STRATEGY MAPPING

& VALUE CREATION

Rafael Jimenez,
Sheeraz Masood Khalid,
Kamrul Islam Shawon,
Maciej Olchowicz

WHAT IS STRATEGY MAPPING?

Astrategy mapis a diagram that is used to document the
primary strategic goals being pursued by
anorganizationormanagement team.
It is an element of the documentation associated with
theBalanced Scorecard, and in particular is characteristic of
the second generation of Balanced Scorecard designs that
first appeared during the mid-1990s
The first diagrams of this type appeared in the early 1990s,
and the idea of using this type of diagram to help document
Balanced Scorecard was discussed in a paper by Drs.Robert
S. Kaplanand David P. Norton in 1996.

STRATEGIC MAPPING OF BURBERRY

Leverage the Franchise and become Inspired with the Brand
As a young, old company Burberry has always looked to the past while
embracing innovation, celebrating anew the timeless and authentic products
that embody the brand. This way of thinking underpins how Burberry connects
with its customers globally, whether through its runway shows, marketing
innovations, campaign talent or music, using digital and customer insight to
enhance customer experiences.
Intensify Accessories and Product Potential
Burberrys focused attention on accessories in recent years has contributed to
the growth of this product category, which will remain an important future
growth driver. The Company will also focus on underdeveloped product
categories, maximising opportunities in all mens product categories and the
further development of Beauty.
During the year, Burberry continued to lead in outerwear with strong customer
demand for Heritage trench coats and scarves following the Heritage relaunch.
Burberry also reinforced its dominant position in soft accessories such as

 Accelerate Retail-led Growth. Optimize Channels

Burberry has been successful in shifting its operating model towards the retail channel.
As a result the Company has broadened its focus on improving and optimising all
routes to market.
During the year this included the elevation of wholesale and third-party digital
relationships as well as initiatives to enhance retail productivity. Retail sales grew by
14% underlying during the year, to reach 71% of Group revenue (up from 70% in
2013/14).
Invest in Underpenetrated Markets. Unlock Market Opportunities
Burberry aims to further evolve its footprint and positioning in both developed and
younger markets. Future opportunities for the brand in China and Japan are an
important part of this, along with other areas of geographic focus including the travel

 Pursue Operational Excellence

Burberrys productivity agenda includes opportunities in retail, products and processes.
This will be the subject of intense focus for the next phase of Burberrys growth, as the
Company leverages the investments made in recent years.
Build the Burberry culture.
Cultural initiatives evolved to build stronger connections between global teams, drive
closer engagement with the brand, and to support the general well-being of employees.
Social responsibility
Burberry believes that it is important to be a socially responsible business, including by
supporting diversity and equal opportunities in the workplace, promoting fair and
sustainable employment practices internally and across its supply chain and investing in
the communities where its employees live and work.

Organisation needs to be in tune with the environment. Therefore there is a need of market scanning to
make appropriate strategic responses, which can be done by Pestle analysis. Pestle analysis looks at
political, economic, social, technology, legal and environmental factors which affect the organisation .
Political: Political factors include Government stability, taxation policy, foreign trade regulation and
social welfare policies. Burberry needs to consider the trade regulations and taxation policy when
sourcing or marketing products to parts outside Europe. Burberry, sources 60% of its raw materials
from Europe, which makes the group strongly unaffected by Chinese imports impacts of Yuan/dollar
de-pegging.
Economic: This may contains factors like Inflation, unemployment, interest rates and money supply.
Economic deceleration, in UK, began in 2008 when GDP contracted by 0.1% and the economy
contracted by 4.9% by 2009 because of the slowdown in the global economy. Though the economy
recovered in 2010, this slowdown has adversely affected the creation of jobs in the country. Nearly
2.5 million were unemployed in 2010 (UK Country profile 2011). Burberry needs to monitor the
inflation rates as it may directly effect on the buying capacity. For example, when recession hit UK,
stocks stumbled to 1.60, and pressurised Angela Ahrendts(CEO) to cut costs by 50m and staff by
about 10 percent.

 Socio cultural: Factors like population demographics, income distribution, lifestyle, consumerism and
social mobility comes under Socio-cultural factors. The brand is defined by: Britishness, Democratic
luxury positioning, Authentic outwear heritage and historic icons, which makes it so popular among
the people. As we saw before investing in under-penetrated markets is one of the strategies of
Burberry. So, it has to explore the socio-cultural factors of the emerging markets. As said by
Christopher Bailey about India, its a country we are so excited by. They have huge appreciation for
luxury and Britishness. This implicates that Indians have appreciation towards British lifestyle,
which brings success to Burberry in India.

Technological: This includes factors like new discoveries/developments, speed of technology transfer
and rates of obsolescence. As we saw before Burberry was the first luxury brand to live stream a
fashion show in 3D, where consumers could buy products directly from the catwalk. And introduction
of social networking sites and websites like artofthetrench.com where customers like customize their
products are few examples of the technologic usage in Burberry.

 Environmental: Any organisation should consider these factors like environmental protection laws,
waste disposal and energy consumption. Burberry renewed focus on diverting waste from landfill.
Burberrys recycling partner has converted over 130 tonnes of samples and raw material waste into
car door insulation (Burberry.com).

Legal: Legal laws like competition law, employment law and product safety should be considered by
an organisation to develop or protect the strategy. Burberry faced a problem of copycats, which
infringed its trademark. Burberry claimed to spend 2 million a year to fight these counterfeits. It
uses an Internet-monitoring service to help pick up the discussion and it also works with custom
officials and local police to seize and sue fakes (Jobber 2010).

VALUE CREATION

VALUE CREATION

GOVERNANCE AND CONTROL

Corporate governance broadly refers to the
mechanisms, processes and relations by which
corporations are controlled and directed.
Governance structures and principles identify the
distribution of rights and responsibilities among
different participants in the corporation (such as
the board of directors, managers, shareholders,
creditors, auditors, regulators, and other
stakeholders) and includes the rules and
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PUBLIC RELATIONS
Events and Sponsorship.
You Tube Channel.
Tweetwalk.

Burberry Acoustic.

Electronic
Art of the Trench.
Advertising.
Social Media.

Celebrity endorsement.