Financial analysis of the performance of burberry Free Essay Example, 2500 words

Additionally, the company is buoyed by the platforms in the emerging countries to drive their earnings both in growth and volume. We will base our strategic analysis of the company on four distinct factors. These are; the existing strengths, the existing weaknesses, the existing opportunities and the existing threat. From a review of the previous performance of the company, the focus that is currently being given to the distribution on licensing in countries like Japan, Spain and the United States has left the company with a low gearing ratio (Proctor, 2012). However, through the current strategy of expansion of sales of Burberry brand and the seizure of opportunities aimed at capturing a greater share of the brand value chain presents numerous opportunities enhancing future value creation. To this end, it would be worth noting that the business model employed by the company possess characteristics of both retail and luxury goods companies. Table of Contents Cover Executive Summary Introduction Section 1 – Identifying the vision and strategy of the organization Section 2 – Balanced Score Card (BSC) Diagrammatic Representation of Balanced Score Card Section 3 – Strategy Map Section 4 – Recommendation Section 5 – Critical discussion and evaluation of the Use of Balanced Scorecard References Appendices 1 2 4 5 5 7 8 9 8 9 13 14 Introduction Created in 1956, Burberry Group plc continues to be a global luxury fashion brand and boasts of a history of 158 years. We will write a custom essay sample on Financial analysis of the performance of burberry or any topic specifically for you Only $17.96 $11.86/pageorder now The company specializes in manufacturing a wide variety of products which include accessories, beauty for men, luxury apparel, with men and children being a major business item of the company. The market for the company’s products is spread out to regions including Americas, Asia pacific and Europe with its stock being listed on the London Stock Exchange with the principle business being investment. This report will be applying the appropriate accounting techniques to critically analyzing financial data in the context of a variety of business decision making instances while at the same time making informal judgments from such accounting analyses. Section 1 – Identifying the Vision and Strategy of the Organization The vision of Burberry from its financial statements is; â€Å"To be the leading company that is fully digital across the globe† (Burberry Plc ‘Annual Report 2012/2013). The group strategy of Burberry is marked by a combination of both leading market position and a strong franchise in the established countries in addition to employing the use the platforms from the emerging countries in order to drive earnings both in the form of growth and volumes.