Case Study: H&M in Fast Fashion: Continued Success. Essay

3149 Words Jan 8th, 2015 13 Pages
Title: Case Study: H&M in Fast Fashion: Continued Success.

Word count:2638
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.
Three new potential strategies are tested by using the model of Johnson and Scholes, and one proper strategy will be retained to carry out an Action Plan.

1. Introduction
In 1947, the incredible apparel retailer was founded by Erling Persson in Sweden. Over half century, Persson’s 34 years old grandson, named Karl-Johan Persson,
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In Andrew Brown ’s (1998, Orgnizational Culture, pp.176) book, he offered the concept of organizational culture, referring to
“Organizational culture refers to the pattern of beliefs, values and learned ways of coping with experience that have developed during the course of an organization’s history, and which tend to be manifested in its material arrangements and in the behaviors of its members.”
The H&M culture is defined by a number of enduring values and values are the deepest level of culture. The organizational culture of H&M continued to rely on the values from Erling Persson, according to his strong business wideness, involving frugalness, effective decision-making and commitment of responsibility. Those mentioned above are fundamental elements of ‘H&M’s spirit’, which make clear that how to do business in H&M. For example, the key element to make sure that H&M’s culture is alive is to combine the spirit into the recruitment process and training of Human Resource Management (HRM), which lead to the internal promotion and job rotation, resulting in growth of H&M (Regnér and Yildiz, 2014).

3. PESTEL Analysis
The PESTEL analysis is used to identify the external factors that could exert an influence on the operations of organizations. The aspect of Political, Economic, Social, Technological, Environmental, and Legal issues will help the reader to understand the

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