This report reviews strategic issues, capabilities, and evaluation of Hennes and Mauritz, a retail clothing brand. It discusses PESTLE analysis, Porter's Five Forces, strategic advantage, evaluation, and improvement strategies.
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Coursework Report Review: Worksheet. Organisatio n: Hennes and Mauritz Q1.Strategic Issues. Issue 1: (PESTLE) Technological & Socio – Culture - Increasing online competitors Issue 2: (5 Forces) Suppliers - Long lead time of outsourcing and Quality issues Issue 3: (Advantage) Quality with value - Balancing low price strategy with fast fashion strategy Q2.Strategic Capability & Advantage. Industry?Retail clothing industry CSFs? Inexpensive and fashionable clothing brand with quality products Unique Resources (what do they have?) Strong financial position; operating under its own brand has its own designs and contract with designers creating customised collections for H&M and selling them under its buying departments. Unique Capabilities (what can they do?) Can expand in the retail sector growing its brand internationally with product and market development. Links to Advantage. (map to CSFs?) Make a varied and diversified reach of customers providing a variety of fashionableoptionatanaffordablepricingwithquality;creating opportunities in the new market.
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Q3.Evaluation & Improvement. Which Porter Generic? Suppliers in terms of outsourcing are to be evaluated for effectively improving quality of the products with reducing the lead time taken. This can be improved by adopting in house production of clothes. Evaluation – Suitable? (to the environment) H&M is using eco-friendly approaches to manufacture its products and utilising the resources efficiently for reducing wastage and effective use of available sources of energy. Evaluation – Acceptable? (to key stakeholders) Making the employees feel secure and improving their skill set through training, motivation etc. Influencing customers with online channels and attractive stores availing the product at affordable pricing. Effectively managing the needs and demands of internal stakeholders. Evaluation – Feasible? (is it possible?) To collaborate with the local suppliers and prominent fashion designers and local competitors. Analysing employee turnover, customer service and profit and sale margin of the H&M. How to Improve the Strategy? (Ideas?) Through proper planning and adopting various marketing approaches and tools. The strategies can be judged by way of analysing the competitors and making future forecast and predetermining the goals and objectives of the plan made. Applying various promotional tools In-house manufacturing Targeting high end or upper class customers with customised clothing brands.