Free Essay

Management Practices of H&M

In: Business and Management

Submitted By amahidayat
Words 1044
Pages 5
1. Introduction
Basically, business cannot run efficiently and effectively without any management practices. This report will cover about the analysis and development towards practice of management. The author considers there are so many variations of management practices, it depend on the countries that may have different cultures and situation in which business can be accepted.

2. Background to Company
Erling Persson established H&M in 1947, in Vasteras, Sweden with only provide women’s clothes and called Hennes. Hennes refers to Swedish word means hers. In 1968, Persson bought the hunting and fishing tools named Mauritz Widforss in Stockholm and the availability of men’s clothing began, so the firm started to offer both women’s and men’s clothes and the name Hennes became Hennes and Mauritz, abbreviated to H&M. After that, the company has continued to expand their business through rapid expansion.

H&M is top fashion retailer in Europe and it is built with a strong corporate culture, which is explains how we work to achieve our goals and objectives. There are over 94,000 employees who work for H&M and today approximately 2,700 stores are extending across 48 markets in Europe, North America, North Africa, Asia, and the Middle East.

1. Product Our company provides fashion collection for all gender starts from kids until adult. Those collections include clothes, shoes, bags, accessories, and other fashionable things. The company also has a group called H&M Group, which includes H&M Home and COS, Monki, Weekday and Cheap Monday. Those brands are actually independent brands that have their own fashion signature.

2. Corporate Responsibility and Competency The basic business concept of the company is to provide our costumers fashion and quality at the best price or in other words H&M offers fashionable clothing for cheap prices. At H&M, quality means the products have to be manufactured under good conditions in order to meet our costumers’ expectation.

3. Environmental Factors Affecting the Company

1. Technological Innovations Nowadays, technology has made something that impossible become possible. All of people around the world have a chance to shop at H&M through with only a few simple clicks.

The website is designed for society, the media, people who looking for jobs, and shareholders. All of the information on the H&M website, such as collections, campaigns, and location of the store is always updated so the costumers can always find out brand new information from H&M through Basically, the website is mainly aimed at costumers who loves to open up and shopping for H&M collection directly from their home.

The advantage in communication and technology of transportation makes H&M easier to running of its operation like shipping the products to our costumers worldwide. The company always keeps the product’s quality in a good condition until it received by the costumers.

Another technological advance is H&M able to advertise their products through a huge billboard that usually displayed on the road.

2. Global Consumer Preferences The distribution of H&M’s products may different in one country to another, a major cause is due to dissimilar costumers tastes and preferences of fashion.

One instance of this is that the company does not distribute winter outfits such as coat in Singapore as much as in Europe. The costumers in Singapore would prefer outfits like shorts and t-shirts because obviously there is no winter season and consequently the winter outfits may not sold.

The stores size, the location of the store whether it is located in a big city or in a smaller town are taken as consideration as well as costumer preferences, but still H&M will always choose the best business locations. High fashion attire will be produced more in big cities while modern basics are distribute to smaller towns which usually costumers demanding simpler fashion.

3. Economic Environment Economic environment means those economic factors, which can affect the working process of the business. The following economic factors are affecting the company:

a. Inflation Inflation is the condition where prices of goods or services sharply increased and consequently the costumers are may not able to buy goods that offered by our company. Due to this problem, our company tries to figure it out by giving alternative strategies.

Discount is one of the strategies that may be effective. Perhaps there will be more costumers who attracted to shopping at our company because of discount.

The term ‘Buy one, get one’ is another tactic to magnetize the costumers during inflation. This line of attack also leads the increasing of costumers.

b. Currency Exchange Rate Each country has different currency and it is affecting the company’s business.

Exporting becomes relatively expensive and sometimes makes the company a loss. This situation is brought about by the domestic currency goes up against other countries.

In order to deal with this problem, we should decide whether take a profit cut or increase the prices but as a result, it makes lower demand from the costumers.


4. Analysis of Current Practices of the Company
The following structure is used to explain our current practices to be more efficient and effective in running our business.

1. Leadership Role Basically, leader has a role to energizing, inspiring, motivating, and guiding their employee in order to give them a spirit to do their job and the company’s objectives can be reached.

Energizing, inspiring, and motivating means the leader

Training program for our employees is the most important key to our success. H&M is convinced that by providing training to our new employees they can learn our concept and culture to know how we run our business also how to achieve our objectives in the future. From training, we hope that our employees are able to grow and evolve.

Whenever we employ new employees to work in our company, we always have to ensure that they are signed into our company in a consistent, efficient, and have high quality manner. Those things are requirements due to our rapid expansion and also to compete with other organizations. The approach of training is blended between two things, whereby classroom sessions and e-learning are mixed to form methodology of teaching that is simple to duplicate internationally.…...

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