Strategic Issues, Challenges, Solutions, and Implementation for H&M

This document discusses strategic issues, challenges, solutions, and implementation for H&M in the fashion sector. It covers topics such as sustainable fashion, ethical decision making, stakeholder theory, BCG matrix, Kubler-Ross five stage model, and more.

Plan template
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Table of Contents
Question 1. Identify and analyze three strategic issues facing the overall sector.......................3
Question 2. Identify and analyze three challenges faced by H&M............................................3
Question 3. Identify and analyze the three solutions to address the challenges.........................3
Question 4. Explain how your company or service could practically implement one solution. 3
REFERENCES................................................................................................................................5
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Question 1. Identify and analyze three strategic issues facing the overall sector
Poin
t
Strategic Issues Evidence (financial, reports, news etc.) Model(s)/
Theory(ies)
1 Sustainable
fashion
Research article The nudge theory is
applied here which
is political and
behavioral concept.
It propose positive
reinforcement which
influence behavior
as well as decision
making of particular
group. This also
influence motives of
people. It allows
them to make better
choice and restrict
freedom or options.
In this way, it
becomes easy for
people to make right
decision. For
example- allowing
people to make
choice of sustainable
fashion (Bocken,
De Pauw and van
der Grinten, 2016)
2 Social issue Research article Here, ethical theory
can be used. It is
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highly related with
ethics and decision
making within
society.
3 Environmental
issue
Research article Stakeholder theory –
this theory is applied
here as it is related
to CSR and
protecting the
environment. The
companies are
implied to contribute
towards society by
generating profit.
The theory includes
customers,
employees,
suppliers, etc. it
enables in sustaining
for long term.
Question 2. Identify and analyze three challenges faced by H&M
Poin
t
Challenges Evidence (financial, reports, news etc.) Model(s)/
Theory(ies)
1 Financial
challenge
Research article BCG matrix - this
matrix provide a
framework for
company to
priorities their
business in different
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categories.
Basically, there are
4 in this:
Star- it state that
there is high growth
and markets share of
products in the
market (Borland,
Lindgreen and
Vanhamme, 2018).
So, it is known as
stars.
Cash cows- The
products have a high
market share but
low growth.
Dogs – in this
products is having a
low market share as
well as low growth.
Question marks –
here products are
having a high
growth but low
market share.
2 Sustainability
challenge
Research article Kubler ross five
stage model – this
model represent
normal feeling of
people experience to
deal with change in
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lives. The five
stages are denial,
anger, bargain,
depression and
acceptance.
Denial – it means
refusing to accept
the change (Bui and
De Villiers, 2017).
Anger- when change
affect people they
become angry
Bargain- here people
start bargaining to
deal with change.
Depression – when
above stage does not
work then people
gets depressed.
Acceptance – it is
last stage where
people have to
accept change.
3 Green carpet
challenge
Research article Kotter model of
change – this model
is relevant to it.
There are 8 stages in
which is applied to
implement change.
Stages are create
urgency, forming
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coalition, creating
vision,
communicating
vision, removing
obstacles, develop
short term goals,
building on change
and last applying in
into culture
(Grayson and
Hodges, 2017).
This enables in
implementing a new
process or service. It
provides a
framework which is
followed by
business to design a
new process.
Question 3. Identify and analyze the three solutions to address the challenges
Poin
t
Solutions Evidence (financial, reports, news, best
practice guidance, etc.)
Model(s)/
Theory(ies)
1 Use of organic
materials
News Ansoff growth
matrix
This model consists
of 4 growth
strategies which
enables companies
to expand their
business in other
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markets. The fours
strategies are market
penetration, market
development,
product
development and
diversification
(Lum, 2017). Thus,
H&M can follow
strategy of product
development. It will
allow them to
produce new
products in existing
market and attract
more people. Thus,
with help of this, it
will be easy for
business to
overcome challenge.
2 Greenwashing Reports Lewin 3 stage model
of change- this
model can be
implemented by
H&M for
greenwashing. In
this there are 3
stages
Unfreezing – in this
entire process can be
improved by
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generating
awareness among
people (Rothaermel,
2016).
Change- in this
stage actual change
is implemented by
doing effective
planning and
applying strategy.
Freeze – here,
change is accepted
by people.
3 Local sourcing
and production
Best practice SWOT- this model
is followed to
overcome this
challenge. It
represent strength,
weakness,
opportunity and
threat. Here, H&M
can improve their
strength by
increasing
production through
local sourcing.
Moreover, porter
generic business
strategy is applied as
well. It helps in
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identifying firm
competitive
profitability in
industry (Rugman
and Verbeke, 2017).
There are four
strategy which are
cost leadership,
differentiation, cost
focus and
differentiation focus.
Question 4. Explain how your company or service could practically implement one solution
Specific
objective
Approach
(marketing,
HRM,
Operations,
Practice etc.)
Stage 1:
Inputs,
financial,
technological
, material,
human.
Stage 2:
Actions and
timeline
Stage 3:
Delivery and
Evaluation
Model(s)
Use of
organic
materials
in order to
implement
this solution
there are
some
approaches
that needs to
be changed
(Welford,
2016). Here,
company can
In this first
stage the raw
material will
be changed.
here, H&M
will have to
identify
suppliers
who provide
organic raw
materials.
Here, there
are several
actions
which will
be taken by
company to
implement
solution. For
this a team is
formed and
roles are
This stage
refers to
delivery of
outcomes.
Here,
organic
materials are
used in
producing
products
(Bui and De
McKinsey 7 s
model can be
used or applied
by H&M to
implement this
solution. The
model consists
of a framework
divided into
two areas that
is hard and soft.
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change their
operational
approach.
This means
that use of
organic
material will
modify
production
process. The
new
machines or
tools will be
used in it.
Thus, at
initial state
raw materials
will be
changed. it
will result in
redesigning a
new process
or method of
production.
assigned to
them.
However,
plan and
strategy are
developed
for it.
Furthermore,
schedule is
prepared
which allow
in providing
insight on
that when,
what activity
has to be
performed.
Villiers,
2017).
Beside that,
the result is
evaluated by
comparing
set goals and
standards
with
production
cost.
In hard there
are 3S’s
whereas in soft
there are 4S’s.
Strategy- here,
a plan is
developed
which shows
entire goals,
systems, etc.
that enable in
gaining
competitive
advantage
(Grayson and
Hodges, 2017).
Structure – it
shows that how
division are
interrelated and
who is
responsible for
whom. It
represents the
overall
structure of
organization.
System – they
are process and
methods that
reflect
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company
activities and
how decision
are taken.
Skills – it
reflect the skills
and abilities
that is required
within
employees of
H&M to
implement new
strategy .
Staff- As name
depicts it shows
that how many
numbers of
staff is required
to implement
strategy. Also,
from where
they will be
hired, etc.
Style – It refers
to the way in
which top
management
interact and
communicate
and share
information
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with employees
(Rugman and
Verbeke,
2017).
Moreover, what
are their
actions, ethics
or values
shown by them.
Shared values
– it is
fundamental
component of
this model. it
consists of
norms and
guidelines that
are to be
followed by
staff. This
depict their
behavior and
action.
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REFERENCES
Books and journals
Bocken, N.M., De Pauw, I. and van der Grinten, B., 2016. Product design and business model
strategies for a circular economy. Journal of Industrial and Production
Engineering, 33(5), pp.308-320.
Borland, H., Lindgreen, A. and Vanhamme, J. eds., 2018. Business strategies for sustainability.
Routledge.
Bui, B. and De Villiers, C., 2017. Business strategies and management accounting in response to
climate change risk exposure and regulatory uncertainty. The British Accounting
Review, 49(1), pp.4-24.
Grayson, D. and Hodges, A., 2017. Corporate social opportunity!: Seven steps to make
corporate social responsibility work for your business. Routledge.
Lum, B.W., 2017. Business strategies for small business survival (Doctoral dissertation, Walden
University).
Rothaermel, F.T., 2016. Strategic management: concepts (Vol. 2). McGraw-Hill Education.
Rugman, A.M. and Verbeke, A., 2017. Global corporate strategy and trade policy. Routledge.
Welford, R., 2016. Corporate environmental management 1: Systems and strategies. Routledge.
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