Burberry Expansion in UAE

[Name of the Student]

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Burberry Expansion in UAE

Introduction

The study is about the business expansion of the most luxurious brand of the UK, Burberry, in the potential market of the United Arab Emirates. The aim of the paper is to discuss the differences in the two countries in terms of culture, beliefs, lifestyles, markets and economies in order to understand the difficulties of the business expansion. First, the paper highlights the potential conflicts, that may arise in the integration of the Burberry business in the UAE market then the paper extricates the possible remedies that can be used by the Burberry management in order to sophistically deal with the issues that may hinder the process of the business expansion of the Burberry brand in the UAE.

The study is about the expansion of an iconic British luxury brand 'Burberry' in the United Arab Emirates.

Discussion

Burberry is one of the most luxurious fashion retailing company founded by Thomas Burberry in the year 1856 in Basingstoke, England. Burberry is a Public Limited Company with headquarter at Landon. Burberry is catering international market at 473 locations with more than 7,991 employees. Burberry mainly deals in clothing, accessories and perfume. According to the annual report of Burberry 2012, Burberry generated total revenue of $ 1,857 million. The breakup of the revenue reveals that the organization generated $ 1,270 million retail revenue and the revenue of $ 478 million with wholesale. Adjusted operating profit of Burberry was $276.9 million with 61.6 diluted earnings per share. Net cash is $ 3,383 million with 25.0p dividend per share. The capital expenditure of the Burberry as reported in the 2012 annual report is $ 152.1 million (Annual Report, 2011-2012).

Burberry is catering its international market with four brands named as Burberry prorsum (base line for other brands), Burberry London (Business wears), Burberry Brit (most accessible Burberry brands) and Burberry sport (sport apparels). Being an international player, the group has more than 500 stores in more than 50 countries now the Burberry group of companies want to expand its business to the Middle East. UAE seems to be the most attractive market for the Burberry Expansion in the Middle East and Asia.

In order to promote its business expansion, the group needs to thoroughly explore the business environment of the UAE. Burberry need analyse market trends as well as economic condition of the country. In addition to it, group needs to identify various crucial aspects that have direct influence on the integration of the two organizations. Moreover, in order to promote healthy expansion, it is crucial to examine cultural differences as well as differences in the prevailing corporate culture of the two countries. In addition to it, it is important to analyse critiques of the theories in the two countries as well as to identify and resolve potential conflicts.

Corporate culture

Corporate culture basically extricates the collective behaviour of the employees of the organization regarding their working style, work expectations, organizations vision and mission, working language, management style, symbol, ...