Management assignmenton the responsible business management challenge in the context of Burberry group

Question

Task: Can you write a management assignment on one major responsible management challenge your case company currently faces

Answer

Introduction
The management assignmenthas illustrated the management challenges faced by Burberry group company. Management is the main structure for running the business operations. The management assignmenthas evaluated the main business management challenge of Burberry. Burberry company is a British Luxury fashion group, headquarters situated in England, UK. The main products of the company include leather coats, fashion accessories, footwear, and cosmetics. The main challenge for the company was Global branding challenges and strategic changes. Strategical expansion is the main challenge for Burberry. Increasing the equity and distribution ability was very challenging. Global brand building requires a huge amount of credibility and investment for positioning the brand in the business market (Demangeot, 2021). So, the business segments have suffered. The management assignmentwill focus to emphasize the challenges and analysis of the challenge. The corporate function of the company has been discussed in the management assignment.

A brief overview of the company in the management assignment
Burberry group is a British fashion company located in London, England. The distribution and designs are ready to wear, including trendy footwear, fashion accessories, leather group, eyewear, cosmetics, and all. The company is based in the fashion industry. It was founded in 1856 by Thomas Burberry. The company served its business operation in 421 areas in the UK. Apart from that, in the world, it has served its business. Recent CEO of the company JonathAkeroyd. The total generated revenue by the company was £2343.9 million in 2021 as per the management assignment. It has 9234 employees as of 2021 (BORSBOOM, CASE, and LAWSON, 2018). The outdoor attire and high fashion market has been developed by Thomas Burberry in 1856. It has been ranked 73rd in Interbrand’s report of Best Global Brand. Burberry has a matrix organizational structure. Inclusivity and United culture and upholding respect from the founder is the main theme of the culture of the organization. From 34 countries and 129 nationalities, people are the colleagues of the Burberry group (Bae, 2019). The beautiful designs of the products mentioned in the management assignmentattract customers. The company aims to understand the need of the customers while anticipating needs for the future.

Analysis of ONE major responsible management challenge in the management assignment
Burberry has faced previously tremendous challenges while huge revolt over pay with 52.7% of investors ruling against the remuneration report after it handed the new chief executive Bailey a one-off shared award that was nearly £15 million last year. Only 16% of investors voted against the remuneration policy of the company. Insurer Aviva faced a 60% vote against the pay. Currently, our company facing challenges in conducting business in the global market. Slow economic growth in China, Russia, and the middle east is the major issue faced by the company, it had tremendous effects on the company’s products and services. The retail sales slowed down up to 15% to 748 million pounds for six months in September. Though the sales have grown up to 13% to 317 million pounds as per the management assignment. The storytelling of the brand management is crucial through the communication of products and benefits. As per the management assignment the organization should focus on the growth and development strategy of the brand and making a brand image in the global market (Khan et al., 2022).Globalization increases the intention of branding in the global market. So, it has faced the problem of building the global brand due to insufficient investments and it requires positioning the organization of the brand image in the new global market. The problem has been more established in the management assignmentwhile connecting customers and creating balanced communication (Mandelli, Piancatelli, and Arbore, 2021). Moreover, business strategy evolves to build paradigm calculating the economic value leads to the branding equity. Managing long-term investments is quite challenging for the organization. Furthermore, without optimizing the investments profitability will be impossible to obtain. For Burberry, branding management is facing problems with rebuilding brand equity (Kaolawanich et al., 2020). Whereas, it is quite advantageous for Burberry to expand the business into new markets as per the management assignment.

Another main challenge in the management assignmentrelated to its brand equity is the financial challenge. That would be more penetrated by the company. It has to obtain sufficient financial aspects to expand the business into new markets such as outside the USA, Japan, Spain, and the UK (Renu, 2021). The same will be applied to African and Asian markets. But it is moreover advantageous for the company to gain profits from the already established market. For constituting a brand into the global market, the marketing and strategy area of the company should be enhanced with proper distribution of the products (Chen et al., 2021). The most challenging management assignmentproblem for the company to expand the business into new markets is to perceive the products by new customers. The products should be more efficient as the new market offered from before. Creating target customers in the new market is very challenging for Burberry as there is high competition with existing brands in the market (Khelladi, and Castellano, 2019). Most useful customers and loyal customers are the strength of the company, whereas, this can be not found in the new market.

In 2018, investors of the company are less efficient for investments, which brings financial lack to the company. Burberry has suffered from the restructuring of the brand. In 2020, sales of Burberry has been grown in China but investors are disclosed. The investments have opted for 75% resulting in to cut of the job of 500 people. 45% drops in likely sales. The struggles of the brand change the productivity tangible results in the production. Brand equity defines the ability of the brand. The brand’s effective precise aspiration of the practices. The existence of Burberry in the current existing brands is a new challenge for the brand. During the covid-19 pandemic, the brand has faced more challenges towards faster growth. The brand is a big aspect of the market. Lack of effective financial resources in the management assignment, less involvement of the investors, financial crisis during the pandemic situation, the existence of the brand among the already existing brands in the new markets, CEO’s failure, and the management of brand equity are major causes of challenging of the company’s global branding expansion into the new market (Jestratijevic, Rudd, and Uanhoro, 2020). The existing business strategy to expand the business market into global branding may discover the company into challenges. Large and successful global brands are entailing the branding creation into the new market by observing the culture, organizational structure, and geographic conditions of the company. The solution to the problem can be built through sustainable brand development with the association of the growth and development strategy of the company to meet the segmented targeted customers (Brydges, and Hracs, 2018). The main issues for branding management challenges are, treating the brand as the core component. Digital strategy building, processing with the compelling vision, subcategory creation of the products. Making and maintaining the brand relevance with internal brand evaluation (Phau, Akintimehin, and Lee, 2022). Today’s younger audiences are not aware of the brand value of the customers.

Table: The brand value of Burberry

Competitive analysis
Porter’s five forces

Analysis of corporate functions Identification and justification of corporate functions to tackle the responsible management challenge

Strategy
Adopt a new business model for expanding the brand into the new international market is challenging. Because of the apparent success in the local market the company wants to expand the market into the global market. Quality standards of the products and delivering the products into the global market have to be maintained in the management assignment. The cultural expectations have to be maintained. The manufacturing strategy of the products and delivery of the products however responsible for distortion in the branding image building but the strategy of business expansion should be coherently built. The quality impediment of the products, maintaining all legal laws and components, a label should have maintained properly. Building awareness and growing sales at the corporate level also was challenging for various communicable channels will effectively engage in the market. Diversification and building the faith of the customers in the new target market should have sustainability (Piha, Papadas, and Davvetas, 2021). In 2017, the main aim of the company is to set the transformation and growth strategy of luxury fashion products positioning the brand in the market.

Marketing
The marketing strategy has majorly incorporated the support of mainline clothing and growth of the clothes and high-quality products complementing the styles of the products. The consistence promotional activities through various channels of communication can increase the effectiveness to meet the mitigation of the challenges. Using both traditional and modern methods can seemingly help incorporate the brand names (Cabigiosu, 2020). Advertisements, technological approaches, and outdoor ads can develop brand equity and strong existence in the market. Burberry can mitigate the challenges with

HRM
Human resource managers should firstly build their rules to manage the branding challenges. Efficient and educated employees should be hired. Workflows should be clearly defined. The promotion and collaboration. Brand and customers’ experiences should be closely obtained to make collaboration that can sustain in the competitive market.

Reasonableness (Quality) of recommendations made

Recommendation for investmentin the management assignment
First-ever step in developing a future investment portfolio for Burberry is to describe the company's financial circumstances. They must limit the amount of money they must put money. This can be achieved through creating a spending plan that evaluates the company's month-to-month discretionary money after fees and urgent cash reserves. Burberry should be able to find the money they can decide to spend as a result of this (Olteanu, 2020). It also is critical to analyze how widely available, or fluid, the firm's investment opportunities must be. Those who can create a dependable investment portfolio for themselves by determining their asset allocation and target date. This includes determining their effects on capital, determining what they might engage in and determining what portion of about there total investment each investment type could perhaps accept.

Recommendation for Brand Awareness
A company portfolio in an international economy under regulations of organization convective heat transfer, fragmentary market dynamics, varying cultural characteristics, and even varying motorists of utilization real motives (Bae, 2019). Because of these discrepancies in the management assignment, the regard to the business strategic plan generates various connotations, resulting in divergent consumer attitudes across different international product lines. This element indicates that, while a specific product promotional statement could result in brand awareness in one industry, it may result in massive brand failings in another. The advancement of effective promotional techniques in the management assignmentthat are compatible with the current special traditions of the particular niche is required to solve this issue. This component, again here, includes the use of strategic practices to establish innovative products.

Recommendation for Globalization
The overseas markets strategy focuses on the need to raise the spread of Burberry commodities (Huang and Kim, 2020). Trying to develop a successful product from this corporate strategy may bring considerable obstacles for Burberry. Identifying and targeting global financial markets somehow doesn't appear to suggest that a brand has gone mainstream as discussed in management assignment. Luxury companies involve the development of constant and serene brand equity, as well as connections in the psyches of customers worldwide (Chadha and Ahuja, 2020). The solution to the issue implies the creation of long-term Burberry brand attachment with emphasis on quality in a sizable sufficient core demographic to fulfill Burberry's preferred economic growth.

Action Plan

Summary
Burberry is a British clothing brand headquartered in London, England. Ready-to-wear proportions and styles include trendy sneakers, clothing and accessories, leather band, eye protection, cosmetic products, and more. The business is in the modeling industry. Thomas Burberry formed it in 1856. JonathAkeroyd, the company's latest CEO. In 2021, the industry's overall revenue was £2343.9 million. As of 2021, it employs 9234 people as per the data of management assignment. The industry's goal is to understand the demands of the customers while identifying possible requirements (Bai, McColl, and Moore, 2020). Burberry has previously faced significant obstacles, including a massive rebellion over pay, with 52.7 percent of shareholders voting against the income statement after it passed the new CEO Bailey a one-time shared award worth nearly £15 million last year. Only 16% of shareholders voted against the company's compensation committee. Aviva, an insurer, faced a 60 percent vote against the pay. The business is continuously experiencing difficulties in performing business in the international industry (Javornik et al., 2021). Globalization has created a brand desire in the international economy. Burberry's brand marketing organization is struggling to reconstruct brand recognition. Burberry, on the other hand, would benefit greatly from targeting customers. The financial task is also another massive issue connected to its corporate reputation. The organization will be more well-versed in this area. It must obtain sufficient financial resources as per the management assignmentto broaden its market presence such as those outside of the United States, Japan, Spain, and the United Kingdom. The same is true for African and Asian market segments. The most complicated problem for the corporation when expanding internationally is how new consumer perceives the product lines. As the new market offered previously, the products should be more efficient. Creating a customer base in a new industry is extremely difficult for Burberry. The company's resilience is in promoting the company thru websites and magazines. Resilience is the emphasis on brand image. The low revenue from the Asia market is quite threatening for the company. The threat of competitors for Burberry is not very high. Advertisements, science, and technology reach, and exterior advertisements must build brand equity and a significant market presence. The use of online and offline marketing aids the company's worldwide expansion as per the management assignment(Mandal, 2021). Burberry's international marketing strategy is centered on the need to broaden the spread of its commodities. Burberry's favored job expansion requires the development of long-term purchase behavior with an improvement in quality in some kind of a sizable enough target demographic. To resolve the Womenswear issue, appropriate advertising methodologies that seem to be compliant with the latest special customs of both the specific niche are obligated.

Conclusion
From the above management assignmentin the discussion it can be concluded that the main threat to the company was international market expansion difficulties and process improvements. Burberry's greatest difficulty is strategic augmentation. To identify the external competitive enviornment Porter’s five forces model has been evaluated. It was extremely difficult to increase capital and dispersion capability. A global brand facility necessitates a significant bit of authority and financing to position the brand in the enterprise market. As a result, the business activities have experienced severe. If the company follows the recommended strategy mentioned in the management assignment it will help the company to grow the business globally.

Reference List
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Bai, H., McColl, J., and Moore, C., 2020. Motives behind Retailers' Post-Entry Expansion. Journal of Retailing and Consumer Services, 59.Available at: https://researchonline.ljmu.ac.uk/id/eprint/14026/1/Motives%20behind%20Retailers%E2%80%99%20Post-Entry%20Expansion.pdf

BORSBOOM, L., CASE, B., and LAWSON, N., 2018. BURBERRY JOUSTING FOR REDEMPTION. LBMG Corporate Brand Management and Reputation-Masters Case Series. Available at: https://lup.lub.lu.se/student-papers/record/8970703/file/8970707.pdf

Cabigiosu, A., 2020. The omnichannel strategy in the fashion industry. In Digitalization in the luxury fashion industry (pp. 71-101). Palgrave Macmillan, Cham. Available at: https://link.springer.com/chapter/10.1007/978-3-030-48810-9_4

Chadha, K. and Ahuja, Y., 2020. Luxury fashion brands embracing the digital: An exploratory study to unfold the success strategy. MANTHAN: Journal of Commerce and Management, 7(1), pp.60-75Available at: .https://www.researchgate.net/profile/Kashika-Chadha/publication/342424483_Luxury_Fashion_Brands_Embracing_the_Digital_An_Exploratory_Study_to _Unfold_the_Success_Strategy/links/5ef39416299bf15a2ea05e85/Luxury-Fashion-Brands-Embracing-the-Digital-An-Exploratory-Study-to-Unfold-the-Success-Strategy.pdf

Chen, X., Cheng, S., Shu, R. and Yang, Y., 2021, September. Digital Marketing Transition for Luxury Industry Under the New Coronavirus Epidemic-The Case of Burberry in the management assignment. In 2021 International Conference on Financial Management and Economic Transition (FMET 2021) (pp. 248-254). Atlantis Press.Available at: https://www.atlantis-press.com/article/125961056.pdf

Demangeot, M., 2021. How Do Heritage Brands Transfer Their Brand Identity While Transitioning From A Complex To A Simple Visual Identity: A Burberry Case Study. Available at: https://ivypanda.com/essays/burberry-global-branding-challenges-and-strategies/

Fernie, J.O.H.N. and Perry, P.A.T.S.Y., 2019. Luxury fashion supply chain management. Logistics and Retail Management, pp.149-182. Available at: http://www.eiilmlibrary.com/library/33572_John%20Fernie%20_%20Leigh%20Sparks%20-%20Logistics%20and%20Retail%20Management%20_%20Emerging%20Issues%20and%20New%20Challenges %20in%20the%20Retail%20Supply%20Chain,%20(2019,%20Kogan)%20-%20libgen.lc.pdf#page=178

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Brydges, T. and Hracs, B.J., 2018. Consuming Canada: How fashion firms leverage the landscape to create and communicate brand identities, distinction and values in the management assignment. Geoforum, 90, pp.108-118. https://boris.unibe.ch/111573/1/consuming%20Canada.pdf Mandal, P.C., 2021. Achieving Business Excellence for Luxury Brands: Strategies and Initiatives. International Journal of Business Strategy and Automation (IJBSA), 2(4), pp.1-14.Available at: https://www.igi-global.com/viewtitle.aspxtitleid=287108

Mandelli, A., Piancatelli, C. and Arbore, A., 2021. Communication, business and digital transformation: the case of Burberry. Available at: https://iris.unibocconi.it/handle/11565/4046827 Olteanu, L., 2020. Rebranding strategies and their boomerang effect—The curious case of Burberry. The Journal of World Intellectual Property, 23(5-6), pp.777-797. Available at: https://onlinelibrary.wiley.com/doi/pdfdirect/10.1111/jwip.12173

Phau, I., Akintimehin, O. and Lee, S., 2022. Investigating consumers' brand desirability of “upcycled” luxury: the many faces of designer facemasks in the management assignment. Journal of Fashion Marketing and Management: An International Journal, (ahead-of-print). Available at: https://www.emerald.com/insight/content/doi/10.1108/JFMM-11-2021-0296/full/html Piha, L., Papadas, K. and Davvetas, V., 2021. Brand orientation: Conceptual extension, scale development and validation. Journal of Business Research, 134, pp.203-222. Available at: https://www.sciencedirect.com/science/article/pii/S0148296321003520

Varley, R., Roncha, A., Radclyffe-Thomas, N. and Gee, L., 2018. Fashion management: A strategic approach in the management assignment. Bloomsbury Publishing. Available at: https://books.google.com/bookshl=en&lr=&id=ghtHEAAAQBAJ&oi=fnd&pg=PR1&dq=HRM,+marketing+and+ Strategy+Global+branding+challenges+of+Burberry+group&ots=ZaMW_s5dID&sig=ivFKQR5BTmgJL9LR6duXcI77D_8

Appendices

Figure 1: Earning of Burberry
Source: Phau, Akintimehin, and Lee, (2022)

Figure 2: Global revenue of Burberry, 2021
Source: Mandelli, Piancatelli, and Arbore, (2021)

Figure 3: Branding image of Burberry in the management assignment