FINANCIAL MANAGEMENT

Assignment: Management of Financial Resources and Performance

Management of Financial Resources and Performance - Burberry

Component 1: Burberry Plc

Overview of the Company

Burberry Plc has been one of the famous British companies involved in production of clothing, accessories and perfumes of luxury in England. This company has been operating over 150 years. Company also owned their spinning mills which are patented materials for future wear Burberry. Burberry was founded by Thomas Burberry in189. This company has been famous as British fashion house.

Product offered by Burberry Plc

Burberry Plc only produces coats, other products manufactured by third-party factories. Burberry products are sold through 330 retail outlets and through wholesalers.

Burberry has three main brands which are as followed:

Burberry Prorsum: This comprises of other brand base line

Burberry London : This brand consist of business wear items

Burberry British: This consists of most reasonable brand of Burberry brands i.e. on entry level pricing.

Financial Highlights

Burberry financial performance was strong due to the unique strategies adopted by management. For Burberry plc, 2012 was an excellent momentum since company financial performance was not affected by the external factors. During this year, company main focus was on their core strategies and investment in new market and products. Burberry plc total revenues till 2013 were £1,999m while it was £ 1,857m in 2012. Adjusted diluted EPS (Year to 31 March) was 70.0p while company also increased their dividends up to 29.0p in 2013. In order words, Growth in adjusted diluted EPS has improved with 16%. No doubt, ending 2012 and starting 2013 was very challenging, but company managed to post excellent financial figures due to management and the board effective five strategies and decisions(Burberry Plc annual report 2012, p. 4-5).

Various Stakeholders and Their Interests in Burberry Plc

Various Stakeholders

The term stake holder refers to those people that are directly impacted by company performance. In order words, these people have direct interest in company and they are directly associated with the company's action, objectives and policies. Stakeholders have been divided into different categories such as Primary stakeholders, Secondary stakeholders and Key stakeholders (Clegg, Carter, Kornberger, Schweitzer, 2012, 75).

Primary Stake holders: Primary stakeholders refer to those people that are directly impacted by company performance i.e. whether negative or positive via the efforts and actions of institution, company or an agency. In the case of Burberry Plc, primary stake holders are customers (people purchasing their product or third party), Stockholders, creditors, supplier and individuals having functional and financial interest in the product of the company. These are also termed as internal stakeholders, since they are involved economic transactions with the business. Furthermore, in few cases of Burberry Plc, primary stakeholders benefit from both sides such as rules and regulation which advantage a group might have a pessimistic consequence on another, along with rental control policies such as advantage tenants but harm landlords (Burberry Plc Annual Report 2012-13, pp. 17).

Secondary Stake holders: Primary stakeholders refer to those people that are indirectly impacted by company performance i.e. whether negative or positive via the efforts and ...