Strategic Management for H&M

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................1

INTRODUCTION
Strategic management is organizational analysis tool which is used to evaluate the
working capability of the company in such a way that working capability of the company is
increase by which chances of goal achievement can also be increased. H&M is a fast fashion
organization which provide fashioned clothing products to its customers in several countries.
Analysis of company's working strategy in done in this report with the analysis on its internal
and external environment. Evaluation of the impact of internal environment on the working
capability of the company is done in this report and the strategic tools used by company to
evaluate the external environment. Development of strategic tool in terms of improving the
working productivity is also done in this report.
MAIN BODY
Organizational overview- H&M
Hennes & Mauritz commonly known as H&M is one of the retail and multinational company of
Sweden. It is one of the biggest and famous clothing company of Sweden who deals with a
variety of clothing items and trendy and fashionable items. It was founded in 1947 by Erling
Persson. Headquarter of H&M is in Stockholm, Sweden. It is basically a well-known clothing
industry of Sweden. H&M operates its business in many countries apart from Sweden. It is a big
clothing industry produces a variety of clothes for men and women of all age group including the
children, teenage, young or old generations. H&M also makes changes in its clothing types from
time to time as per latest fashions and trends.
External analysis for H&M
External analysis:
It is the analysis of the external environment which is very important for every company to
sustain in the competitive market or to win the competition in the market. External environment
is usually not under the control of an individual but by properly analysing the external
environment and its factors the risk related to external environment can be minimized at certain
range. For doing the external analysis H&M can use different tools including:
Pestel analysis:

Pestel analysis is the analysis of whole business environment which could affect the business and
running of H&M, which make it very essential for H&M to analyse and study so that it can
achieve its goal.
Political forces:
Political instability or changes in political factors of the country severely affects the
functioning of H&M. Due to political changes the whole economy affects or due to putting of
restriction on dealing with a particular stream of products the working of H&M or any company
affects (Çitilci and Akbalık, 2020). Hence, it becomes very essential for H&M to study the
political situation of the country before expanding its business in that country.
Economic factors:
This factor could prove to be favourable for H&M if it plans to start its business in that
country which is in developing stage because in developing countries usually the labour cost is
low in comparison to developed countries which become very favourable situation for H&M to
manufacture its products (Yusop, 2018). Also in developing countries the income of the people is
also increasing which will also puts the positive impact on H&M in terms of increase in sale.
Social forces:
Social factors basically deals with the society or the people whose taste and prefernce
always changes. Thus, it becomes very essential for H&M to study this factor and produce
accordingly.
Technological factor:
Changes in technology or different technological advancement in different country also
affects the H&M and its working. Thus, properly analysis and adoption of technological changes
as per the demand is very essential for H&M.
Environmental elements:
While production or manufacturing of clothes H&M have to be very conscious about the
environmental element of Pestel analysis which means it has to consider that its activities or
business may not harm the environment in any way.
Legal forces:
The legal environment or abiding and following the laws and regulations of the country is
very essential for every company including the H&M which means H&M has to closely study
and follow the legal framework of that country in which it is going to start its trade.