H&M PESTLE Analysis Report: Business Strategy and Environment

This report presents a PESTLE analysis of Hennes & Mauritz (H&M), examining the external factors impacting the company's operations. The analysis covers political factors, highlighting the importance of understanding global political risks and regulatory requirements, particularly in regions with instability. Economic factors are assessed, focusing on H&M's strategies for managing costs, currency fluctuations, and providing competitive pricing. Social factors are discussed, emphasizing the influence of media, celebrity trends, and the need for H&M to align its collections with current market preferences. Technological factors are explored, including H&M's use of its app, supply chain technology, and logistics. Legal factors are addressed, focusing on the company's handling of legal disputes and risk management. Finally, environmental factors are considered, emphasizing the need for H&M to ensure sustainable practices in its operations. The report concludes that conducting such analyses helps companies identify elements impacting their performance and allows managers to improve their strategies.

ENGLISH ACADEMIC
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Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
A PESTLE Analysis can be defined as a framework which is used by the marketing team
of an organisation for checking as well as monitoring the factors which are present in the the
external environment. It is important to analyse them as they are having a deep impact on the
working of every company (Omololu, E., 2013). Through this, the management comes to know
about the positive and negative impact of environment on company. In this essay, PESTLE
Analysis will be conducted on Hennes and Mauritz(H&M).
MAIN BODY
The PESTLE Analysis of H&M is conducted in the following manner :-
POLITICAL FACTORS
They are considered as a global brand which is having their branches in most of the parts
of the world so it becomes important for them to understand the political risks which is present in
all the parts of the world. There are so many countries like Turkey, Egypt etc. where there is high
no. of political instability is present so before starting their operation in these types of countries
H&M should conduct a good study about that country. Also, it was known that because of
regulatory reasons; H&M was required to do franchising partnership with brands which are
present in countries like Kuwait, Egypt, Oman etc.
ECONOMIC FACTORS
H&M always makes sure that they provide their goods at best prices so that more
customers can be attracted. They do this by buying the goods in bulk from market and using
effective inventory management system as well. Since they are present in many countries so they
are focusing many economic shock on daily basis. They were required to handle their operations
amidst the conditions of the country which includes currency rate fluctuations etc.
SOCIAL FACTORS
Now-r-days, customers are highly influenced by the media and they try to follow lifestyle
of celebrities (Strangmueller, M., 2017). They only like to prefer those clothes which are in trend
so H&M is required to make sure that their collection is according to the latest trends which is
currently prevailing in market so that sales can be increased.
TECHNOLOGICAL FACTORS
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H&M is having their own app from where they allow their customers to shop according
to their choices and collect reward points as well which they can use later on. They are also
having a strong supply chain technology through which they can tract all their logistics and thus
tries to provide good services to the firm (Kaisar, 2016).
LEGAL FACTORS
From the past few years, H&M have faced a lot of legal disputes regarding infringement
of clothing retailer. But H&M is facing all these issues in an effective manner as they are having
enough funds to cover such cases. They are also having a stringent risk management system
which helps them in avoiding such conflicts (Yu, Y. and Shi, Z., 2013).
ENVIRONMENTAL FACTORS
Since H&M is big organisation so they have to make sure that they do all their activities
in an effective manner as all their actions will have an direct or indirect impact on the
environment. They should make sure that in whichever country they are doing their operations,
they should ensure that no harmful substances are being used to produce them.
CONCLUSION
From the above report, it can be concluded that every company is required to conduct an
analysis on themselves as through this they will be able to know that which elements of
organisation is having a positive impact on company and which is not. By implementing this
tool, managers will be able to improve the activities which is going on in company and make
them grow in the market.
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REFERENCES
Books and Journals
Omololu, E., 2013. The Strategic Expansion of Hennes & Mauritz AB: A Potential Acquisition
of Next or Ted Baker PLC.
Strangmueller, M., 2017. Economic Strategies. Potential Improvements of Burberry.
Yu, Y. and Shi, Z., 2013. Customer satisfaction in the fashion industry: Case study of HM case
company.
Kaisar, J., 2016. Marketing plan for business start-up.
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