Innovation Management at Burberry

INNOVATION MANAGEMENT AT BURBERRY
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Innovation Management at Burberry
Executive Summary
The purpose of this report is to examine innovation management at Burberry, a multinational fashion/luxury brand based in the United Kingdom. Burberry’s internal and external factors, as well as its core strategy, are examined to provide an insight into how the company manages innovation. Information about the company is acquired from its corporate website. Also, themes and concepts of innovation are incorporated in the report. The report finds that Burberry has successfully used process innovation to remain competitive. Also, the report finds that even though Burberry has an organisational culture and leadership that supports innovativeness, it is still struggling with issues of sustainability. The report recommends the use of radical innovation to entirely change Burberry’s business model and supply chain process to enhance sustainability.
Table of Contents TOC \o "1-3" \h \z \u Executive Summary PAGEREF _Toc72542667 \h 21.Introduction PAGEREF _Toc72542668 \h 41.1.Burberry: Company Overview PAGEREF _Toc72542669 \h 52.Internal Factors PAGEREF _Toc72542670 \h 62.1.Organisational Leadership PAGEREF _Toc72542671 \h 62.2.Organisational Structure PAGEREF _Toc72542672 \h 72.3.Organisational Culture PAGEREF _Toc72542673 \h 83.External Factors PAGEREF _Toc72542674 \h 93.1.PESTLE Analysis PAGEREF _Toc72542675 \h 94.Strategy for Innovation Management PAGEREF _Toc72542676 \h 124.1.Core Strategy PAGEREF _Toc72542677 \h 124.2.Process Innovation PAGEREF _Toc72542678 \h 124.3.Burberry’s Innovation Process PAGEREF _Toc72542679 \h 135.Recommendations PAGEREF _Toc72542680 \h 146.Conclusion PAGEREF _Toc72542681 \h 15References PAGEREF _Toc72542682 \h 16
1 Introduction
In a competitive business environment that is constantly changing, firms need to come up with new and creative ideas to help them compete and survive. Innovation management allows firms to successfully turn an idea into reality through the various phases of innovation (Goffin & Mitchell 2017, p.17). Companies that successfully manage their innovative ideas not only thrive in their respective industries but also become trendsetters. However, successful management of the innovation process is highly dependent on external and internal factors affecting a company (Shatilo 2019, p.86). Externally, micro-environment factors, such as competitors and consumers, as well as macro-environment factors, such as economic and legal factors, affect the decision-making process associated with innovation. Internally, factors such as organisational leadership and culture, also affect how innovative ideas are translated into reality.
The fashion and luxury industry has been greatly shaped by innovation. Fashion/Luxury brands can constantly meet the changing needs of their consumers by being innovative and managing their innovation successfully to enhance sustainability. In the United Kingdom (UK), the fashion industry is known for its creativity, innovativeness, and uniqueness (Alliance Experts, n.d.). However, to achieve this status, a lot of investments have gone into the industry. For ...