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It is important to note that the business structure, size, and scale are in a direct relationship with a business aim because the leaders of companies determine their goals and strategies depending on their size and perspectives for growth. This tendency can be examined with reference to the example of Burberry as a famous British luxury fashion house. The purpose of this paper is to analyse how the business structure, size, and scale can be related to the company’s overall business aim.
The first step in this analysis is the necessity of defining the notions of the business structure, size, and scale in the context of this paper. The structure of any business includes subsidiaries, offices, departments, and units that work to contribute to a company’s progress (Carvalho & Grassi 2019). The size of a business can be defined as a micro, small, medium, and large depending on the number of employees working in a firm (Stimpson & Smith 2015). The business scale is associated with advantages opening for a firm when it expands depending on contributing to the business value, service, operations, or brand awareness.
The second step is the focus on Burberry’s aim that determines its strategy with reference to the specifics of the structure, size, and scale. The overall business aim of Burberry is to continue sustainable growth with a focus on further expansion within the market and industry of luxury fashion not only in Britain but also around the globe (Burberry 2018). Details of the business structure of this company contribute to achieving this goal as Burberry opened more than 500 stores and offices in Europe, the Americas, and the Asian Pacific region. To expand globally, Burberry is concentrated on opening even more stores and offices to promote marketing, operations, and finance functions in India, Africa, and the Middle Eastern region (Burberry 2018; Khelladi & Castellano 2019). Thus, leaders and managers in Burberry are interested in making the business structure of the company expanded to contribute to the house’s growth according to the aim.
The size of a business determines the availability of resources to achieve the set aims and objectives. Burberry is a large company with more than 10,000 employees working worldwide (Burberry 2018). Thus, the company has human and material resources to sharpen its position not only in the United Kingdom and Europe but also over the globe to meet its strategic goal. The company cooperates with various suppliers and has a large customer base, and these aspects contribute to winning the leading position in the UK and European fashion market.
While referring to the factor of scale, it is possible to state that Burberry is a scale-up business as its annual returns grow continuously. It is possible to speak about the increased competitive advantage for Burberry, depending on being a scalable business. As a result, the company’s overall aim is formulated in a way to reflect the focus of this business on covering more different segments of the market, diversifying products, and extending operations to attract more customers and increase returns (Straker & Wrigley 2016). In the case of Burberry, its scalable business depends on providing value to customers, high brand awareness, and a focus on digital leadership and innovation (Lee, Lee & Gaur 2017). All these factors are in the context of Burberry’s overall aim and followed strategy.
The analysis of the relationship between the business structure, size, and scale and a business aim has indicated that these aspects directly determine the formulation of the goal. In addition, the set aim also influences how managers will utilise available resources associated with the specifics of the structure, size, and scale to achieve goals and objectives. Thus, the business categories are linked to the business aim in the context of developing a strategy and steps to take to reach the goal.
Reference List
Burberry 2018, Annual report 2017/18, Web.
Carvalho, VM & Grassi, B 2019, ‘Large firm dynamics and the business cycle’, American Economic Review, vol. 109, no. 4, pp. 1375-1425.
Khelladi, I & Castellano, S 2019, ‘Play it like Burberry!: The effect of reputation, brand image, and social media on e-reputation – luxury brands and their digital natives fans’, in Habib, M (ed), Handbook of research on the evolution of IT and the rise of e-society, IGI Global, Hershey, PA, pp. 281-300.
Lee, CY, Lee, JH & Gaur, AS 2017, ‘Are large business groups conducive to industry innovation? The moderating role of technological appropriability’, Asia Pacific Journal of Management, vol. 34, no. 2, pp. 313-337.
Stimpson, P & Smith, A 2015, Business management for the IB diploma, 2nd edn, Cambridge University Press, Cambridge.
Straker, K & Wrigley, C 2016, ‘Emotionally engaging customers in the digital age: the case study of ‘Burberry love’’, Journal of Fashion Marketing and Management, vol. 20, no. 3, pp. 276-299.
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