Stakeholder Engagement in H&M: Internal and External Stakeholders

This presentation discusses the major stakeholders of H&M, their influence and relationship on the business practices, and engagement strategies used by the company. It highlights the importance of stakeholder engagement in achieving sustainability and competitive advantage in the fashion industry. The presentation also includes relevant research studies on stakeholder management.

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• The current presentation will be based on H&M which is a popular multinational clothing
company in the UK having a significant market share in the industry.
• The organization has a positive brand image in the market and have loyal customers which are
interested in the new products and services that are offered by the business.
• This presentation will explain the major stakeholders of H&M, influence and relationship of
the internal and external stakeholders on the business practices, engagement of the business
with these stakeholders and the conclusions and judgements drawn from the research.

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• It is one of the most recognizable brand in the fashion industry which has more than 5000
stores worldwide and has a huge workforce which is highly qualified in their field.
• The organization focuses on increasing the customer satisfaction by introducing new and
innovative products for the customers and increasing their engagement towards the business.
• Customers are attracted towards the products and services that are offered by the business
which is crucial in order to gain better advantage in the industry.

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 The suggestions and inputs of these stakeholders are referred by the business in order to
gain a better idea of managing the risks and barriers which may frequently arise for the
organization.
 Stakeholders are an integral part of the organization which have a major influence over
the decision making process of the business.
 Engagement of the major stakeholders is crucial for the business in order to enhance their
productivity and achieve better results in the business.
 The stakeholders are helpful for the business to reduce the risks that may frequently arise
on the business and have a negative impact on its overall productivity.

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Internal Stakeholders
• The internal stakeholders are dedicated in providing better services to the company, and they
are highly affected by the decisions, productivity and performance of the organization in the
industry.
• These stakeholders are crucial for the business in order to survive in the long run and gain
competitive advantage in the industry.
Owners
• The individuals or group of people who own the organization have a direct relationship with
the major decisions and the output that is produced by the business in the industry.
• The policies and procedures are approved by these stakeholders that are related with the
success of the business.
• The major decisions of the business are taken by the owners that have a direct impact on the
performance of the overall business in the industry.
Employees
• The people who are employed by the business to carry out the crucial tasks and activities that
are conducted by the business are considered as their employees.

• H&M has highly qualified and experienced candidates in their workforce that are dedicated
towards achieving the aims and objectives of the business effectively.
• Employees are the important stakeholders of the business that have a major role in improving
the overall productivity of the organization.

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External Stakeholders
• These stakeholders are the interested parties who are not a part of the management but are
affected by the activities and policies of the business.
• They are also known as secondary stakeholders which use the financial information of the
company in for evaluating its performance, liquidity and profitability in the industry.
Customers
• The organization aims at increasing satisfaction levels of their customers and improve their
interest in the products and services that are offered by the business.
• Customers of H&M are loyal towards the brand and have a major interest in the new and
fashionable products and services that are offered by the business regularly.
• The behaviour of these customers have a major influence over the decision making process of
the business which is crucial in order to gain competitive advantage in the industry.
Competitors
• The major rivals of H&M in the industry are Marks &Spencer, Burberry etc. which have a
significant market share in the UK fashion industry.

• These companies may create issues for the organization to successfully operate in the business
environment and gain competitive in the industry.
• The shifting costs for the customers are low in the industry which creates pressure on the
organization to develop better products and services than these competitors.
Government
• The rules and regulations that are imposed by the organization may have an effect on the
operational capacity of the business in different regions.
• Different laws may be imposed by the governments in various nations that can create issues
for the company to enhance their productivity ion the business.

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• It tries to be honest with them for establishing a transparent system of business in the
organization an improving their contribution towards the company.
• These efforts of the business are aimed at retaining their major stakeholders with the
organization and increasing their motivation to contribute more towards the organizational
success.
• Providing them with adequate information about the achievements and financial information
of the business is another way which is effective in increasing their overall engagement in the
activities that are conducted by business.
• The business frequently conduct meeting and productive sessions with their key stakeholders
for understanding their needs and improving their trust in the company.
• These activities are crucial in order to provide these stakeholders with a better idea of the
strategies and plans that are developed by the business to conduct the organizational activities.

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 Stakeholder engagement may reduce the conflicts and issues that may arise for the
business and have a negative impact on its performance in the industry.
 It is helpful for the business to achieve sustainability ion the industry and gain a better
market share among its competitors in the market.
 H&M is able to get better growth opportunities in the fashion industry by maintaining an
effective relationship with their key stakeholders and increasing their satisfaction levels
in the business.
 It can help the business to reduce its losses in the industry and remain profitable which is
highly crucial in order to gain competitive advantage in the dynamic industry.
 This engagement with the stakeholders is beneficial for the organization to increase its
overall productivity and increase its chances to achieve better growth in the UK market.

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• This is a crucial strategy which is adopted by the organization in order to remain sustainable
in the competitive industry and retain their key stakeholders with the brand.
• The internal and external stakeholders have a considerable impact on the business practices,
and they have a major influence over the decision making process of the organization.
• They provide better assistance to the organization by determining the demand and supply in
the market and making effective changes in the current strategies of the business.

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• The organization has been able to improve their engagement by using various strategies which
is crucial in order to gain competitive advantage in the industry.
• These stakeholders help in improving the performance of the organization in the industry with
the help of their consistent efforts and inputs towards the development of the organization.
• It has been beneficial for the organization to reduce the negative impact of various risks and
problems on the business to produce better output.

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• Leonidou, E. and et.al., 2020. An integrative framework of stakeholder engagement for
innovation management and entrepreneurship development. Journal of Business
Research. 119. pp.245-258.
• Loureiro, S.M.C., Romero, J. and Bilro, R.G., 2020. Stakeholder engagement in co-creation
processes for innovation: A systematic literature review and case study. Journal of Business
Research. 119. pp.388-409.
• Pedrini, M. and Ferri, L.M., 2018. Stakeholder management: a systematic literature
review. Corporate Governance: The International Journal of Business in Society. 19(1).
pp.44-59.
• Shackleton, R.T. and et.al., 2019. Stakeholder engagement in the study and management of
invasive alien species. Journal of environmental management. 229. pp.88-101.

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