STRATEGIC MANAGEMENT INTRODUCTION

STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................3
External Analysis-.............................................................................................................................3
Internal Analysis-..............................................................................................................................4
Strategic options- Ansoff Matrix.......................................................................................................5
Strategy selection & justification.......................................................................................................6
Recommendations.............................................................................................................................7
CONCLUSION.....................................................................................................................................9
REFERENCES....................................................................................................................................10
Books & Journal:.............................................................................................................................10

INTRODUCTION
In business sector, strategic management is important which is to be considered and
adopted by every organisation as it helps in achieving objectives in effective manner.
Strategic management is defined process of on-going monitoring planning and analysis of all
necessary requirements which are the required to goals and objectives within the time period
(Büyüközkan, 2019). Main purpose of this report is to understand the importance of strategic
management within a business field. H and M Swedish international clothing retailing
company headquartered in Sweden. Organisation is located globally and has wide number of
competitors such as Zara, ASOS, and GAP etc. This report comprises of background
information of a company, external environment, (PESTEL Analysis), internal environment
(SWOT Analysis), strategic options through Ansoff matrix, selection strategy and
justification and recommendations.
MAIN BODY
External Analysis-
External factors put a great influence on the overall business setting. There is a
framework called Pestle that is used to evaluate the impact of external factors that
significantly affects business performance. It comprises several variables that are related to
outside environment and cannot be control by companies. This analysis is essential to prepare
appropriate strategies in order to attain predefined goals. It is analyzed that these factors are
essential and need to be monitor constantly by mangers. In context of H & M these elements
are mentioned below:
Political-It refers to the policies, tax, compliances, political environment of country
that significantly influences business operations of textile industry. H& M is working at
global level thus it is affected with political conditions of different countries. It is analyzed
that there are instability income developing nations in which company is operating its
operations. Tax slabs, laws, compliances are varies in different nations across the globe thus
it is essential for entity to modify its strategies accordingly (Chintalapati, 2020).
Economical- It is essential for companies to access economic conditions of countries
in which they are operating. H & M is a renowned brand which is functioning worldwide thus
affected with economic status of different counties. Brexit brings a lot of uncertainties in
terms of labor and raw material availability. It also affected purchasing power of customers
that minimize profitability of organization. In addition, current pandemic condition also
influences functions of entity so that it needs to prepare appropriate strategies in order to face
future uncertainties (Darling, 2019).
Social - It comprises factors such as buying behavior, status, personality, attitude of
consumers. Now people are highly influenced with social media, fashion status of models,
celebrities thus it is important for H & M to monitor the recent trends to cater the needs of
customers in an appropriate way. For this, organization takes feedbacks from its potential

customers to provide them products accordingly. With this, it is able to attract more numbers
of buyers that will increase its brand value in market.
Technological- As per the recent trend, it is essential for every organization to evolve
unique techniques as well as methods to perform business operations in an efficient manner.
In the current digital era e- commerce is getting high recognition by customers. They prefer to
purchase products online rather visit physical stores. H & M is fast fashion brand that offers
an option to buyers to do online shopping with its own mobile application and website.
Further, it also uses digital platforms such as social media marketing to influence more
number of buyers (David, 2018).
Legal- Legal factor included several compliances, rules, regulations that are made by
government so that companies can operate effectively. There are business, labor, and
consumer’s protection laws in different countries which need to be abide by H & M to ensure
smooth functioning of business. Intellectual property rights need to follow by company to
protect its designs from rival firms. In addition, firm need to make necessary alterations in
present policies as per the modification made by higher authorizes in their respective laws.
Environmental- Organization needs to make sure that their activities do not harm
environment. Now, it is mandatory for all companies to make appropriate contribution in
social development and environmental protection. They need to give a significant part of
profit margin for societal development. Mangers of H & M adopt various practices to control
emission and manage waste in an efficient manner. For this, they execute recycling of used
material to minimize waste and secure environment. It enhances the brand value of company
among customers and provides it long term benefits (Deephouse, 2019).
Internal Analysis-
It is crucial for an entity to execute internal analysis on continuous basis to make
effective use of available resources. With this company is bale to know its strong as well
weak points that is essential to make necessary improvements. Internal Analysis of H &
Musing SWOT framework is mentioned below:
Strength Weakness
 Company has expanded its business
in nearly 60 countries that helps it to
target huge segment of customers.
 It is analysed that H& M has sound
financial position which is essential to
attract investors and keep them stay
with entity for a longer period of
time.
 H & M possess strong brand value at
global market place. It is a renowned
fashion brand that is known for
quality products at reasonable price.
 Quality of products being offered by
H & M are not better as it emphasis to
provide lower price products thus
compromise with quality. Due to this
it not prefer by higher income or
premium groups of customers.
 It depend on vendors to provide
material that it sales to customers. It
minimizes the control of entity over
its business operations and also
reduces down profit.
 Products of organization faced a lot of
controversies due it’s one of the
advertisement in which it