Strategic Management of H&M

GT6800 STRATEGIC
MANAGEMENT

Contents
MAIN BODY...................................................................................................................................1
Analyse external environment of H&M.................................................................................1
Internal environment and capabilities analysis of H&M........................................................2
Strategic options for future direction of H&M.......................................................................5
Critical evaluation of selected business strategy for growth of H&M...................................6
CONCLUSION & RECOMMENDATIONS..................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategic management is defined as the process of planning, organising, monitoring,
analysing or assessment of essentials activities of business in order to meet expectations and
requirement of goals and objectives of business (Aguinis Edwards and Bradley, 2017). Changes
are mandatory requirement of any business for asses of business strategies constantly. It is very
important aspect of business entities that leads to expansion and growth of business.
H&M is international clothing retailer based on Sweden and offering fast fashion men,
women, teenagers and kids clothing products. It was founded in 1947 by Erling Persson with its
headquarter in Sweden. It is multinational company that operates in 74 countries with over 500
stores under several brand names with 1,26,0000 full time equivalent positions.
This report is based on Strategic management of H&M and here external and internal
analysis of it is discussed. Further effective strategic options for future direction of business are
considered within the report. In addition strategic selection and relevant justification is included
in this report with considering future suggestions and recommendations.
MAIN BODY
Analyse external environment of H&M
PESTLE Analysis
Political: This factor of pestle analysis affects business due to modification in actions and
policies delegated by government at any level of country. In terms of respective organisation
political factor of UK has significant impact in terms of building growth and expansion options
for business due to various aspects such as- political stability, low taxation and better political
relationship of firm with nation (Ansoff and et. al., 2018)
.
Economical: This component of external analysis influence business based on the
elements such as- economic changes of country, rate of growth, employment per capita income
of nation etc. Adequate economic policies of United Kingdom are in support of H&M in terms of
smooth functioning and rising of profit from premium services and fashion trends accepted by
customers.
Social: Employment rate, population, customer habits in terms of buying and using of
products and services, living standards of customers, attitude and values of customers that has
prominent impact on respective organisation that leads to rising of market shares and profits of
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business. UK’s retail market is stronger and brings huge opportunities for growing organisations
like H&M.
Technological: It is related to various elements like changes and advancement of
technology in different activities and processes of business organisations creates unique impact
on organisation’s positions and ensure future growth. In terms of H&M has significant impact of
this factor due to use of new or advanced technology in operation and manufacturing process of
organisation so as to differentiate its products or goods from other players within market (Bryce,
2017).
Legal: Strictness of UK legislation in terms of protecting interest of general people as
well as ensuring health & safety of labour or worker based on strict laws that have huge impact
in terms of growth of respective firm. H&M has consideration of these laws in company’s
fundamental legislation that leads to overcome drawbacks and lead to growth of business in
respective country. It is most important factor of pestle analysis of any business that creates huge
impact in changing of business policies as per country legislation that requires huge investmenst.
Environmental: United Kingdom is environmental focused country that has rules and
laws with respect to making country environmentally safe from pollution and affects of carbon
and use of other non-renewable resources. H&M is one of the corporate responsible companies
in terms of taking care of customers and employees interest as well as environment protection
through creating awareness and importance if natural resources (Durand, Grant and Madsen,
2017). Thus, it has significant impact of environmental factor that leads to growth opportunities
of business.
Although pestle analysis or external factors of respective business has prominent impacts that
creates growth opportunities for sustainability of business within the industry and build effective
position and brand reputation globally.
Internal environment and capabilities analysis of H&M.
VRIO Analysis
RESOURCES VALUABLE RARE INIMITABLE ORGANISABLE COMPETITIVE
ADVANTAGE
Brand
Awareness
Brand
Image - - -
Temporary
Competitive
Advantage
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