Changes in Business Models for Self Regulation and Stakeholder Concerns

The Global Business
Environment

Table of Contents
INTRODUCTION.......................................................................................................................................3
Discuss changes introduced by company in existing business models for self regulation and adapt to
some concerns raised by relevant stakeholders........................................................................................3
Discuss whether the changes will provide some sort of competitive advantage position and provide
appropriate recommendations to management.........................................................................................5
CONCLUSION...........................................................................................................................................8
REFERNCES..............................................................................................................................................9

INTRODUCTION
In fast fashion industry, there are a lot of changes are being introduced for meeting with
needs & requirements of customers. Due to increasing demand of fashionable clothes, the issue
of pollution is also increasing within the industry. In the present report H & M has been
considered which is a renowned fast fashion company and deals in clothing for men, teenagers,
children and women (Bedianashvili, 2016). Current, it is working within 74 countries at global
level. In the present report the ethics and sustainability case study of H & M is taken into
consideration. The report includes different changes which have been introduced by company in
their existing business models. In addition, competitive advantage for company with the help of
appropriate business models such as SWOT analysis, Porter’s analysis and more have been also
included in the following report.
Discuss changes introduced by company in existing business models for self regulation and
adapt to some concerns raised by relevant stakeholders
It is stated that H & M is a leading fashion company which is working at global level in
order to meet with requirements of domestic as well as international audience in significant
manner. Due to enhancement in competition, now companies are looking forward to produce
clothes as well as other fashion accessories at lower price. Increasing demand & production
cause higher pollution. For this purpose, H & M is making some changes in their existing value
chain which is given as under:
Value chain analysis is related to monitoring all the activities by which companies
convert inputs into outputs for providing value to customers. In this, organization reviews each &
every step of production with an aim to enhance overall efficiency for gaining higher competitive
edge. There are two activities considered in value chain analysis which are:
Primary Activity: These activities are related to primary function of entity under which
inputs are converted into outputs through different activities. It is analyzed that H & M focuses
on sustainability so that they make sure to protect environment by minimizing pollution &
emission problem during production (Doh, Luthans and Slocum, 2016). For this, H & M uses
50% sustainable sources, material, organic cotton and recycled polyester for manufacturing
necessary products. Now, company has changed its business model as per sustainability and