Undergraduate Major Project Plan: MOD003463, 2019/20, Trimester 2

This project plan, created for an undergraduate major project, focuses on the strategic analysis of H&M. It addresses key strategic issues facing the retail sector, such as the rise of e-commerce and the need for a unique customer experience, along with challenges specific to H&M, including declining operating profits and inventory management problems. The plan proposes solutions like increasing sales, implementing better budgeting practices, and developing a competitive advantage. It then outlines how the company could practically implement budgeting practices, detailing specific objectives, approaches, and stages of implementation, using financial performance management as a model. The plan adheres to the project plan template, incorporating relevant models and theories to support its analysis and recommendations. This project plan provides a comprehensive overview of the strategic challenges and opportunities for H&M, offering practical solutions for improving its business performance.

ASSIGNMENT INSTRUCTIONS
Assessment Project plan
Assessment code: 010
Academic Year: 2019/20
Trimester: 2
Module Title: Undergraduate Major Project
Module Code: MOD003463
Level: 6
Module Leader: Bill Jefferies & Anita Steinberg
Weighting: Pass/fail
Word Limit: 1200
This excludes bibliography and other items listed in rule 6.75 of the
Academic Relations
http://web.anglia.ac.uk/anet/academic/public/academic_regs.pdf
Assessed Learning
Outcomes
1-5
Submission Deadline : This assignment must be received by no later than 14.00 on Tuesday, 3rd
March 2020
WRITING YOUR ASSIGNMENT:
 This assignment must be completed individually.
 You must use the Harvard referencing system.
 Your work must indicate the number of words you have used. Written assignments
must not exceed the specified maximum number of words. When a written assignment is
marked, the excessive use of words beyond the word limit is reflected in the academic
judgement of the piece of work which results in a lower mark being awarded for the piece of
work (regulation 6.74).
 Assignment submissions are to be made anonymously. Do not write your name
anywhere on your work.
 Write your student ID number at the top of every page.
 Where the assignment comprises more than one task, all tasks must be submitted in a
single document.
 You must number all pages.
SUBMITTING YOUR ASSIGNMENT:
In order to achieve full marks, you must submit your work before the deadline. Work that is submitted
late – up to five working days after the published submission deadline - will be accepted and marked.
However, the element of the module’s assessment to which the work contributes will be capped with a
maximum mark of 40%.
Work cannot be submitted if the period of 5 working days after the deadline has passed (unless there
is an approved extension). Failure to submit within the relevant period will mean that you have failed
the assessment.
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considered valid by the iCentre Adviser. Please contact [e-mail]. A request must

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deadline. See rules 6.56-6.65: http://web.anglia.ac.uk/anet/academic/public/academic_regs.pdf
Mitigation: The deadline for submission of mitigation in relation to this assignment is no later than five
working days after the submission date of this work. Please contact [e-mail]
See rules 6.103 – 6.132: http://web.anglia.ac.uk/anet/academic/public/academic_regs.pdf
ASSIGNMENT QUESTION
Write a project plan for your Undergraduate Major Project using the approved project plan template.
You should include details of how you intend to research your choice of one of the following
companies or services (or a company/service agreed with the module lead):
 H&M Hennes & Mauritz UK Ltd
 Bet365 Group Ltd
 Rockstar North Ltd
 Aston Martin Lagonda Global Holdings PLC
 London Ambulance Service NHS Trust
 Learning Disability services
The project plan should provide an outline of how you intend to answer the four questions on the
project plan template.
ASSESSMENT CRITERIA
To pass this assignment, you must satisfactorily complete all elements of the Project Plan Template.
You must show:
 Knowledge of theoretical/ethical issues relevant to your chosen company or service
 Ability to incorporate theory and to solve problems in the discipline
 Effective use of learning resources
 Accuracy of structure and expression
 Evidence of developing professional problem-solving skills

UMP Organisation or Service Project Plan Template
Student Number: Organisation or service: H& M
Question 1. Identify and analyse three strategic issues facing the overall sector of your chosen business or service. (Total 300 words)
Poin
t
Strategic Issues Evidence (financial, reports, news etc.) Model(s)/Theory(ies)
1 Growing Consumerism One of the main issues which are faced by business in retail industry is that
the consumer has numerous options such as channels apart from retail
stores like e-commerce platform or mobile commerce. This diverts the target
population and impacts the sales of the business. There are numerous online
mediums such as ebay, Amazon, Myntra which makes online retail shopping
easier. It is estimated that almost half of retail sales are done through online
medium which is affecting the industry as a whole. This directly impacts the
revenue which is made by popular brands which are present in the industry.
Benchmarking
SWOT
2 Providing a Unique Experience It is also difficult for different brands to provide a unique experience to the
customers in terms of products. In the retail clothing sector the products are
similar in nature and difference can only be made in terms of quality of
product or brand value of the product. In order to attract the attention of the
customers, most of the brands are trying to make changes by implementing
innovation so that competitive advantage can be generated. This would
directly affect the operations of the business so that more revenue can be
generated in the business.
Business Process
Reengineering
3 Inventory Management The most vital issue which is faced by a business is appropriate management
of inventory of the business. Fashion brands appropriately roll-out their new
collection based on seasons and always try to bring in new inventory so that
customers can be attracted towards the products which are offered by the
business. The inventory management system also has an impact on the sales
Budgeting Techniques
SWOT

which is made by the business. One of the major tests which is faced by
companies in the fashion retail industry is to show agility and excellence in
stock visibility, operations planning, and inventory intelligence.
Question 2. Identify and analyse three challenges facing your chosen company or service. (Total 300 words)
Poin
t
Challenges Evidence (financial, reports, news etc.) Model(s)/Theory(ies)
1 Decline in Operating Profit The management of H&M faces problems of overstock of inventory which
impacts the operations of the business. The decline in profitability of the
business has severally impacted the operations of the business. In 2018, the
first quarter saw a decline of 62% in operating profit. This is mainly due to
the policies which are followed by the business of discounting in order to
clear out the stock pileup of the business. The overall decline in profitability
also impacts the market valuation of the company and therefore
improvement needs to be made.
PESTLE Analysis
2 Excessive Competitive Pressure The competitive pressure in the market is immense which has impacted the
operations of H&M in an adverse manner. The retailing giants are losing out
to competition from brands like Zara and ASOS which have an effective
supply chain. The competitive pressure has also impacted the revenue which
is generated by the business son average basis and thereby curbed the
reputation of the business in the market. The competition also diverts the
customer force and affects the revenue generation process of the business.
PESTLE Analysis
3 Inventory management problems One of the most major problems which is faced by H&M is related to effective
management of inventory of the business. As per estimates the business
faces problems of overstocking which are more than 4 million clothes. It is
due to this, the expansion process of the business has slowed down and the
same would cause loss to the business if the stocks are not cleared. It is for
this reason that the senior management has started offering high discounts
SWOT

on its products so that inventory can be cleared.
Question 3. Identify and analyse the three solutions to address the challenges facing your chosen company or service. (Total 300 words)
Poin
t
Solutions Evidence (financial, reports, news, best practice guidance, etc) Model(s)/Theory(ies)
1 Increase in sales The management of the company needs to maximise the sales of the
business by proper promotions. The business is already offering discounts
which are affecting the operating income of the business. If the management
is able to increase the sales of the business, then it would also be able to
clear the stock pile over and thereby enhance the profits of the business. The
business would also be able to minimize the losses due to the stock pile over
and thereby protect the interests of the business.
Porter’s Five forces Model
2 Budgeting practices. One of the recommendations for improving the business position of H&M is
that it can adopt budgeting practices for monitoring production as well as
sales so that the business can get an accurate estimate of demand and
supply. This would prevent situation of overstock. In this manner, the
business would also be able to save costs and boost profits. The budgeting
practice would also allow the business to properly plan and also control the
activities of the business. Further budgeted estimates can be matched with
actual performance so that any variance can be identified and further
improvements can be brought about in the operations of the business.
Financial Performance
Management
3 Developing Competitive
advantage
The competitive pressure in the retail industry has increased and brands like
Zara has overtaken H&M. This situation can be improved by developing
competitive advantage which can be achieved by maintaining quality,
reducing the prices for the products or through some innovative changes.
These practices would help the business to develop competitive advantage
and assist the business to face competition in the market at the same time
generate desired level of revenue. The business of H&M needs to focus on
making innovative changes which can also positively contribute to the brand
BCG Matrix

image of the company.
Question 4. Explain how your company or service could practically implement one solution from those listed in Question 3. (Total 300
words)
Specific objective Approach (marketing,
HRM, Operations,
Practice etc.)
Stage 1: Inputs,
financial,
technological,
material, human.
Stage 2: Actions and
timeline
Stage 3: Delivery
and Evaluation
Model(s)
Budgeting Practices The operations
department needs to
consider the past year
performance and
current trends in the
market for estimating
the current year’s
performance. The
targets need to be set
by the operations
department and the
same needs to be
realistic. The
operations
department would
also require inputs
from other
departments so that
an appropriate
budget can be
The first step which
the operational
manager needs to
follow is to review the
past year
performance records
and identify current
market trends. The
operation needs to
take inputs from
different departments
and the budget needs
to be set as per the
long term goals and
objectives of the
business. One of the
objectives of
budgeting practice is
to reduce the costs
and promote savings
The targets need to
be set by the
operational manager
considering the long
term goals of the
business.
In addition to this, the
management also
needs to set
milestones which can
demonstrate the
business is moving in
the right direction.
The business also
needs to considering
the number of units
or scale at which the
business would be
operating and set the
costs and revenue
One the budget is
placed or
implemented then all
departments of the
business are
expected to follow the
same. The
management of the
company would be
reviewing the budget
and actual
performance of the
business at regular
intervals which would
be quarterly so that it
can be ascertained
that the business is
moving as per the
target which is set.
This would also allow
Financial Performance

prepared for effective
management of the
operations of the
business.
in the operations of
the business.
accordingly. the management to
make changes in the
budget as per the
changes in the
market trends.
Bibliography
Anneli, B. and Vera, B., 2015. Corporate Value Transfer in China: Cultural Challenges and Opportunities arising when using a Corporate Training Program: An
exploratory case study of H&M.
Forbes.com. (2020). H&M's Problems Won't Be Solved By Growing Online Sales. [online] Available at:
https://www.forbes.com/sites/andriacheng/2018/02/01/ecommerce-isnt-the-only-thing-hm-needs-to-work-on/ [Accessed 29 Feb. 2020].
Ho, D.C., 2014. A case study of H&M’s strategy and practices of corporate environmental sustainability. In Logistics Operations, Supply Chain Management
and Sustainability (pp. 241-254). Springer, Cham.
Size, F. and WIRE, B. (2018). Top challenges in the Fashion Retail Industry | Infiniti Research. [online] Businesswire.com. Available at:
https://www.businesswire.com/news/home/20180316005392/en/Top-challenges-Fashion-Retail-Industry-Infiniti-Research [Accessed 29 Feb. 2020].