HND Organisations & Behaviour L01

Topics: Organizational culture, Organizational structure, Organizational studies Pages: 10 (1536 words) Published: September 11, 2014

HND BUSINESS
UNIT 3 – ORGANISATIONS & BEHAVIOUR
L01

Report on
Burberry

CONTENTS

Page Task 1 – Understand the relationship between organisational structure and culture Executive Summary……….…….……………………………………………………………………………………..…………….1 1.1 Compare and contrast organisational structure and culture…………………………………….………..1-2

1.2 How does Organisational structure and culture affect business performance…………………..2-3

1.3 Factors that influence Individual behaviour at Burberry…………………………………………………...3

Executive Summary
Organisational behaviour is a study that investigates the impact that individuals and structures have on human behaviour within an organisation. The purpose of this knowledge is to improve an organisation's effectiveness. In this report you will find how various aspects of this study have shaped the organisation Burberry and the factors which have affected the individual behaviour. Burberry is an iconic yet global clothing brand that dates back to 156 years, where the company was founded by Thomas Burberry. The brand has been most famously recognised for its trench coats till today and sells its products to the end consumer through both retail (including digital) and wholesale channels including sales to department stores, multi-brand specialty accounts, Travel Retail and franchisees who operate 65 Burberry stores, mainly in emerging markets. (www.burberryplc.com) 1.1 Compare & Contrast organisational structures & culture at Burberry An organisational structure defines how jobs and tasks are formally divided and coordinated. Every organisation has a culture, which significantly affects various aspects of individual behaviour. Understanding the culture is important because it allows an organisation to establish its structure. According to Schein’s theory of organisational behaviour the founders of an organisation establish a culture which is then promoted by its successors. An organisational culture defines the norms and values, and the types of behaviour that is encourage or discouraged. (Mullins 2005). Further looking into types of culture Schein argues that there are three levels of corporate culture. Artefacts are the surface level of culture that can be easily seen through technology, clothing, ceremonies etc. The next level is determined by beliefs goals, norms and values established by founding leaders (Schein 2004). Burberry’s culture revolves around protecting its core values which is to protect, explore and inspire through the original ideas with which Burberry was founded with. Angela Ahrendts mentions in the Harvard business review (Jan-Feb 2013) “In a way, we’re right back to our roots. I always remind employees that we didn’t found the company; Thomas Burberry did—at the age of 21. He was young. He was innovative. We say that his spirit lives on and that it’s this generation’s job to keep his legacy going”. Burberry’s culture is one that promotes its employees to innovative yet protecting Burberrys’ heritage while promoting its brand and inspiring those around them.

Prior to Burberry’s current achievements, the organisation was very much divisional. This type of organisational structure groups together those individuals who are responsible for a particular product type or service according to workflow. A divisional structure of a business tends to increase flexibility, and it can also be broken down further into product, market and geographic structures. In this type of structure we find that every department has its own ideas and objectives, but meeting divisional goals as set out by organisational policies and plans. Looking at Burberry’s structure, they had various teams working on different products. “We had 23 licensees around the...

Bibliography: About Burberry/Our strategies (accessed on Jan 2013) - www.burberryplc.com
About Burberry/Brand and Business (last accessed on Jan 2014) -www.burberryplc.com
The Burberry Brand by Nicole Schloss. (March 2010) available at: http://fashionandpower.blogspot.co.uk/2010/03/burberry-brand.html (last accessed on 07/01/2014)
Burberry’s Corporate structure (figure 1.1) (2014) available at http://lorrainecastellon.blogspot.co.uk/p/burberry.html (last accessed on Jan 2014)
Edgar Schein: Organizational Culture and Leadership (Jan 17th 2013) available at:
http://thehypertextual.com/2013/01/17/edgar-schein-organizational-culture-and-leadership
Harvard Business Review (Jan-Feb 2013) On Burberry’s CEO on turning an Aging British icon into a Global Luxury Brand.
(www.indeed.com) – Burberry Reviews – last accessed on Jan 2014
Mullins, Laurie J. (2005). Management and Organisational Behaviour – seventh Edition (Financial Times/ Prentice Hall)
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