Business in Practice

Internal and External factors
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.
How the external and internal factors effect a
specific business or organization
External and internal factors helps in building structure and
development of appropriate strategies with carry-out
standards of working.
Internal Factors
• 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.
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.
These are those has direct and develop within industry and
described as below;
Strength: H&M have wide range of products such as shoes,
cosmetics and many more. They have unique identity for all
brands and strong financial performance also.
LOGO
External factors:
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;
Political factor: As H&M brand provide franchise in
different other country so it is difficult for brand to follow
other's rules and regulations and at the same time
challenging also.
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.
The different ways in which the business can
impact 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