Strategic Analysis of Manchester United Football Club

Strategic analysis of footbal
club Manchester United
Table of Contents

Executive summery:-.......................................................................................................................3
INTRODUCTION...........................................................................................................................3
External and industry analysis of H&M......................................................................................3
Competitive analysis...................................................................................................................7
Internal analysis........................................................................................................................10
Strategic options........................................................................................................................11
Recommendation.......................................................................................................................11
Reflective report on strategy process .......................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCE.................................................................................................................................15

Executive summery:-
The present report is based on strategic analysis of a company as strategies helps to attain
goal in effective manner within small period. For which there are various model and tools that is
used by the companies in order to formulate the effective strategies. In order to determine
external forces, companies uses PESTLE analysis. For competitive analysis, porter's five forces
model is used. Additionally, for gaining growth, Ansoff's matrix, in which the most viable
strategy for chosen company is product development.
INTRODUCTION
H&M is an international retail organisation which was founded in Sweden in the year
1947 which sells clothing products. The organisation has expanded to 74 international market
with more than 5000 stores all around the globe. The organisation owns 8 brands which offer
clothing, home décor and beauty products to both men and women. Zara, Uniqlo ans gap are few
of the organisations which compete with H&M in the retail fashion industry. The organisation is
a household name in fashion and has launched sustainable fashion line in order to complete their
obligations to society (Eling and Schaper, 2017). As of august 2020, the organisation made profit
of SEK-1,242 million after tax deduction. This report includes external, internal , competitor and
industry analysis of H&M. Reflective report on the company along with strategic alternatives for
the firm are included in this report.
External and industry analysis of H&M
PESTEL analysis
This is a analysis tool which help in identification of various external factors affecting the
business. This analysis is also helpful in constructing strategies for the growth and development
of the company. The PESTEL analysis of the Swedish retail company H&M is mentioned below:
Political factors
The organisation operates in several countries which currently face political disorder and
have such as Egypt and Lebanon. Political disorder in such countries affects the overall profits of
the organisation (Alotaibi, 2016Kumar and Pradhan, 2016). Apart from this the organisation has
faced global scrutiny for continuing to produce their goods in Bangladesh and exploiting cheap
labour without taking measures about safety of such workers. The increasing political conflicts

between China and US will affect the future of the company. This is because the organisation
sources most of their products from China.
Economical factors
As the organisation operates in various countries around the globe inflation rates, interest
rate and global employment rates are some of the economic factors which affect the profitability
of the company. Increase in disposable income of consumers from developing markets such as
India and China gives the organisation opportunity to expand their presence in such regions.
Such expansion is positive for the future of the company as it will generate new sources for
earning profits. The no deal Brexit imposes harsh duties on international brand which is threat to
the future of the company in UK market.
Social factors
The respective company has introduced various CSR initiatives and provide regular
business reports public platform due to increasing demands from consumers all over the globe to
create transparent business organisations which complete their responsibilities towards the public
(Liu and et.al., 2017). Increasing influence of social media celebrities and trends on fashion
preferences of consumers is positive for the future of the company as the company will be able to
predict future market trends easily. This will also help the company market their products
effectively.
Technological factors
Recent increase in usage of online channels for ordering products has made a huge
impact on the organisation. The organisation has created strong social media presence and
constructed easily accessible online portals for placing orders to grow in the increasingly digital
business environment. Advancement in automation and AI technology is major technological
factor impacting future of the company. Automation will help the company decrease labour costs
by using robots and AI in all their daily activities. Various governments all around the globe are
considering implementation of laws which limit firms from using their consumers data, this is
main factor influencing future of the organisation. As the organisation uses consumer data to
construct growth strategies and recommend their products, implementation of such laws is matter
of serious concern for the company.
Environmental factors