COMPARISION BETWEEN H&M AND L’Oreal

Running Head: COMPARISION BETWEEN H&M AND L’Oreal
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COMPARISION
BETWEEN H&M
AND L’Oreal
System04121
12/17/2019

COMPARISION BETWEEN H&M AND L’Oreal
1
Hennes & Mauritz AB is a Swedish international clothing-retail business known for
its fast-fashion clothing for men, women, teenagers and children. H&M and its
relatedbusinessesfunction in 62 countries.The corporate governance structure of the business
H&M, includes, According to the law and recommendations, the board work of the comp any
is regulated by the plan of work which also includes distribution and the rules of the work
among the members of the board which includes the committee and the CEO, financial
reporting, savings as well as bankrolling. The work strategy of the company comprises help
of auditing group, which is recognized once in a year. Rendering to various trainings of the
company. The board of the company mainly consists of 3 and more members who are chosen
by the AGM and not more the same amount of assistants. The annual overallconference helps
in determine the thorough number of the board members (Parnell, 2010).
The auditing group of H&M is chosenyearly through the board of directors and the
reviewing committee contains of Christian Sievert (chairman) along with Anders Dahlvig and
Erica WikingHäger (members). The committee of auditing helps in monitoring the financial
reporting of the company, which also includes the effectiveness and the monitoring of the
company and its internal control as well as risk management. The work under this includes
the handling of auditing subjects and the financial intelligences which are printed by the
company
L’Oreal is a French personal care business headquartered in Clichy, with a listed
office in Paris. It is the world's leading makeups company and has industrialized activities in
the field intent on skin care, hair colour, sun protection, make-up, perfume, and hair
care.Moving ahead the corporate governance of the company L’Oreal includes, the
composition of the board reflects L’Oreal’s construction of shareholding and also guarantees
the interests of all the shareholders. Along with the CEO and the chairman there are mainly

COMPARISION BETWEEN H&M AND L’Oreal
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five managements who represent the company’s main shareholders, seven self-
governingmanagements and 2 of the directors who represent the workers. The Executive
Committee members are in responsibility of the workingSeparations and usefulSections, as
well as the physical Zones. They gadget the plannedstrategies and directdoings of L’Oreal all
over the world(Hong &Doz, 2013).
The company H&M is affected by various environmental factors and this thing
highly affects the performance as well as the conclusion making of the business. Firstly some
of the internal environment factors of the company include, the swot analysis of the company
H&M states that the major strengths and opportunities of the company from its environment,
the company is one of the biggest retail industry and it has various strengths such as, it
consists of broad array of products which range from clothing, fashion and accessories,
further the company also have a strong global presence, has multiple channels of retailing,
has affordable pricing and robust financial performance further some of the weakness of the
company includes dependency on the suppliers, high cost of maintenance and lastly the over
stalking of the products (Meskendahl, 2010).
The opportunities of the company includes , it is trying to build a strong presence
online with the help of E-commerce platforms and it is also planning to expand the stores in
china and this is one of the most huge opportunity for the company in order to grow its
revenues and the profits. Lastly the threats of the company includes the highly competitive
market both offline as well as online and thus it faces challenges from the luxury brands,
some of the other threats includes cost of Labor downturn of economy and change in the
trends of fashion (Akhtar, Siddiqi, Ashraf, & Latif, 2016).
Moving ahead the external environmental challenges faced by the company H&M
includes, first of all the political impact includes the De- globalization surge present across