Satish S. Kamble
(Student ID no.1033395)
Submitted a report of (Course No.-SHR027-6) “International Business Environment”.
May 11, 2011.
A. Executive summery ............. 1
1 – Introduction ...view middle of the document...
By this report we can get a broad view of China as well as England. Industrial environment is totally different in both China and England. The main objective of this report is to analyze China’s PESTE, opportunities and threats that can affect on Burberry in host country as well as to derive action plane by HR dept. along with recommendations and conclusions.
From PESTE analysis of China, it is clear that macro-environmental factors will be key challenges for Burberry, but today China is a growing economy of world, providing huge opportunities to foreign investors even though on other hand we cannot ignore the threats of China market. China is one party communist country has accepted the globalization from last two to three decades. Burberry has GMB union who has huge muscle as well as political support trying to put pressure on management however, HR has a big responsibility in home country such as to dissolve union matter, to fulfill statutory requirement as per govt. rules of UK and cancellation to worker.
In China there is new set up of HR dept. and has to recruit, train the employee and to provide employee health, safety and welfare facilities. As per Chinese govt. we need to furnish legal procedure like registration and license of new factory to Shoaxing municipal dept. If Burberry wants to do the same things effectively in both countries then management should adapt recommendations given by HR, such as business partner in China, geocentric staffing policy and control over the quality of product.
In short, after studying all required aspects of home and host county, HR is trying to solve the problem occurred in Wales factory like union campaign against company decision by giving in depth action plane and recommendations through this report.
Burberry is a British company established in 1856 at Wales having worldwide reputation about its apparel business with the chain of 260 direct shop and concession, 71 retailers and wholesalers. In 2006, it declared, its intention to close Wales plant and move to China. Management declared that the production cost was taken due to £ 12 versus £ 4. In 2005-06 annual report, management had planned to redesign the supply chain and also launched a five year redesign program for effectiveness of the business. Management said that their success in the market only because of a strong brand trademark and proprietary rights. Burberry is responsible to pay a reasonable wages, recruiting capable employees and giving training to them and more focus on removing communication gap between all levels of employee by offering competitive salary and welfare through its corporate social responsibility.
The decision taken by top management on sept.2006 for closing Wales factory directly affecting on 300 workers who are affiliated to GMB (Britain’s General Union) which is leading union having 0.6 million members throughout the UK. Union has trying to put the pressure on...