Strategic Management in H&M: Analysis and Recommendations

STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
H&M Background information....................................................................................................3
External: fast Fashion Industry analysis ....................................................................................3
Internal: Strategic Capabilities:....................................................................................................6
Strategic Options:.........................................................................................................................7
Strategy Selection and Justification.............................................................................................9
Conclusion and Future Recommendations..................................................................................9
CONCLUSION................................................................................................................................9
RERERENCE................................................................................................................................11

INTRODUCTION
Strategic management is defined as important process of organization's resources that
uses by management in order to operate and run their business effectively. The aim of every
company is to analyse the internal and external environment which is pertaining and know how
such factors are affecting the business. In other words, strategic management can be explained
as prescriptive approach that outlines how strategies are developed and how an organization is
attaining the profitability (Schilling and Shankar, 2019). To run a business and attaining higher
profitability there is requirement of proper planning and strategies which should be formulated
by management by understanding the position of company and bring the uses of effective
resources that can supports to maintain the sustainability in competitive environment. This report
is based on case study of H&M that is large size fashion brand in competitive market which was
founded in 1947 to a pioneer fast fashion brand. The report covers background information, tool
to analyse external environment and internal environment. Moreover, report covers strategic
choice for future strategic direction and strategy selection that can help to operate the business
effectively.
MAIN BODY
H&M Background information
H&M is fast fashion retailer company that has made incredible journey from single store
which was established by Erling Persson in Sweden in 1947. This is large size organization
which is selling different type of clothing for men, women, and kids that can help to operate the
business and increase the sales effectively. The organization is running with 4,968 stores in 71
countries where approximately 171,000 employees are working world wide. It has been seen that
competition is increasing day by day where management bring new technology by understanding
consumer trend and provide the products accordingly which can help to increase the sales and
business profitability. It has many competitors who are playing important role by introducing
new products where selected organization have formulated different planning which can helped
to operate a business effectively.
External: fast Fashion Industry analysis
External environment – It has been seen that external environment is means factors which
are related to out of organization and difficult to control if they are affecting the business. This is