Compiled by - M.A.

M Sadiq
Batch No - CT/HNDBM/60/02

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

INTERNATIONAL COLLEGE OF BUSINESS AND TECHNOLOGY

BTEC HND IN BUSINESS MANAGEMENT
ASSIGNMENT COVER SHEET 2014/2015

UNIT TITLE &

Business Environment
CODE
STUDENT NAME Mohamed Sadiq
ASSESSOR
ASSIGNMENT

STUDENT ID

HND/CT/BM/60/02

(number of how 1 OF 1

WORD COUNT

3000

many)
ASSIGNMENT

ASSIGNMENT

SUBMISSION

HANDOUT DATE

DATE
ASSIGNMENT

ASSIGNMENT

SUBMISSION

REVIEW DATEs
FINAL GRADE

DATE
ORIGINAL

RESUBMISSION

SUBMISSION

ASSESSMENT CRITERIA TO BE ASSESSED IN THIS ASSIGNMENT

(Identify all criteria to be assessed in this assignment)
Achieved Pass Criteria

LO1

LO2

LO3

LO4

Original Submission
Re submission

BM/60/02

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

Grade
Achieved
Original

Merit Criteria
M1
M2

M3

Distinction Criteria
D1
D2

D3

Submission
On
resubmission
AUTHENCITY STATEMENT
I certify that the attached material is my original work. No other persons work or ideas have been used without
acknowledgement. Except where I have clearly stated that I have used some of this material elsewhere, I have not
presented it for examination / assessment in any other course or unit at this or any other institution
SIGNATURE: ..

DATE:..

Assessment has been internally verified for use.

Internal

Verifier

Name :
Signature :

BM/60/02

Date
Verified :

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

ASSESSORS FEEDBACK
GENERAL COMMENTS

SPECIFIC COMMENTS

HOW TO IMPROVE YOUR ACHIEVEMENTS IN THE FUTURE

BM/60/02

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

Assessors Signature and Date

Business Environment

SCENARIO/ASSIGNMENT BACKGROUND
Aims and Objectives of the Unit
Business Environment is the combination of Business plus environment. In
uncomplicated expression of Business in it economic sense means human behavior and
activities like production, extraction or purchase or sales of goods and services that are giving
profits to the organization. Environment explains the aspects surrounding the business. So
the Business Environment can be define as a set of conditions such as Social, Legal,
Economical, Political or Institutional that are uncontrollable in nature and affects the
functioning of organization. Organization/ Businesses operating on different industries in the
different part of the world
Assignment Brief
Grading
Task one covered

LO1, M1

Task two covered

LO2, M2

Task three covered

LO3, M3

Task four covered

LO4, M3

D1, D2 and D3 are common grading criteria for all Four Tasks
BM/60/02

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

Select a textile or cosmetics industry / organization that operates in UK market

Task One (LO1 / M1)

1. Define the different types of organizations that exist in the market with their
purpose. (minimum of 3 from each Private and Public sector) (LO1.1)
2. Who are the stakeholders of the organization? What are the Responsibilities of
different stakeholders of selected organization and to what extent the
objectives of the stakeholders being satisfied? (LO1.2)
3. Identify the purpose of the selected organization (mission, vision, aims, goals,
market share and growth) (LO1.3)

Task Two (LO2 / M2)

1. Explain different type of Economics systems and how they manage their
resources effectively? (LO2.1)
2. What are the Fiscal and Monetary policies? How can expansionary and
contractionary concepts support to stabilize the economy? (explain with fiscal
and Monetary policy tools) (LO2.2)
3. How the fiscal and monetary policies are effect the selected Organization and
its business activity? (explain through tax rate and stock prices) (LO2.3)
Task Three (LO3 / M3) (Poster)
BM/60/02

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

1. Explain different market types that operate in the economy and how they
determine the price? (four market Models) (LO3.1)
2. Identify the most suitable market condition that your selected company is
competing (LO3.2)
3. What kind of market demand and market supply your selected company is
having? What are the levels of innovations, advanced technology and
recognitions selected company applied and received? (LO3.3)
Task Four (LO4 /M3) (presentation 25min/ 3 per group)
1. What are the pros and cons UK businesses experiencing due to the
international trade? (LO4.1)
2. What are the emerging Markets? What are the barriers and opportunities that
UK businesses faced when they entering to emerging markets? (discuss
through BRIC and other emerging markets) (LO4.2)
3. What is EMU? What is the situation that you can identify in the EMU from
2008 to Present? What are the impacts that UK businesses are facing due to
EU crisis? (LO4.3)

THIS UNIT IS LINKED WITH THE FOLLOWING UNITS

Unit 7: Business Strategy

Unit 3: Organizations and Behavior

Grading Information

BM/60/02

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

BM/60/02

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

Grading Information for Merits and Distinctions

M1

Identify and apply strategies to find appropriate solutions

M2

Effective judgments have been made on the organization

An effective approach to research about the organizations and its environment

Select/design and apply appropriate methods/ techniques

Relevant Economics theories have been applied

A range of methods and techniques have been applied according to the economics
system

M3

A range of sources of information has been used given by the organization selected

and in text referencing is present

Present and communicate appropriate findings

The appropriate given structure and approach has been used according to the tasks
you examining

Proper research has done and findings well guided to the question been asked in the
assignment

Ranges of methods of presentation have been used, technical language has been

D1

accurately used and Harvard Referencing present in the specific structure

Use critical reflection to evaluate own work and justify valid conclusions

D2

Conclusions have been reached based on the own findings of individuals

Take responsibility for managing and organizing activities

Importance of interdependence has been recognized and Financial, Economics

Findings havent dress up, use theoretical and numerical examples to prove

D3

Substantial activities or investigations have been planned, managed, organized,

review to the assessor and submit on or before the due date

Demonstrate convergent / creative thinking

Ideas have been generated with self evaluation and decisions taken based on the
subject material choose

Creativity has been applied to the tasks that given and apply innovative and creative
thoughts for the assignment

Effective thinking has taken place and act on the effective manner based on the
theories and structures has been applied to the assignment

BM/60/02

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

Assignment

Preparation

Guidelines

Type your assignment clearly : Font type: Times New Roman

o Font size
Headings : 14 pt, Bold, Underlined
Sub-headings : 12 pt, Bold, Underlined
Body : 12 pt, normal
Align : Justify
Line spacing : 1.5
Margins : 1 form each side
Numbering : at the bottom right hand corner
Header : Left side- subject name & Right side- individual/group

assignment
Footer :Left side- batch number, Right side-page number
All the Figures, Tables, Diagrams etc. should be numbered
Label sketches properly and neatly.
Write on only one side of the paper.
Utilize a table of contents and section headings where applicable.
Use size A4 paper.
Provide a title page and a front cover.
Do not forget to sign the plagiarism statement on the cover sheet of your assignment.

BM/60/02

10

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

Please note that plagiarism is treated as a serious offence and therefore the work you

produce must be individual and original although may work in groups in some instance
All sources of information must be referenced using Harvard referencing where a

reference listing should be included at the end of the assignment

Assignments returned to students for re-working must be re-submitted within 10 days
(Please refer to Student Handbook on Assignments Re-submission).

Failure to re-submit the previously marked assignment with the re-submitted assignment
will mean that results cannot be released for the respective unit.

Please note that the technical failures which occur during the assignment processing
period are not counted as an excuse for late submissions. As a precaution you are
expected to have a backup file (a copy of your assignment) by all means saved in the
system to avoid sudden system crashes and technical failures.

The ethical procedures of the course strictly maintain a data security policy on students
work and you should submit a soft copy of your completed assignment along with your
completed assignment hard copy in order to avoid assignment information distribution
among others.

The completed assignment should consist of the following documents and should be in
order:
1. Cover Sheet / Title page , Assignment Brief
2. Grading Descriptors
3. Acknowledgement
4. Executive Summary
5. Table of contents
6. List of illustrations/diagrams (if applicable)
7. Introduction
8. Body - Task 01, Task 02, Task 03, Task 04
9. Conclusion and Recommendation
10. References
11. Appendices
BM/60/02

11

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

BM/60/02

12

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

ACKNOWLEDGEMENT
Firstly I would like to thank our lecturer Miss Chameera, who gave me full support on the
assignment from the day he presented to us. She never made us bored and all of his classes
were full of joy and pleasure, therefore as an individual I have gained a good knowledge
about the module which is on Business Environment. The subject has designed in a way that
provides the current issues and opportunities an organization could face in a business
environment.
Secondly my sincere thanks to the management of ICBT who gave me the opportunity to
follow HND in business management and for giving such an excellent experience to do an
assignment that I had on this particular subject.
Thank you to all my colleagues who gave thoughtful ideas to carry out the assignment and
gave to critics to improve my writing skills in an effective way. I could confidently say that
the support from everyone had helped me do this particular assignment without any hassles.

BM/60/02

13

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

EXECUTIVE SUMMARY
This assignment is related with business environment of the Burberry Group PLC focusing
on identifying and explaining their mission, vision, goals and objectives with their
stakeholders and their objectives. Each and every organization in this world function with
many different stakeholders and it is a must factor that their objectives need to be fulfilled in
an effective manner. Burberry has clearly identified that without the support from
stakeholders the Company cant reach the high level in the market. However importance of
stakeholders objectives and their influence over the company has been identified and the
ways which company tries to achieve those objectives of the stakeholders has evaluated by
taking each stakeholders objective into consideration. Each of these stakeholders objectives
are also interactive the responsibilities of the company.
Burberry has been in the British Market and other countries for a long time with their unique
high end products. Many customers are willing to spend much money to consume the
fascinating trends which would create the psychological impact in their mind. In a business
environment many organizations are functioning with different purposes. The assignment has
explained the private and public organizations which exist in the market in order to service
the business environment and community.
Today international trade has become one of the utmost elements for Burberry and the
Company is showing a great interest by involving their product line in other countries. The
Company must know the drawbacks of international trade where they could eliminate them
with less effect on the business. Furthermore the assignment discusses about the emerging
market which could create barriers and opportunities for the UK entities. European Union is
helping many countries to generate harmony, prosperity, equality, etc. Finally EUs current
situation has been emphasized and its outcome is discussed with certain evidences. This
particular assignment helped to generate a wide knowledge about the business environment
and it has been revealed that every organization must clearly understand about their internal
and external environment in order to achieve their goals and objectives.

BM/60/02

14

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

Table of Contents

Contents
INTRODUCTION....................................................................................................................17
TYPES OF PUBLIC & PRIVATE ORGANIZATION............................................................18
PRIVATE ORGANIZATION...............................................................................................18
PUBLIC ORGANIZATION.................................................................................................20
STAKEHOLDERS OF BURBERRY......................................................................................22
RESPONSIBILITIES OF STAKEHOLDERS.....................................................................22
STAKEHOLDER OBJECTIVES........................................................................................24
EMPLOYEES...............................................................................................................24
SHAREHOLDERS.......................................................................................................24
CUSTOMERS...............................................................................................................25
COMPETITORS...........................................................................................................25
THE PURPOSE OF THE SELECTED ORGANIZATION MISSION, VISION, AIMS,
GOALS, MARKET SHARE AND GROWTH........................................................................27
DIFFERENT TYPE OF ECONOMICS SYSTEMS................................................................29
Market economic system......................................................................................................29
Command economic system.................................................................................................31
Mixed economies.................................................................................................................32
WHAT IS FISCAL AND MONETARY POLICY...................................................................32
FISCAL AND MONETARY POLICIES ARE EFFECT THE BURBERRY AND ITS
BUSINESS ACTIVITY...........................................................................................................33
CONCLUSION........................................................................................................................35
BM/60/02

15

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

INTRODUCTION
Burberry Group PLC is a luxury British clothing and accessories Company which was
founded by Thomas Burberry in 1856. By the year of 1870 the business has established with
the purpose of providing outdoor attires for both genders. The unique and well-known tartan
pattern has become one of the famous trademarks in the world. Burberry is famed for its
trench coat designed by its founder and the branded stores and franchises in more than 48
countries. The Company has been listed on the London Stock Exchange due to its successful
business functions.
Based on Business Weekly, Burberry was the 98 th most valuable brand in the world. Burberry
has been in its industry for quite a long time and had created a very good brand image for
their Company. It will be intriguing to scrutinize how some of these services contribute to its
overall performance. But within a short period of time the Company has developed their
brand name and this will be a threat to its competitors and the financial status is keeping on
increasing from one year to another. Therefore it is evident that in future this particular brand
will achieve its set objectives in an effective manner.

BM/60/02

16

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

TYPES OF PUBLIC & PRIVATE ORGANIZATION

The British Market contains different types of business organization. The National Economy
of the country is giving high priority for the entities in order to build the business
relationship. An organization is a set of people working for a common purpose to achieve the
set objectives. The public and private organizations in United Kingdom are given below.

Source: http://www.scribd.com/doc/36544190/1-2-Types-of-Organisations
PRIVATE ORGANIZATION
The private organizations are part of the countrys economy which is operated by private
individuals or groups with the aim of earning high profits. It has the responsibility to provide
sufficient needful for the society in order to maintain the high standard of living. There are
many types of private organizations exist in the business environment. These entities function
with different purposes to maintain structure of the economic system.

SOLE TRADE
Sole trade is a simple version of a business which could be easy to start and
inexpensive than other entities. Many sole trades choose their trade under their own
unique names which would give an attachment with the specific business. Due to own
capital the owner will have a complete control over the activities and simultaneously
the owner has to bear the liability of the risks. The purpose of a sole trade could be
many and few of them are underlined below.
Simple set up and operations

BM/60/02

17

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

To have a complete control over the assets and liabilities

Avoid tight reporting requirements
Flexibility to meet the legal standards
Maintain the top secrets in a fine way without revealing to third parties

PARTNERSHIP
A partnership is strategic relationship between two or more people in order to achieve
certain goals. Normally successful partnerships are based on trust, equality and
mutual understanding. Partnerships could be formal agreements which explain the
roles and obligations of each and every party. The partners in a partnership share
valuable ideas to strengthen the business capacity and also to climb the ladder in an
innovative way. Some of the purposes of partnership are below.
Improve the access of the resources and utilizing it in an optimum way
Proving improved services and work efficiencies
Serving the community by using the knowledge of different partners
The risk could be shared and each partner would bear a certain amount of
liability

COMPANY
Company is a legal entity which permits a group of people to be creative and focus on
pursuing the set objectives. The shareholders of a Company are bound with legal
rights and they are expected in behave in a particular way which would help to
maintain the standard of the individual. Generally there are two types of Companies
exist in the business world namely private limited companies and public limited
companies. The purposes of a Company are emphasized below.
Giving rights for the shareholders to participate in the profit
Maintaining proper records for legal requirements

BM/60/02

18

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

Usually limited liabilities for the shareholders

Require to follow the expensive procedures to comply with regulations
It would be easy to attract capital investment from the shareholders due to
limited liability.
PUBLIC ORGANIZATION
Most of the public organizations are owned by the government to produce welfare services to
the public community. The UK government has been involved in many activities in order to
ensure that the public are gained all the necessary facilities to live standard lifestyles. Even
though these organizations have created high concern due to certain issues such as high
labour costs, operator focused and unresponsive to market demands. The below are some of
the public organization in UK.

PUBLIC CORPORATIONS
Public Corporations are the entities that are created by the state in order to carry out
public needs and services. In order to provide these services public corporations also
participate in certain activities which are done by a private enterprise. Generally the
board of directors of a public corporation is appointed by the government to ensure
that the operations in a country are delegated in a prompt way. The purposes of the
public corporations are given below.
Increase the human welfare in the society
Set standard in order to increase the life style
Having a fair distribution between rich and poor community

LOCAL COUNCIL
Local council is an administrative body for a geographic areas namely city, town,
state or a country. This council would have the authority to control a certain
geographical areas by electing officials, deciding on tax rates, etc. Following are the
purpose of a local council.
Improve the local environment

BM/60/02

19

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

Set strategic policies and directions

Oversee the delivery of the services to country people
Regulate the local visitors and tourism events
Promote the culture and sports events
Assist the business by generating employment opportunities

STATE SERVICES
State services are the legal entities which are formed by the government to undertake
commercial activities on behalf of the government of a country. These state services
are generally operates with the aim of facilitating the commercial affairs. It involves
in the infrastructure of railways, telecommunication, natural resources and healthcare
facilities. The purpose of state services could explain the necessity of it in different
countries.
Corporation with other government bodies
Promoting well-being
Insist the entities to follow good business practices
Consideration of community view
The above given purposes of all the public and private organizations, showing an
insight that it is a backbone of a countrys economic status. Therefore with a clear
understanding each and every organization must serve their obligation to the country
in order to develop their economic systems. As a whole the understanding of different
types of organizations is an important factor for any business and Burberry as being a
public limited company, it must be aware of other entities that are competing with
them in direct or indirect way. With the understanding the Company can avoid
unnecessary issues and move forward to achieve the founders purpose of existence in
the market.

BM/60/02

20

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

STAKEHOLDERS OF BURBERRY
A stakeholder is an individual or a group whose interests are directly affected by
organizational activities. Burberry has identified their stakeholders in two different categories
which are external and internal stakeholders.
External stakeholders
Customers

Contributions

Competitors
Suppliers

Burberry
Inducements

Banks
General public

The
Internal
stakeholders
Firm
Employees

Contribution

Union, etc.

Inducement

Managers
Share holders
Board members etc

Stakeholders of Burberry have showed a high concern towards corporate objectives and
Company is delivering their products and services in a prompt way. Therefore both parties
must create a strong relationship to overcome the business barriers and also to fulfil different
types of needs.
RESPONSIBILITIES OF STAKEHOLDERS
Burberry expects that every stakeholder in the Company must know their responsibilities to
create a smooth business process. They have gained the power to act to the decisions that are
made by the Company and moreover to express their views during the major discussions. The
below given diagram clearly showing the key responsibilities of each and every stakeholder.

BM/60/02

21

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

STAKEHOLDERS
Employees

RESPONSIBILITIES
Increasing the product knowledge and serve
the customers in an effective way.
Respect human rights and help Burberry to
recruit

excellent

personal

by

providing

sufficient information about the British job

market

Customers

Giving

feedbacks

about

the

Companys

products and services

Enhancing the continuous relationship with
Burberry through sending suggestions

Shareholders

Attending the necessary meeting which is

conducted by Burberry
Increasing Burberrys image by strengthening
the profitability
Taking part in important decisions that would
change the business structure

Community

Enhance the understanding of Burberry as a

brand
Ensure safe operation environment protection

Business Partners

Sharing business opportunities through fair

deals
Providing quality materials to main the
continuity of manufacturing process

BM/60/02

22

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

STAKEHOLDER OBJECTIVES

SHAREHOLDERS
Shareholder is a person who owns the shares of Burberry and has the right to receive a
portion of company profits in the form of dividends, so simply a shareholder can be
known as a stockholder. Following are the objectives of Shareholders.
Increment on the dividend
Interested in the companys growth.
The amount of freedom given to them by Burberry to make decisions
The shareholders will be satisfied with more dividends which have been depended on
Burberrys growth because when the Company makes more profit the shareholders
will end up in receiving higher dividends. The companys growth can be improved by
doing some promotions on the products so that it will lead to increase in sales and
profits.

EMPLOYEES
Employees are the people who are bound with a contract by Burberry. Employees are
working under Burberrys premises and who faces many risks in the working
environment. The objectives of employees are given below.
Increment on the salaries
Training and knowledge about the products and services
Promotions to higher standards
Allowances for mobile services, transportation, etc.
Job security
The above mentioned are some of the objectives of the employees. These objectives
can be achieved based on the working skills and earning salary is definitely going to
be a significant objective to the employee because every employee is interested in
getting high salaries. But the amount that they will be satisfied will depend on the job

BM/60/02

23

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

title. When the position of the employee increases the work becomes more
professional and advanced so at this time the employee will need some training based
education to increase his/her knowledge. Even allowances, promotions are also some
of the interests of the employee to be fulfilled. Any employee in the organization will
have objective to get many different kinds of allowances and would like to get
promoted to higher standards.

CUSTOMERS
Customers are the people involved in buying goods and services from Burberry and
simultaneously when customers are involved in purchasing goods they will be having
many objectives.
To purchase high quality products
To gain a better after sale service
Having a comfortable shopping environment, parking facilities etc.
The above mentioned are some of the objectives of customers and the first objective is
about purchasing quality products. Normally when a customer enters to a Burberry
shop he/she would like to buy quality products for a reasonable price. Burberry must
perform their services with utmost good faith and make the customer satisfied to its
best EG: delivering the goods to the customers place, providing parking facilities,
comfortable environment of shopping etc. So these are some crucial factors where the
customers objectives can be achieved to the highest standards.

COMPETITORS
Burberry has many competitors in the business market and they function with
different objectives. Therefore Burberry must be ware about them to face the great
threats that are arising with new products and consumer tastes. The objectives of
competitors are given below.
To build a high brand perception on their product.
Innovation of new products to reduce competition.

BM/60/02

24

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

Competing with other brands is not an easy task for Burberry because every
competitor in the market operates their business with overcoming the other Company.
When comparing Burberry with the competitors it has been already known that the
Company has a long product line which would serve their customers with great
intention of satisfaction. The luxury products are reaching the celebrities and creating
a high competition against other brands such as Prada, Bulgari and Polo Ralph
Lauren.
TO WHAT EXTENT BURBERRY SHOULD MEET THE ABOVE OBJECTIVES

EMPLOYEE OBJECTIVES
The above stated employee should be achieved in order create a pleasant business
atmosphere. The increment of salary is one of the objectives of the employee and can
be fulfilled by performing the tasks in an extra ordinary manner to satisfy the top level
executives. If the top level management is satisfied with the employee performance
then the employees objective can be achieved up to a certain extent.
Burberry believes that it is their responsibility to make the employees satisfied in
average manner so that they will work harder to achieve their objectives. Even when
it comes to promotions and allowances, its the employees responsibility to work
hard and show his/her skills to the top management so that if the top management is
convinced with their ability, they will provide certain allowances and provide
promotions accordingly.

SHAREHOLDER OBJECTIVES
Shareholder objectives are also unlimited and if the shareholder wants to achieve their
objective they must create opportunities for Burberry to generate more profit which
would lead them to earn their dividend. The underlying factor would be that
shareholders can be earned based on Companys performance. When the Companys
growth is not to the set standard the Shareholders must seek different ways to increase
the business acumen.

CUSTOMER OBJECTIVES

BM/60/02

25

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

Customers objectives are crucial for Burberry if its achieve in the maximum way it
would create a great risk for the Company. Customers highly prefer for the goods to
be in high quality and Company own the responsibility to maintain with standards. In
case if the goods are not up to the required standard then the customer wont be
satisfied therefore the Company must make sure to provide the needed facilities to
without any constraints.

THE PURPOSE OF THE SELECTED ORGANIZATION MISSION,

VISION, AIMS, GOALS, MARKET SHARE AND GROWTH
MISSION
To provide high quality and fashionable products to the customers the Company has been
stable with their mission statement which is educated by the Management to all their
employees. The brand is widely recognized by everyone through the check design which
distinguished the brand from other competitors. Following is the Mission statement of
Burberry.
To satisfy customers needs and tastes by continuing to provide high quality and fashionable
products that can satisfy the current customers and prospective customers within the niche
that Burberry is currently targeting. The prospective mission of Burberry is to maintain the
image that they have worked so hard to rebuilt and maintain the consistent
VISION
The vision of the Company was invented from its founder, Thomas Burberry in the age of 21
years. With the vision in the mind the man of creation produced many kinds of outfits for
British Army and other private clients. The vision of Burberry is given below.
Innovative Functional Outerwear
The vision of the Company clearly expresses the long term focus which is based on
innovation and creativity. Each year young talents from different countries are recruited by
Burberry to bring up new ideas to build professional relationship in the industry.

BM/60/02

26

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

GOALS & OBJECTIVES

Each and every Organization in the business environment operates with goals and objectives
in order to survive in the market for a long time period. Burberry has its own goals and
objectives which are based on the Management of the Company.

Up holding profitability and maintaining in a positive way

This is one of the main objectives of the Burberry Group PLC and it means
maintaining a high profit in the Market for longer time. The Company is using various
strategies and in order to increase the sales therefore at the end of each month the
company can expect a good profit than the previous month. Consequently upholding
the profit in a better manner the only option would be by doing promotions and
building the image of the firm. When this occurs many people will gather information
about this company and will lead to an increase in sales, by word of mouth. If the
company is able to maintain this profit for longer period, it would help them to the
expansion of the company in the future.

Promote and boost the Companys image in the Market

Since Burberry is a high end luxury Company, it has many competitors in the British
and other Markets in the world. The Company has the ability to involve in advance
level of promotions and it would create demand for its quality products. Also the
Company will be able to build up a very strong image on their company. Due to the
brand image the Company has reached many customers all over the world.

Maintaining the quality of the products in the Market

It is another imperative objective which is considered by Burberry. The major
advantage of maintaining good quality on the product would be customer satisfaction.
Burberry has been gained its customer satisfaction through the products and the brand
is renowned for the ranges of products. Therefore the quality control helps the
Company to keep their materials with less wastage.

Utilizing the maximum use of resources

As an organization it is quite important for it to utilize the resources more efficiently
and effectively. Even when it comes to Burberry the objective would be utilizing the
resources without any wastage. If the company does this with high efficiency it will

BM/60/02

27

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

be able to achieve competitive advantage and furthermore the image in the society
will increase in a broad way.

MARKET SHARE OF BURBERRY

In the British Market, Burberry sells its products through three different channels
which are retail, whole sale and licensing. For the year 2012/2013 retail accounted for
71% of revenue and wholesale 24%. Burberry has its main competitors in the Market
and currently they have reached second position in the market with their exclusive
products. The market share of Burberry is given below. Based on the Market share
Burberry is holding the second position with 26% to Prada. Other main competitors of
Burberry are Giorgio Armani, Bulgari and Polo Ralph Lauren.

DIFFERENT TYPE OF ECONOMICS SYSTEMS

Any society face basic economic problem generally. Different economic systems occur as the
result of solving these basic economic problems. These economic systems can be categorized
as Market economy, Command economy and Mixed economy.
Market economic system
Market economy is termed as a Capitalist economic system or a Free enterprise economic
system, alternatively.
The main characteristics of a Market economy can be explained as follows
BM/60/02

28

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

Private ownership of property

Free enterprise and freedom of choice
Competition and free market
Function of a price mechanism
Self interest and profits
Limited role of the government

The price mechanism does the following functions in the market economy

Signalling function
Incentive function
Allocation function

A price mechanism functions as the coordinating mechanism of solving basic economic

problems in the market economy.
The basic economic problems of what and how much to produce is solved in the Market
economy by the price signals of the good market.
The basic economic problem of how to produce is solved in the market economy by the
signals of the factor market.
In the market economy, individual income is decided by two factors such as, price of factors
of production in the factor market and exchange of quantity for the price
There are some disadvantages also in the market economy such as,

Inefficient allocation of resources

Failure to provide public goods and merit goods
Externalities
Occurrence of economic disparities

Human wants are unlimited and the available resources are limited to satisfy them. Scarce
resources in a society can be employed for various alternative uses. Therefore, a problem
arises on the allocation of scarce resources. This problem is common to each and every
society.
The market system fosters competition that generally produces the most efficient allocation
of resources. That way market economy manages their resources effectively.
A price mechanism functions as the coordinating mechanism of solving basic economic
problems in the market economy.
BM/60/02

29

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

The basic economic problems of what and how much to produce is solved in the Market
economy by the price signals of the good market.
The basic economic problem of how to produce is solved in the market economy by the
signals of the factor market.
In pure capitalism, also known as laissez-faire capitalism, the government's role is restricted
to providing and enforcing the rules of law by which the economy operates, but it does not
interfere with the market.
Command economic system
Command economic system is explained as an economy where the basic economic questions
are solved by the centrally planned authority.
The main characteristics of a Command economic system can be explained as

Government owns all the factors of production except labour.

Basic economic problems are solved by a centrally planned authority under the

guidance of the government.

Competition and free market
Function on social welfare

A centrally planned authority decides on what and how much to produce and informs
production units.
A centrally planned authority decides on how to produce. Production units are the
government entrepreneurship and incentives are decides according to the orders of a centrally
planned authority.
For whom to produce is decided according to the price of factors of production.
Because of the disadvantages of Command economic systems, these economic systems have
been transited to Market economy.
Examples: Russia, China and eastern European countries
Mixed economies
Most characteristics of Command economic system and Market economic systems are mixed
up and mixed economies occur in most countries
Example: Sri Lanka, India and Pakistan
BM/60/02

30

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

The Following characteristics can be seen in a mixed economic system.

Public ownership of property

Private freedom limited.
The decisions regarding allocating resources of society is taken by the government or
is centrally planned by authority

The basic economic problems of what and how much to produce is solved in the by the price
signals of the good market and orders of a centrally planned authority.

WHAT IS FISCAL AND MONETARY POLICY

Fiscal policy
Fiscal policy is the use of government spending and taxation to influence the economy. When
the government decides on the goods and services it purchases, the transfer payments it
distributes, or the taxes it collects, it is engaging in fiscal policy.
Monetary Policy
The actions of a central bank, currency board or other regulatory committee that determine
the size and rate of growth of the money supply, which in turn affects interest rates. Monetary
policy is maintained through actions such as increasing the interest rate, or changing the
amount of money banks need to keep in the vault (bank reserves)
Monetary policy has lived under many guises. But however it may appear, it generally boils
down to adjusting the supply of money in the economy to achieve some combination of
inflation and output stabilization.
Most economists would agree that in the long run, output usually measured by gross domestic
product (GDP) is fixed, so any changes in the money supply only cause prices to change. But
in the short run, because prices and wages usually do not adjust immediately, changes in the
money supply can affect the actual production of goods and services.
Government spending
The government spending that the government makes to control the money supply of the
economic. If the government spending increases it leads to expansionary fiscal policy and if
the government spending decreases it leads to Contractionary fiscal policy.
BM/60/02

31

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

Taxes
When the economy is in recession, government wants to increase AD. If the taxes increase it
leads to decreases disposable income of consumers and if the taxes decrease it leads to
increases consumers disposable income.

FISCAL AND MONETARY POLICIES ARE EFFECT THE BURBERRY

AND ITS BUSINESS ACTIVITY
Fiscal policy
Fiscal policy is a government's decision regarding government spending and taxing. If a
government wants to stimulate growth in the economy, it will increase spending for goods
and services. So Burberry Companys goods spending also increase, increase demand for
Admiral Goods and increase its stock price. (Stock price is the cost of purchasing
a security on an exchange.)
The other side of fiscal policy is taxes. If taxes go down, customers will have more money.
They will either spend it or save it. If they spend it, they increase demand. If the demand will
increase Burberry Company have to produce more.
Admiral Sportswear Companys annual report is not in the internet.
Monetary policies
Monetary policy is the decisions a government makes regarding the money supply and
interest rates. How the Board of Governors of the Federal Reserve handle the nation's money
supply is known as monetary policy and its effects on everyday life- It including our
business.
The Federal Reserve sets the interest rate at which banks borrow money from them. When the
Fed lowers interest rates, they make it cheaper for banks to access money, which in turn
makes banks more likely to lend to our businesses. Our business's ability to borrow or
establish a line of credit can be largely affected by how expensive or cheap it is for banks to
get money.
Expansionary monetary policy

BM/60/02

32

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

Expansionary monetary policy causes an increase in bond prices and a reduction in

interest rates.
Lower interest rates lead to higher levels of capital investment.
The lower interest rates make domestic bonds less attractive, so the demand for

domestic bonds falls and the demand for foreign bonds rises.
The demand for domestic currency falls and the demand for foreign currency rises,
causing a decrease in the exchange rate. (The value of the domestic currency is now

lower relative to foreign currencies)

A lower exchange rate causes exports to increase, imports to decrease and the balance
of trade to increase.

Contractionary monetary policy

Contractionary monetary policy causes a decrease in bond prices and an increase in

interest rates.
Higher interest rates lead to lower levels of capital investment.
The higher interest rates make domestic bonds more attractive, so the demand for

domestic bonds rises and the demand for foreign bonds fall.
The demand for domestic currency rises and the demand for foreign currency falls,

causing an increase in the exchange rate. (The value of the domestic currency is now
A higher exchange rate causes exports to decrease, imports to increase and the balance
of trade to decrease.

Expansionary and Contractionary monetary policy reference from: about education [online]
DATA-7/26/2015 Available at: http://economics.about.com/cs/money/a/policy_2.htm

CONCLUSION
From the assignment it is understood that mission, vision, goals and objectives of Burberry
and the importance of achieving the purpose existence which the Company wants to reach in
the near future. Since the establishment the Company has achieved many set objectives
because of the effective business acumen of the directors and management. Similarly,
existence and to go forward with the company stakeholders is important as one of the main
purpose of existence of any company is to satisfy its stakeholder where they cannot be able to
survive in the business without fulfilling their objectives. Thus each and every goal is set to
BM/60/02

33

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

reach these stakeholders objectives and to attain mission and vision of the company by
making profit and sustaining the company. Hence responsibilities of company is significantly
important, because in today business context acceptance and rejection of the company
products and activities are very much related with the responsibilities that the company take
towards its stakeholders and community.
Furthermore, in this assignment it has been identified Burberry is a successful British brand
that created the network in more than forty eight countries. Burberrys commitment to the
society is outstanding where they recruit young individuals to express their creative designs
which would produce unimaginable products to the world. There are certain drawbacks for
any companies and Burberry must understand the importance of involving in international
trade and the opportunities can be used in a positive way. As a conclusion it has been evident
that some companies are successful in the market with their unique products and human
capital. The underlying reason behind for this achievement would be the effective business
regulations which are followed by the Company.
Burberrys culture is based on a blend of entrepreneurial spirit and a passion about the
business. The company is willing to look new opportunities in a conservative and
highly financially disciplined way. The company itself has created an organizational
culture with ethics and honest in building brands and representing good partners and
principles. An evaluation of its business history however reveals a myriad of other
factors that has helped Burberry its way through changing times.

BM/60/02

34

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

REFERENCES
'Burberry case study', Blog at WordPress.com, Accessed: 12th July 2015, Source: from:
http://laurenmjacobson.wordpress.com/case-studies/burberry-case-study/
Corporation

Tax

rates',

2015,

Accessed:

24th

July

2015,

Source:

from:

https://www.gov.uk/corporation-tax-rates
'Dodd-Frank, UK, EU & Other Regulatory Reforms ', Shearman & Sterling LLP, 2013,
Accessed: 23th July 2015, Source: from: http://www.shearman.com/dodd-frank/
EU

legislation',

2010,

Accessed:

04th

July

2015,

Source:

from:

http://ec.europa.eu/social/main.jsp?catId=867
'History and background of Burberrys', Copyright 2001 - 2013 FragranceX.com, 2015,
Accessed: 1st July 2015, Source: from: http://www.fragrancex.com/products/_bid_Burberrysam-cid_perfume-am-lid_B__brand_history.html
Lamp, R 2012, 'Burberry CEO: United company vision key to brand success', 2013
Napean LLC, Accessed 24th July 2015, Source: from http://www.luxurydaily.com/burberryceo-brand-image-is-no-1-priority-for-a-united-company-vision/
Murphy, K 2012, 'The History, Heritage and Quality of the Luxury Brand, Burberry', Twitter
Facebook Copyright 2013 Tunner Media Inc., Accessed 12th July 2015, Source: from
http://eatlovesavor.com/the-history-heritage-and-quality-of-the-luxury-brand-burberry/
'Leveraging Corporate Responsibility: The Stakeholder Route to Maximizing Business and
Social Value', Copyright 2013 Designed and developed by Hop Studio, 2013, Accessed:
10th

July

2015,

Source:

from:

http://www.ssireview.org/articles/entry/leveraging_corporate_responsibility

BM/60/02

35

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

Sole Trader', 2012 Small Business Development Corporation (, 2011, Accessed: 20th July
2015, Source: from: http://www.smallbusiness.wa.gov.au/sole-trader/
Types of organization', Copyright 2013 Scribd Inc., 2013, Accessed: 19th July 2015,
Source: from: http://www.scribd.com/doc/36544190/1-2-Types-of-Organisations
What Is the Purpose of a Partnership Agreement?', 2013 azcentral.com, 2012, Accessed:
21st July 2015, Source: from: http://yourbusiness.azcentral.com/purpose-partnershipagreement-5537.html

BM/60/02

36

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

NEED MORE EXPLANATION ABOUT THE MARKET MODELS?

PURE MONOPOLY

MONOPOLISTIC COMPETITION

Industry with a single firm that produce a

product

The situation where the market consists of

many buyers and sellers who trade over a
range of prices rather than a single market
price

There are no close alternatives for the

product
Significant barriers to entry prevent other
firms from entering the industry

A range of price occurs because sellers can

discriminate their offers to buyers

PURE COMPETITION
The market consists of buyers and sellers
trading based on a standardized commodity
No particular buyer or seller has much
effect on the market price
A seller cannot adjust more than the going
price, because buyer can gain as much as
they need at the going price

BM/60/02

37

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

OLIGOPOLY
When the market consists of few sellers
who are highly aware to each others
pricing and marketing strategies
There are little sellers because it is
difficult for new sellers to enter the
market.

BM/60/02

38

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

Burberry & Monopolistic Competition

Burberry is mainly
functioning in the UK market
where products are
differentiated from one
another
There is no perfect
substitution for brand
BURBERRY
Burberry is a profit
maximizing Company
The Company makes
independent decision about
their prices
It is a large number of
independent firm which is
competing in the market

BM/60/02

39

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

Burberry demand has consistently increased from every year to year, it can be
Seen in the annual report that the sales has rapidly increased year by year.

Burberry supply has increased from the past years, they have opened several new branches and
has covered their supply worldwide.

INNOVATION & RECOGNITION OF BURBERRY

Leading brand which has a great recognition all
over the world
Every year the Company produces innovate
products with high use of technology
It is commonly known as the British heritage
brand
Offering the full collection in a digitally-enriched
environment
Retail theatre of Burberry was rolled out to a
further 84 stores, extending the global streaming
of brand content in all flagship markets
BM/60/02

40

Business Environment
\

Individual Assignment
Higher National Diploma in Business & Management

Edexcel International - UK

BM/60/02

41