How External and Internal Factors Affect H&M Business

This report discusses the impact of external and internal factors on the performance and productivity of H&M, a Swedish multinational garment retailing organization. It explores the ways in which leadership, mission, technology, and economic conditions affect the business. Additionally, it examines how social and political factors influence the external environment of the company. The report concludes that both external and internal factors play a crucial role in business growth and success.

Business In Practice

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Explain and discuss how external and internal factors affect a particular company..............1
Explain and discuss the various ways in which business can affect on the external
environment............................................................................................................................2
CONCLUSION................................................................................................................................2
REFERENCES:...............................................................................................................................3

INTRODUCTION
The external and internal factors directly affect the business performance and
productivity, both factors helps in effectiveness and efficiency in business. This report is based
on H&M, it is a Swedish multinational garment retailing organisation based in Sweden and this
company founded in 1947. they have various category such as men clothing, women clothing
and their accessories, kids section and other variety also and they serve their services in
worldwide. The below report is includes how internal and external factors affect the H&M
business and explain different ways in which business can impact on the external environment
(Jamshidi, 2019).
MAIN BODY
Explain and discuss how external and internal factors affect a particular company
External and internal factors helps in building structure and development of appropriate
strategies with carry-out standards of working.
Internal factor
These are those has direct and develop within industry and described as below;
 Leadership: It refers to the quality that is needs to encourage and inspire other
workforce through which standard of performance observed and improved in effective
manner. It also related the interaction process and achieving business objective with
attracting and retaining of workforce get advanced. In context to H&M their leaders have
great quality such as they motivate to employees and also taking feedbacks on regular
basis so they can improve.
 Mission: It refers to the possibilities of working as a industry get work as per
fundamental functions. In context of H&M, their mission statement is to everyone feel
and look good, also create effective network in market among people. It helps in
increasing productivity and also increase reaching rate in various locations (Mäkelä,
2020).
External factor
These are those directly affect the performance of business and external environment
include the outside factors but it directly impact over success of company. In detail described as
below;
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 Technology factor: In current scenario the technology play an important role in effective
business. In context of H&M, some people are not interest to visit store and some of don't
have store in their city so it become easy to order stuff through online application and
company also serve their services and products through online channels or their own
application. Technology provide more advancement in business.
 Economical condition: From some previous H&M business are effected by the Brexit,
duet to this US dollar are weaken and they increase import tax, company making their
products too expensive in American market.
Explain and discuss the various ways in which business can affect on the external environment
 Social factor: In current scenario increasing numbers of transparency customers are
more focused towards their investing and what they were getting. For company it also
become a challenge to meet each customers needs and wants along with cultures of
different country (Mensah and Osman, 2018).
 Political factor: H&M industry serve their services and products across all over country
they face political risk every where because every country have their different political
environment so it is important to follow every country's rules and accept other's political
environment for run business with zero barriers.
CONCLUSION
It is concluded the above report, as per above report analysed both the factors are
important for business growth and internal and external factors are directly impact the business
productivity and performance. Micro factor helps in identify workplace strength and weakness,
macro environment includes the various factors which is based on country level but impact the
business also. It helps in getting competitive benefits in market and expand business with zero
barriers.
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REFERENCES:
Books and Journals
Jamshidi, M., 2019. Keeping Relationship in Physical Store in a Digital Era: a Study in H&M
and Åhlens.
Mäkelä, J., 2020. Creating an Authentic Sustainable Brand: Case Companies H&M Group and
Marimekko.
Mensah, F. and Osman, T., 2018. Communicating through social media to regain stakeholders
trust during crises: A case study about H&M.
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