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Strategic Business Planning in H&M : Report

   

Added on  2020-01-21

11 Pages3065 Words4677 Views
Business Strategy 1
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Table of ContentsINTRODUCTION .............................................................................................................................3TASK 1...............................................................................................................................................31.1 Mission, vision, objectives, goals and core competencies.......................................................31.2 Analyse the factors need to be consider in designing strategic plan........................................41.3 Two different strategic planning techniques............................................................................4TASK 2 ..............................................................................................................................................52.1 SWOT analysis and strategic positioning................................................................................52.2 PESTEL analysis.....................................................................................................................52.3 Definition and assessing the significance of stakeholder analysis..........................................62.4 Designing a new strategy for H&M ........................................................................................6TASK 3...............................................................................................................................................63.1 Analyzing the market entry which H&M can adopt for the growth and expansion...............63.2 Selecting the suitable market strategy for H&M ....................................................................7TASK 4...............................................................................................................................................74.1 Assessing the roles and responsibilities of personnel who implements the business strategy .......................................................................................................................................................74.2 Stating the resources which are required by H&M for the implementation of new strategy .84.3 Contribution of the SMART target in the achievement of organizational goals ....................8CONCLUSION .................................................................................................................................8REFERENCES.................................................................................................................................102
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INTRODUCTION Business strategy is long-term corporate planning in order to enhance business strengthand operate successfully in present globalized and competitive age. Effective and strategic plan isthe security or prevention from potential threats or difficulties. Present project report is based onstrategic business planning in H&M. It is the largest fashion retailer in Europe who is providingqualitative products at affordable prices. Present report will focus on H&M future business plansand its contribution towards accomplishing organizational targets so that firm can operateeffectively and ensure long run survival or growth. TASK 11.1 Mission, vision, objectives, goals and core competenciesMission: H&M's Mission statement is straightforward and foundational which is providing“fashion and quality products at the best prices” (Yan, 2014). This statement reflects that H&Mregular pay focus on its cloths quality, fashion and prices as well so that customer can be servedwith effective quality at affordable prices. Vision: H&M's vision is to become a global retailer in the world. Its mission statement iscontributes towards accomplishing this vision so that firm can become a largest retailer around theglobal market. Objectives: H&M aims at offering quality and fashionable products to wide range ofcustomers at reasonable and cost effective prices. It will make an significant contribution towardsachievement of organization's mission.Goals: H&M's strategic goals is to increase its turnover and number of stores by 10-15%each annum (Yan, 2014). So that, it can build strong and powerful position in the market. H&M iscontinuously focuses on expand its operations in the international market to accomplish thisorganizational goal. Moreover. Its long term goal is to give commendable fashion experience toeach and every customer. Core CompetenciesQuality: is the most important factor and it is the key of H&M's success. Design: H&M's designer team produce designer cloths which fulfil customer's fashiondemand. Pricing strategy: Efficient logistic and economies of scale helps to sale products atcompetent prices. 3
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1.2 Analyse the factors need to be consider in designing strategic planStrategic planning is the process through which organizations set their objectives and planaccordingly to attain desirable outcomes. It helps to prevent itself from the future threats due torapidly changing market behaviour. Engagement or involvementH&M can design effective strategic plan by involving all the staff level. It is because staffinvolvement will help to gain an insight into future so that management can assess potential issues,challenges and opportunities as well (Smith, 2012). Moreover, staff engagement helps to motivateH&M's personnel so that they will fulfil their commitment in real market otherwise, execution ofthe plan will not be very affective. CommunicationEffective communication is also very important factor. Thus, H&M has to assure that allthe staff members should be communicated with the strategic plan. They should know that howthey are involved in the H&M's strategic planning process. Henceforth, H&M has to implementtop down communication in the business. Organizational cultureIt refers to employees behaviour, attitude, values and their beliefs (Yan, 2014). H&M hasto create a strong culture in which all the employees make their contribution towards targetachievement. 1.3 Two different strategic planning techniquesBCG MatrixThis matrix has been developed by Bruce Henderson in early 1970s. This matrixdemonstrates that H&M can be classified into 4 categories on the basis of its market share and itsmarket growth (Qiang, 2014). In this, market share indicates competitive strength and advantageover its competitors while market growth indicates industry attractiveness. Thus, this matrix willprovide assistance to map position taken into consideration this two aspects of H&M'sprofitability.Profit Impact of Market strategies (PIMS)This theory helps to assess the relationship between H&M's future actions and derivedresults. So that, H&M's senior management will be highly able to critically analyse its marketenvironment, identify possible threats and design strategies to enhance their corporate position andsustainable growth as well. 4
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