Strategic Management: Analysis and Recommendations for H&M

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
External environment.............................................................................................................3
Industry sector........................................................................................................................4
Resources and capabilities......................................................................................................5
SWOT Analysis .....................................................................................................................6
Strategic Options ...................................................................................................................7
Strategic Selection and Justification ......................................................................................9
FUTURE RECOMMENDATION.................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Strategic management depict the effective development of prominent objectives for the
competitive business environment. It also identify the internal features of an organisation which
is useful in developing prominent strategies by ensuring that management execute these
strategies for the growth (Hitt and Duane Ireland, 2017). Strategic Management consider to
enhance and set the objectives after this analyse the competition level and also analysing the
internal situations of the organization. Strategic management help to create and evaluate the
effective strategy which ensures success to the management of the organization. Strategic
management provide the right direction so that company easily develop their plans and policies
so that company can achieve effectively organizational objectives. To carry forward this report,
H&M is considered which is a Swedish multinational clothing retailers and also known for the
fast fashion clothing for men, women, children and also founded in 1947 by Erling Persson. The
report tends to evaluate the internal and external audit with the help of prominent frameworks
and models. This report identify the the strategic options so that it will gives future strategic
directions to the organization. This report use Ansoff matrix model which help in marketing
planning of the company.
MAIN BODY
External environment
PESTLE Analysis: Political: Considering the global brand operations for the number of stores across the
globe it depict the effective monitoring of political risk for H&M. For this, company
tends to have franchised outlets in market which become its strengths and also tends to
expand its functioning considering Egypt, Turkey and so forth (Certo and et. al., 2016).
For this, company tends to closely monitor the political conditions which is feasible for
the stakeholders of company. Economical: Despite form the negative impact of Brexit it tends to brought the
currencies and respective company tends to report for its enhanced sales which is
increased by 7% for the local currency based and in 2016 it tends to grew around 10%
which is converted into Swedish currency.

 Social: Here, customers are impacted by media and celebrities in terms of opting the
materialistic lifestyle and new trends in terms of for the new designs for the fashion
products. For this H&M announces its latest designs that helps in meeting effective sales
and revenues. Technological: H&M tends to develop their app for the mobile devices in terms of
unveiling the usage of H&M and its functioning that tends to allow customers in terms of
collecting the reward points from their manual and online store to purchase products with
the help of apps on the mobile devices. Legal: H&M prominently involved in various legal disputes considering the
infringements for the clothing retailer (Trigeorgis and Reuer, 2017). For this, retailers lost
their patent dispute against the UK manufactures for infringing the coveted technology
that leads to damage the image of company.
 Environmental: The objective of H&M is the 100% renewable products by 2030 which
depict the meaning of the products that tends to generate from the old product and it
become strength for company considering the CSR activities which are durable and
recycled.
Industry sector
Porter's Five forces: It is an appliance to check competencies and ability to stand in the
competitive market of an industry which ensures its strength and level of high expectancy
growth. These appliances are used to check influence of all the forces which affects the industry
by its market share and try to acquire available resources to its full potential. There are 5 ways to
evaluate the problems an industry can face. Threats of new entrance: The problem of competition arises by facing new entrances in
the market who can be a barrier for the existing industry working on adequate level, by
challenging them through price discrimination, size of the venture, differentiation of
products at low price strategy, better quality product (Aguinis, Edwards and Bradley,
2017). Threat of new entrance is adequate for H&M as it has its own speciality with high
quality clothes. Bargaining power of suppliers: The suppliers of raw materials, semi-furnished goods,
inventories of renowned industry can set its bargaining powers by charging their own
price rather then market price and enjoy immense level of profit but it could not happen