Strategic Management: Analysis of H&M

Strategic
management

Introduction
Strategic management is an on-going planning, monitoring, analysis and assessment of
all necessities in an organisation to meet the goals and objectives. Any association which has an
encourage key administration measure causes them in getting the load of the current
circumstance and investigate the adequacy of the executed administration systems. The
conversation spins around on the association Hennes and Mauritz AB or regularly called as
H&M is a swedish worldwide dress retail organization particularly famous for quick design men,
ladies, kids and youngsters.
The company H&M has more than 1710 stores which operate in more than 74 countries
with the employees of more than 126,000 in total. Also, the company has its availability of
online shopping in 33 countries. Globally H&M is the second largest clothing retailer and the
company was founded by Erling Persson and his sons Stefan Persson and Helena Helmersson.
The following discussion includes PESTEL analysis for the external factors of Hennes &
Mauritz AB that affect the organisation in certain ways, SWOT analysis for analysing the
internal factors that affect the organisation. In addition to this, the discussion also includes
strategic tool framework to evaluate the company choices and future strategic direction.
1. H&M - Background Information:
H&M or Hennes & Mauritz AB is a fast fashion brand which is a second largest retailer
in all over the world. It includes some good and latest styles and inspiration followed by many
followers. Customers will find everything including the pieces of fashions, some unique and
sorted design collaborations to affordable wardrobe essentials with accessories and motivational
workout wear are all included in the Hennes & Mauritz AB. The main agenda or goal of the
company is not only just fashion but also to modify with various updation, seasons, styles so that
they give an amazing and lavishing style of wearing clothes to their customers.
One of the major agenda followed by the H&M is to give the dynamic beauty of
sustainable future. It also suggest that creating a more sustainable fashion in future so that
consumers will receive a great amount of satisfaction are all facilitate by the Hennes & Mauritz
AB. The company was founded in 1947 by Erling Persson and it has a headquartered in Sweden.
Hennes & Mauritz AB has an amazing promotional strategy and market campaign because of its
high popularity and market reputation (Back and et. al., 2020).
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The company has been collaborate with number of other marketing trends due to which
they have more than 45 sponsors availability. H&M has expanded its stores and it has almost
4,698 stores opened worldwide and avail the facility of online shopping because due to Covid 19
pandemic, to increase sales and growth of the organisation, company adopted some major
strategies to shift in the online marketing trend. Therefore, the tagline or the mission statement of
H&M is “to drive long-lasting positive change and improve living conditions by investing in
people, communities and innovative ideas”.
2. External: Fast Fashion Industry Analysis:
Political factors: According to the researchers, H&M is an International company which
operated in many countries across the globe and due to this, company has been affected by the
huge government risk. Suppose taking an example, there are some well known unstable
government countries in which H&M has its larger stores available including Turkey, Lebanon
and Egypt. Such factors not only affected the company but also makes a huge impact on
company's stakeholders.
Economic factors: Researchers believed that the company H&M has been affected badly
because of the US dollars and Brexit. Because of the increment in the tax impose, H&M products
become too expensive in the US market. The company has been also suffered from the US
market including interest rate and inflation due to its exposure in many countries.
Social factors: The major function adopted by the consumer is how to manufacture more
type of same goods. The company has its embarked on ensuring of the clear environment
through recycling of the unwanted materials from the industry. H&M has a huge concern with
the media influence on their customers. As a result, company greatly focused on the products to
meet the needs of the customers with new and latest designs availability. The employment policy
adopted by the H&M is suggested that more women then men. It simply means that women
clothing are more than the mens wear. The H&M employment specifically proved to helping the
less developed world to make it a standard practice in the developed world. Also, the company
has been adopted profits in maintaining such policies at its best.
Technological factors: It refers to the technological advancement in the business.
According to the H&M, the main aim and objective followed by the company is to serve the
customers appropriately based on the current shopping trends of the purchasing products without
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