Strategic Management

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
H&M Background information....................................................................................................1
External: fast Fashion Industry analysis ....................................................................................1
Internal: Strategic Capabilities:....................................................................................................4
Strategic Options:.........................................................................................................................5
Strategy Selection and Justification.............................................................................................6
Conclusion and Future Recommendations..................................................................................7
CONCLUSION................................................................................................................................7
RERERENCE..................................................................................................................................8

INTRODUCTION
Strategic management is defined as strategic uses of resources and capital which are
important to manage the business and increase the organisational productivity. This is important
for management to analysis the functions and activities in challenging environment then
formulate planning which can help to attain the competitive advantages by completing task and
goals (Barney and Hesterly, 2010). In other words, strategic management requires reflection on
the process and procedures that supports to run and manage the organisational performance. This
report is based on H&M Swedish multinational clothing retail company that known as fast
fashion clothing for men, women, teenagers and children. This organisation is operating business
in 74 countries with over 5000 stores under different company brands. This report covers
understanding about analysis of internal and external environment by involving PESTLE, VRIO
and porter's five forces.
MAIN BODY
H&M Background information
H&M is a Swedish multinational clothing retail company that is fast fashion clothing for
men, women, teenagers and children company. This organisation is providing variety of design
and trending clothes which attracts the number of customers. This was founded in 1947 by Erling
Persson for the purpose of providing variety of design and quality of clothes. This is serving
world wide area by selling their products and services. This is the second largest global clothing
retailer that is maintaining higher productivity and profitability. The management of such
organisation analysis the external environment and formulate the planning which can help to
attain the higher productivity and profitability.
Vision and Mission : To become the leading organization in fashion retailing company
in the whole world.
Objectives:
 To increase the profitability by 70% within 2022.
 To become the largest company in the fashion and retailing company.
 To bring the new technology and services in their organization.
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External: fast Fashion Industry analysis
External environment: For running a business it is important to analysis the external
environment which states what is going on market and how all factors are affecting the business.
This can help to manage the activities and functions by analysing environment. The evaluation of
external environment is explained below:
Political: This factor involves tax rates, government stability, fiscal policy, corruption,
foreign trade policy etc. that affected the business. As Pandemic has occurred in whole country,
government has forced to stop the all activities whether buying, selling, transportation and
distribution that has affected the Fast fashion industry such as H&M negatively and reduced the
organisational productivity (Potyshniak and et.al., 2019). It can be threat for H&M fashion
industry to operate their business in changing government regulations.
Economical: This factor involves economic growth, unemployment rate, inflation,
interest and exchange rates that are important to consider while running a business. After Brexit,
rate of interest has been increased that has created threat or challemge for organization to
reduced the organisational productivity. H&M is also facing the problem in case of expanding
business in other country as kit has to pay extra interest changes for getting loans which proceed
to low productivity and sales.
Social: This factor involves lifestyle and attitudes, health consciousness, age distribution,
and cultural difference. By considering the age distribution, H&M is selling their products as it
classified the products between the age group such as children, youngsters and old age and others
which helps to provide the products and services. This can be opportunity for H&M to manage
and organise the all activities and performance that helps to maintain good performance.
Technological: The environment is changing where needs and wants of people are also
changing faster, it is important for organisation to know latest trend and operate their business
successfully. By using the new technology in design, manufacturing, and distributing the
products H&M is developing their business as well as performance that helps to attain the good
performance and profitability. This is providing business opportunity to H&M by using new
technology and innovation in their business which helps to reach the targeted customers. This
also increases the activities by managing all task (Hitt, Ireland and Hoskisson, 2012).
Legal: This factor consider discrimination law, health and safety law, copyright and
patent laws, consumer protection laws etc. that are important to consider in running a business.
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