Strategic Management: H&M Case Study

Strategic management
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Table of content
INTRODUCTION.........................................................................................................................3
MAIN BODY..................................................................................................................................3
H &M Background and information............................................................................................3
External fast fashion industry analysis........................................................................................4
Internal: Strategic capabilities:....................................................................................................6
Strategic options..........................................................................................................................6
Strategic selection and Justification.............................................................................................6
Recommendation.........................................................................................................................6
CONCLUSION..............................................................................................................................6
REFERENCES..............................................................................................................................7
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INTRODUCTION
Strategic administration includes goal as well as objective assessing competitive
atmosphere, assessing internal company as a strategy that help in making sure that management
focuses on carrying out in different organisation. It offers improvement plan as well as policy
that help in achieving objectives in timely manner and needed resources to execute plan. It also
assists in achieving competitive advantage of over rivalries at marketplace. In this report, the
company is undertaken named as H & M. This was given in the year of 1947 by Erlingpersson
when he started his first shop in country named as Sweden. This is determined as well-known
organisations that provide cloth of men and women as well as children. The chosen organisation
focuses on operating their business in 74 countries over 5,000 outlets of different brand of
organisation. This assignment provides information regarding background of organisation,
external assessment of fashion industry, different tools that help in assessing internal atmosphere
of company. Moreover, this report involves evaluation of chosen strategy for chosen company.
Lastly, it involved justification related to strategy of organisation(Busch and Shrivastava, 2017).
MAIN BODY
H &M Background and information
The Organisation was listed its business on Stockholm stock exchange in year of 1974
and this company was given by Erlingperssonin year of 1947. Their main focus is to provide
different quality of product in order to satisfy its customers during particular phase of time
period. They focus on launching their home furnishing in year of 2018 as per need of its
customer. The focus is on distributing its offerings by using a catalogue of organisation and
operate store of H&M in global level. In Year 2014, there are various kinds of outlet that was
selected by organisation in order to provide different kind of product to its customer. In addition
to this, clothes are provided to company according to needs and wants of its customers and their
main focus is to satisfy them during particular phase of time period. Moreover, in year of 2019,
the organisation focuses on providing clothing to its man and children according to marketing
trends. Therefore, the H and M is considered as the popular company that focuses on increasing
its customer base in order to achieve competitive advantage over rivalries at Marketplace.
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External fast fashion industry analysis
Herein, the focus is on assessing external atmosphere of organisation as well as industry.
It is determined as a goal that focuses on analysing changing atmosphere in which the
organisation focuses on operating their business during particular phase of time period. External
analysis helps in analysing the trends of organisation. In this assignment, the PESTEL analysis
conducted in order to assess external atmosphere related to fashion brand organisation.
Therefore, the PESTEL analyses which are necessary for analysing market trend during
particular phase of time period.
PESTEL Analysis of H&M
PESTEL Analysisis used to assess different external environmental factors which impose
direct effect on performance level of organisation. This assessment is used for analysing external
atmosphere of organisation during particular phase of time period(Giannopoulos, 2017).
Therefore it is necessary to understand dynamics in market and increases organisation in
continuous manner. Hence, there are various external environmental factors which impose direct
impact on organisation that is given below:
Political factors it signifies the extent in which government as well as policy of
government imposes direct effect on organisation. The company globally operated their business
in various countries around globe. There is the probability for organisation to have a different
kind of political instability and many more. In reference of UK, the political atmosphere of
nation is determined as unstable due to BREXIT condition that is determined as a threat for
company but the organisation focuses on dealing with threat because it possess international
online platform which assist in increasing revenue and profit margin for business organisation
during particular phase of time period.
Positive impact: The Company globally operated their business in various countries
around globe is helpful in increasing sales of company.
Negative impact: In reference of UK, the political atmosphere of nation is determined as
unstable due to BREXIT condition that is determined as a threat for company
Economic factor: these elements impose direct effect on performance level of economy
during particular phase of time period. It imposes negative effect of Brexiton UK country that
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