Strategic Management Report: H&M's External and Internal Analysis

This report provides a detailed strategic analysis of Hennes & Mauritz (H&M), examining both its external and internal environments. The analysis begins with an introduction to H&M and its background, followed by a PESTLE analysis to assess political, economic, social, technological, legal, and environmental factors influencing the company. An internal analysis is conducted using a SWOT framework to identify strengths, weaknesses, opportunities, and threats, and a VRIO analysis to evaluate the value, rarity, imitability, and organization of H&M's resources and capabilities. The report then explores strategic directions, including Porter's generic strategies (cost leadership, differentiation, cost focus, and differentiation focus) and Ansoff's matrix (market penetration, product development, market development, and diversification). Finally, the report discusses strategic selection and justification, considering organic development, mergers, acquisitions, and strategic alliances, before concluding with recommendations for H&M's future strategic decisions. The report aims to provide a comprehensive understanding of H&M's strategic position and potential growth avenues within the competitive fashion retail industry.

Strategic Management

TABLE OF CONTENT
INTRODUCTION.....................................................................................................................................3
M&S Background information................................................................................................................3
EXTRENAL ANALYSIS..........................................................................................................................4
Pestle analysis..........................................................................................................................................4
INTERNAL ANALYSIS...........................................................................................................................5
SWOT FRAMEWORK...........................................................................................................................6
VRIO analysis.........................................................................................................................................6
Strategic directions....................................................................................................................................7
Ansoff strategic directions.......................................................................................................................8
Strategic Selection and justification.........................................................................................................9
Organic development:..............................................................................................................................9
Merger.....................................................................................................................................................9
Acquisitions and strategic alliances.......................................................................................................10
Conclusion and Recommendations........................................................................................................10
REFERNCES...........................................................................................................................................11

INTRODUCTION
Hennes and Maurtiz is one of the biggest British multinational retailer brand whose
headquarters are in LONDON and has been actively focusing on specialized clothing products
and food products with best quality metrics. The report will be analyzing external and internal
analysis by usage of various models which will enable business competencies to be analyzed on
further, for keeping up technical diversity standards and also potentially looking forward within
wider competitive parameters. The study will be discussing further strategic directions and
strategic selection and justification which enable business competencies to be framed on among
working scenarios, also to form wider informative goals within competitive fashion retail
industry horizons.
Hennes and Mauritz Background information
Hennes and Maurtiz is a Swedish multinational clothing retail company globally known
for its last fashion clothing for men, women teenagers and children where H&M operates
fashion clothing with high innovation and also has full 126,000 full time stores services. It can be
also analyzed that brand has wide market reach among global networks with large number of
stores and fundamental diversity within operations where it has gained best goodwill and
revenue targets widely. The company has been also gaining larger informative pace among work
domains, with high commercial growth and best supply management chains operating globally.
(Bindra, Parameswar. and Dhir, 2019).

EXTRENAL ANALYSIS
Pestle analysis
The pestle analysis can be identified as one of the most essential external business
environment tool for focusing on larger business scale investments within varied efficacy
parameters and also to potentially focus on keen development paradigms further which will
enable business competencies to be developed on further.
 Political factors: The varied expansion among global domains require stronger political
stability within business goals where with Brexit implementation there have been high
growth demanded among corporate scenarios for raising potential tax barriers within
exports and imports. Hennes and Maurtiz has to actively focus on political stability
metrics to keep functional scale diversification stringently active on longer scale goals
(Bogers, Chesbrough,and Teece, 2019).
 Economic factors: The shifting price structures and tax rates shall be informatively
monitored to keep stable growth goals for consumers oriented services, to vastly expand
on new scenarios efficacy among business targets. The economic stable growth will also
potentially enhance vision oriented goals widely and also bring on competitive growth
goals variably. Social factors: The dynamic shift coming on among consumer’s social domains within
various diverse innovative products and services shall be analyzed in detail for
competitive strength, also bringing on consumers oriented growth among new domains.
The social factors not only strengthen working vision among longer scale parameters, but
also enhance larger scale metrics for commercial efficacy on profitable paradigms. More
fashionable products shall be enhanced among commercial aspects where Hennes and
Maurtiz will be able to develop competitive goals further for keen new domains profound
efficacy and also for larger profits. Technology factors: There shall be also larger scale investments within new technology
implementation among products and services for forming informative growth efficacy
on larger scale operations, and to invest further to be best competitive brand within
fashion retail industry. It can be analyzed that technology factors form external
competitive aspects have high profound functional impact on business goals, where

Hennes and Maurtiz aims to be widely competent and one of the best retail brand
functionally expanding on varied scale efficacy.
 Legal factors:The legal factors of best business paradigms have high profound role to
enhance business domains for keeping larger growth goals, provide all factors of legal
compliance where employees shall be given best working domains and also provide
larger scale efficacy. The legal factors bring on quick goodwill among commercial
growth paradigms and bring on keen profound functional diversity for stronger
functional role among legal domains. The legal factors work as strength within company
goodwill parameters for keeping up new growth variants,to enhance working vision and
also promote new scope metrics for keeping informative expansion globally (Bryson and
George, 2020). Environment factors: The CSR factorsshall be actively focused on within environmental
aspects on which sustainable domains are highly essential competitive for keeping up
business scale diversity. The environment externally has strong role to play among
business profound growth avenues where shareholders are also keenly looking for
environment friendly brand for investment sand larger profound scale growth. Hennes
and Maurtiz aims to be bringing on sustainable clothing within products and also reuse
various aspects, whichwill keenly enhance vision among larger scale profound new
domains.
INTERNAL ANALYSIS
The internal analysis will be in detail analyzing working domains within internal
structure parameters for bringing on keen efficacy for larger scale diversification aspect, also to
yield higher profound focus for best working domains. SWOT analysis has been found to be
widely essential which will enable deeper analysis for framing higher informative diversity
among quest goals profoundly (Keding, 2020).

SWOT FRAMEWORK
 Strengths: The Hennes and Maurtiz brand has strength of best quality products and
services, having high range of profound goodwill which has developed stringent
innovation for brand performance horizons and also to bring on competitive diversity
within future horizons for up scaling targets profoundly.
 Weaknesses: There is weakness of internal competencies within working structural
domains where new brands are widely competitively dynamic and also largely focusing
on new scale innovation among fashionable brands clothing. There is also pressure from
external competitive expansion among new paradigms where consumer’s preferences are
widely dynamic and also facing larger scale exposure on new grounds which needs
strategic vision to be formed on.
 Opportunities: There is varied new competency business growth opportunities for brand
within global fashion retail industry where usage of best innovation and new scale
profound synergy among consumer’s preferences shall be analyzed further. It can be also
analyzed that internal management shall actively focus on management dynamic
strengths, enlarged functional scenarios to be framed on further, also to yield higher scale
efficacy on profound synergy and new paradigms with digital expansion aspects.
 Threats: There is competitive threat within retail industry of fashion where Hennes and
Maurtiz is widely lacking innovation, also the production standards are less advanced
which has been competitively reducing efficacy operations widely. It can be also
analyzed that M&S also has less trained employees among working parameters where
digital efficacy has not been competitively worked on for keeping up larger scale
innovation scenarios (Dvorský., Petrákováand Mikoláš, 2020)
VRIO analysis
The value chain analysis can be understood to be one of the most informative internal
analysis business model where company uses varied aspects to identify internal strengths for
products and services, which enhances production efficiency and longer scale productivity for
keeping up informative growth goals variably.
 Valuable: The value factor has high strength for keeping up larger scale developed on for
keeping up efficacy up keen new aspects informatively and also primitively up scaling

larger innovation actively among products and services. The brand value is strong for
creating larger scale profound aspects on working domains, where brand has been able to
develop informative diversity among products, services for wider business efficacy
profoundly.
 Rarity: The rarity factor is also widely profoundly strong, but with coming on of large
scale competitive innovation and informative goals efficacy, there are new competitive
aspects coming on among larger paradigms widely. The rarity factor is widely lacking
within internal competencies domain where their business targets are widely
demandingup scaled factored innovation and also performance development.
 Imitability: The brand products are not imitable as H&M deals in best brand services and
products where there has been varied larger scale quality growth aspects, for keeping up
new scale factored efficacy among products and services. The imitability strength is
positive aspect where digital platforms are widely coming on among promotional
scenario, for keeping up informative goals profound strength and also determining
new scale efficacy further (Lak,Gheitasi and Timothy, 2020).
 Organization: The organizationfactor has high strength where H&M is actively moving
ahead with functional innovation and evolving on quest goals primitively for keeping
up informative growth goals actively and also to keep up profound new scope measures.
It can be also analyzed that organizationhas been up scaling profoundwork growth
synergy by working on profound strategic innovation measures and also actively
building informative determining leadership.
Strategic directions
There are various new innovative strategic decisions which H&M can take actively for
framing higher effective efficacy among business development aspects for consumers oriented
efficacy and also to be optimistic on new functional scale profound work growth synergy, and to
build informative scale efficacy profoundly. Strategic decisions enable to form higher profound
work growth synergy, to be diversely strong and also to upscale sound functional diversification
which will potentially build wider technical goals actively on commercial growth aspects
(Velikorossov, 2020).
Porters generic studies

Porters generic strategies study will enable business scenarios to be formed on varied
Business competitive advantagecan be analyzed to be widely strong for bringing on keen goals
profoundly and also framing new innovation business scope efficacy aspects, where Porters
generic study brings before strategies which can be analyzed as below:
 Cost Leadership Strategy: This factor brings before factor where cost leadership enables
business horizons to competitively expand and also form varied new competencies among
products and services for cost leadership within industry, also for keeping up creative goals
profoundly among larger domains.
Differentiation Strategy: The differentiation strategy has been identified as business
development strategy for providing customers with unique and distinct fashionable products,
services among varied competitors in the marketplace within industry domains. The main factor
for implementing differentiation strategy is to enhance competitive advantage goals and further
form larger range of informative goals actively to reachtarget consumers (Teece, 2019).
 Cost Focus Strategy: The cost focus strategy will enable market domains to be actively reached
on among industry domains where best cost functional standards enable active functional
standards to form target markets reach and impact functional goodwill parameters. The cost
focus strategy also pertains quick dynamic strength to be formed on among business paradigms,
where new scale innovation and cost related strategies are developed for consumer’s market
reach.
 Differentiation Focus Strategy. This factor strategy can be analyzed as one of the major aspect
for developing stronger range of focused innovative working aspects among products and
services and also to create unique space among working horizons for larger scale efficacy.
Ansoff strategic directions
The Ansoffstrategic directions enable business scenarios to be framed strategically on
functional grounds of profound competitive diversity and also enhance working vision by
strategic vision development within larger arenas and also to keenly evolve on new efficacy
aspects H&M can choose any of the Ansoff Strategic directions from various functional arenas
and also to enable business competitive strength to be framed on larger domains of creative
diversity:

Market penetration: This widely focuses on increasing sales of existing products to an existing
market (Simandan, 2019).
 Product development: This focuses on introducing new products and services to an
existing market for bringing on varied new functional scale growth and enhanced vision
perspectives which delivers profits on revenue grounds and stronger goodwill.
 Market development: This strategy focuses on entering new market using various
innovations in the existing products range and also for larger diverse aspects on larger
new arenas for keen market evolvingmetrics for determining larger functional
innovative pace.
Diversification: This strategy focuses on entering new market with introduction of new
products range of new quality factored innovation and also to promote stronger range of larger
scale innovation to enhance functional strengths further on varieddomains (Schilling,. and
Shankar, 2019).
Strategic Selection and justification
Organic development:
The organic development within strategies for competitive strategic development can be
understood to be highly essential which will enable business efficacy to be profoundly worked
on for commercial growth synergy, and bring on sustainable business among products and
services. External competitive domains exercise functional efficacy for gaining stronger
goodwill profoundly. Product development will enable business to enhance larger pace of
competitive domains on commercial grounds within products and services. The organic
development widely enhances functional scale organic development among products within
sustainable fashionable aspects for keen efficacy scenarios for generating larger scale new
profound work growth synergy.
Merger
M&S by using mergers at the larger international expansion strategy will be able to form
larger consumers market reach, for technical innovative business strengths and also raising
competitive efficacy within longer run for scaling up business innovation. The mergers wit
best international companies will enable business competencies to be worked on among

commercial metrics, form stronger range of profound goals diversification and also scale up keen
working horizons to be framed on. The mergers are also known to be widely essential for
keeping up new scale profound metrics for keeping up new strengths into market development
strategy.
Acquisitions and strategic alliances
The strategic alliances and acquisitionsare also analyzed to be widely strongly essentialon
which future business scale growth efficacy can be profoundly worked on for technical strength
into untapped horizons and also to frame higher scope among larger new determinants. M&S
will be able to productively expand among new entrant’s variable market pace, technical market
growth and also to potentially expand among commercial scope for bringing on keen profit
goals, andglobal market reach (Phornlaphatrachakorn and Peemanee, 2020).
Conclusion and Recommendations
The report has concluded various aspects of varied competency horizons where H&M has
been identified to be widely acclaimed as one of the fastest evolving fashion retail industry for
bringing on new innovation among larger aspects of functional growth diversity. It can be also
concluded that the study has concluded functional growth venue within retail industry
parameters, where varied metrics of internal and external business environment have concluded
avenues on which larger scale efficacy have been identified impact fully. The report has
concluded that report brings before new scale innovationand imperative aspectsof larger
proactive strategies within usage of PORTER generic strategies, which enhance functional
vision and formative goal diversification. The study has concluded larger informative analysis
to be formed on among varied products and services scenarios for enhanced working vision and
also to be dynamic within competitive goals at digital business scenarios widely for bringing on
keen growth goals. The study has also concluded in detail varied larger fundamental
diversification for keen functional innovation and up scaled efficacy among bringing on
fashionable products , services expanded among global levels which form higher range of larger
goal diversification. The report has also concluded in detail varied keen informative pacealso for
keen scenarios informative quest goals, for potential efficacy new horizons and also recognized
as wider keen development new profound synergy for forming larger developed pace. The
study has also concluded varied specific new recommendations within digital pace of functional

marketing and for keeping up enlarged vision and perspectives for developing stronger vision
oriented growth goals (Wan, Wang., Liu and Chen, 2020).
REFERNCES
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