Business and Business Environment: H&M Macro Analysis and SWOT

This report provides an analysis of H&M's business environment, focusing on the macro factors that impact its operations and sustainability. The report delves into political, economic, social, and technological factors, examining their positive and negative impacts on H&M's performance within t...Read More

Business and Business
Environment

Table Of Content
• Introduction
• Positive and negative impacts the macro environment
• Internal and external analysis
• Strengths and weaknesses interrelate with external macro factors
• Conclusion
• References

Introduction
Business environment is referring as the accumulation of overall person, entities and
another aspect that may or may not be under organisational control but this can impact
their performance, development and sustainability. The company undertaken in this
report is H&M which is a leading clothing retailer and operates in around 62 countries

Positive and negative impacts the macro
environment
Macro environment includes several factors which affects are not controlled by
organisation and these aspects will majorly impact practices and activities of entities.
Also, it involves overall external factors that are crucial for H&M and its affects are
described below:

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Political factors:
Positive impact: Due to stable government in UK, assists H&M to explore its
business practices through opening more stores in that countries.
Negative impact: As in UK, there are various strict regulation regarding trading
which will have pessimistic impact on its business practices as this outcome in
minimising H&M profit and sales

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Economic factors:
Positive impact: The economic condition of UK is developing rapidly so this will have
positive impacts on H&M as it maximises their profitability and sales because more people
like to buy its products.
Negative impact: Due to huge down fall into UK economy, the rate of pound reduces
which results in declining H&M sales as they have to sell their products at lower rate.

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Social factors:
Positive impact: For grabbing the attention of society, H&M enhances the
transparency level of its off entities so this help their staff to understand its clients needs
and manufacture products consequently and increase satisfaction level of users.
Negative impact: Due to enhanced transparency level, clients can know about
respective organisation loop holes that reduces its sales.

Internal and external analysis
SWOT analysis refers as the business techniques that is applied for estimating the
organisation's position as well as to formulate efficacious planning. The H&M SWOT
analysis are discussed below:
• Strengths: H&M is the leading organisation and they offer a boarder product range like cloths,
cosmetics etc. board range of clients. It has strong global presence in all over the world and
having stores in about 60 countries. All those stores supply standard quality products at
reasonable price.

Strengths and weaknesses interrelate with external macro factors
The strengths and weakness of H&M are interrelated with the external factors that are
discussed below: Political factors: Economic factors
• Strengths: They can extend its stores within various areas of
respective country.
• Weaknesses: The restriction into trade within UK minimises
H&M profit.
• Strength: Due to enhancement in purchasing power, the
consumer able to stand money on purchasing food and services.
• Weaknesses: Enhancement in interest rates maximises its
product price that results into sales minimisation.
Social factors Technological factors
• Strengths: The enhancement into transparency level assist
H&M and clients to develop efficacious decisions.
• Weaknesses: More transparency results in copying and stealing
information.
• Strengths: With the adoption of advance technology H&M may
trace the overall logistic practices.
• Weaknesses: Technology advancement enhances product price.

Conclusion
From the above PPT, it has been concluded that business environments is the crucial
aspects within organisation as it assist them to know about the factors impact their
entities. Moreover, there are various macro factors that impact business operations
positively and negatively. Also, internal and external analysis is performed to know
their strengths and weaknesses that help firm to formulate strategies and attain
objectives effectively.

References
•Grewal, R., and et. al., 2015. Business-to-business buying: Challenges and
opportunities. Customer needs and Solutions. 2(3). pp.193-208.
•Gupta, A., 2013. Environment & PEST analysis: an approach to the external business
environment. International Journal of Modern Social Sciences. 2(1). pp.34-43.

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