Heypih

Hones and Mauritius, or too known for short as H&M, is a big meg dollar Swedish agency comp whatever which engages in designing and sell devise products from cosmetics, come forthwear and accessories for men, women and children. Operating all over the globe, without 43 countries with 2206 memorys, there ar various strategical departures which H&M bring to address to reinforcement the telephoner moving forward and increase the market. H&M has a large international incumbents including Ezra organism its most evidential competitor.Ezra has non been or so for nearly as long as H&M and it is already being considered a serious challenge which makes H&M questions the sustainability of the formula at hand. Using strategic management topics we rear come on discuss this furnish. To begin the PASTEL Frame domesticate give the gate be utilize in relation to strategic management and H&M. By employ PASTEL we can categories environmental itemors into specific key types, which be political, sparing, social, technological, bionomic and legal.These will help us to explain that environmental factors do non Just revolve just about economic forces but other(a)(a) forces which sustain been mentioned and all atomic number 18 interactive with one another. Politics are forces both(prenominal) through and passim the globe and in specific groups within areas which influence indisputable behavior and reactions. These influences can come from various political movements and concerned media. For illustrate H&M in the past opened up a store in Israels Jerusalem Malta Shopping Mall which is built in a previous Palestinian village of al-Malta.Since this village has been ethnically cleansed and caused those inhabitants to be referred to as refugees in their own land. This happened throughout the 1948 Naked and caused world all-encom red ink stand firm by activates at H stores. All those protests going on around the world gave a lot of negative reputation and un demand perplexity to H. Even though the Israeli Embassy in Stockholm believed that opening the store in Israel would help tit peace processes and clears to H it still did not affect the feelings of those protesting nor did it change the mood H handled the situation at hand.Instead H turned a blind eye to a massive humane rights violation and disregarded completely what was happening and this caused activists to begin the world wide approach of operation Boycott. Something similar did happen in the past with a different clothing cross named Mummy, but they did not follow through with their stores in Israel and till today will not open a store until the apartheid system is dismounted. Additionally, in reference to Section C, Article 3 of the Responsibilities of transaction corporations and other production line enterprises (2003) H is actually breaching the regulations.It states that Business enterprises shall not engage in nor benefit from war crimes, crimes against humani ty Other violations of do-gooder law and other international crimes against the human person as delimitate by international law, in particular human rights and humanitarian law bionomical factors in PASTEL framework is anything that falls under environmental issues which is in spades something relevant to H&M. H&M produces a special parade named the conscious collection employ only sustainable materials.As mentioned on their website they are trying to push for fashion for the future. With these commitments come seven promises excessively tell on their website. Provide fashion for conscious customers Choose and reward responsible partners Be ethical Be climate smart Reduce, reuse, recycle physical exercise natural resources responsibly Strengthen communities Under the PASTEL framework, technological is any influences that H uses for their material. Thanks to these, H was ranked number 21 out of 100 for the most label global brands according to inter brand in 2011, with a bra nd prize of 16. Billion dollars. In par with close competitor Ezra ranked in at number 44 with 8 billion dollars worth of brand value. This huge difference can partly be attributed to H&Ms long term advertising campaigns with high-profile celebrities. In order to enhance the value of its brand name, H spends around 5% of its revenue on advertising. H has also established a lovesome social media presence. The company aims to ferment part of its customers daily lives through its pages on Backbone,Twitter, Instating, Google+ and Youth as soundly as the Chinese social media networks Yuk and Sins Webb. by these networks followers share ideas and opinions and get quick answers to their questions. This is serious for this day and ages were pack do not want to wait for too long. Also unsanded fashion videos and catwalks are ceaselessly uploaded to Youth with millions of views. The App for uses is also juvenile which offers the in style(p) collection and campaigns and find out wh at is new.In relation to strategic management its weighty to note the Five Forces Framework hen determining the belligerent forces. If an application has low competitiveness then there will be an expect high level of profit then in comparison to an industry with high competitiveness. H has high level of competitiveness with Ezra therefore their profit margin is close on a large scale. By use Porters Five Forces Framework we can measure 1) bane of entry 2) holy terror of substitutes 3) power of buyers 4) power of suppliers 5) extent of tallyry between competitors.In regards to competitors and rivalry, the competitive rival for H is Ezra and a substitute would be somewhere like rank/Smart. Ezra would be a very dominant establishment to H with its products being very similar. A low differentiation between companies is also an issue as both are assumed to be similar when verbalise about with consumers. The threat of entry works in Hs advantage as they set out different produc ts which Ezra does not offer for example the conscious collection. The threat of substitution is a big one for this industry as Ezra and H&M are very closely knitted.Firstly being price/ cognitive process rations. Saras products are slightly higher(prenominal) prices than H but overall the prices/performance ratio is very tight. SQ. Drawing on relevant topics in this unit, what do you consider to be Hs rare and unreproducible strategic potential/ sis? Explain your answer. How do you think H&M can get a line and leverage or exploit its rare and inimitable strategic capability/sis to achieve or sustain its competitive advantage and reply to the critical issue that you grant place in IQ?Upon interrogation and further reading into the topic I would consider the fact H&M has its own kitchen range the conscious collection reaching an audience of those who are have the want to help the environment to be its rare and inimitable strategic capabilities. H & M, is a environmentally c onscious company, which provides economical fashion products around the globe (43 countries) in order to fulfill the seven commitments to the communities. The economic crisis was really strong and it may increase the interest of the population for rubbishy and fashionable clothes.Not only has H found a go against in the fashion market, but they have found an up and coming issue and were able to reach it with a positive outcome. With all the issues worldwide, H knew it needed to invest its money into the right things to keep sales up and to also bring new sales in. With H having a big component part in the fashion industry, they didnt want to come under any more negative interrogatory as this would bring a negative lore of the company. This is where the idea came across with the plan for using only sustainable materials for the kick of the new range, the conscious collection.Along with this came certain commitments which included, adopting ethical practices, improving working conditions and using natural resources responsibly. The decision to introduce the range and commitments was structured very thoroughly through its strategic capabilities as these do have the ability to can to a long term margin and also a competitive advantage. H&M followed Tech with the three generic types of dynamic capabilities as this has become the standard and most common practice in industries.The first crest is sensing where H has realized that there are new opportunities. No other fast fashion clothing brand has introduced an environmental palsy-walsy range at the moment in time so it was the double-dyed(a) idea. Next point is seizing is when H&M replaced the actual gap in the market with the line. Lastly reconfiguring is basically what H are constantly doing with its update of the line. As new fashion comes in and out of indurate constantly, H need to keep its new line up to date.As you can tell H has big threshold capabilities which are needed for an organization t o keep up to date with the requirements in the fashion market and with other competitors. In strategic management mindset using BRIO is cardinal to gain competitive advantage. To begin with the product which has been introduced by H&M needs to be of value to the customers so it can generate higher revenue or lower costs to the business. So in this instance this product hadnt been introduced to the fast fashion oral so the value of it is quite a and exciting for the industry. therefrom H&M with this product has taken advantage of its opportunities and threats, understands its value to customers and considered the cost. Next is the need of the product to have rarity. If a product is introduced which is precious yet common throughout various competitors, then its very improbable it is going to be a major source of competitive advantage. Therefore its important that the introduced line is something rare and will bring customers to the shop especially to view and purchase this line. As you can tell he strategic capabilities that allows H&M to be advanced is not as straightforward and mere(a) as suspected. In this introduction to this line H&M did keep in the mind the next step being the Inimitable capabilities. If other competitors were to introduce something along the same lines they would find it difficult and costly to limit or even to substitute therefore would less likely be able to match up to H&M. Lastly H&M needs to be suitably organism to support all these capabilities.They already had the support of the formal and informal management control systems therefore they were blew to amply take advantage of the given capabilities SQ. Drawing on relevant topics in this unit, explain how H&Ms culture as suggested by the belief of H&M influences the current strategic position of H&M as well as its ability to respond to the strategic issue you have identified in IQ . An organizations culture is the behavior of those people within the organization and all the attachments to the meanings behind their behaviors.It revolves around their visions, language, assumptions, understandings, beliefs, habits, norms and values. Its basically how they do things from where they are in the organization. In any organization, culture has an influence over their strategy. Even the fact the fashion industry has a certain culture would affect the appearance H&M run their strategies including the different countries and cities H&M would have issues in relation to geographic based cultures due to the fact they have stores in all parts of the world.Each city would have its moralities and the usual mien to do things from their knowledge which would differ from the same shop somewhere else. Its important for companies that run internationally to understand such differences H&Ms hilltops links in to the followed and believed culture. From day one H&M wanted to make fashion affordable for everyone so it was something they stuck by quite strongly. Throughout the years of passing through different managers and management styles the companys culture still relieved on Reeling Persons style of sticking to central values and beliefs.Even the 7 codified event values for H&M link into the rare and inimitable strategic capability, and they are 1) Keep it simple 2) Straight forward and open disposed(p) 3) Cost conscious 4) Constant improvement 5) Entrepreneurial savor ) team work 7) Belief in people Within H&Ms spirit is the amazing way they really focus on their employees involvement. Because H&M has this philosophy of participatory management the company is viewed as one with experimentation, empiric learning, fast decision making, and willingness to take initiatives and try new ideas.These are the pillars of the company and without these H&M wouldnt have the culture it has today. The active encouragement of this spirit is another key ingredient through all organization levels. This way, new things are encourages between purchasing managers a nd the understanding that mistakes are okay is followed through at all levels. Even managers in the front end of the business are encouraged to experiments with the interior and exterior of the shop.Decoration, lighting, colors, clothes displays and even side are swiftly changed depending on sales and preferences of customers. Although any new range which may be introduced must be bounded within H&Ms core ideas and values, which the conscious range clearly does. One of H&Ms major strengths are its fantastic brand imagine and the costs of purchases. H&M has established a strong culture which is self-motivating for employees by creating unity and a high skilled work place.The company benefits from a good fancy from the customers and they have a strong fame everywhere in the world convey to its huge number of outlets. Also the prices that H&M offer to its customers are really competitive thanks to the cost saving management way of the company. H&Ms environment has a very positive o utcome throughout all levels of the business and this reflects solely on the complete imagine H&M perceives. The fact that employees get a say and get a chance to get involved in all levels makes it have such a constructive workforce.H&M has lots of freedom for employees to move around through levels of the organization but this has come under some scrutiny as there is no way to point the blame if something goes wrong. This doesnt work for everyone but for those who it does work for, it has a very motivational feel.