Strategic Operations Management Report: H&M's Communication Challenges

This report provides a comprehensive analysis of strategic operations management, focusing on H&M as a case study. It begins with an introduction outlining the problem statement: lack of effective communication and motivation within H&M, particularly in its global operations. The practical and theoretical rationales are presented, highlighting the need for improved managerial activities and customer satisfaction. The research questions are then detailed, exploring H&M's core operations, the impact of poor communication, and potential solutions. The main body of the report reviews literature on various aspects of H&M's operations, including business technology, accounting, human resources, and supply chain management. The report emphasizes the importance of effective communication for coordinating these operations and ensuring efficient product delivery. It also examines the role of strategic operations management techniques and the application of game theory to resolve communication issues. The report concludes by summarizing the key findings and offering insights into improving H&M's strategic operations.

STRATEGIC OPEARTIONS
MANAGEMENT
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Table of Contents
1.0. INTRODUCTION....................................................................................................................3
1.1. Problem statement................................................................................................................4
1.2. Practical rational...................................................................................................................4
1.3. Theoretical rational...............................................................................................................4
1.4. Research questions................................................................................................................5
2.0. Main Body (Literature Review)................................................................................................6
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................19
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1.0. INTRODUCTION
Operations management is an integral process which is concerned with the operational
activities such as production, designing, controlling, monitoring and improvement of goods and
services. Strategic operations management is lined with targeted management of all operations
through which the quality of products and services can be enhanced. With the help of strategic
operations management, business can form effective and strategic decisions through which
overall success of the company can be made. Strategic operations management focuses on four
main components which comprises of strategy, innovation, supply and services which are offered
by a company. Through strategic operations management, company can provide quality goods
and services to their customers which will also help in enhancing organisations supply chain
activities. Through strategic operation management, a business can minimize labour, tariffs cost
and taxes. H&M (Hennes & Mauritz) is a Swedish multinational retail company which provides
fast fashion apparels and is operating in 74 countries with over 5000 stores. The company
provides offline and online mediums through which customers can purchase products which are
offered by them. The main motive of company is to provide fashionable products through which
they can meet the changing demands and provide products at best and reasonable price through
which they can maintain sustainably in the business environment and gain competitive advantage
from their operations. Hennes & Mauritz popularly known as H&M is a Swedish based company
which was established in 1947 (Webb, 2017). H&M is a multinational company with its
headquarter at Stockholm, Sweden. H&M deals in clothing and is mainly known for its
fashionable clothing for different age groups of men and women. It is the second largest cloth
retailer in the world which has widespread business across 74 countries and have more than 5000
established stores in the world.
It has been seen that many strategic operations like accounting, human resources
management, sales management, marketing and many other operations are present within a firm.
Many contemporary issues in strategic operations management are faced by a firm which
comprises of current problems that are affecting the people and staff of a firm that tends to
seemed unresolved. The main problem that has been currently faced by H&M company are
provided as below:
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1.1. Problem statement
The problem statement that has been analysed and evaluated under current investigation is
based on issue of lack of effective communication and motivation at workplace of H&M. It has
been analysed that the business operations of H&M company is currently present in more than
74 countries with around 5000 stores thus, maintaining effective communication is a vital issues
which is continuously affecting its operations and timely delivery of quality product (Mangla,
Govindan and Luthra, 2017). Beside this, it has been also analysed that lack of effective
communication also leads to problems in implementation of strategic operational decisions along
with creating many issues related with effective monitoring and control on those decisions at
operational level due to lack of communication.
1.2. Practical rational
The practical rationale of this project is to evaluate factors which affects the performance
of business and take corrective measures through which the brand image and goodwill of the
company can be maintained and organisation can gain competitive advantage from, their
operations. Though identifying such responsible factors organisation can maximise profits and
sale of the products and goods can be increase (Sledgianowski, Gomaa and Tan, 2017). The
identification of responsible factors will help in identifying improvement criteria which are
needed by H&M to perform managerial operations and thus it also helps the company in
maximising the profits of the company.
1.3. Theoretical rational
The theoretical rational of the research help business in improving managerial activities
of the business through which the company can sustain for longer period of time and thus it will
also help in meeting customer requirements and retaining maximum number of customers. The
managerial activities which are followed by H&M are identified and necessary corrective
measures are taken through which a company can perform all planed activities accordingly.
Through identification of such factors will help in evaluating managerial activities and
operations and their effectiveness for the organisation. Through identifying functions and
strategies of H&M their strategies, pans and procedures will be identified through which
improvement criteria will be evaluated and measure scan be taken through which employee ad
organisations performance can be improved. Through providing effective training to all
employees, H&M will be able to perform their managerial functions effectively.
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1.4. Research questions
The main aim of current investigation is to analysis about the contemporary issue in
strategic operations management faced by a organisation. The current project is focused on
analysing about the various strategic operations which are undertaken at H&M along with
determining about the issue of lack of communication as contemporary strategic issue which is
hampering the decision making and timely delivery of quality product and services.
Research objectives
• To review about the main operation at H&M along with analysis of operational
processes, techniques, planning and control systems used within a firm.
• To create awareness about the issue of lack of effective communication at workplace
of H&M along with analysing about SOM as a core function in all organisations
operational processes to have more effective and integrated strategic planning
process.
• To evaluate about the role of effective communication in leading a positive
relationship within value chain strategy, marketing, design, control, human resource,
procurement and other interactions involved in the managing of operational activities.
• To determine about the effective use of game theory and a range of practical activities
to resolve the issue of lack of effective communication to ensure improved strategic
operational decisions along with improved monitoring and controlling of those
decisions.
Research questions
• What are the main operation present at H&M along with analysis of operational
processes, techniques, planning and control systems used within a firm?
• What is meant by the issue of lack of effective communication at workplace of H&M
along with analysing about SOM as a core function in all organisations operational
processes to have more effective and integrated strategic planning process?
• How a vital role is lead out by effective communication in leading a positive
relationship within value chain strategy, marketing, design, control, human resource,
procurement and other interactions involved in the managing of operational
activities?
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• What is meant by game theory and a range of practical activities which are applied to
resolve the issue of lack of effective communication to ensure improved strategic
operational decisions along with improved monitoring and controlling of those
decisions.
2.0. Main Body (Literature Review)
2.1. To review about the main operation at H&M along with analysis of operational processes,
techniques, planning and control systems used within a firm.
As per the view point of He, B., Gupta, V. and Mirchandani, P., 2021, the term operation
within a manufacturing company or a service oriented firm mainly comprises of the set of
practical application and process that are applied by a company to combat various resources and
forces to come up within a finished product or services. It has been analysed that many
operations and activities are undertaken by H&M company to produce and come up with
fashionable clothing for different age groups of men and women a discussion and evaluation of
which is provided as below:
 Business technology: At H&M business technology plays a crucial role in operational
activities. It is mandatory to be acquinted with the technologies used in the business and
update them on the routine basis as per the requirrment (Biloslavo, Bagnoli and Edgar,
2018).
 Accounting: Accounting function is a major functioned performed in any organiation to
keep a track of the expenditures and incomestaking place in the organization.
 Human Resource: Human resource is another important function at H&M which helps in
staffing the right person, at the right place and at the right time.
 Controlling: Controlling function at H&M helps to decide the standards of the
performance and with respect to them the actual performance is measured and checked
for the deviations and further corrective actions are taken.
 Supply chain: The Supply chain management function at H&M helps in facilitating the
access to their products to their customers (Grover and Kar, 2017).
 Strategy & transformation: Strategies are a vital part of every organization. No
organization can prosper or achieve their organizational goals if their strategies are not
formulated and implemented. Hence it is an important function at H&M.
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 Security: The security function deals with providing a sense of safety and security at
H&M workplace for their employees and personnels.
 Expansion: The expansion is a very important function at every organization no
organization can excel or achieve higher profits until and unless it expands its business
hence the same is applied for H&M.
 Sustainability: Sustainability is also an important function at H&M, it is very important
for the business to achieve higher growth along with sustaining the values, culture,
resources and environment of the organization.
Thus, an implication and analysis can be made out that a high level of integration and
coordination is essentially required and need within a firm to maintain efficiency level in its
operation and ensure regular and smooth delivery of end product to its customers. The strategic
operations which are performed by an organisation will be analysed through which the
performance gap can be identified which will help in enhancing overall performance of business.
This will help organisation in sustaining for longer period of time in the marketplace. The
research will solve problems which arise in performance of all employees of an organisation
through which organisation can provide training to their employees which will enhance their
skills and competencies to perform assigned job roles and activities by using innovative
approaches (Hamdoun, Jabbour and Othman, 2018).
Further, an implication has been made on the basis of information provided by
Wegner, D., Sarturi, G. and Klein, L.L., 2021, that it is essential for an organisation to have
effective operational process in order to properly organise the set of activities or tasks that
ensures and leads to production of a specific service or product. This research will analyse the
issues which are faced by businesses while executing their strategic operations management.
With the help of using different approaches, theories and models, the strategic operation
management of H&M will be evaluated through which their performance can be analysed and
deviations can be monitored. Thus, it will help in improving the performance and enhancing the
standards of the products and services which are rendered by the company. It has been also
analysed that use of various Operations management techniques are also made by a company
which involves effective planning, organizing, and supervising processes, and make necessary
improvements for higher profitability. Thus, implication of proper operational techniques and
control are essential for a firm to ensure required adjustments in the everyday operations to
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support the company's strategic goals and improved accomplishment of set objective so that they
are preceded by deep analysis and measurement of the current processes (Aste, Manfren and
Marenzi, 2017).
With respect to current review of information provided by Yildiz, E., Møller, C. and
Bilberg, A., 2021, it has been analysed that effective communication is must to ensure a proper
coordination and balance among various strategic operation of a firm to ensure a regular and
timely supply of product and services. It has been analysed that lack of effective communication
is a most commonly seen contemporary issue in strategic operations management that effects the
entire flow of business operation by leading situation of chaos and confusion among staff while
performing various operations. Thus, an analysis can be made that proper coordination and
interaction among various strategic business operation is vital that us possible through effective
communication and control to ensure timely procurement of material and efficient delivery of
products (Kache and Seuring, 2017).
2.2. To create awareness about the issue of lack of effective communication at workplace of
H&M along with analysing about SOM as a core function in all organisations operational
processes to have more effective and integrated strategic planning process.
As per the view point of Anton Vdovin, 2017, lack of effective communication is a very
severe issue that directly affects and hampers the management of strategic operations. It has been
observed that effective communication is must to have a coordination and proper flow of
operation within a firm to ensure timely and efficient delivery of quality products to customers.
Effective communication is taken as a key for success and support strong and productive
management of strategic operations through ensuring optimisation of supply chain along with
leading positive workplace relationship to have increase productivity and higher performance. A
number of challenges and issues are faced by an organisation due to having a lack of proper
communication. Some of these vital challenges and issues that are being faced by H&M
company due to having lack of effective communication in its strategic operations are discussed
and analysed as below:
High level of uncertainty in strategic operations- Ineffective communication enhance the
chances of uncertainty in strategic operation by the way of enhancing conflicts and condition of
chaos among various departments and employees. It has been analysed that a poor and
ineffective communication creates a situation of confusion in minds of employees who are not
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properly inform and guided about their roles and the core value of the company (Inigo, Albareda
and Ritala, 2017). Thus, it is observed that within H&M the managers are failed to keep staff
informed about the company polices and ultimate goals due to lack of effective communication
which creates uncertainty in effective accomplishment of gaols and leading improved strategic
operation management. Further, the issue of lack of effective communication also creates and
leads out a feeling of distrust, frustration and conflicts among various staff and departments that
is hampering the free flow of operations and resulting in form of ineffective management of
strategic operations through creating situation of chaos and confusion.
Conflict in designation of resources- An organisation have a limited number of resources
like budgets, inventory, office equipment and other supplies that they have to effectively
bifurcate and distribute across various strategic operations. But if the communication is poor and
an ineffective communication is their among the various strategic operations and departments
than no proper bifurcation or distribution of resources in not possible which leads to higher
amount of wastage and inefficient use of limited business resources (Breuer and Lüdeke-Freund,
2017). Thus, an analysis can be made out that lack of effective communication at workplace of
H&M is adversely affecting the efficiency level of its strategic business operations by the way of
leading conflicts in bifurcation of resources among different department which also lead to
higher wastage and inefficient use of resources.
Lack of collaboration and poor teamwork- The another main challenge leads out by the
issue of lack of effective communication comprises of having lack of interaction and proper
collaboration among employees which hampers and reduce their productivity and efficiency
level which also hampers the management of strategic operations. An analysis can be made out
that having poor communication resulted in form of poor team work which is very unfortunate
for H&M company as without having proper camaraderie and strong working relationships the
H&M company is having difficult time in going towards achievement of their objectives
(Mizuno, 2020).
Miscommunication on product deadlines- An analysis has been made out that lack of
effective communication leads to challenges of not meeting the product delaine that is resulting
in form of delays in delivery of product which is the biggest challenge for strategic operation
management. It has been also observed that lack of communication with suppliers and ineffective
coordination among various strategic operation and departments lead to stifle and put a halt on
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work process within H&M that is creating biggest threat for this company. Thus, an analysis can
be made out that lack of communication leads to delay in output and delivery due to having
confusion and miscommunication among business operations and departments that result in form
of lost opportunity and hampers further progress of a firm (Luthra and Mangla, 2018).
Decrease in employee morale and engagement- The another major challenge lead out by
ineffective communication comprises of decrease in morale and engagement level of employees
as they did not get proper guidance and direction. An analysis can be made out that lack of
effective communication leads to reduction in employee’s motivation level and also hampers the
commitment and trust level which hampers their productivity and efficiency level that is having
negative impact on overall strategic operation management of H&M company.
Further, as per the view point of Ketchen Jr, D.J. and Craighead, C.W., 2020, it has been
analysed that Strategic operation management (SOM) has become a core determinant for success
of an organisation as it involves every part of organisation. It has been analysed that SOM plays
a vital role in leading improved coordination and efficient strategic planning within an
organisation to effectively achieve the set organisational goal along with having improved
competitive advantage. An analysis has been made out that implication of SOM supports an
effective interaction of strategic planning process to have improved productivity and higher
performance level of H&M company along with overcoming the issue of lack of effective
communication (Rebs, Brandenburg and Seuring, 2019). The five main steps of strategic
planning process supported and lead out by efficient SOM as a core function in all organisations
are discussed and evaluated below:
Determining strategic position- The first step of having efficient strategic planning
comprises of determining of current strategic position which comprise of current business
position and analysis of where wanted to go through properly involving all stakeholders and
considering both internal and external sources. Use of management tools like PESTEL and
SWOT analysis could be made by H&M company to have efficient analysis of its current
business position (Kim, 2017).
Prioritizing objective- Once identifying the current business position in the market that next
step is determining and setting out main objectives that will supports and helps in achieving
overall organisational goal. The objective leads out by H&M needs to be properly in line with its
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mission and vison and also needs to be properly communicate by the all employees among
various departments and operations.
Developing plan- This is the step which requires actual planning and determining of the
tactics and strategy which are necessary to adopt by H&M company to effectively attain and
achieve its set objective in a designating timeline through having clear communication and
bifurcation of responsibilities among employees and various departments. Implication of strategy
mapping could be made by H&M to have an effective tool to visualise and coordinate its entire
plan in a better way (Hovland and Lumsdaine, 2017).
Execute and manage the plan- Once a proper plan has been prepared by H&M the next step
is effectively implanting it which comprises of communicating the plan to entire organisation
along with sharing of relevant information and documentation. Use of KPI dashboards could be
made by H&M to effectively communicate its team responsibility along with having regular
review with individuals to have effective execution and management of strategic planning which
support effective strategic operation management within a firm.
Review and revise of plan- The final step of an efficient SOM and strategic panning process
comprises of continuously revaluating and revising the plan to ensure its effectiveness and
coordination with current market scenario (Comfort and Park, 2018). At this, stage, use of KPI
tool could be made by H&M company to analysis that whether a team and employees has met
the set objectives or not and on the basis of results an effective revaluation of priorities and
strategic position must be made to stay in the track of success and improved strategic operation
management.
Thus, on the basis of above discussion, an implication can be made out that lack of effective
communication is a vital issue and challenges faced by H&M which is leading difficult and
challenge for efficiency of operations. Therefore, implication of SOM as a core function in all
organisations operational processes has become vital to have more effective and integrated
strategic planning process. An analysis has been made out that implication of SOM leads to
reduction in cost and also ensure increase in efficiency of product production for H&M by the
way of leading improved communication and coordination level among various department and
strategic operations (Rosenberry and Vicker, 2017).
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2.3. To evaluate about the role of effective communication in leading a positive relationship
within value chain strategy, marketing, design, control, human resource, procurement
and other interactions involved in the managing of operational activities.
With respect to the information provided by the Gan, J.R., 2020, it has been analysed that
vital role is played by effective communication in leading a positive relation among various
strategic operation as effective Communication is important for the development of an
organization. It has been observed that effective communication is something which helps the
business managers and other to effectively perform the basic functions of management within a
firm which consists of Planning, Organizing, Motivating and Controlling employees which is
essential to support improved and free flow of strategic business operations. It has been analysed
that a larger number of business operations are there which are being performed within a firm
which comprises of effective supply chain or value chain, marketing, controlling, human
resource, designing and other departments which are effectively involved in managing
operational activity. Communication is most important and vital to set a proper coordination and
positive relationship among all these business operations and department to ensure smooth
conduction and under taking of operational activities (Trudeau and Somoza, 2020). An analysis
has been made out that effective communication is important within in value chain and ensuring
effective supply of inventory and raw material for H&M company as it improve the ability of a
firm to have regular procurement of raw material and inventory to ensure time delivery of
product and operational efficiency within the organisation. Thus, an analysis can be made that
effective communication is important is vital for development of an organisation as it is
something which supports and lead our improved planning, organising, controlling and overall
collaboration at firm which sets out a positive relationship within value chain strategy,
marketing, design, control, human resource, procurement and other interactions involved in the
managing of operational activities (Abuse, 2020). The major function and role of effective
communication that facilitates and ensures positive relationship among various departments and
strategic business operation along with leading higher success and improved productivity for a
firm are provided as discussed as below:
Control- effective communication plays a vital role in implication of effective control over
member behaviour and business operation in several ways. Communication helps in setting out a
hierarchy of authority and formal guidelines for employees which are required to follow up by
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