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H&m generic strategy

26/03/2021 Client: saad24vbs Deadline: 2 Day

Assessment: Strategic Analysis Report.

T

he module is assessed (100%) by an individual Strategic Report (maximum 3,000 words) involving an in-depth, strategic analysis of a large organisation.

Instructions for assessment

The Strategic Report should strictly NOT exceed 3,000 words and demonstrate clear report style with relevant Harvard references. It is to be a unified whole that answers three questions (see below) focused on the selected organisation. Formative work in weekly seminars will guide students through analytical techniques and processes required to complete the task.

For the selected organisation, assume you are an outside consultancy reporting to the Chief Executive. The Strategic Report should:-

1). Identify 3 key strategic issues facing the organisation with a clear explanation of why they are “strategic” (20%).

Introduction

The fashion industry is highly competitive, fuelled by ever—changing fashion scene, necessitating great innovation differentiation on part of fashion retailers to survive, let along vie for supremacy. More than any other industry, the fashion industry must be sensitive, not only to consumer preference, but also to consumer consciousness. In the 21st century, the process matter as much, if not more than the end product, as a study by shen et al reveals; 75%of consumers in developed nations have an aversion to unethical products.

H&M for so long has grown remarkably, yet now worth rapidly shifting business environment, there are threads aplenty, but also opportunities in equal measure. As a multinational clothing retailer, H&M has great capabilities, and resource to leverage. Yet, the instrument of H&Ms growth has become its very shackle. As Mo establishes, fast fashion was, and still is, responsible for the growth of H&M, however the fast fashion model in recent year has become besieged by market forces, public perception, and competitors. Fast fashion is the reduction of the buying cycle, and minimisation of the lead times; producing, and delivering products in the shortest timespan as possible. So how is this a problem? Rather than the process itself, the problems arise from symptoms of the fast fashion business meddle, as will be explored in strategic issues. Recent company performance, as assessed by Christie (2017) serves to validate concerns, at the ends of fourth quarter of 2017. H&M sales declined by 4% whilst operating profit 14%. A strategic revision is necessary if H&M is to overcome its current tribulation, and emerge as a company with long-term sustainable vision.

Strategic Issue 1 Rise of conscious consumers

Strategic Issue 2 E-commercial Entrants

Strategic Issue 3 Strong corporate culture, the spirit of H&M

2). Analyse fully the resources and key capabilities of the organisation plus key factors that give the company its competitive advantage. (40%)

3). Assess the extent to which the organisation’s competitive strategy addresses its strategic issues, and suggest improvements where they might be justified. (30%)

A further 10% is available for clarity, structure, grammar, correct Harvard referencing and overall professional presentation showing clear report style.

Best answers will draw explicitly on strategic concepts and analysis from the module and apply them to the organisation. Clear referencing (Harvard system), professional presentation with appropriate diagrams/tables are required.

Again note the report should not exceed 3,000 words. Appendices are allowed outside this limit but NO MORE than 6 pages.

The cases (with initial links) from which you should choose

Case study

Online links for more information

Johnson et al.

1

H&M in fast fashion: continued susses?

http://www2.hm.com/en_gb/hom

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