Strategic Management for H&M

This document provides an overview of strategic management for H&M, including background information, external and internal analysis, strategic options, and strategy selection. It discusses the importance of formulating and implementing strategies to achieve organizational objectives and improve performance. The document also explores the use of strategic tools such as PESTLE analysis, SWOT analysis, and STP (Segmenting, Targeting, Positioning) approach. The selected future strategy for H&M is critically evaluated and justified.

Strategic management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
H&M - Background Information.................................................................................................3
Focus on information relevant to strategy...................................................................................4
External: Fast Fashion Industry Analysis: Using relevant strategic tools to analyze the external
environment.................................................................................................................................4
Internal: Strategic Capabilities: Using relevant strategic tools to analyze the internal
environment.................................................................................................................................6
Strategic Options: Using strategic direction tools to evaluate H&M’s strategic choices and
future strategic direction..............................................................................................................7
5. Strategy Selection and Justification: A critical evaluation on the selected future strategy for
H&M. A justification to your selection is to be provided...........................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
Books and journals....................................................................................................................11

INTRODUCTION
Strategic management can be defined as a formulation which is used by the organization
in order to implement strategies. These strategies are directly related to the goals and initiatives
which are taken by the organization in order to manage the organizational objectives as well as
perform the function in an appropriate way (Amason and Ward, 2020). This is also identified
that it is based on the consideration of resources and assessment of internal and external
environment which help in operating the organizational functions. In context of the current report
it is based on study of H&M. It is a global organization which is performing its function and the
retail industry. Organization is providing clothes and fashion products. In context of the current
report there is discussion about HRM its function focus on relevant strategies which can be
adopted by the organization external environment of organization internal environment of
organization as strategic options which can be adopted by the organization in order to improve
its functions and achieving its business objectives. Along with this there is also discussion about
justification and reason to choose the strategy.
MAIN BODY
H&M - Background Information
H&M is a global performing organization which is operating its function in clothing
industry where it is a Swedish multinational clothing retail Organization all staff organization is
also operating as a name of fast fashion clothing firm which provide garments for men's women's
and children's and teenagers. According to the current data provided by Organization on its
website it is operating within more than 74 countries with 5000 stores which provide various
brand rage (Baumgartner and Rauter, 2017). 100026 full-time workers as well as act as a part of
second largest global clothing retailer. Organization is operating and the market of UK as well as
a global world where company is main competitor is Zara. Organization is operated and run by
the two owners where the company also used to sell its products and services at different online
channels in more than 33 countries. It was founded in 1947 as a shop of retail clothes full stop
continuously growth is the main process of organization where company was listed in Stockholm
stock exchange in 1974.

Focus on information relevant to strategy
H&M is a global performing organization which provides number of services two
different individuals and order to satisfy their needs and requirement of current brand in clothing.
In order to meet these requirements organization use appropriate strategies which are relevant to
the organization for performance as well as matching the needs and requirements of customers
for stop this is also identified that organization is using appropriate system which help in
maintaining functions which will help according to the needs and requirements. in order to meet
these requirements it is essential for the organization to use appropriate function as well as
manage professionals in accordance with the requirements. H&M can use its internal and
external analysis in order to meet the requirements and formulate effective strategy. For the
discussion on this are mentioned below is this report (Bindra, Parameswar and Dhir, 2019).
External: Fast Fashion Industry Analysis: Using relevant strategic tools to analyze the external
environment
External factors are those which are related to Tesco is known as one of the leading and
most successful retail company dealing in merchandising and groceries. It is primarily based in
United Kingdom. The business of Tesco is scattered all around the world through chains of
supermarkets. Expansion of business is one of the major strategies adopted by Tesco to acquire
target market.
Pestle Analysis
Pestle Model can be defined as a systematic method to analyze and interpret all those
factors and forces such as Political, Economic, Social, Technological, Legal and Environmental
that are external to a business organisation and may affect the functioning of the organisation in
the long run (Bryce, 2017).
Political Factors: -
Tesco is a multinational organisation that carries out its business operations in various
countries across the world. Every country has its own political structure and regulations to which
the organization needs to adapt to. In order to carry out smooth functioning of its operations, the
company needs to keep an eye on the political environment as well as the political stability of the
country it operates in.

Economic Factors: -
The organisation needs to focus on the economic stability of a country it invests and
operates in. Tesco needs to be aware about the economic reforms as these reforms will have
major impact on the revenue and profit generation of the company. In order to grow, develop and
expand the business for a long run, it is very essential for an organisation to identify the
economic changes in the market and respond to them effectively and efficiently.
Social Factors: -
The buying behavior of consumers largely depend on their social class and preference.
Every consumer comes from a different social status and cultural background and it effects their
choices of products and services. In order to satisfy the customers, Tesco gives emphasis to the
taste, choices and preferences of consumers (Carayannis, 2018).
Technological Factors: -
In today's world, the market is changing every minute. In order to stay relevant, the
company needs to keep up with the changing trends in the technology and should be updated
with the advanced technology available in the market so that the company can carry out effective
utilization of the resources. Advanced technology also helps to reduce the time duration and
errors of the employees while performing a given task.
Legal Factors: -
Legal environment can have a very major impact on the operations of the company. A
legal action can completely change the current scenario of a company. Tesco needs to be updated
with the legal policies and procedure of the government within the country as well as outside the
country. The company needs to follow these legal regulations sincerely so that they can set an
example in the market and increase their goodwill and brand value.
Environment Factors: -
Tesco has provided its helping hands in order to protect and preserve the environment. It
has been indulged in various initiatives to conserve the environment across the world. It has been
working to reduce the use of plastic in order to minimize the waste generation of the company
(Demir, Wennberg and McKelvie, 2017).

The company is also putting efforts to make the marine products more sustainable so that
it can have fewer effects on the environment. Overall, it can be concluded that Tesco is working
hard in improving the environment and
Internal: Strategic Capabilities: Using relevant strategic tools to analyze the internal environment
SWOT
STRENGTH WEAKNESS
 Presence across the world: - H&M is
a global organization. It is a popular
name in the hotel industry. It is
scattered in 122 countries across the
world.
 Focus on Innovation: - H&M biggest
strength lies in its innovation strategies.
Innovation boosts the market position
of the organization and also helps to
reduce waste and cost Innovation is one
of the elements through which an
organization can achieve its goals
effectively and efficiently.
 Excessive focus on Expansion: - One
of the weaknesses of H&M is that it
aggressively focuses on expansion
which in turn affects the service quality
and standards of the organization in the
long run.
 Image Concerns: - In the recent past,
H&M has been indulged in a lot of
issues and controversies. These
controversies have had adverse effects
on the image and goodwill of the
organization (Drnevich, Mahoney and
Schendel, 2020).
OPPORTUNITIES THREATS
 Extensive focus on Consumer
Behavior: - H&M can capitalize on
Consumer behavior by satisfying the
needs of the consumers. Nowadays
consumers prefer rich and luxurious
experience and if the organization is
able to provide them with the same, it
may increase organizations profit and
 Competition: - There is a huge
competition within hotel industry.
Every organization is trying to deliver
its best services in order to attract more
and more customers. H&M needs to
identify its competitors and should try
to gain a competitive advantage over
them.

also lead to growth and development of
the organization in the future (Grant
and Baden-Fuller, 2018)
.
 Customization and Personalization: -
Through customization and
personalization H&M can attract more
customers. In today's scenario
customers are ready to pay more if the
servicers are customized and
personalized as per their choice.
 Impact of COVID -19: - Covid-19 has
majorly impacted hospitality business
all across the world. Many big
organizations have been shut due to
prevailing increase in the Covid cases.
H&M has also missed out on huge
revenues due to Covid- 19.
Strategic Options: Using strategic direction tools to evaluate H&M’s strategic choices and future
strategic direction.
Segmenting STP (Segmenting, Marketing, Positioning)
It is a technique through which a company can establish itself in the market and gain the
right consumers for their offerings in the market environment. STP is almost used by every
organisation in order to capture the market effectively and efficiently.
Segmenting:-
Segmenting basically involves dividing the market into various parts or segment which is
alike so that a company can easily identify which segment it particularly wants to cater to.
Segmenting is the first and foremost function in this approach as the further ones cannot be
performed without effectively performing the former one. H&M usually prefers two types of
segmentation i.e. Psycho-graphic and demographic. Psycho graphic involves the segmentation of
the market according to the choices, preferences, values and beliefs (Kliuchnikova and
Pobegaylov, 2016). Demographic involves the segmentation of the market according to the
gender and age of the target consumers. The company can utilize both these segments as they
have customers from all around the world with different choices, preferences and also from

different genders and ages. These two are best suitable to the company as it helps the company to
divide their market areas. Since H&M is a global organisation, it is catering it services to people
all across the globe that's why its important that the company effectively segment the market.
Segmentation also helps the H&M to design their offering so that the company
capitalizes on the information regarding the target segment. It also helps the company in
selection of the appropriate media channel in order to promote the company within the target
segment. In order to utilize the resources effectively and efficiently it’s very essential that a
company segment the market so that the company can save their time and resources.
Targeting:
Targeting basically involves choosing the appropriate segment the company wants to
target or cater to. Targeting is a very prominent function in this approach as it involves
identifying and selecting the customers that the company wants to target in order to achieve good
results. H&M main target consumers are women as they are the ones who engages with the
company the most. Women reach out for products and services more in the company and
company also consider them while placing the targets so that they can enjoy the benefit of
targeting approach. One of the major benefit that is derived by the company is that when they
target women segment they are able to generate higher revenues as women sometimes shop for
their children and partners as well. So the company is able to target multiple customers by
targeting only one segment (Koseoglu, 2016).
Positioning:-
Positioning is a strategy in which the respective company effectively and strategically
places its products and services in the target market in order to create a specific position for the
products in the market. H&M is one company that positions its products very statistically and it
also provides wide range of variety such as kids clothing, men's clothing, Women's clothing,
accessories and forswear. This variety has also widened the scope for the company as now the
company is able to reach the large number of customers. H&M is also focusing on its current
supply chains and this is really helping the company to ease its complex positioning strategies.

In order to position the product in the market, the company is also utilizing its social media
resources so that it can position the product more successfully in the market. Social media also
helps the company to make the products and services more popular among the consumers. It also
helps increase the desirability of the products and services in the eyes of the consumers
(McKiernan, 2017).
Overall, it can be concluded that H&M is using the STP approach in its favor very
accordingly and this approach is also enhancing the current market image and goodwill of the
organisation. The company is capitalizing on the three basic strategies to enhance its current
position in the market. The company's management is also focusing on carrying out the STP
approach in a way that it can lead to more profitability and productivity in the business and the
company can further its optic aim for higher revenues in the future so that they can expand their
business (Sullivan, Thomas and Rosano, 2018).
5. Strategy Selection and Justification: A critical evaluation on the selected future strategy for
H&M. A justification to your selection is to be provided
It can be analyzed that using STP approaches useful to the organization in order to
maintain the function as well as achieving better results to implement its strategies and perform
the function according to the needs and requirements of the current business year is also
identified that organization is using appropriate system which help it in managing the function
according to the requirements as well as developing appropriate function which lead the
organization toward better results of development (Pederzini, 2016). This is also identified that
there are a number of functions which has to be performed in order to meet the requirements of
the current approaches for stop organization is going to target the customer within the market
where it is trading and it is essential for the phone to use these functions in an appropriate
manner. There are a number of strategies which are essential for the organization in order to
meet the targeted and segmented market organization can easily use the functions which help in
managing appropriate system and achieving better results. This is also realized that there are
various functions which can be performed in order to meet the requirements of the strategies and
tactics which are followed by H&M to target the customer and position its product according to
the needs and requirements.

CONCLUSION
It can be concluded from the above mentioned information that there are various
functions which can be used by the organization in order to manage the functions and achieve its
objectives. These are directly related to the organizational performance and help in managing the
function according to the needs and requirements. it is also identified that these functions are
related to the organizations performance and help in managing functions according to the needs
and requirements for staff along with this it can also concluded that there are various internal and
external factors which will help the form in forming its function and managing them in
accordance with the needs and requirements.

REFERENCES
Books and journals
Amason, A.C. and Ward, A., 2020. Strategic management: From theory to practice. Routledge.
Baumgartner, R.J. and Rauter, R., 2017. Strategic perspectives of corporate sustainability
management to develop a sustainable organization. Journal of Cleaner Production, 140,
pp.81-92.
Bindra, S., Parameswar, N. and Dhir, S., 2019. Strategic management: The evolution of the
field. Strategic Change, 28(6), pp.469-478.
Bryce, H.J., 2017. Financial and strategic management for nonprofit organizations. Walter de
Gruyter GmbH & Co KG.
Carayannis, E., 2018. Strategic management of technological learning. CRC Press.
Demir, R., Wennberg, K. and McKelvie, A., 2017. The strategic management of high-growth
firms: A review and theoretical conceptualization. Long Range Planning, 50(4), pp.431-
456.
Drnevich, P.L., Mahoney, J.T. and Schendel, D., 2020. Has strategic management research lost
its way. Strategic Management Review, 1(1), pp.1119-1127.
Grant, R.M. and Baden-Fuller, C., 2018. How to develop strategic management competency:
Reconsidering the learning goals and knowledge requirements of the core strategy
course. Academy of Management Learning & Education, 17(3), pp.322-338.
Kliuchnikova, O.V. and Pobegaylov, O.A., 2016. Rationalization of strategic management
principles as a tool to improve a construction company services. Procedia
Engineering, 150, pp.2168-2172.
Koseoglu, M.A., 2016. Mapping the institutional collaboration network of strategic management
research: 1980–2014. Scientometrics, 109(1), pp.203-226.
McKiernan, P. ed., 2017. Historical Evolution of Strategic Management, Volumes I and II (Vol.
1). Taylor & Francis.

Pederzini, G.D.A., 2016. Strategic management cultures: historical connections with
science. Journal of Management History.
Sullivan, K., Thomas, S. and Rosano, M., 2018. Using industrial ecology and strategic
management concepts to pursue the Sustainable Development Goals. Journal of
Cleaner Production, 174, pp.237-246.