Description of the business – Burberry PLC
Discuss About The Ascertain Financial Non Financial Procedure.
This report lays stress on the strategy that the company is following and is planning to have in the future. It is seen that the company of Burberry.PLC has made certain changes in the policies and the strategies so that it can cater with the successfulness of the previous years. Help has been taken of the balanced scorecard to make up plans for successfulness. The Board is the most important department of the company which has the responsibility of making as well as the execution of the plans as per requirement. It is necessary to set up the targets but it is much more important to have the exact artillery to go through the targets and this can be done only by the Management Board. For the purpose of the report, Burberry Plc has been taken into consideration and studied in light of the balanced scorecard approach. This process also looks out for the internal processes and to arrange them in a beneficial way. Often it is seen that this measure has opted so that a perfect strategy can be made so as to enhance the performance of the company by making the management deliver (Parrino et. al,, 2012).
The way a company executes its activities is called its performances and the same can be evaluated by numerous measures. For the purpose of analyzing the given scenario, Burberry.PLC is to be considered. Both the financial and non-financial measures are described via balanced scorecard approach. This will assist the company in catering to customer satisfaction and will also enhance the functioning of its internal process. This technique is also popular as performance measurement technique. The company’s vision and its strategies are also highlighted in the report. With the help of various strategies and policies, Burberry.PLC flourished its business and secured a positive reputation in the industry. To grow and adjust to the ever-changing market scenario the company adopted for balanced scorecard approach. The company’s Board will be able to look for the appropriate measures with the help of recommendations. This is the best tonic for a corporation that provides the best performance of strategies. It is not only legitimate to set a goal but it is also required to provide with the best aids and tools that encourages and initiates the company’s faster growth (Oker & Ad?guzel, 2016). The Board should efficiently execute and perform all such responsibilities that come along as a by-product with all these.
Strategies and vision of Burberry PLC
Burberry.PLC is a corporate performing in philanthropic activity. It was founded in the year 2008. The company believes in the act of creativity by which it also assists youngsters in achieving their goals. The employees and customers secure funds for the people that are assembled in the form of charity in order to help them in confidence building and procuring opportunities (Burberry PLC, 2017). The company performs such social activities in many areas making sure the help is extended to maximum people in need so as to assist them in enhancing their professional life as well as personal well being.
Burberry.PLC focuses entirely on the outerwear and its integration. It was Thomas Burberry who initiated this concept. The company believes that the techniques of people have not changed over the century although the way of exploration has undergone few alterations (Burberry PLC, 2017). The company has a vision of partnering with the charitable organizations to assist the youngsters in achieving their goals while the main vision is aimed at innovative programs.
The company has performed excellently owing to its strategies planning and execution. For a company to function in the long run it is very important for it to have effective strategic planning. It is also required to execute such strategies in the best possible way to reap the best results.
The company aims at providing customer satisfaction by catering to the needs of the consumers and functions in a systematic manner worldwide. The company’s ultimate agenda is to leverage the franchise because it results in the generation of higher revenue and also gives a good lift to the business (Lee et. al, 2015). This also catches consumer attraction and it reaches to the mass. Leverage of franchise will help the company’s products to reach to the maximum number of customers that also will result in more earning of revenues.
The company also worked towards strengthening its resources. The categories which were not given much importance were focused and looked upon as a major opportunity in order to provide creative expertise. This will also enhance the reach factor as well as the availability factor. The company focuses on enhancing its image and goodwill in the industry by working on the categories that are mostly unavailable and require boosting (Hopper et. al, 2016). The company believes that in order to have a uniform growth the company needs to strengthen its core that is its accessories.
Balance Scorecard Approach
The company believes in focussing on its retail business. The company empowers the growth of its retail business by the medium of every distribution channel available both offline and online. This will ease that the reach and availability. Once the retail links are legitimate and well established the products too will become famous. The company focuses on more in the retail business as it helps to cater to consumers requirements and deliver what is expected.
The company believes in boosting under-performing market by means of investment. The company has opportunities not only in developed markets but also in developing markets. In fulfilling such opportunities distribution channels play a very significant part. The products are designed and developed in a manner that it can help the company perform in underdeveloped economies as well as developed economies. The products are able to cater to the market requirements and get a good demand owing to the distribution system that is really sound (Burberry PLC, 2017). The company believes in uplifting an underperforming market by means of investment. So, it can be concluded that for Burberry, investment is one of the major tools that help it to achieve expected results.
The company is aiming forward with the help of brand enhancement and marketing expertise and also makes sure that the company moves forward with excellence being added at each and every stage. It has a team of experienced, skilled and well-trained personnel. The product is allowed to gain operational excellence and momentum (Chapman et. al, 2007). As the authority and workers are dependent on each other as it is a chain process the company is expected to deliver at each and every stage.
It is an approach where not just financial but nonfinancial measures are also taken into due consideration. Balance Scorecard Approach is an approach that focuses on the alignment of the vision along with the strategy. It is also a kind of strategic planning. It formulates the framework and design for a company that assists to construe an aim of the overall organization along with the agendas that are required to be accomplished. The managers and other senior executives with the help of BSC can look for the organized view of the company’s performance while the internal and external communication is of a top notch (Chenhall, 2007). The BSC approach highlights the results of various strategies that have already been implemented on the basis of consumer satisfaction, internal process, etc. Therefore it combines financial measures and weighs it upon operational measures.
The Balance Scorecard Approach evolved out as a performance management technique and stretches to the strategic planning and management system in the case of Burberry.PLC. With the help of BSC Approach, the company was able to convert its strategies into practice. This pretty much made it easier and bought clarity in the minds of the company’s personnel that what needs to be measured and what needs to be done (Petersen & Plenborg, 2015). The difference between vision and strategy is now clear with this approach. This is an approach where vision meet strategies and strategies meet execution.
- Financial
Has the financial performance improved attributing to the actions taken?
Burberry digs deep into the market as it aims for the return on investment.
- Customers
How have we served the customers?
The best parameter to analyze the performance is customer satisfaction and customer loyalty.
- Vision, Strategy & goals (Burberry )
- Internal Business Process
Has the internal plans and policies added utility for the consumers as well as investors?
To find this out one can look into the cost per order as well as order rate system.
- Learning and growth
Are we unlearning the learned and learning the required, growing and evolving?
Regular efforts will bring in improvement that will help Burberry to develop in far off places and employee development will also be of legitimate help.
How to picture company’s reputation in front of the shareholders?
- Objectives- The ultimate objective is to secure maximum returns. It helps the company in creating its goodwill and fetch further investments. The financial statements of the company should reflect true and fair view of the state of affairs of the company as these statements paves way for the shareholders decision-making. In order to attract more investors it is required for the company to make adequate disclosures in its financial statements (Peirson et. al, 2015).
- Measures- Burberry.PLC should provide the shareholders of the company with all the required information so as to gain momentum and have shareholders faith and support. To build a positive reputation it is required for the company to make legitimate disclosures in its financial statements.
- Targets- With the involvement of both financial and non financial measures, Burberry can reach its aim of having a stronger and recognizable position in the industry. In order to garner and attract more and more shareholders, the company should be financially strong and should reflect a commendable position (Parrino et. al, 2012). The company should give strong emphasis on its non financial measures by making sure that the policies and practice of CSR activities are legitimately followed.
- Initiatives- It is the responsibility of the directors to keep a check if the initiatives are taken due care of. The utility of the overall organization will be enhanced if the plans and policies are carefully reviewed and assessed (Burberry PLC, 2017). As finance is a significant and important aspect of the overall organization, the Board should be cautious enough in the execution of plans and strategies so as to ensure that the organization is moving forward in a positive direction (Chapman et. al, 2007).
How must we represent our company in the eyes of our customers?
- Objectives- The products must be designed keeping in the mind the tastes and preferences of the customers along with the ongoing trend and should also carry utility. The Board must ensure that their products are catering customer satisfaction. The customers will evaluate the product and the corporate on the basis of the utility pulled from the product (Burberry PLC, 2017).
- Measures- In order to garner customers attention the company should focus on the quality of its services provided. The company is already well established and it can easily set up its business in both developed and underdeveloped economies. This will help the company to achieve its targets and reach maximum customers keeping in mind the quality of its products and services.
- Targets- In order to have maximized the customer’s utility and meet their expectations the company must ensure that its products and services have a maximum reach and availability.
- Initiatives- The focus on products and its benefits should be emphasized and this should remain the initiative of the Board. To meet the customer requirements and demands there should be more production and supply. This will enhance the earning power of the company (Petty et. al, 2012).
At which business process should we grow?
- Objectives- The Board should always emphasize its products quality. The demand for the products should always meet with the production and supply. This will enhance company’s earning power.
- Measures- The Board must take legitimate measures so as to attain retail growth and have a competitive advantage. The Board must ensure proper planning and execution of the same. The Board must take investment into its consideration as it is one of the important factors in maximizing the company’s growth (Phua et. al, 2011).
3.Targets- The Board must target on highlighting its products in the market and elevate its supply by making more investments towards it. Hence, it should focus on investments to achieve desired targets (Burberry PLC, 2017).
- Initiatives- The Board should make sure that all the departments are working in synchronization in order to achieve the targets. The responsibility should be designed in a manner that the target becomes easy to achieve (Phua et. al, 2011).
How can we unlearn and learn and improve?
- Objectives- To adjust and improve in the changing scenario is the primary objective of the company. To have better results the company should adjust and adapt to the changes. The policies should be designed in a manner that can help the company perform in the long run. The company should make ways for improvisations (Drury, 2011).
- Measures- The company grows when it adapts to changes and adjusts with the ever-changing scenario. It becomes tougher with changes. Enhancing products quality, utility, development of a new product are key factors that keep the company growing. The company will be capable of meeting customer requirements owing to all such measures (Brown, 2013).
- Target- the Company’s prime focus should always be on emphasizing its products utility and quality. This requires legitimate planning and synchronized effort of the overall organization.
It is very much to be seen that to grab on the upcoming and incoming opportunities is very important for a company to flourish in its own field and this will also increase the quality of the output from the company and also expands the contracts that the company is maintaining. The utilization and availability of the assets will also keep increasing (Brown, 2013). There are elements which are not easily grabbed on to and are hard to get but they are the ones which are responsible for providing the serious reputation of the company. It is obvious that the company has ample sources and assets and other important elements then the company can be seen to give a consistent result. BSC is apart from the traditional set of system that follows a prescribed set of actions. The presence of BSC in the firm raises the standard and focus on different alternatives (Balakrishnan et. al, 2014). In this manner, the company gets a strong chance to gets the things done following different parameters. The traditional system is more engrossed in providing a better exposure that pertains to allocation of cost however, balance scorecard is not confined to a particular set of method. It differentiates various parameters that helps the business in focussing on different areas. It is innovative and helps in shedding light on the performance of the company (Horngren, 2011). Further, BSC provides an opportunity in terms of learning and growth that enables the business to enhance the level of efficiency. In short, it ranks higher than the other traditional set of system that remains confined to a particular scenario.
It is important to utilize the assets of the company in such a way so that the growth of the company is on the verge and it also provides an upwards ramp to both the online and offline retailers. It is seen that the distribution parties increase the reputation and the approach of the company to a greater extent (Marsh, 2009). The manufactured products of the company can be seen to flourish if the available links work well and maintain the system. Burberry is dedicated to the retail linkage because it uses it to deliver what is expected and cater to the requirements of the customer.
Burberry has covered up the market in most ways and the distribution channel’s contribution has been impressive. Burberry can be seen to create their market wherever they set up. The distribution channel has been impressive because market available to the product has been remarkable. Investments in the crucial departments of the Burberry Company have been the reason for the successfulness (Merchant, 2012).
Conclusion
The balanced scorecard is the key to the performance of the company in both financial and non-financial fields and this can be clearly seen in the case of Burberry.PLC. The department-wise performance of the company has been remarkable and the actions and outputs have proved it. This organization has been able to transform its strategy into practice by the impression of scorecard approach. There is clarity of mindset regarding the vision and strategy by the implementation of the balanced scorecard approach. This has been the key that all the strategies have been successfully executed. Hence, in totality, the company has utilized the balanced scorecard approach that has raised the status of the company. In addition, the company has attained remarkable outputs that clearly denote the balanced scorecard approach is highly beneficial for the company.
References
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