Report on Human Resources Management Practices of the Burberry Group

brood on Human Resources Management Practices of the Burberry GroupBurberry separate is a star(p) luxuriousness manufacturing fraternity in UK. Burberry pigeonholing established in 1856 and upstartly it celebrated its one hundred fifty course of studys in history. In this year it announced the closure of its Welsh factory. A PESTEL analysis is conducted to evaluate the external surroundings of china. It assists the firm to conduct the subscriber line in host kingdom. donkeywork analysis also plays an important role to find out(p) the union objectives and identifies the internal and external factors that are favorable and unfavorable to achieve that objective. For the entry in the merchandise of china and recruitment of dorial aim employee, conjunction uses the geocentric cash advance. This approach helps to find the best and bring employee for the company.Table of ContentsExecutive Summery 2Table of Contents 3Introduction 5PESTEL Analysis 5Political 5 economica l 5Social 5Technology 6Environment 6Legal 6SWOT Analysis 6Strengths 6Weaknesses 7Opportunities 7Threats 7Key Issues 7Sourcing Strategy 7Equal Opportunity 7Trade heart 8Supply Chain 8Advantages of Factory drift 8Disadvantage of Factory Move 8IHRM Approach 8 Ptolemaic Approach 8Recommendations 9Action Plan 10Clarify Goals 10Recruitment 10Coaching the Employees 10Motivation and Performance Appraisal 10Employee Satisf bodily process and Feedback 11Conclusion 11References 12IntroductionBurberry is a leading and luxury fault name in UK, deals with the different brands that approach women, men and kids. Burberry was established in 1856 in England and celebrated its 150 years in manufacturing the lifestyle products and its accessories for women, men and for the kids. Burberry has around 260 directly operated stores. Addition, the also sold its products through surrender with a wide network of 71 third gear-party operated retail locations and wholesale customers. All the wholesalers of the firm are leading prestige retailers.At the end of fiscal year 2006, the company generated 743 million revenue. This revenue generated by the company from Europe, Japan, North America and from Asia (Burberry, 2010).PESTEL AnalysisThe PESTEL analysis of China and UK are as followsPoliticalChina is g only overned by the communist party. The communist party is not support the foreign players in domestic market. Some policy-making decisions, taxes, policies are not support the environment of business. As well as in the UK, government has a major impact on businesses. The political party provides the best supportive infrastructure to the companies (Central intelligence operation Agency, 2010).EconomicEconomic condition is superb in China. It shows constant growth rate in GDP with 7 to 8 Percentages every year. GDP per capita income is also shows the growth at US$ 6,100 in 2008 and US$ 6,600 in 2009. UK is one of the most powerful economies in the world with a gross national per c apita income of US $ 41,520 in 2009 (Gross National Income Per Capita, 2009).SocialChina is a culture with high power distance, reflecting that in that respect is a macro difference between consumers complaisant status. Language barriers are one of the ch allenges when western companies entered in Chinese market. In UK, mixer status of consumers is high and uses the luxury products for the social status symbol (Central Intelligence Agency, 2010).TechnologyChina has become one of the powerful countries in innovations and technologies. Chinas 60 percentages of technologies including atomic energy, space, high- energy physics and biology, computer and culture technology have reached or are close to the worlds advance level. UK is a develop country in the world. UK firms are at or near the forefront in technology advances, particularly in aerospace and phalanx equipment. In UK, internet users are adjoin with the population of 48.755 million and the internet hosts are 7.03 millio n in 2010 (Central Intelligence Agency, 2010).EnvironmentChina grammatical cases the environmental problems like water shortages, water pollution from untreated wastes, and liberation of one fifth agriculture land since 1949 due to soil erosion and economic development (Central Intelligence Agency, 2010). UK trying to reduce its greenhouse gas emissions and government also trying to reduce the amount of industrial and commercial waste (Central Intelligence Agency, 2010).LegalChina governed by one communist party so, the companies in china legally bounded with the law of china and work according to the law. But in recent years in UK, there have been many signifi croupce legal changes that affected firm expression like introduction of age discrimination and disability discrimination legislation, an increase in the minimum wages.SWOT AnalysisThe SWOT analysis of Burberry Group plc is as followsStrengthsharmonize to Pahl Richter (2009) Burberry group is a leading luxury brand in UK. Companys major strength is its brand name, hatfulmarks and former(a) intellectual property. Company growing its licensing impart worldwide, those delivering high incremental return on incremental capital. The company manufactures the heritage products in clothing with the quality, swear out and modern classic style.Weaknessesharmonize to Bhm (2009) company has a vertical integration that reduces the pull in margin and the value from manufacturing. Company has an vesture segment in its profile that has increased fashion fortune and affects the companys profits.OpportunitiesThe Company has a good fortune of expansion of retail network and wholesale distribution in other countries. Company has an opportunity to restructuring of its Spanish operations in order to gain Spain to its spherical business modal and introduce the Burberry global collection in the market. According to Ferrell Hartline (2008) Company has an opportunity to extension of its apparel offering to the existin g and future customers.ThreatsAccording to Henry (2008) the main threat of Burberry group is to control the over licensees and wholesale accounts. The company refines its sourcing system that process affects relationship with suppliers. Company is mono brand and trademark that increase in fashion risk in the market. Company faces the problem of counterfeiting in the market.Key IssuesThe key issues of Burberry group are as followsSourcing StrategyThe sourcing schema affects relationship with existing and potential suppliers during the transition period because there is leaven in case study that the company refine its sourcing strategy for selection of suppliers to maintain and increase product quality and improving sourcing efficiency ( From Case).Equal OpportunityCompany creates the policy of equal opportunity to recruit the most capable outlook for the job and develop competent employees. In this policy all employees receive fair and equal environment in the company (From case) . There is an evidence that company believes, the conference is important between company and the employees for building relationship and motivating employees.Trade UnionTrade league played a powerful role in a company decisions and strategies. Employees make a trade union to protect the rights in organization. There is evidence in case that GMB trade union was successful in delaying the closure date of the Burberry factory and warehouse in Treorchy.Supply ChainThere is evidence in annual report 2005/06 that company come with some initiatives to redesign its supply chain. The corporate social responsibility committee of Burberry Company considers supply chains that include maintain acceptable labour, environmental and social practices.Advantages of Factory MoveMove the factory in other country gain the market news report in other country.Company gains the combative advantagesIn China raw material and labour is brasslike rather than Treorchy. So, company gains the cost efficien cy in their production.To moving the factory in other country, company can increase in market share.Disadvantage of Factory MoveTo moving factory in other country, employee losses his job.Company faces the cultural differences to move the company in other country.Company faces linguistic process differences to move the company.China is communist country, there are some policies, rules and regulation for establish a company. This makes fuss for Burberry group to move the company in china.IHRM ApproachCompany can adopt the geocentric approach for the international mankind resource counseling in china. The geocentric approach is as followGeocentric ApproachAccording to Briscoe, Schuler Claus (2008) geocentric approach, the firm can hire best people in all executive position according to their ability and knowledge rather than nationality. Burberry group can use its human resource most efficiently by transferring the best person to the job. In Geocentric approach, company coordinate s its subsidiaries and military headquarters for decision making activities. It can be accommodative to make a stronger relationship network among the undefiled global management team because of continues interaction and networking help to understand the country culture and work home base among the team members (Briscoe, Schuler Claus, 2008).The advantage of geocentric approach is that this approach offers the good opportunity to all executive level employees work in different countries. This approach helps to build a team of executives who understand the international operations. According to Vance, Vance Paik (2006) this approach helps to build a global limited imagery and loyalty for the company. In this approach the HR director can follow the standardization policy for recruitment of executives. In this policy, HR director can follow the standard criteria for recruitment of managerial level employees.There is evidence in the case that Burberry group established a corporat e social responsibility committee in 2005 for giving the equal environment and opportunity to the employees in the manner of money and facilities. In this environment employees are rewarded according to their contribution in the company. Company has some standard to recruit the candidate to gain the most capable job candidate and develop competent employees.China is a communist country so, most of the large foreign company, especially multi-national companies operate its business with the association of china government partners. In this approach company can face the implication of cross culture conflict and control. In an analysis of high performing companies with the multinational management teams proved that culture difference gives the advantages of business. There is evidence Wei (2001) that this culture difference might even confer to a competitive advantage by providing a broader range of perspectives for managing the company within such Gordian economic and cultural system .RecommendationsOn the analysis of china HRM and the market position of the company, it is recommended that the company should conduct a market analysis in the china. It can be facilitative to understand nearly the competitors in the market. According to Wei (2001) in order to enter in the Chinese market, company should use the joint venture strategy with Chinese luxury product manufactures. It would be laborsaving in the growth of the firm in Chinese market. There is evidence in case that Burberry group has worldwide network of licensed directly operated stores, concessions, third party operated retail location and a network of wholesale customers. This would be helpful to growth in market share of china.According to Courtis, Ratcliffe Allsop (2006) China is a number one in population in the world so, the labour easily available at less cost for the production. It would be helpful to originate the products at cost efficiency. That will be helpful to increase in market share an d competitive advantage. In china, company should enter with the joint venture with other company this can be helpful to gain managerial advantage in the market because the employees of other company and management know roughly the culture and language of the country. They have a deep knowledge about the market and situations, it would be helpful to grow in the market and increase in market share.Action PlanThe Burberry group PLC makes the action plan to manage the people aspects in both Wales and China are as followsClarify GoalsTo manage the people aspects of this problem, HR director should define the company goals to all the employees in the organization. It will be helpful to understand about the mission and vision of the company. By the clarify goals, employees will be motivate to do work with effectively and efficiency (Bratton, Gold, 2001).RecruitmentThe HR director should recruit the most skilled and prompt employees for the organization. The employees should have the kn owledge of their field as well as roles and responsibilities. The entire process of recruitment is monitored by the human resource manager.Coaching the EmployeesTraining of the employees is another function of the HR director. By the training, an employee can lead and develop strong relations with the other people. Training provides the knowledge about the organization. It defines the companys long term vision and mission.Motivation and Performance AppraisalBy the motivation an employee can give the best performance in the company. A human resource director should organize a session and lectures that keep the employee update about the competition in the market (Bamberger Meshoulam, 2000). Performance appraisal and compensation is also one of the main responsibilities of the HR director.Employee Satisfaction and FeedbackA HR director should provide the facilities to the employees for motivating. It should be in term of monetary and other criteria. HR director should take the feedba ck from the different departments about the employees (Courtis, Ratcliffe Allsop, 2006). HR director should understand the feedback of the workers and this lead to a well-organized management of the workers.ConclusionFrom the above discussion, it can be concluded that Burberry group Plc is a leading company in manufacturing the luxury products for women, men and kids. Its corporate management strategy involves selling high quality products at lower cost to the customers. Company operates its business through licensed retail network and has a good opportunity to expend this network in other countries. Company gives god working environment to employees through corporate social responsibility committee. Burberry group is going to redesign its supply chain network and sourcing strategy for gaining the competitive advantages from the market.It can be concluded that company decides to closure its factory in the other country to gain the global competitive advantages and produce the low c ost products. For this, company should merge with other global based company and open new stores in country.