H&M Company: A Case Study on Business Operations and Strategies

This case study examines the business operations of Hennes & Mauritz (H&M), a prominent fashion retail company. It begins with an introduction to business operations, emphasizing their role in achieving organizational goals. The report then outlines the main functions of H&M, including finance, human resources, marketing, production, and operations, highlighting their interrelation and importance. A brief description of H&M's history, business type, size, and location is provided, followed by an analysis of its operations management decisions, such as production, supply chain, logistics, location strategies, quality control, and human resources. The study evaluates the performance of these decisions and suggests improvements, such as adopting new technologies and enhancing inventory management. The case study concludes by summarizing the key findings and emphasizing the significance of effective business operations for organizational success.

Case Study

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Main functions of business operations ..................................................................................3
Brief description of organisation ...........................................................................................5
Operation management decision ...........................................................................................6
How well operations management decisions are performing and how it can be improved. . 7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business operation can be define as a way of performing tasks and activities in effective
manner in order to achieve desired organisation goals. This includes different business activities
in that is conducted in such a manner that it leader to increase values of company. There are
different functions of organisation that needs to conducted in effective and efficient manner
(Choi, Chan and Yue, 2016). It is very important for an organisation to effective decisions which
will help in achievement of desired goals and objectives. Business operations play a significant
role in performing organisational activities as well as increasing its sale and profits. Business
operation will lead to increase in overall performance of organisation as well as earning more
profits for company. This is helpful in developing products as per need and requirement of
customers. Business decision will lead to effective and efficient functioning organisation as well
as gain competitive advantage over other rival companies. The chosen company for this report is
Hennes & Mauritz AB. This is one of the largest Swedish company which is dealing in fashion
retail industry. This company was established in 1947 and founder of H&M company is Erling
Persson. This report includes main functions of business operations. Proper evaluation of
operation management decision such as supply chain, logistics strategies, quality control and
Human resources. This report also consist of analysis of business operations in order to identify
how well they are performing as well as different that will help in improving it.
MAIN BODY
Main functions of business operations
In an organisation there are various functions which will help in performing business
activities in better and effective manner (Reid and Sanders, 2019). It is essential that all functions
of organisation is interrelated to each other so that company can achieve desired goals. The main
functions of H&M business are finance, human resource, marketing, production and operations.
All of these functions play a crucial role in overall growth and development of organisation.
H&M company needs to analyse as well as evaluate it main business operations in order to take
better decsion of organisation. When each and every operations or department of organisation in
conducting its functions in effective and efficient manner it will directly lead to achievement of
organisational objectives.

Finance function – This function is consider as the main operation function of
organisation as it is majorly related to financial resources. It is very important for H&M
company to properly use its financial resources in better manner in order to achieve desired goals
and objectives (Kato and et.al., 2015). Financial department of respective company is responsible
to provide right and appropriate budgets to different functions of organisation in order to perform
task in better manner. This function of respective company will help in earning more profits by
managing the financial resources and assets in better manner.
Operations function – This function of H&M company is responsible to planning,
organizing, directing as well as controlling different activities of organisation. Operations
function will help company to develop high quality product and services as per need and wants
of targeted customers. This function of respective company will help in distribution of products
manufactured by company to potential customers. This is essential function of organisation as
through this company will be able to perform business operation in better as well as effective
manner so that organisation can achieve desired goals.
Marketing function – It is very important for respective company to attract as well as
influences larger number of customers towards organisation. This will help in enhancing sales
and profits of organisation so it is essential for H&M company to use different marketing
methods (Penn and Pennix, 2017). Marketing function of H&M company will lead to promoting
as well as advertising its products and services to different part in order to attract them towards
organisation. This company should used correct and appropriate method of marketing in order to
enhance its sales and profits.
Human Resource function – This is one of the crucial function of organisation and it is
majorly related to selecting and hiring highly skilled employees in order to perform business
activities. Most of the functions of H&M organisation is dependent on human resource and this
is considered as the most important assets of organisation. This function of H&M organisation
will help in improving skills and capability of employees so that they can work in better manner
as well as achieve desired goals.
Production function – Production department of respective company is responsible for
manufacturing and developing high quality products. This will help in desiring product which
will lead to attract customer as well as full fill their needs and wants of organisation. It is

essential that production department of H&M company is manufacturing products as per the
demand of customers in order to supply manufactured products to customers.
Brief description of organisation
H&M is a well known multinational company which is producing its products and
services to different part of organisation (Hitt, Xu, and Carnes, 2016). This company was
founded by Erling Persson in 1947 with the motive of providing high quality and fashionable
products to customers. H&M company is providing different types of product and services such
as ready made cloths, footwear and other fashionable accessories for man and women. H&M
company has expanded its products and services across of 50 countries and it has approx 4734
stores (9 things you didn't know about H&M, 2019). The first store of this organisation was
opened in Vasteras which is a Swedish city. In 1998 respective company has started offering its
products and services to different part of world through online shopping.
Industry in which H&M is dealing
This company is dealing in fashionable retail sector which is one of the largest industry.
Retaining industry includes many company which is providing different types of products and
services in order to meet with the requirement of customers. Retail industry of UK is
continuously growing and increasing day by day. In fashion retail industry various clothing,
footwear and other fashionable products are developed in order to full fill the requirements of
customers. There are many company which is dealing in this industry so it is essential of H&M
organisation to meet with the requirement of customers as well as gain competitive advantage
over other rival companies.
Business type of H&M
Business type of H&M company is Aktiebolag. This refer to that this company is a
Swedish limited corporation. H&M company is a well known company which is providing its
products and services to different part of organisation. Aktiebolag business type is divided into
two parts such as private limited company and public limited company. H&M organisation is
private company which is developed with the motive of earning profits and well as meeting with
the requirement of larger number of customers.
Size, location and successfulness of organisation
H&M is a fashionable company which is designing and developing different products
and services as per customers requirement (Nicholas and Steyn, 2017). It is providing its

products and services to different part of the world though online channel or selling products
though stores. This company has approx 4734 store that is available in more than 50 market area
all around the globe. H&M is leading company which is fashion retail sector as it is providing
high quality products and services to customers.
Operation management decision
There are different important decision that should be taken by company in order to
improve the business. Operation management decisions play a crucial role in overall growth and
development of organisation as well as achievement of desired goals. It is important for H&M
company to take better decisions which is related to operation management. So that company can
enhance its business activities and accomplish set targets (Uhl and Gollenia, 2016). The major
decisions which are related to operation management are production, supply chain, logistics,
location strategies, quality control as well as human resources. All these operation decision will
help in managing different organisational task in better manner.
Production – This is important decision or organisation as production function is related
to manufacturing of products. H&M company should take correct and appropriate decision of
developing its products. So that company will be able to develop and design products and
services as per need and want of customers. This decision of H&M organisation will lead to
achieve desired goals by producing high quality products.
Supply chain – Supply chain is related to the management in network of channel through
which company will be able to deliver its products and services to targeted customers. This is
one of the essential management decision as this will help in supply the manufactured products
to targets customers in better manner. This company is offering it products and services to
different part of the world so supply chain management decision will lead to increase its overall
performing.
Logistics - This refers to the set of activities though which includes planning, organizing
as well as managing the flow of products from one part to other. Logistics includes different
decisions related to inventory of raw material as well as finished goods and transporting of
manufactured products to potential customers (Webb, 2017). It is essential for H&M company to
take appropriate logistics decision so that organisation always have appropriate raw material and
finished products to full fill demand of market and customers.

Location strategies – H&M company needs to develop better location strategies as it is a
multinational company which is offering its products and services all around the globe. It is
essential for this company to take better location decision as per the need and demand of its
products in different market area.
Quality control- This company is dealing in highly competitive environment so it is very
important for this company to develop products and services with high quality. This company
needs to analyse as well as evaluated requirement of customers in order to manufactured high
quality products. By controlling in quality of products this company will be able to develop high
standards as well as full fill customers requirement of customers.
Human Resource - This is one of the most essential decision of organisation as most f
the activities of H&M company will be dependent on the human resources (Runfola and et.al.,
2017). It is very important for this company to hire right set of employees who have capability to
perform job role in effective manner.
How well operations management decisions are performing and how it can be improved.
Operation management decisions taken by H&M company is performing will as well as
able to meet with the requirement of customers (de Sousa and et.al., 2019). This decisions are
very supportive in performing organisational task in better manner which will lead to attaining
of organisations goals. It is important for respective company to improve its operation
management decisions as per the time as well as customers requirement. Different ways though
which H&M company can improve its operation management is mention below in detail.
 This company needs to use new and innovative technology in order to improve its overall
performance. There are many new and advance tools and technology available in market
area which will help completing task and activities in better and fast way.
 H&M company needs to improve inventory management system so that organisation can
be stock as per requirement. This will help in fill filling the requirement of organisation
as well as timely supply of products and services to customers.
CONCLUSION
From the above report it can be concluded that there are many functions of organisation
which help in performing business task in better way. By taking better business decision
company will be able to achieve goals and objectives within set time. Operation management
will help company to develop product as well as meet with the requirement of customers. It is

important the company is taking decision by considering internal and external factor. So that
they can take better and effective decisions for improvement in organisation.
REFERENCES
Books and Journals
Choi, T.M., Chan, H.K. and Yue, X., 2016. Recent development in big data analytics for
business operations and risk management. IEEE transactions on cybernetics. 47(1),
pp.81-92.
Reid, R.D. and Sanders, N.R., 2019. Operations management: an integrated approach. John
Wiley & Sons.
Kato, T. and et.al., 2015. Operations management methods and devices thereof in information-
processing systems. U.S. Patent 9,128,704.
Penn, I.A. and Pennix, G.B., 2017. Records management handbook. Routledge.
Hitt, M.A., Xu, K. and Carnes, C.M., 2016. Resource based theory in operations management
research. Journal of Operations Management. 41. pp.77-94.
Nicholas, J.M. and Steyn, H., 2017. Project management for engineering, business and
technology. Routledge.
Uhl, A. and Gollenia, L.A. eds., 2016. A handbook of business transformation management
methodology. Routledge.
Webb, S.P., 2017. Knowledge management: Linchpin of change. Routledge.
Runfola, A. and et.al., 2017. The use of qualitative case studies in top business and management
journals: A quantitative analysis of recent patterns. European Management
Journal. 35(1). pp.116-127.
de Sousa Jabbour, A.B.L. and et.al., 2019. Circular economy business models and operations
management. Journal of Cleaner Production. 235. pp.1525-1539.
Online
9 things you didn't know about H&M. 2019. [Online] Avaiable
through:<https://www.insider.com/surprising-fun-facts-about-hm-clothing-store-2018-
6>.

The History of H&M Group. 2019. [Online] Avaiable
through:<https://hmgroup.com/about-us/history.html>.