Global Business Environment Analysis: Hennes & Mauritz Report

This report provides a comprehensive analysis of Hennes & Mauritz (H&M) within the global business environment. It begins with an introduction to the business environment concept, emphasizing its role in analyzing market conditions and organizational success. The core of the report is a SWOT ...Read More

Global Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
SWOT Analysis..........................................................................................................................3
Examine the business operation and impact on organisation. ...................................................5
CONCLUSION ..............................................................................................................................6
REFERENCES................................................................................................................................6

INTRODUCTION
Business environment is process which are including various models and tools in order to
examine due to know about the market condition and situation. It includes framework which are
helps to analysing internal and external environment in order to organisation successfully
operating business in the market (Chasdi, 2017). The report about the Hennes & Mauritz in order
to headquarter are situated in UK. It includes organisation dealing in wide range of product and
services. The paper consist is using SWOT model in order to organisation analysed their internal
strength, weaknesses, opportunities and threats as well as to know about the operational
performance of company and their impact on business functions.
SWOT Analysis
Strength of Hennes & Mauritz
 Wide range of products and services-: It includes H&M providing wide range of
product such as cosmetics, shoes, accessories and many others. It considered as dealing
in all range of products and services like blanket, vaes, pots and candle holders.
 Unique identity for all brands-: It attracting large numbers of customers because they
are offering product portfolio for customers in order to involvement of different brands
such as COS, weekday and Monki. It includes they are developing different brand
identity in the mind of customers.
 Diversified global presence-: H&M is leading organisation in order to they are
operating business in many countries. It is operating business in different areas such as
diversified business in 60 countries (Fabuš, 2017). It is strong global presence across
countries in order to easily avoiding business risk.
 Strong financial performance-: It includes organisation dealing and handling in many
business so they are strong financial performance and easily run the business operations
in order to achieving goal and objectives.
Weaknesses of H&M
 Dependency on the third party-: It involves dependent on other suppliers because they
are outsourcing from raw material in order to manufacturing. It includes ample numbers
of suppliers such as 800 which refers to easily control over production. It is essential to
fulfil the need and demand of customers so accordingly provided products and services.

 Affordable pricing affects quality-: H&M is one of the famous organisation in order to
providing affordable clothing for customers (Jevšenak, 2019). It involves they are dealing
in clothing and provided reasonable prices so it directly impact on quality of products
and services.
Opportunities of H&M
 Focus on expansion to improve profitability-: It includes organisation planning for
expand their business operations across the globe. It involves they are improving
business functions and operation using various tools and techniques.
 Online platform-: It includes organisation promoting their brands and products through
social media as well as using various online platform which refers to targeting large
numbers of customers.
 Expand in emerging markets-: It involves organisation conducting market research
because they know about the customers requirement and accordingly improving and
developing products and services which refers to targeting new market.
Threats of H&M
 Changing fashion trend and market-: It is biggest threat of the organisation in order to
changing needs and demand of customers very first (Lee, 2017). Digital platform plays
vital role in order to directly impact on customer taste and preferences.
 Online platform impact on business model-: In present context, it involves they are
directly impacting on business because it increasing competition which refers to new
fashion and trend as well as new brands are entering in the market.
 Increasing competition-: There are ample numbers of competitors are present at
marketplace in order to enhancing competition as well as affect the organisation
profitability and productivity of company.
Therefore, it includes SWOT analysis in order to essential for organisation due to
examine their strength, weaknesses, threat and opportunities.
Examine the business operation and impact on organisation.
Marketing-: It is business function which are including they are helpful in promoting
product and services in order to attracting large numbers of customers. In relevance Hennes &
Mauritz, it utilising various tool and techniques in order to various activity which are impact on

business profitability and sales revenue. It includes marketing manager analysis the requirement
of customers on that basis provided products in order to achieving satisfaction level.
Human resource management-: It is process which refers to they are hiring and
recruiting capable and able candidate in order to effectively performing business functions. In
context of organisation, it plays vital role they are main impact on employees performance
because HR providing training for employees in order to enhancing their skill as well as
effectively and effectively performing business functions (Peng, 2016).
Operations-: It is important business function for each and every company in order to
they are conversion of raw material into finished goods. In relevance of H&M, it involves proper
management in order to production of products and services because it directly impact on
business productivity and profitability in order to organisation easily gaining competitive
advantages at market place.
Finance-: It plays important role because without that business cannot survive in the
market for longer period of time. It includes they are basic pillar in order to carrying out all the
business activity effectively (RAO, 2020). In reference of organisation, it refers to process they
impact the other business function as well as preparing budget for other department and
managing all the expanses of company.
Research & Development-: It includes organisation formulating various strategies in
order to achieving organisation goal and objectives. It considered as H&M manager preferred to
conducting market research because analysing need and wants of customers. It is essential
because accordingly providing products and services as well as satisfy the customers needs. It
mainly impact on organisation image so developing brand goodwill in the market.
CONCLUSION
With the above report, it has been concluded that business environment border aspect in
order to formulating strategies in order to analysing external and internal environment. It is
procedure which known as organisation implementing strategies effectively in order to gaining
competitive advantages, enhancing profitability and productivity. In addition to this, it includes
SWOT analysis of H&M and organisation managing various business operation so analysing in
order to smoothly operating business functions.

REFERENCES
The Books and Journal
Chasdi, R.J., 2017. Corporate Security Crossroads: Responding To Terrorism, Cyberthreats,
and Other Hazards in the Global Business Environment. ABC-CLIO.
Fabuš, M., 2017. Current development of business environment in Slovakia and Czech Republic.
Jevšenak, S., 2019. The Millennials’ Effect: How Can Their Personal Values Shape the Future
Business Environment of Industry 4.0?. Naše gospodarstvo/Our economy, 65(1), pp.57-
65.
Lee, I. ed., 2017. The Internet of Things in the Modern Business Environment. IGI Global.
Peng, M.W., 2016. Global business. Cengage learning.
RAO, S.P., 2020. International business environment. HIMALAYA.
Tuleja, E.A., 2016. Intercultural Communication for Global Business: How leaders
communicate for success. Taylor & Francis.