Pestel Analysis For H & M

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PESTEL Analysis for H&M Politics As H&M is a global company and they don’t have their own factory to produce the products therefore they have their supplier factories worldwide around 1,900 factories so the challenging that H&M have been facing mainly from countries like Bangladesh, India and China which it is subjected to custom duties recession. The major political that affecting H&M are the restrictions on the imports, exports, international laws and regulations in each country as it is not the same and it is challenging for H&M. Also the stability of the politic where they supplier factories and store are located is also another factor that affecting H&M because this can cause the damage to the business. It is very important for H&M to…show more content…
It is very important and crucial for H&M to maintain their position for best offer and competitive pricing strategy, efficient supply and inventory management system in order to provide the product to meet consumers demand. As a global company which H&M expansion their stores in so many countries so the interest rates, inflation, currency rates and corporate tax are the impact factors for an international business. In 2007, H&M’s transfer pricing model in line with the OECD’s transfer pricing guidelines which this structure allow H&M to grow for future expansion. This is the very important thing about the H&M’s Transfer pricing “transfer pricing documentation: To extent possible, H&M prepared transfer pricing documentation for its various inter-company transactions in order to meet the local transfer pricing documentation requirements of the countries in which the subsidiaries are located” . For international business, maintain best price offer and stable supply chain management at the same is crucial and also taxes, import laws, interest and inflation in different countries make it challenging for H&M to manage especially for the supplier factories (not so much for the retail stores) so it is important that H&M manage their supplier factories
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