A risky business
Dodie: We are all here now. As you know that Zelal Sulen is our new boss now. After she took up the official post, she found that Hi-Style is out of touch with its target consumers and is losing direction. As the member of manager consultants, for this point, today we need to think out at least two options to advise her to improve the situation. Am I understood? And think a while... Okay, let's make a start. Who want to speak first?
Lily: Well, in my opinion, Hi-Style could allocate £10m to new investment in the business. For example, it could improve distribution and sales through an exclusive agreement with a major retailer, which could provide a steady marketing channel. Second, to launch new product ranges with major
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So next, we will discuss which one is best and select the second choice. Let's start with Lily's option. We called the option Organic Growth. What do you think about it ?
Kelly: I think ,Such investment, to some extent, costs too much. And it will also undergo financial risks. Besides, the exclusive agreement is a single way, it may get press from the major retailer. In the mean time, not all brand development consultants can make brand image improved.
Lily: yes, it's true. Every coin has two sides.it can't be denied that option 1 will offer a chance to heighten its competitive strength. Such investment is obvious in Hi-Style's fovor as to optimize its structure. Employing brand development consultants may also accelerate its brand revolution, improving its former brand or even building a new better one.
Dodie: It sounds reasonably. So, what about the second option, the acquisition of smartwear?
Ann: Unfortunately, the company is in financial crisis. Last month, Smartwear made deliveries worth 2 million to two new customers in the Far East that have just gone into liquidation and the stock has disappeared. Worse still, there has been bad press about working condition in overseas factories. The financial risk is also a big problem.
Serena: But it will offer Hi-Style many new opportunities. Firstly, it can help expand business in the field of work clothes. Moreover, Hi-Style can make full use of its good sale agents and strong
5) Evans should approach both Arden & Co. as well as the VC representing Helen Neil Fashions. The combination of the prestige of Arden and a VC firm experienced in the Fashion industry would put the company on firm financial footing and make it easier to raise future financing. Evans should retain a majority stake but not make the exit strategy a deal
By upgrading their brand, it will help to identify the qualities of the products that set it apart from the competition. They have to make the
Mercury’s parent company then branched out to complementary line of apparel products. With poor performance, Mercury is being sold off.
Hennes and Mauritz AB is a Swedish retail-clothing company, which has expanded enormously in the past years. H&M has grown from one single store in a small town in Sweden to a multinational ranked as the second largest global fashion retailer with its 3,600 stores in over 58 countries and $22 billion in annual sales (The World’s). This incredible story of success makes us wonder about their strategies and how they managed to get where they are today.
Catherine, W., Tat Pui, L. and Henrik, U. (2011) The Roles of Branding for a Brand Entering
In this report, values and culture of H&M will be clarified at the beginning. Following that, PESTEL, Porter’s five forces, and VRIO analysis will be elaborated. Three new strategies will be tested and one relatively appropriate strategy will be used to make action plan.
stems from two main factors, lack of awareness of the company’s products due to limited
6 – Products and consumer perceptions are variable, so changes in strategy may be required to better address customer needs, technological developments, new laws and regulations, and the overall product life-cycle. By monitoring external conditions and shifting product development accordingly, a company can better target its consumers and learn to react to their needs.
The issue of risk scenario carries immense importance for most of the hospitals that are part of the healthcare setting. However, there is not only one scenario that can affect the hospitals but
The running and operation of businesses poses the risks of loss and liability in the case of tort negligence or breach of contract. However, the business legal structure of a given organization greatly determines the risk of exposure to personal liability (Bevans, 2006). The paper investigates and compares the risk of exposure to personal liability in five business entities and explores how the risk can be mitigated. Business personal liability risk is classified as limited and unlimited. In unlimited liability, the personal assets in addition to business assets can be seized (Hillman & Loewenstein, 2015). Limited liability as seen in limited partnerships, corporations and limited liability companies significantly reduce the risk of exposure to personal liability. Opening a limited partnership in addition to taking insurance to protect the business offers the best chance of averting the risk for personal liability risk (Schich, 2009).
One the main features of H&M is the rapidity of shifts in demand and respond to customers’ needs. In fact when necessities of customers change, in only three weeks H&M can create new items. A normal clothes company needs six months to create new collections or articles. That’s why H&M does many researches all the time to find out new tendencies or variations of styles, giving shoppers last tendencies clothes.
First of all, a strong brand can be seen as the condition for organisations to expand products, offer more service, and introduce new products (Chernatony and McDonald, 2003). Secondly, a strong brand can lead to growth marketing communication effectiveness (Keller, 2009). ‘To build a strong brand, the right knowledge structures must exist in the minds of actual or prospective customers so that they respond positively to marketing activities and programs in these different ways.’(Keller, 2003, p. 140) Furthermore, Kay (2005) asserted that the strong brand can be seen as a resource of management, which make brand extension easier and useful to build distribution network. Companies are not treated by the intermediaries (Chernatony and McDonald, 2003). Moreover, companies are comparatively easier to change price if they have strong brands. As Henderson, et al (2003) said, a strong brand can allow for premium pricing even still remain loyalty customers, which help companies to survive in the intensive competitive market.
Sweden 's Hennes & Mauritz, more commonly known as H&M, is a retail-clothing company, famous for its reasonably priced “fast fashion.” With 6 different brands sold in 3,300 stores spread out over 54 countries, the company is second only in size to its direct competitor Zara. H&M uses psychographic segmentation, targeting at customers who belong to the group of fashionable and trendy consumers, who see shopping as a social activity providing pleasure in their daily life.
In this report, an inside look will be taken on Hennes & Mauritz AB (H&M). We will analyse on it using PESTEL, Porter’s Five Forces and SWOT to get a clear concept of what H&M is today and where it can go. This positioning will be helpful in strategy designing.
One well accepted description of risk management is the following: risk management is a systematic approach to setting the best course of action under uncertainty by identifying, assessing, understanding, acting on and communicating risk issues. In order to apply risk management effectively, it is vital that a risk management culture be developed. The risk management culture supports the overall vision, mission and objectives of an organization. Limits and boundaries are established and communicated concerning what are acceptable risk practices and outcomes. Since risk management is directed at uncertainty related to future events and outcomes, it is