Strategic Evaluation

Strategic Evaluation

TABLE OF CONTENT
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
1. Critically evaluate the value of clear Purpose, Vision, Mission and Objectives, values in
setting the strategic direction of selected organizations.........................................................3
2. For assessing a competitive advantage, this can be evaluated using four attributes under
the acronym VRIO of selected organization..........................................................................4
3. Using PESTEL framework analyze the external environment of the business you
selected...................................................................................................................................6
4. Apply the Porter’s Five Forces Model for the organization selected.................................7
5. Based on your analysis, review the organization’s strategy..............................................8
CONCLSUION........................................................................................................................10
REFERENCES.........................................................................................................................11
Books and Journals..............................................................................................................11

INTRODUCTION
Strategic Evaluation is described as an assessment process which offer useful
information related to performance, program and project for accomplishing goal as well as
objective in stipulated period of time. This report is carried upon the company which is
named as H and M. It is the Swedish international retailing company which is located in
Stockholm, Sweden. This company was founded by Erling Persson in the year of 1947. They
start their business as ladies wear store which is the thought of bring fashion offer at
affordable cost to its customer in order to satisfy them. Apart from this, they use
transformation work in order to satisfy the ever-changing need of customer in the market.
They deal with wide variety of products such as clothing, accessories and so on provided to
customer in order to satisfy them. In addition to this, they focus on digital expansion in order
to attract large number of customer at marketplace. The objective of H and M is to create
climatic positive value chain by the year of 2040.In this report, VRIO Analysis is used for
assessing internal capabilities of business organization. In addition to this, PESTEL Analysis
is adopted for identifying external environment which imposes direct impact on success and
growth of company. Apart from this, Porter five force model as well as Ansoff matrix is
adopted for strategic growth in future period of time that helps in achieving competitive
advantage over rival firm at marketplace (Das, 2016).
MAIN BODY
1. Critically evaluate the value of clear Purpose, Vision, Mission and Objectives, values in
setting the strategic direction of selected organizations.
H and M has set clear objective, purpose, vision as well as values for achieving it in
given period of time which is going to be mentioned below:
MISSION: “The mission of H and M is to provide superior quality products such as
clothing and accessories in order to attract large number of customer at affordable cost for
satisfying them”.
VISION:” The vision of H and M is to achieve leading position across world. And
bring the change in respect of renewable fashion for bring fair organisation”

OBJECTIVES: There are different objectives of organisation which must be
accomplished in stipulated period of time for achieving success and growth in future period
of time. The SMART objective which is going to be mentioned below:
Specific: The objective of organisation must be clear and specific for achieving
favourable outcomes. It helps in accomplishing goal as well as objective in future period of
time which will be advantageous for taking appropriate decision for organisation in upcoming
time period.
Measurable: The objective must be measurable for accomplishing objective in future
period of time.
Achievable: The objective should be achieved by providing its current resources as
well as introducing new products.
Realistic: It is important to set goal that is realistic as well as they cooperate it in
different section for achieving objective in future period of time.
Timely: The goal as well as objective must be accomplished in timely manner in
upcoming time period (Dawes, 2018).
Objective of H and M
 The main objective of H and M is to focus on physical stores as well as online
marketing for increasing growth in future period of time.
 To boost net sale by 9% in fourth quarter of 2019.As per local currencies, the sales is
enhanced by 5% in comparison of previous year. Thus, the main objective is to boost
sales.
 And furthermore they want to start their innovative online market in the mid of 2020.
 H and M wants to introduce their ecommerce platform in the country named as South
Korea by 2020.
 The other objective is to become new franchise partner in the America by the end of
2020.
 The objective of H and M is to create climatic positive value chain by the year of
2040
VALUES