Strategic Management: H&M Analysis

Strategic Management

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1 ...........................................................................................................................................3
PESTLE analyse of H&M ..........................................................................................................3
TASK 2............................................................................................................................................5
Porter's five forces ......................................................................................................................5
TASK 3............................................................................................................................................6
VRIO analyse of H&M :.............................................................................................................6
SWOT analyse of the H&M ......................................................................................................7
REFERENCES................................................................................................................................8
Books and Journals.....................................................................................................................8

INTRODUCTION
Strategic management is used to provide directions. It is used to achieve goals and setting
objectives and analysing the competitive environment of the company. Strategic management is
also used for finding the way that how can we gain lead from the competitor. Hennes & Mauritz
is a multinational company of clothing- retail .H&M company is knowing for its fast fashion of
the men , women, kids and for teenager(Barca, 2017). H&M organization was listed on
Stockholm in 1974. H&M used strategic management for deep analysing of the strategies and
how to implement it and gain more profit and to gain more lead by their competitor. This report
shows about the internal and external factors of the company and their weakness ,
opportunities ,threats and strength and about the values and rarity , and how much it is inimitable
or not and the company is organized or not.
TASK 1
PESTLE analyse of H&M
PESTLE analyse of the company is used to examine various external factors such as
political ,environmental, social,technological, legal and economical. PESTLE analyse is
structure that is used for to identify the barriers , problems related to the external factors.
Political factors
Most of the production of H&M is in Turkey, Egypt, and Lebanon. Lebanon has been
very unstable in political factors that is cause for the changes in laws and price and impact on the
company. US vs China is also a very major concern for the industry because of this its impact on
the textile products . The employees demands has been increased. They demand good and safe
working conditions and place. The developing nation with stable government create a changes in
laws such as labour law ,minimum wages that is affect the production cost so the overall impact
is good manufactured become costly (Bell, Filatotchev and Krause, 2018).
Economic Factors
In spite of Brexit trading is rose by 7% and this is good sign for the company and it
doesn't impact on the profit making rate. In the globe the economy is improved so the people
personnel income is also increasing . They want to spend on expensive and good things such as