The board consists of a Chairman, a Chief Executive plus two other executive directors and four non-executive directors. The Board supports the principles of corporate governance advocated by the Revised Combined Code published in July 2003. Burberry is a Limited Company. The Company recognizes the importance of communicating with its Shareholders and does its through its Annual and Interim Reports, quarterly trading updates and at the Annual General Meeting.
The Company communicates with its investors frequently and regularly. The Board is kept abreast of the views of major shareholders by briefings. The Company’s non-executive directors are available to meet with any of the Company’s major Shareholders to discuss iusses of importance to them should a meeting be requested.
SOL is a cleaning and garbage disposal company in Helsinki. In 1995 Lisa Joronen transforms the traditional company into an unique organization. SOL is a traditional company which has adopted new methods. For example:
- she abolished the rules of conventional corporate life;
- workers can choose their hours and the optimal place to work;
Ikea is a family store that offers many shopping opportunities and personalizes the store with a photo of the store manager and a woman to ask questions to. The secret of the success of this company is that it makes well designed furniture at reasonable prices.
Mr. Kamprand is the owner and the founder. He has a very informal approach which also shows in the way he dresses. He likes to talk to people at all levels of the company. He values the choice of the right people to run his business.
Burberry has been synonymous with quality, as defined by the endurance, classicism and functionality that characterized its history as the outfitter of choice for the explorers and adventurers who pioneered aviation and arctic exploration.
Burberry’s development of the trench coat at the turn of the last century rewrote the history of outerwear, when an article of clothing that was designed as practical military gear became an enduring icon of fashion and earned Burberry two Royal Warrants as weatherproofers to both Her Majesty the Queen and the Prince of Wales.
Advertising is very important for the companies. Generally companies have four main kind of ad that are television, new papers, advertising poster and internet.
“ Now there is the enthusiasm for ‘digital signage’. It show a constantly rotating series of advertisements, mixed with news and entertainment. The screens are placed in busy parts of shops, and the advertisements they show can be updated at will via satellite or internet links.” (The Economist, March 2006)
The main kind of Burberry’s advertising is on line and it is contextual-based advertising which is when an ad is placed on a Web page, in real time, based on the specific content of that individual Web page.
Contextual-based advertising is expected to grow rapidly as more publishers and advertisers adopt this performance based advertising option over traditional banners. Those in the industry advocate cost per click because the price is low and conversions are high.
The three factors which have led to the great growth of Nike since the early 1980s are: endorsement, product design and advertising. In fact Nike produced advertising with athletics featuring, like Carl Lewis on the track, Ronaldo and the Brazilian national football team, etc.
Mr. Knight became successful because he is original, daring and consistent in his advertising campaigns. Original because he invented a new approach to advertising, daring because he use different methods and athletes, and consistent because he stick to his idea.
There is also the long relationship with the agency Wieden and Kennedy which is one of the world’s best ad agencies.
Competition is the act of competing, as for profit or a prize. It is the rivalry between two or more businesses striving for the same customer or market. It is also a test of skill or ability.
The managed competition is a theory of health care delivery services that holds that the quality and efficiency of such services would improve if, in a market controlled by the federal government, independent groups had to compete for health care consumers.
In competition with Burberry there are a lot of companies like Coach or Gucci.
But in the three years since Burberry’s floatation on the London Stock Exchange in 2002, the Company has enjoyed exceptional growth, with revenues growing over 40% and operating profits increasing in excess of 80%. Looking to the future, Burberry is committed to build upon this momentum in order to continue to generate shareholder value over the long term.
Recently the problem has become more serious and BSR (Business for Social Responsibility) is facing an increasing demand for assistant from top multinationals. Even companies that had not been touched by scandal are becoming the object of attention, and non financial reports are focusing on social and ethical issues as well as on the environment. The role of governments is crucial.
The Company has established a Secure Shopping Guarantee for every transaction that the customer makes.
It does not share with others any personal information except with customer’s consent.
Burberry will cover the liability of purchases made through its web site only if the unauthorized use of credit card resulted through no fault.
It does not sell or ship any items ordered through the Web Site directly to anyone who we know to be under the age of 18.
CASE STUDY No hiding place for the irresponsible business
The issue is now moving towards social conditions, working conditions in companies producing equipment for computers.
In the financial world loans have been given to projects which were not environmentally and socially sound. In Companies have to observe a code otherwise they are subject to inquest. However some sectors like hotels and leisure, software and computer services are very difficult to control. Many cases company unethical behaviour is punished by consumers.