Journal of Contemporary Management Issues, 25(1), 145-169.

Retrieved from: https://hrcak.srce.hr/file/347146 [Retrieved on: 7.01.2022]

Pelletier, C., & Raymond, L. (2020, January). Orchestrating the digital transformation process through a ‘strategy-as-practice’lens: A revelatory case study. In Proceedings of the 53rd Hawaii International Conference on System Sciences.

Retrieved from: https://scholarspace.manoa.hawaii.edu/bitstream/10125/64270/0427.pdf [Retrieved on: 7.01.2022]

Yoshikuni, A. C., Lucas, E. C., & Albertin, A. L. (2019). Strategic information systems enabling strategy-as-practice and corporate performance: Empirical evidence from PLS-PM, FIMIX-PLS and fsQCA. International Business Research, 12(1), 131-147.

Retrieved from: https://pesquisa-eaesp.fgv.br/sites/gvpesquisa.fgv.br/files/arquivos/strategic_information_systems_enabling.pdf [Retrieved on: 7.01.2022]

Linneberg, M. S., Madsen, M. T., & Nielsen, J. A. (2019). Micro-level translation of corporate sustainability: When strategy meets practice in the Danish hospitality sector. Journal of Cleaner Production, 240, 118159.

Retrieved from: https://pure.au.dk/portal/files/183367281/Linneberg_2019_Micro_level_translation_of_corporate_sustainability.pdf [Retrieved on: 7.01.2022]

Sami, W., Nienaber, H., & Phillips, M. (2019, July). Strategy-as-practice: Preliminary evidence from accommodation SMME owner-managers in South Africa. In Proceedings of the 9th Advances in Hospitality and Tourism Marketing and Management Conference (pp. 66-67).

Retrieved from: https://www.researchgate.net/profile/Shaohua-Yang-5/publication/334560312_The_Development_of_A_Conceptual_Framework_on_the_Brand_Personality_Self-Congruity_and_Tourist_Loyalty_The_Moderator_Role_of_Tourist_Emotional_Experience/links/5d31870992851cf440903f91/The-Development-of-A-Conceptual-Framework-on-the-Brand-Personality-Self-Congruity-and-Tourist-Loyalty-The-Moderator-Role-of-Tourist-Emotional-Experience.pdf#page=88 [Retrieved on: 7.01.2022]

Iasbech, P. A. B., & Lavarda, R. A. B. (2018). Strategy aS Practice and the role of Middle Manager in organizationS: the future of the field. Brazilian Journal of Management/Revista de Administração Da UFSM, 11(4), 1125-1145.

Retrieved from: https://www.researchgate.net/profile/Rosalia-Lavarda/publication/331562646_Strategy_as_Practice_and_the_Role_of_Middle_Manager_in_Organizations_The_future_of_the_field/links/5c80a186458515831f8b33ef/Strategy-as-Practice-and-the-Role-of-Middle-Manager-in-Organizations-The-future-of-the-field.pdf [Retrieved on: 7.01.2022]

Whittington, R. (2018). Greatness takes practice: On practice theory’s relevance to “Great Strategy”. Strategy Science, 3(1), 343-351.

Retrieved from: https://pubsonline.informs.org/doi/pdf/10.1287/stsc.2017.0040 [Retrieved on: 7.01.2022]

Maritz, R., & Du Toit, A. (2018). The practice turn within strategy: Competitive intelligence as integrating practice. South African Journal of Economic and Management Sciences, 21(1), 1-14.

Retrieved from: http://www.scielo.org.za/pdf/sajems/v21n1/38.pdf [Retrieved on: 7.01.2022]

Chanias, S., Myers, M. D., & Hess, T. (2019). Digital transformation strategy making in pre-digital organizations: The case of a financial services provider. The Journal of Strategic Information Systems, 28(1), 17-33.

Retrieved from: https://www.wim.bwl.uni-muenchen.de/download/epub/pub_2018_01.pdf [Retrieved on: 7.01.2022]

Czauderna, A., & Budke, A. (2020). How digital strategy and management games can facilitate the practice of dynamic decision-making. Education Sciences, 10(4), 99.

Retrieved from: https://www.mdpi.com/2227-7102/10/4/99/pdf [Retrieved on: 7.01.2022]

Bainey, K. R., Armstrong, P. W., Zheng, Y., Brass, N., Tyrrell, B. D., Leung, R., … & Welsh, R. C. (2019). Pharmacoinvasive strategy versus primary percutaneous coronary intervention in ST-elevation myocardial infarction in clinical practice: insights from the Vital Heart Response Registry. Circulation: Cardiovascular Interventions, 12(10), e008059.

Retrieved from: https://www.ahajournals.org/doi/pdf/10.1161/CIRCINTERVENTIONS.119.008059 [Retrieved on: 7.01.2022]

Ahmad, I., & El‐Boghdadly, K. (2019). From evidence based on practice to evidence‐based practice: time for a difficult airway management research strategy. Anaesthesia, 74(2), 135-139.

Retrieved from: https://onlinelibrary.wiley.com/doi/pdfdirect/10.1111/anae.14452 [Retrieved on: 7.01.2022]

Bourgoin, A., Marchessaux, F., & Bencherki, N. (2018). We need to talk about strategy: How to conduct effective strategic dialogue. Business Horizons, 61(4), 587-597.

Retrieved from: https://r-libre.teluq.ca/1438/1/BourgoinMarchessauxBencherkiStrategicDialogue-forArchive.pdf [Retrieved on: 7.01.2022]

Paulik, G., Jones, A. M., & Hayward, M. (2018). Brief coping strategy enhancement for distressing voices: P redictors of engagement and outcome in routine clinical practice. Clinical psychology & psychotherapy, 25(5), 634-640.

Retrieved from: https://www.researchgate.net/profile/Georgie-Paulik/publication/325359392_Brief_coping_strategy_enhancement_for_distressing_voices_Predictors_of_engagement_and_outcome_in_routine_clinical_practice/links/5b07adc3aca2725783e25c75/Brief-coping-strategy-enhancement-for-distressing-voices-Predictors-of-engagement-and-outcome-in-routine-clinical-practice.pdf [Retrieved on: 7.01.2022]

Matsuda, Y., Clancy, C., Tawfiq, Z., Robles, V., & Mendelsohn, B. A. (2019). Good Manufacturing Practice Strategy for Antibody–Drug Conjugate Synthesis Using Site-Specific Chemical Conjugation: First-Generation AJICAP. ACS omega, 4(24), 20564-20570.

Retrieved from: https://pubs.acs.org/doi/pdf/10.1021/acsomega.9b02419 [Retrieved on: 7.01.2022]

Sydow, J., Wirth, C., & Helfen, M. (2020). Strategy emergence in service delivery networks: Network‐oriented human resource management practices at German airports. Human Resource Management Journal, 30(4), 566-585.

Retrieved from: https://onlinelibrary.wiley.com/doi/pdf/10.1111/1748-8583.12298 [Retrieved on: 7.01.2022]

Ravasi, D., Tripsas, M., & Langley, A. (2020). Exploring the strategy-identity nexus. Strategic Organization, 18(1), 5-19.

Retrieved from: https://journals.sagepub.com/doi/pdf/10.1177/1476127019900022 [Retrieved on: 7.01.2022]