Burberry’s Case of Business Relocation

Topic 

Burberry’s Case of Business Relocation

Instructions 

Task:

Choose ONE of the following case studies of companies that have undergone some changes (presented here with suggested readings to start with).

  1. Identify ONE aspect of HR involved in this change.
  2. Discuss how they affected or were affected by the crisis, and consider the implications for wider HRM practice.
  3. Use theory to critically evaluate the situation. Provide evidence.

Chose 

  • Burberry
  1. Blyton, P., & Jenkins, J. (2013). Mobilizing protest: insights from two factory closures. British Journal of Industrial Relations, 51(4), 733–753.

 

  1. Blyton, P., & Jenkins, J. (2012). Life after Burberry: shifting experiences of work and non-work life following. Work, Employment and Society, 26(1), 26-41.

 

  • Sand Katie (2015) Burberry invests £50m in a new factory in Leeds eight years after making 300 Rhondda staff redundant, Walesonline (4th Nov 2015) Available: http://www.walesonline.co.uk/news/local-news/burberry-announce-50m-yorkshire-factory-10386597

Answer Preview 

Burberry’s announcement to close the business in Treorchy created a big responsibility for the company’s HRM to undertake. The short notice of 90 days to closure did not breach any business law, but it caused great shock to the local community, particularly based on the efforts they had put to build the business for years (Blyton, 2010, p. 207). Moreover, Burberry was the only major company that offered economic support to the Rhondda community. Announcing redundancy in the account of closing the business was not to be taken lightly, particularly by people whose most of their lives were dependent on the company at that time. Labor relations immediately became one of the highly involved functions of the company’s HRM in dealing with redundancy.

Word Count: 2800