ANALYSING THE RELATIONSHIP BETWEEN STRATEGIC MANAGEMENT AND LEADERSHIP
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.
I believe that H&M’s future growth depends a lot on how they will expand online and their sustainability. H&M launched their online store in the US in 2013, but has had some negative response. They offer free shipping, but the costs for the returns will be deducted from the credit of the returned merchandise. Costumers believe that returns should be free or that they should have the possibility to return in stores, which at the moment is not possible. For H&M this is an issue because of the high volume and costs of returns. To stay true to their sustainable image,
The company H&M is a Swedish multinational corporation which lies in the fast-fashion industry which operates in 3900 stores in 61 different markets around the world. In 2015, it was ranked 21st in the best global brands with its next closest rival Zara ranked 30th and Gap is not even placed in the top 100 brands (Best Global Brands, 2015). In the past fiscal year, H&M has generated high profits and its revenue reach $22.3bn (H&M, n.d.). In terms of profitability, Zara is considered its closest rival with revenue of $23.7bn in the past fiscal year (Global 2000-Forbes, 2015) H&M’s vision is to provide fashion and quality at the best price in a sustainable way in order to attract young, modern and cost-conscious customers.
This report contains the analysis of value and culture of reputable apparel retailer H&M, as well as three analysis method, which is PETEL, Porter’s five forces, and VRIO framework, to analyse the external influence factors, competitors, and competitive advantages of H&M.
* Procurement: As it is the second Europe’s cloth retailer company, for the production H&M uses a lot of material and workers so its mains recourses are material, labour and energy. That is why small changes in prices can affect the company’s profit a lot, and the fact that it does not own any manufactories causes some problems in controlling the production’s prices. However, not owning the factories can be an advantage in some cases. Indeed, if a problem appears, H&M can easily change its suppliers. Moreover, due to its huge size, H&M can easily manipulate with its suppliers to have the best quality at the lowest production’s price.
The paper that I 'm writing will help you to gain information on how Strategic Management and Strategic Competitiveness play hand and hand when dealing with a business. The business that I have chosen to write about is Nike. I have always wanted to know the practices that Nike used to make their business last this long and how have they been so successful. I will explain to you how globalization and technology changes have helped or hurt the company and the major role that it has played. I also plan to construct a plan to see how my corporation could earn above-average returns and increase their gaining potential. I will explain Nike 's vision and mission statement and show how this had allowed them to continue to be one of the most outstanding business in this day and age. In turn, I plan to show how each or stakeholder plays an important role in the success of the corporation.
Hhgregg, Inc. is an electronics store company that is worthy of investing in for a multitude of reasons. The history of hhgregg indicates that they place a strong emphasis on customer service, which is why they are so successful. Hhgregg also has many important initiatives for the future, such as redesigning all of their stores, continuously retraining employees on customer responsiveness, and implementing a stringent corporate governance program. These valued-added initiatives will help hhgregg grow in the years to come. Their biggest competition is with Best Buy, who owns the biggest share of the electronic store
Branding development should always go together with the vision of the company, it was pointed out by Chou; CEO of HTC that HTC will not blindly go for growth, and instead, it would rather deliberately focus on the “value”. A lot of time when a company is deliberately pursuing its’ growth, they lose its core values. Chou recognizes the importance of the economies of scale, but he would rather deliberately pursue the value that HTC can pursuit to its consumers. In other words, regardless of the business model, or brand of HTC; HTC focuses on creating their own core values. HTC is not entirely focusing on the value of technology or products; it also includes the value for innovation, brand, market, and management ability. HTC is no longer solely represented by a product, but to expand competitiveness in it’s over all capacities.
H&M’s values are simplicity, continuous improvement, team spirit, cost-consciousness and entrepreneurship. Their own designers interpret the current fashion trends and create fashions that could be accessible to all. They bring
According to company’s annual report (2016), H&M operates 4351 stores in 64 markets and E-commerce in 35 markets with total sales reaching 223 billion dollars. Germany was the largest market with approximately 16.7% of the total H&M’s sales, followed by UK and France, with 6.8% and 6.1% respectively. The largest international market is the US market corresponding to a 12.1% of total sales, followed by China (4.9%). H&M is a traditional company with the founder family, namely the Persson family, holding the 70.1% of total votes and 38.5% of total shares
Hennes & Mauritz (H&M) is reputed as an expansive and successful Swedish fashion company. By year 2008, the company operates over 1,700 stores in 38 countries with more than 76000 workers throughout Asia, North America and Europe. The company deals with a range of cosmetics, clothing and accessories for both women and men. H&M runs its business through a set of strong values as a commercial simplicity, mind-set, entrepreneurship, and cost-consciousness and constraint improvement.
5. The essay explains what the important parts of Marks and Spencer’s (M & S) current and historic strategies are. The value chain is analysed to explain M & S’s competitive advantages. The value chain focuses on inbound logistics, operations and marketing & service analysis of M & S. Furthermore, the essay interprets what the problems of present strategies M & S will meet in the future and what new strategy M & S may follow.
As adaptation of entry mode in different markets, H&M get success in international expansion in retailer industry and now become market leader in this industry.
H&M builds its relations with suppliers on long term co-operation and partnership, that enables implementing collective initiative for improving working conditions and environment protection within its supply chain.
Q1. What do you think is the most critical strategic issue confronting H&M? Explain your answer by drawing on relevant topics in Strategic Management
The Capabilities of H&M combines ware with the physical infrastructure shops in the high street and win capitals in the world fashion window shop design.