H&M in Accounting Essay

The following analysis of Porter’s 5 Forces Model will help in determining the threats that my be present now or in the future and help determine opportunities and decisions regarding the marketing plan.

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,

1. Following Sportsman’s shift in competitive strategy, what are some considerations for the company’s human resource management practices?

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.

1. This question addresses the effect of Microsoft’s software capitalization policy on its financial statements. Ignore any potential tax effects.

First, we will take a look at their primary activities, these are inbound logistics, operations, outbound logistics, marketing and sales, and service.

Assess the degree to which the firm’s accounting reflects the underlying business reality. Identify accounting distortions and evaluate their impact on profits and the sustainability of profits.

1.Briefly describe reasons for Phillips and Matsushita to operate internationally. Why do they do it?
Describe the international strategy of Phillips and Matsushita using the international strategy classifications we discussed in class (e.g., localization, transnational, global).

Develop a value chain of six to eight items for Tartan Corp described in Problem 2-36, why would the value chain be useful to a firm like Tartan?

Even though H&M follows a strategy which differs significantly from Inditex’s approach it is the closest competitor from the financial point of view. H&M differs from Zara because it outsources all of the production, it is more price oriented and spends more money on advertising. But both companies are based in Europe, are fashion forward at lower price retailers, and have a strong international expansion strategy. Exhibit 6 indicates that the financial results of Inditex and H&M seem to

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.

3. Describe the competitive strategies used by each of Williams-Sonoma’s competitors. Which of these are most effective?

The H&M guarantees value for their low pricing. This strategy of low prices has made the company very successful in emerging markets, according to Jepeson (2014). From the research conducted H&M seems to be practicing a cost based pricing model. The two major constituents of the brand pricing is the high fashion and the lower cost. The company collaborates with renowned designers in order to offer innovative product design but manages to keep prices low through the manufacturing

only business activity is to sell pod racers imported from PD. ID pays a 20% import duty based on