Strategic Management: Analysis of H&M's External Environment

Strategic Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PESTLE Analysis-.......................................................................................................................3
Porter Five Forces-.......................................................................................................................4
VRIO-..........................................................................................................................................5
SWOT Analysis-..........................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Strategic management means the analysis of internal and external environment of the
organization such that organizational objectives can be set. H&M is a multinational fast fashion
clothing service provider company which provide clothing options for customers of different age
and gender. Analysis of company's external environment is done in this report with a proper
implementation of PESTLE analysis. With that evaluation of company's resources and
capabilities is analysed in the report.
MAIN BODY
PESTLE Analysis-
Political-
Political instabilities of a country makes a negative impact on company's economic
growth and this can be seen during the events of Brexit where UK's decision of leaving EU has
increases taxation on H&M. This happens because it has to pay taxes in the areas which were
freely available before Brexit.
Economical-
Changing inflation rates of a country makes a negative impact on company's economic
growth because it has a direct impact on buyer's buying capabilities. With that customer's buying
capabilities are directly proportional to the high taxations because it increases the pricing on the
product (Hitt and Duane Ireland, 2017).
Social-
Customers are changing the ways of buying products and this can be seen where
customers are showing high interest in buying products in bulk. With the in the present scenario
where due to COVID-19 many customers have lost their jobs and due to which organization is
forced to reduce its pricing on products.
Technological-
Customers are also showing high interest in utilizing them, due to which company is also
showing high interest in changing the ways of selling products through the means of internet.
With the H&M is also showing high interest in advertising itself through social media marketing
(Shujahat and et.al, 2017).
Legal-