1517 Words Apr 30th, 2015 7 Pages
The objective of this essay is to analyze the relationship between strategic management and leadership in an organization, to discuss its link as well as the impact and how leadership styles are adapted specifically in H&M (Hennes and Mauritz).
1.1.1 The link between Management and Leadership
Strategic management and good leadership play an important role in meeting the organization’s objective. The management is linked to processes and structures of the organization while the leadership is to the vision and values of the organization.
According to Buhler, (2001), leadership is more focused on revitalizing individual’s performance. Management, on the other hand, is
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Design Control, merchandise are designed within the company and manufacturing is totally contract out.
Quality Control, the management is focused with the essentiality of the quality with wide-ranging testing and making sure of the least nature damage.
As a leading company of fashion and retail business they always have to boost their business strategy among the competitors. The strategy of H&M has been developing along with continuous business expansion, price competitiveness and profitability and reduction of lead time. In terms of expansion, the company has expanded largely around 2,000 stores in the recent years and they also extended in business like home wares and online shopping store. Talking about price competitiveness, H&M do business with right merchandise from the right production markets, being cost-conscious at all levels and maintaining effective distribution producers. Hence, quality products are be sold in an affordable price that can always beat the competitors while making profit. Furthermore, H&M is using IT system to control sales and the stocks, for the company to react quickly whenever new trends are identified and to avoid procurement of goods which are not appreciated by the market. Likewise, H&M relies on efficient and integrated systems for inventory management which have been able to reduce lead times while ensuring sufficient stock management.
H&M is leading the way in following a strategy of vertical integration with distribution network.
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