STRATEGIC MANAGEMENT

STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION................................................................................................................................3
MAIN BODY.......................................................................................................................................4
H & M- Background information....................................................................................................4
External environment- fast fashion industry analysis......................................................................4
Internal strategic capabilities- .........................................................................................................6
Strategic options..............................................................................................................................8
Strategic selection & justification .................................................................................................8
Recommendations ...........................................................................................................................9
CONCLUSION..................................................................................................................................10
REFERENCES ..................................................................................................................................11
Books & Journal:...........................................................................................................................11

INTRODUCTION
Business sector is wider and broader & is widening at rapid scale. Strategic management
is defined as process of setting objectives and goals & carrying out strategy across organisation to
achieve within period of time (Certo, 2020). Main aim of this report is to critically understand the
impact of strategic management. H & M , a clothing retailing firm headquartered in Sweden. It
operates at global level and has wide range of competitors such as Zara, Macy's, Uniqlo, Gap etc.
This report comprises of overview of firm, external analysis, internal strategic capabilities,
strategic options, strategy selection and recommendations.
MAIN BODY
H & M- Background information
Hennes and Mauritz, an international firm of clothing industry headquartered in Sweden. It
operates at wider scale & has been expanding their business at global level. It is mostly engaged in
selling of clothes, accessories, footwear, home textiles etc. They are being in trends and in eye of
customers because of following their market trends (Foschi, 2017). Their supply chain has long
distribution network on basis of which it is easy for them to target and access to customers easily.
Also, they did not manufacture their products in house but production to more than 900 independent
countries. They have strong goodwill in market and due to following market trends continuously.
The firm also uses different marketing strategy on basis of which they market their
products as well as services.

External environment- fast fashion industry analysis
Fashion industry has been evolving with period of time & it is necessary to scan
environment so that market situations are determined properly. External environment are those
which affects the overall organisational structure externally. So, in relevance of selected H & M
they use PESTEL Analysis which is further discussed below-
PESTEL Analysis
It is type of framework which is utilised by entity to determine external factors which affect
on overall organisational functions and operations. It comprises of several elements which are
described as follows-
Political factors
It is factor which focuses on intervention of economy. It
comprises of environmental law, global law, foreign trade
policies etc. In context of selected firm, they have been also
affected by this factor their production is carried out mostly
in Egypt, Lebanon in which these are to be considered as
politically unstable. Also, due to trade war between China,
workers are demanding higher wages (Hesamamiri, 2016).
Economic factors
This is another factor which focuses impact on business &
how profitable they can be to organisation. It includes
several factors which are exchange rates, economic growth,
inflation & deflation rate etc. (Islam, 2017). They have been
also impacting upon enterprise at larger scale. In reference of
chosen entity, in many countries the cost of labour is low &
which is profitable for business. Moreover, with development
of economy, disposable income of people is also increases.
Social factors In this element, it includes factors like habits, attitude,
perception of customers etc. In context of selected firm they
have been also impacted by these because clothes are often
influenced by social media & taste of customers. In
viewpoint of H & M, they too changes their design of clothes
relying on customers mind, taste, behaviour & attitude.
Technological factors Use of technology is increasing & widening at rapid scale. In
retailing & fashion industry, they also uses technology like
management information system, logistic tools & software
etc. H & M, also need to be aware about these technological