Strategic Management: H&M Case Study

STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
1) H&M – background information............................................................................................1
2) External: Fast fashion industry analysis.................................................................................2
3) internal: strategic capabilities.................................................................................................3
4) strategic options:.....................................................................................................................5
5) strategy selection and justification..........................................................................................6
REFERENCES...............................................................................................................................8

INTRODUCTION
Strategic management is the process of formulation and implementation of the objectives
and goals of the organisation. That are based on the resources and an evaluation of the internal
and external environment in which the organisation operates. This provides the overall direction
to the organisation and includes specifying the business objectives that has to be achieve by the
management by working according to the following strategies. It also involves developing plans
and policies to achieve the objectives and allocation of the resources in order to implement the
plan into the action (Ansoff and et. al., 2018). For this managers have to develop various models
and framework to help in strategic decision making in the preceptive of the complex
environment and competitive dynamics. Strategic management is not static in nature this changes
according to the departments and according to the internal and external conditions. This model
also includes the feedback to monitor the execution and to making the strategies for the future.
Strategic management process is guide up by the top level actions and decisions which also set
the objectives and goals of the organisations. Companies of all size and and in all industries use
this model in order get its benefits of achieving goals and objectives effectively.
This study is based on the H&M company that is swedish multinational retailer that deals
in the fashion clothing and accessories for men, women, teenagers and children. This operates in
the 74 countries with over 5000 stores. This project study involves H&M background
information, PESTLE analysis of company to evaluates the external environment, furthermore it
has VRIO analysis to understand the strategic capabilities of the company, strategic direction
tools, selection and justification of the strategies.
MAIN BODY
1) H&M – background information
HENNES & MAURITZ is a Swedish multinational retailing company. It deals in fast
fashion clothing for men, women, teenagers and children. H&M operates in the 74 countries with
over 5000 stores that sells under the various company brands. this company is founded by the
Erling Persson in 1947 and after ward runs by his son stefan persson and Helena Helmersson.
This got the second largest clothing retailer in the world (Baumgartner and Rauter, 2017). And
this makes online shopping stores available in 33 countries. First shop was opened in the