MGT 220 Term Project- H&M
Part 1
H&M’s Mission/Vision 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.
H&M’s vision is that all their operations are run economically, socially and environmentally sustainable. They believe that affordable fashion with high quality can be produced and sold in a way that is both fair and sustainable to the
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Instead of owning their stores, they lease the store properties, which gives them the advantage of flexibility in a constantly changing market. This makes it possible for H&M to always have their stores in the most popular areas in all markets. In order to become even more sustainable H&M is constantly working on making existing and new store more sustainable in the long term, by using more environmentally responsible and efficient energy and water systems, recycling waste and by choosing the most environmentally sustainable materials such as recycled materials. H&M’s expansion plan incorporates all of the H&M Group, including H&M, H&M Home, Monki, COS, Weekday, Cheap Monday and & Other Stories (Expansion).
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,
Kohl’s is interested in taking a step in the right direction by reducing their biological footprint by seeking out innovative solutions. They are finding alternative energy sources and using energy efficient ideas and implementing them in various stores across the nation. These ideas range from recycling hangers to building environmentally friendly buildings. Kohl’s has dedicated their time to creating energy efficient buildings when they started putting ideas together in 1998 as they realized putting the time and money into such an investment would pay off in the long run and in return save them money. They started partnering with EPA’s Energy Star to look into existing buildings and plan ahead for new buildings when they would be
"Our environmental vision is holistic," says Shona Quinn, Sustainability Leader. "We believe in paying attention to what happens in the field, the dyehouse and our customers' washing machines. Our goal is to design out negative impacts—and design in positive change."
"Not very well," Elliot replied as he pressed his fingers of the continuously growing red stain on his new white shirt. The cause of that stain was not quite something Elliot wanted to see at all, so he simply kept his fingers pressed to his side as gunfire rained fiery hell on the people behind him.
The apparel business was one of the company’s largest merchandise in terms of revenue and it generated more than 30 percent to the retail sales of all Disney-licensed products. (Jick & Peiperl, p. 422) I believed that Hightower made the appropriate choice when he added a team to address these issues to develop a strategy. The question is how was the strategy addressed? In an organization such as Hightower there should be a streamlined approach on how to deal with this. Four manufacturers were
Marks and Spencer is a very environmental friendly company. -They are implementing their Plan A to protect the planet.
While 80% of young women still go for low prices, 44% of 17-26 year olds would prefer to wear more sustainable clothing (Guardian, 2017). This suggests that the young people in society are actually willing to buy sustainable clothing, but at the moment they cannot afford to. Thus leading to Inditext greatest opportunity in the future : fully sustainable fashion brands, at low prices. It is really a no-brainer, but of course the difficulty comes in the form of finding sustainable practices, at low cost. It also requires an ethical shift in the management team, to prioritize sustainability over short term profits. Real long term success is possible, if Inditext can educate their employees into believing that sustainability and profitability go hand in hand.
On their website, H&M states, “H&M’s Conscious Exclusive collection shows how the best style can be mindful of the planet, to help protect it for the future. It’s such a desirable collection, with pieces made from sustainable materials that you want to wear for seasons to come.”
H&M’s online environment, similar to that of store’s, is dependent on the layout, atmospherics, theatrics and interaction. In the online environment the atmospherics is dependent on the colours and hues used in the website, theatrics depend on the animation, images and vividness, and finally interactivity depends on the social presence in the website. On a holistic view, H&M has a good website and successfully caters the needs of its customers.
Ikea was founded in Älmhult, Sweden, in the year 1943 by Ingvar Kamprad. Despite being founded in Sweden, IKEA Group is headquartered in Leiden, Netherlands. Since 1982, Stichting INGKA Foundation, a foundation in the Netherlands, has owned the IKEA Group (8). Purpose for this is to fund charities through Stichting INGKA Foundation and then reinvest what they have earned back into IKEA Group(8). IKEA Group has about 290 stores worldwide in twenty-six different countries. Not all are owned by IKEA Group, some are ran by other franchises. IKEA is the largest furniture retailer in the world with an annual revenue of 35.1 billion Euros (3). They focus on the demand of their customers and have zeroed in on the factors that drive customers to purchase products (3). Their low prices and extensive selection of products that are simple to put together have propelled IKEA to the top of the furniture retail business. The culture and values of the company are inspired by Swedish society and Inhvar Kamprad , the founder(4). The culture of IKEA brings together IKEA employees in their goal to make life for people better. They share the same belief that many people should be able to customize and live in a home they dream (4). Swedish roots have shaped IKEA into a company that holds their values in high remarks, while employees strive to work hard, complete tough challenges, use common
Sustainability turned into a global trend and became an integral part of (fashion) design and production process [1]. It is a stage in the life cycle of fashion garment. Why so? Because it explores approaches such as low impact textiles techniques, zero waste techniques, repair and maintenance techniques, closed-loop design systems, low-impact manufacturing technologies, mono-materiality, design durability, and up cycling. Sustainable fashion, also known as eco fashion, is part of the larger growing trend of creating more sustainable, environmentally friendly and ethical products. Christian Kemp-Griffin, chief mission officer at Edun, an eco-fashion brand that focuses on fair trade for its producers in Africa, says, “Ethical companies make thoughtful decisions and sell product thinking about the people who make the clothes – wages, human rights, health and safety – and the planet – energy use, biodiversity, organic – which boils the definition of sustainable, ethical clothes down to: product that benefits people and the planet”.
In addition, H & M is the world 's first fashion garment company to implementation of the global recovery action, which offers its customers an opportunity to recycle old clothes or unnecessary apparels. On the other hand, H & M try to save displacement, in order to achieve this ambition; they discover a way to change in denim martial and some production methods, which requires large amounts of water for other products. Also, they educate workers who work in their garment factories about their own rights and provide relevant class of fire safety training to their suppliers and managers. Because of environmental consciousness, H&M launched the conscious collection and the supply chain is different compare with the traditional one. To investigate the differentiation in sustainable collection and what its supply chain need to change in different aspect and how the fashion industry can address sustainability.
For H&M there are many threats and vulnerabilities identified with style, climate conditions, macroeconomic changes, maintainability issues, external factors in production in other countries, and foreign currencies. Working in fashion business can be a danger in itself. H&M Designs could have a specific timeframe of realistic usability, and they’re maybe a certain danger that some clothing pieces won 't generally welcomed by clients. Inside of every idea it is essential to have the right volumes and the right balance between the styles and the most recent fashion trends. Every collection must accomplish the right integration between sustainable design and quality at the best cost.
Many people have a dream of owning a business that involves high-end clothing and accessories. After that dream of theirs comes true, they begin to come up with new ideas and ways to make their company more successful. Majority of the people who work and run a clothing line are very creative and inspired by new ideas every day. For example in 1947, the clothing store, now called H&M, “opens in Västerås, Sweden, selling women’s clothing. The store is called Hennes.” (H&M History) About two decades later, “Founder Erling Persson buys Mauritz Widforss, a hunting and fishing equipment store. Sales of men’s and children’s clothing begin. The name is changed to Hennes & Mauritz.” (H&M History) This example shows that after many years of a business, new ideas arise and companies expanded their lines in hope of better profits and outcomes for the store.
Just like any other sustainable company, for the ones in fashion it is nearly impossible to be truly sustainable. This is because the concept of fashion is one of change, and the process of constant change generally produce a lot of waste. Basically, this cycle is referring to the things in your closet that you only wore once and by the time you wanted to wear it again it was “out of style”, so you simply don’t wear it again and buy something that is “in style”. It’s ok, we are all guilty of this at one point.
Fysiske ressurser: Hennes&Mauritz har over 1500 butikker, plassert i tilsammen 28 land, og gjerne i de mest attraktive lokalene. Butikklokalene vil være de viktigste ressursene for H&M, når de ikke eier egne produksjonslokaler eller –utstyr.