Burberry Caroline Burke & Sheryl Kaur
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1 Burberry Caroline Burke & Sheryl Kaur European Business Culture March 2014
2 History of Burberry Ø Sector: Luxury Retail focused on outerwear Ø Famous for its trench coat and Knight logo trademarked in 1901 Ø 1856: Founded by Thomas Burberry Ø 1891: First store in London opened Ø Early 1900s: Provided gear for explorers of Arctic & Antarctic, athletes, pilots, British officers Ø 2009: Global headquarters opens in London & American headquarters opens in NYC Ø CEO: Angela Ahrendts Ø Reason of choice: We are studying in the fashion capital of the world & we were previously familiar with the brand.
3 Burberry Retail 206 stores, 214 concessions within department stores, digital commerce, 49 outlets Flagship markets: Chicago, London, Hong Kong, Milan Wholesale Sell to department stores, multibrand specialty accounts, Travel Retail, franchises who operate 65 Burberry stores, mainly in emerging markets Licensing Fragrance, eyewear, timepieces 60% licensing income from Japan
4 The Competitor à Louis Vuitton Ø Sector: Luxury Retail Ø Named World s Most Valuable Luxury Brand for Ø Famous for its trunks and leather goods Ø 1854: Founded by Louis Vuitton Ø 1913: Store on Champs-Elysees opened & was the largest travel-goods store in the world Ø WWII: Worked with the Nazis during their occupation of France and profited! Ø 2012: Revenue = 3.2 billion euro Ø CEO & Chairman: Yves Carcelle Ø Headquarters in Paris Ø Is one of the most counterfeited brands in fashion
5 Hofstede Model à UK VS. FRANCE UNITED KINGDOM Power Distance: 35 Individualism: 89 Masculinity: 66 Uncertainty Avoidance: 35 Pragmatism: 51 Indulgence: 69 FRANCE Power Distance: 68 Individualism: 71 Masculinity: 43 Uncertainty Avoidance: 86 Pragmatism: 63 Indulgence: 48
6 Corporate Culture à Visible Elements BURBERRY Workday Paid hourly wage + Commission Work Environment Diverse family environment for employees Emphasis on teamwork Interaction with management --> room to grow Competitive healthcare, pension, discounts, opportunities to volunteer at Burberry Foundation Icon Rewards Programme recognizes exceptional performance at all levels Long Services Awards Dress Code Employees required to wear burberry clothing Black attire Have ipads at London Flagship store Training/Skills Development Career Development Programs Leadership Training Workshops Best salespeople can trade places with others in different countries Look for employees with strong creative talents, an entrepreneurial spirit, and a passion for the Brand Women s Position Global management team 37% female
7 Corporate Culture à Invisible Elements BURBERRY Ø Meeting Styles Ø Hire younger, globally diverse people Ø CEO talks in language that is easy to understand Ø Onsite Perks Ø Annual bonuses, friday afternoons off in the summer, sample sales, discounts Ø Well being Program provides free meals, additional annual leave, health/sport activities Ø Rituals Ø Strong emphasis on the history of the brand and a timeless look Ø Burberry Beyond - IMPACT (sustainability), ENGAGE (talents of associates), INVEST (supporting next generation) Ø Jargon Ø Burberry Prorsum: most fashion forward collection centered around runway shows, providing the design inspiration for the brand Ø Burberry London: tailored collection, typically what a customer wears on weekdays for work Ø Burberry Brit: most casual collection, typically worn on the weekend Ø Burberry Foundation Ø a charitable organization dedicated to helping young people realize their dreams and potential by the power of their creativity Ø committed to helping young people build confidence, make connections in their communities and grasp opportunities to succeed Ø forms an important part of the company s wider commitment to corporate social responsibility
8 Corporate Cultureà Visible Elements LOUIS VUITTON Workday Paid hourly wage + Commission Work Environment Encourages young talents Productive atmosphere Fast paced environment Strong team work Many sales associates working at the same time Perks include dry cleaning, paid parking, free items, job security, job advancement, company discount. Dress Code Employees are required to wear professional business clothes (black with beige accessories) Training/Skills Development Paid trips for training purposes Learn how to handle many tasks at one time Should be good at selling items Women s Position Women in higher positions
9 Corporate Cultureà Meeting Styles Invisible Elements LOUIS VUITTON Continually explore new territories Work together in multi-disciplinary teams with mutual respect and a spirit of cooperation All presentations are done in English Onsite Perks Free lunch during the Christmas season, discounts, 1 free bag Rituals Passion, Creativity, Open-mindedness, Agility, Humility, Demand, Team spirit. Luggage is hand made Christmas events held annually Jargon LVMH Moët Hennessy Lous Vuitton
10 Burberry VS. Louis Vuitton Different kinds of corporate culture: Louis Vuitton à Follow the Leader All decisions come from the top (charismatic leader, often the founder). Employees follow directions and seldom provide input in the decision-making process. Burberry à Be competitive The attitude toward the employee is "What have you done for me lately? Ambitious workers compete for attention and rewards.
11 Sector Culture à Fashion Burberry & Louis Vuitton Attention to style Creative Not well paid Fast-paced environment Ask to be dedicated & available BUT both companies are formal
12 Burberry Fashion Attention to style & appearance, creative, not well paid, fast-paced & changing environment. Be Competitive Formal Dress Code Emphasis on History Women in higher positions UK is a monochronic culture Louis Vuitton Fashion - Attention to style & appearance, creative, not well paid, fast-paced & changing environment. Follow The Leader Formal Dress Code Emphasis on Protecting The Brand Women in higher positions France is a polychronic culture
13 Conclusion How is Burberry s culture influenced by sectors or different aspects? Ø Ø Ø Ø Positive points! Burberry is proud of their history & the company is extremely influenced by their history. This has allowed Burberry to stay authentic and original from their competitors. The company continues to emphasize their trench coats although they are known for many other items such as fragrances, accessories, clothes, etc. Also, employees receive good benefits. Negative points! Employees complain that the pay is low & some employees have to put in long hours at work. Impact of country s/sector culture on company! The UK has influenced the Burberry company because they are both open to change, innovation & diversity (low uncertainty avoidance). Also, Burberry s CEO is a woman so women & men have equal opportunities to reach high positions (low power distance). The fashion sector highly impacts the company in every way except one aspect (informality). The company works hard to maintain a formal image. Recommend/not recommended to work in this company! We would definitely recommend to work for Burberry because employees are treated well, women have a huge chance to reach high positions, and the brand has a great reputation overall.
14 References instagram.com/louisvuitton vimeo.com/louisvuitton
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