PESTLE Analysis of H&M in Global Business Environment BM461

This report provides a PESTLE analysis of H&M, a multinational clothing brand, operating within the global retail industry. The analysis examines political factors, such as the impact of international conflicts and political stability in manufacturing countries, and economic factors, including fluctuating labor rates and taxation policies. Social factors, like social media trends and changing customer preferences, are also considered, alongside technological advancements and the importance of online presence. The report further addresses legal considerations for marketing and operational compliance, as well as environmental factors, highlighting H&M's reliance on recyclable materials and eco-friendly packaging. The conclusion emphasizes H&M's effective management of external environmental factors and its potential for future success and profitability.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Pestle Analysis ...........................................................................................................................3
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
H&M is a multinational clothing brand which is serving its business operations on a global level.
The retail business functions exercised by the respective organisation are very popular and trend
setting. H&M caters apparel and accessories services to different sections of society such as kids,
men , women etc. The resort highlights upon the implementation of Pestle analysis on H&M in
order to determine the impact of external environment on the same.
MAIN BODY
Pestle Analysis
Political Factors : The production and manufacturing of the products delivered by H&M are
carried in different countries such as Egypt and Turkey (AKMAN, 2020). It is very essential for
the respective business firm to major political events of these country in order to ensure stable
business operations within the same. The current ongoing global conflict between United States
and China may also impose serious complication on the supply of resources and raw material for
the concerned retail organisation.
Economic Factors : The company needs to excessive focus upon the fluctuating labour rates
within the its operational countries. The existence of Brexit policy has not led to major
implication on the profit margin of the same. However, it needs to be examine the taxation rates,
inflation rates, interest rates and other economic variables on a constant basis.
Social Factors : The social media trends as well as the change in the preferences of the
customers is one of the major social factors that needs to be tackled by the firm in a productive
manner ( Cooper, 2020 ). The company constant capitalises upon the social networking platform
in order to persuade the customers to facilitate their attention towards the offering of the
respective firm.
Technological Factor : Optimisation on latest technology has become a necessity for the
business enterprises operating at an internal scale. The company has an application through
which interest customers can shop their favourites. The constant bonus points as well as
facilitation of discounts is one of the attributes through which firm can enhance its sales to
maximum extent (Phan, 2021).
Legal Factors : It is extremely necessary for H&m to facilitate legal tie ups with various
agencies in order to enhance the scope of marketing of organisational offering to a larger set of

customer base. In order to the same, it is necessary for the firm to oblige to the legal
considerations and document s required to run the partitions smoothly and eliminate the chances
of unnecessary legal intervention by the concerned authorities.
Environmental Factors : Retail industry involves huge scale of production which in turn leads
to negative implications on the natural environment. The waste generated by the firms can lead
to harmful effects on the the individuals exposed to the same (Simões, 2020). H&M is a firm that
highly relied upon the utilisation of recycable clothing material and environment friendly
packaging that can facilitate in the alleviation of the natural surroundings.
CONCLUSION
From the above information, it can be concluded that H&M is leading successful business
operations in the retail industry. The company is effectively dealing with the factors prevailing in
the external environment and is likely attain more success and profitibility in the future run.

REFERENCES
Books and Journals
Simões, E.N., 2020. A decision support system application module-for PESTLE analysis-
competitive intelligence algorithm (Doctoral dissertation).
Phan, S., 2021. The effect of PESTLE factors on development of e-commerce. International
Journal of Data and Network Science, 5(1), pp.37-42.
Cooper, R.J., 2020. Pestle and mortal: the demise of community pharmacy in the UK.
International Journal of Pharmacy Practice, 28(3), pp.205-206.
AKMAN, M.K., 2020. DEFENCE MANAGEMENT AND PESTLE ANALYSIS. ANTE
PORTAS, p.93.