Name: San Htet Aung Student ID: 2013043

Student name: San Htet Aung

Student ID: 2013027

Unit Name: Strategy Management

Unit Code: SHR016-3

Exam date: 15 January 2021

Location: STI Myanmar University

Question 2
Name: San Htet Aung Student ID: 2013043

The McKinsey 7s model is a strategic instrument and the system that lets managers and
organizations analyze their results. The McKinsey 7s model defines 7 main factors within an
enterprise that need to be centered and aligned for effective cycles of change management as
well as periodic changes inefficiency. It is possible to categorize the 7 elements defined in the
McKinsey 7s model is either hard or soft in nature. They are classified as strategy, structure and
system in hard elements and share values, skills, style and staff in soft elements. In order to
continually improve its efficiency and introduce effectively change management practices,
Burberry makes use of the McKinsey 7s model. In order to ensure that the efficiency standards
are continuously preserved and enhanced for the offerings, Burberry focuses on the 7 elements
defined in the blueprint.

Strategy

Clearly defined

The corporate course and Burberry's overall market plan was specifically identified and shared
with both staff and stakeholders. The definition and communication of the corporate plan also
makes processes more straightforward for Burberry and aligns the company's roles and actions.

Market pressures

The approach of Burberry also takes into account rivals' economic conditions and practices. The
plan tackles these pricing challenges through means of suggestive steps and measures to counter
competition through proactive strategies and actions to ensure Burberry's competitiveness
through responding to industry dynamics and changing customer preferences and demands.

Structure

Burberry provides a flatter hierarchical hierarchy that is supported by companies that are
learning and progressing. With lower layers of management in between and more access to
senior management and management, workers feel more comfortable and assured and have more
access to knowledge as well. In comparison, the flatter hierarchy also facilitates Burberry's
smoother decision-making processes and improves employee corporate participation.

System

In order to ensure that company processes are handled efficiently and that there are no problems
or disputes, Burberry has established and well-demarcated structures in place. The structures at
Burberry are predominantly departmental in design, including like human resource management,
marketing& finance, operations, sales, supply chain management, public relation management
and strategic leadership.

Shared values
Name: San Htet Aung Student ID: 2013043

To promote an innovative and welcoming organizational structure that will allow workers to
work optimally and increase their morale and organizational engagement, the core values at
Burberry are established and shared. Creativity, integrity, openness, responsibility, trust,
consistency, and heritage are not limited to the core principles at Burberry. The Burberry
Corporation also maintains that all of its processes and practices are carried out with high legal
and ethical values that are redefined and benchmarked against international guidelines.

Style

Burberry has a participatory leadership style and it’s able to participate and include its staff in
decision-making processes and managerial decisions through a participative leadership style. It
also encourages leaders to engage frequently with personnel and numerous management bodies
and recognize any possible disputes for resolution, as well as input on strategic tactics and
events.

Staff

Based on this, it is seen that Burberry has workers who are trained according to the criteria of
their duties and places in the work. In house preparation, all workers are provided to familiarize
themselves with the organization and its values. For capacity level enhancement, external
training along with in-house training is offered.

Skill

With high talents and capabilities, Burberry has a commendable workforce. Both staffs are hired
on the basis of their credentials and skills. Burberry prides itself on recruiting and further
grooming the right professionals to encourage growth and development (Mckinsey 7s
Framework Of Burberry, 2021).

Red ocean strategists rely on creating gains over rivalry in order to maintain themselves in the
industry, usually by analyzing what rivals do and attempting to do it differently. Blue ocean
strategists understand that business limits remain only in the minds of managers, and they do not
allow their thought to be constrained by current market systems. There is hardly an attractive or
unattractive industry per se under the blue ocean approach, as the level of industry popularity can
be altered by the diligent efforts of companies. New wealth is generated by extending the
demand side of the economy. Therefore, such a tactic encourages businesses to play a non-zero-
sum game to a considerable degree, with strong payoff possibilities (Blue Ocean Strategy, 2021).
So, in summary described above are the differentiation between Red Ocean and Blue Ocean.
Name: San Htet Aung Student ID: 2013043

Question 1

For an organization growth the company needs to use the necessary tool or strategy which is call
the Ansoff matrix. The Ansoff Matrix also called the Grid for Product/Market Expansion, is a
technique used by businesses to evaluate and prepare their growth strategies. The matrix
demonstrates four methods that can be used to help an organization develop and analyzes the risk
involved with each solution as well. Applied mathematician and company strategist H.
developed the matrix. Igor Ansoff, which appeared in 1957 in the Harvard Business Review. The
Ansoff Matrix has helped many advertisers and managers to understand the risks involved in
growing their business.The four strategies of the Ansoff matrix including:

Market penetration: depends on growing access within an established market with existing
goods.

Product Development: focuses on the delivery to an established market for new goods.

Market Development: using current goods, this approach focuses on entering a new market.

Diversification: with the launch of new goods rely on entering a new market.

Market expansion is the least risky of the four techniques, while diversification is the riskiest.

Market penetration

The company uses its goods in the current market in a market expansion approach. In other
words, through a market expansion plan, a company seeks to maximize its market share. The
market penetration plan can be implemented by lowering rates to draw potential buyers,
increasing marketing and sales activities and Gaining a rival in the same industry by the amount
of forms.

Product development

The business introduces a new product to appeal to the current demand through a product growth
plan. Usually, the transition includes substantial research and development and extension of the
product portfolio of the business. When businesses have a good awareness of their current
demand and are willing to offer new ways to satisfy the demands of the same market, the product
marketing approach is used.
Name: San Htet Aung Student ID: 2013043

Market development

In a business growth approach, the company reaches a new market for its latest offering (s).
Expanding into new markets in this sense can mean expanding into new geographic areas,
consumer groups, etc. The market growth approach is more effective if (1) the business owns
advanced technologies that it can exploit into new markets, (2) the future customers in the new
market are profitable (i.e. have discretionary income) and (3) the behavior of the customer in the
new markets does not deviate too much from the consumer behavior in the current markets.

Diversification

The company reaches a new market with a fresh commodity through a diversification approach.
While such a plan is the riskiest, the risk can be mitigated somewhat by associated
diversification, since both business and product growth are necessary. Also, since it opens up an
entirely new business source for the firm, the diversification approach will bring the biggest
opportunities for improved sales, accessing customer buying dollars in a market to which the
company did not historically have access (Ansoff Matrix - Overview, Strategies and Practical
Examples, 2021).

Via Burberry mainline shops, concessions, franchises and internet commerce, as well as
Burberry franchisees, worldwide prestige department stores and multi-brand niche accounts, the
Retail/Wholesale market channel is active in the selling of luxury products. The group served
469 stores directly in FY2017, including 213 in Asia-Pacific, led by EMEA(153), and the
Americas (103). Accessories for the company accounted for 38 percent of retail/wholesale sales
in FY2017, led by women's wear (29 %), men's wear (22 percent), children's wear (4 %), and
beauty wear (4 percent) (7 %). The Retail/Wholesale market channel created revenue of
GBP2,741.1 million in FY2017, accounting for 99.1 percent of the overall revenue of the
group(Coursehero,2021).

According to the above data, Burberry can still open up the market and earn revenue in such a
fierce market. In recent years, brand awareness and sales have also achieved very impressive
results. In the future expansion strategy, I hope Burberry can maintain the original intention to
maintain the existing brand effect and quality. In term of market competition, Burberry should
cooperate with more well-known brands to win more consumers’ attention. Continue to adhere to
the uniqueness and quality of the brand for a long-term strategy.
Name: San Htet Aung Student ID: 2013043

Question 3

Burberry Group plc ('the company' or Burberry) develops, manufactures, and produces premium
goods. The product line of the business includes clothes and accessories for women, men, and
children. Via a diversified network of distribution, wholesale and licensing outlets
internationally, Burberry distributes its goods under the Burberry name. In addition to Burberry
franchisees, department stores, and multi-brand niche account markets, it performs business
operations through Burberry mainline stores, outlets, concessions, and digital sales. The
company works across two business channels: Wholesale/Retail and Licensing. Via Burberry
mainline shops, concessions, franchises and internet commerce, as well as Burberry franchisees,
prestige department stores worldwide and multi-brand niche accounts, the Retail/Wholesale
market channel participates in the selling of luxury products (Coursehero,2021).

The company’s products, channels and platforms, employees, brand and revenue all belong to
the company’s capabilities.

Burberry works via the distribution network of its owners and the distribution network of third
parties. The group's internal delivery network also includes internet commerce (burberry.com)
and 48 Burberry franchise stores are part of the third-party distribution network. Thus, the
company can reach a broad client base and break into the markets with a powerful distribution
network. In FY2017, the firm posted good sales growth. Good sales development lets the
business win the trust of customers and strengthens the capacity to commit sufficient funds for
potential growth prospects. In FY2017, relative to GBP2,514.7 million in FY2016, Burberry
posted sales of GBP2,766 million, reflecting annual growth of 9.9 percent. Revenue growth was
largely due to the good success of its retail sector. In FY2017, overall Burberry retail revenue
rose by 15.7 percent relative to the previous fiscal year due to 14.5 percent growth in accessories;
8.6 percent for women's wear; 13.6 percent for men's wear; and 19.1 percent for children's wear
(Coursehero,2021).

The above description is enough to see that Burberry can still achieve success in such a highly
competitive fashion industry. As an international fashion company, Burberry has many branches,
channels and platforms around the world and its annual sales have also achieved great results, as
well as many loyal fans. Burberry’s brand has always existed in the brand’s best-selling items.
So the above viewpoints and the market survey are enough to show that Burberry can have a
sustainable competitive advantage in the fashion industry.
Name: San Htet Aung Student ID: 2013043

Reference List

Essay48. 2021. Mckinsey 7S Framework Of Burberry. [online] Available at:

<https://www.essay48.com/case/12358-Burberry-Mckinsey-7s> [Accessed 15 January 2021].

Blue Ocean Strategy. 2021. Fundamental Difference Between Red Ocean Strategy And Blue
Ocean Strategy | FAQ | Blue Ocean Strategy. [online] Available at:
<https://www.blueoceanstrategy.com/bos-question-answer/how-does-blue-ocean-strategy-
fundamentally-differ-from-red-ocean-strategy/> [Accessed 15 January 2021].

Coursehero.com. 2021. Case Study for Assignment 2 Exam-Burberry.Pdf [online] Available at:
<https://www.coursehero.com/file/77661387/Case-study-for-Assignment-2-exam-Burberrypdf/>
[Accessed 15 January 2021].

Corporate Finance Institute. 2021. Ansoff Matrix - Overview, Strategies And Practical Examples.
[online] Available at:
<https://corporatefinanceinstitute.com/resources/knowledge/strategy/ansoff-matrix/> [Accessed
15 January 2021].