Strategic Management for H&M: Analysis and Recommendations

Strategic Management
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
1- Background information of H&M...........................................................................................3
2. External: Fast fashion Industry Analysis.................................................................................3
3. Internal: strategic capabilities..................................................................................................5
4- Strategic direction tools in context of H&M...........................................................................7
5 Strategic selection and justification..........................................................................................7
6 Conclusion and Recommendation............................................................................................7
REFERENCES................................................................................................................................9
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INTRODUCTION
Strategic management is an ongoing or continuous process in which senior executive or
managers of organisation plan, monitor and control strategies so that company can gain
competitive advantages. In another words, it involves long process starting from setting
objective, market research, to planning key actions and controlling the process so that best
outcome can be gained at minimum cost. This report is about H&M is fast fashion that has more
than 120000 employees and more than 2000 factories operating in order to delivery qualitative
services to customers. It has contained information related to external and internal analysis by
using several model or tool like SWOT and Pestle analysis. The report also make use of Ansoff
Matrix and Porter generic force in order to understand future strategic direction that could be
used by company to sustain its business for longer time frame.
1- Background information of H&M
Hennes & Mauritz is well known and most leading fashion brand in the whole world.
They manufacture clothes for men’s, women’s and children as well. Firm work and operated its
venture with skilled and talented workforce. It has 1,26,376 workers who are eligible and
knowledgeable. They all are able to work according to vision and mission statement of chosen
brand. Vision of company is to make everyone stylish and allow looking good. Its vision is to
lead change towards renewable and circular fashion while being an equal organization.
By selling quality products to target customers, organization makes 24.3 billion United
State dollars, in 2019. Firm is a leading international fashion firm with high vales and clear
concept of corporate. It successfully managed and operated total 5,043 physical outlets,
established in UK, China, Poland, Franchise stores, Switzerland, Italy, France, Sweden,
Germany etc.
2. External: Fast fashion Industry Analysis
Pestle analysis is an model that helps in understanding several external or macro
environmental factors that impact on strategy and growth of organisation. Management of H&M
by making use of this model can effectively understand dynamic or ever changing nature of
external environment (H&M PESTLE Analysis, 2019). Key elements that affect on smooth
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