Stakeholder Engagement in H&M: Relationship, Influence, and Benefits

This presentation discusses the stakeholders of H&M, their relationship and influence on the practices of the business, and the benefits of engaging with them. It also provides insights on how H&M manages its stakeholders and draws conclusions on the impact of stakeholder engagement on the productivity of the business.

Professional Discussion Paper
Individual Presentation Paper

Table of Contents
 INTRODUCTION
 Stakeholders of H&M
 Relationship and influence of internal and external stakeholders on the practices of H&M
 Assessing the engagement of the business with these stakeholders with its benefits
 Judgements drawn from the research
 CONCLUSION
 REFERENCES

INTRODUCTION
 Stakeholders are considered as individuals or groups that
have an interest in the decision making process of a
business.
 They are directly or indirectly affected by the performance
of the business in the market and have a major impact on
the decision making process of the business.
 The major stakeholders of a business in the market are its
employees, customers, investors, suppliers etc. that have a
significant influence over the company.

Stakeholders of H&M
 H&M details
 H&M is a Swedish clothing company which offers new and
unique fashion-wear for their customers.
 It has a significant market share in the UK industry and has
expanded to various markets in order to grow and increase
its competitive advantage.
 This brand is widely known for its quality and has a better
brand image among its customers which is beneficial to
improve its profitability in the business environment.

CONTINUED…
 Stakeholders
 H&M has strong stakeholders that have a trusted image in the industry and have a significant
experience of operating in the industry.
 These stakeholders are provided with the due consideration by the business in order to increase
their engagement towards the organizational goals.
 Stakeholders such as suppliers, customers, colleagues, governments and investors may have a
significant impact on the overall performance of the business.
 These stakeholders are helpful for the business to improve their pressure handling capacity and
face the challenges with a better approach towards development.

Relationship and influence of internal and external
stakeholders on the practices of H&M
 Board of directors
 The group of individuals which are related in making the strategies and policies for the
development of the business for its overall development.
 They have a direct impact on the overall success of the business as the decisions taken by them has
an influence over the performance of the organization in the fashion industry.
 Investors
 The investors of H&M has a major impact on the overall productivity of the business to operate
successfully in the business environment.
 They invest their capital and valuable time for the development of the organization which is
helpful for the business to grow and prosper.

CONTINUED…
 Suppliers
 The organization has certified and trusted suppliers in the industry that have a good image in the
fashion industry.
 These suppliers offer high quality raw material to the company which is beneficial for developing
superiors products to offer in the market.
 Creditors
 Banks and institutions that fulfil the capital requirements of the business are affected by the
performance of the organization in the industry.
 These financial institutions may monitor the financial position of the organization in the industry
which is beneficial for ensuring their payment of interest specifically.

Assessing the engagement of the business with these
stakeholders with its benefits
 Engagement
 H&M tries to maintain a healthy relationship
with these stakeholders and improve the
overall development of the organization.
 It tries to provide them with better assistance
to increase their engagement towards the
business and increase its overall productivity
of the business.
 H&M aims at improving the communication
with their key stakeholder for increasing their
interest in the business practices.

CONTINUED
 Benefits
 Stakeholder engagement is crucial for the business in order to enhance their relationship with the
key stakeholders.
 By improving the relationship the business is able to gain their trust and provide them with better
assistance for increasing its overall productivity and achieving higher quality of output.
 This is useful for the organization to successfully operate in the competitive business environment
and expand their market share in the fashion industry.
 The business is able to improve its brand image in the market which is important to get better
recognition from the customers and increase profitability.

Judgements drawn from the research
 Judgements
 H&M is a popular fashion-wear organization which offers wide variety
of services for the customers in order to increase its market share.
 It has a positive image among the customers and is considered as one
of the most preferred fashion brand in the UK market.
 The organization is managing their key stakeholders interests by
increasing their overall engagement towards the business.
 By managing their stakeholders appropriately the business is able to
reduce the risk of various challenges and increase its overall
productivity.

CONCLUSION
 According to the above presentation it has been concluded that the organization has
been able to increase its productivity in the industry by successfully managing its key
stakeholders.
 The stakeholders of the business have been resourceful in order to provide the
organization with valuable inputs and suggestions for its overall development.
 The organization can try to adopt technological changes in their organization for
simplifying the communication between the organization and these stakeholders for a
smooth coordination between them.
 These changes may have a positive impact in the overall management of the operations
and other functions of the business.

REFERENCES
 Bahadorestani, A., Naderpajouh, N. and Sadiq, R., 2020. Planning for sustainable
stakeholder engagement based on the assessment of conflicting interests in
projects. Journal of Cleaner Production. 242. p.118402.
 Barney, J.B., 2018. Why resource‐based theory's model of profit appropriation must
incorporate a stakeholder perspective. Strategic Management Journal. 39(13). pp.3305-
3325.
 Freudenreich, B., Lüdeke-Freund, F. and Schaltegger, S., 2020. A stakeholder theory
perspective on business models: Value creation for sustainability. Journal of Business
Ethics. 166(1). pp.3-18.
 Lehtinen, J. and Aaltonen, K., 2020. Organizing external stakeholder engagement in
inter-organizational projects: Opening the black box. International Journal of Project
Management. 38(2). pp.85-98.