LDI7006M Business Improvement and Change Assignment Sample
LDI7006M Business Improvement and Change Assignment Sample
Introduction
- The entire study is based on a case study of the journey of H&M organisation which is one of the leading organisations in Sweden (Fashionabc, 2022).
- The entire case study reflects the journey of H&M and the way in which the organisation has maintained its competitive edge in this highly competitive market.
- The presentation aims at providing a brief overview of H&M and the milestones it has achieved during its journey.
- Its other aim is to analyse the best practice opportunities H&M missed and the required changes which must be made for business improvement.
- Other aims of the study include analysing the success and challenges faced by H&M along with its business improve efficiencies as well.
Notes: The entire study is based on a case study of the journey of H&M organisation which is one of the leading organisations in Sweden. The entire case study reflects the journey of H&M and the way in which the organisation has maintained its competitive edge in this highly competitive market. With the help of an innovative business strategy and the capacity to pair attractive designs with reasonable costs, H&M has positioned itself as one of the top business firms in the worldwide clothing and fashion market.
However, a number of significant rivals have threatened that dominance. Therefore, H&M must take this into account, assess the viability of their existing resources and competencies, and explore adding new ones given the digitalisation of the sector on the basis of which the case study is themed. The presentation aims at providing a brief overview of H&M and the milestones it has achieved during its journey.
Its other aim is to analyse the best practice opportunities H&M missed and the required changes which must be made for business improvement. Other aims of the study include analysing the success and challenges faced by H&M along with its business improve efficiencies as well.
Overview of the Company
- H&M is one of the most renowned multinational organisations based in Sweden which operates in the fashion industry throughout the globe.
- It concentrates on fast-fashion clothing. It offers a wide range of apparel to men, women, kids, and so on (H&M, 2022).
- It was founded in 1947 by Erling Persson and it’s headquarter is located in Stockholm, Sweden.
- It operates in more than 75 locations with more than 4,801 outlets with more than 1073.75 employees throughout the global countries.
- It is one of the most profitable fashion retailers in the globe which generated nearly $22.40 billion in revenue in 2022.
Notes: H&M is one of the most renowned multinational organisations based in Sweden which operates in the fashion industry throughout the globe. It concentrates on fast-fashion clothing. It offers a wide range of apparel to men, women, kids, and so on. It was founded in 1947 by Erling Persson. Its headquarters is located in Stockholm, Sweden. It operates in more than 75 locations with more than 4,801 outlets with more than 1073.75 employees throughout the global countries. It is one of the most profitable fashion retailers in the globe which generated nearly $22.40 billion in revenue in 2022.
Milestones Achieved
- H&M presently has over 4,600 stores.
- The company’s brand image has brought food unique success by collaborating with famous fashion designers (Ficks and Karmestål, 2019).
- According to Interbrand, H&M was ranked in the 30th position for being a valuable global business.
Notes: One of the premium milestones achieved by H&M is establishing itself as one of the biggest retailers in global fashion. H&M started as a single store in 1947. H&M presently has over 4,600 stores. The company’s online presence is in 47 markets as per the reports of 2018. The company’s brand image has brought food unique success by collaborating with famous fashion designers. Associating with celebrities has contributed to the company achieving a superior value in terms of brand. According to Interbrand, H&M was ranked in the 30th position for being a valuable global business.
Best Practice Opportunities Missed by H&M
- A lot of competition exists from companies like C&A and Marks and Spencer.
- The HRM practices require effective application and improvement (Sandberg and Abrahamsson, 2022).
- Best practices with regard to CSR have resulted in losing out on a lot of opportunities.
Notes: H&M had invested a considerably high amount in online and digital marketing. A lot of competition exists from companies like C&A and Marks and Spencer. H&M had missed an opportunity to establish itself in the online market by the underutilization of the knowledge and practices against the traditional competition.
The HRM practices require effective application and improvement. The employees of the company lack a sense of commitment. In a highly competitive world, creating a self-driven workforce is extremely important for H&M. Best practices with regard to CSR have resulted in losing out on a lot of opportunities. This is with regard to scrutiny over working conditions and payment of employees.
Required Change Management Practices for Business Improvement
- Procurement practices need to be adopted by the management (Wren, 2022).
- Motivational tools, as well as reward culture, are essential to be practised by HRM.
- Change in management is essential in order to identify future risks and trends.
Notes: Multiple change management practices are required in the distribution and logistics department of H&M. Procurement practices need to be adopted by the management. The use of ICT is essential in the warehouse system. A central infrastructure model is essential in order to improve the distribution and supply network.
Motivational tools, as well as reward culture, are essential to be practised by HRM. This is in order to increase the morale of the H&M employees. The use of digital technology is required in order to sustain itself in a fast compatitive business environment. Change in management is essential in order to identify future risks and trends.
Change Management Practices contributing to Project Success
- H&M is a global successful retailer driven by the skill of employees.
- The use of ICT tools is essential in order to improve the logistics system (Mickelsson, van Haren and Lemmink, 2023).
- Time management as well as innovation is brought forth by the use of ICT tools.
Notes: Change management practices in the HRM results in fostering a sense of commitment and responsibility. H&M is a global successful retailer driven by the skill of employees. Providing opportunities to H&M employees is beneficial for preparing them to face challenges.
The use of ICT tools is essential in order to improve the logistics system. Time management as well as innovation is brought forth by the use of ICT tools. Inducing strategic planning culture in the management of H&M is beneficial for effective growth strategies. Providing training to the staff of the employees fosters productivity and creativity.
Success Achieved by the Business
- Becoming one of the largest retailers in the world of fashion is a major accomplishment that H&M has attained.
- In 1947, there was only one storefront for H&M (H&M Group, 2023). Currently, H&M operates about 4801 locations.
- More than forty-seven markets are covered by the company’s online presence, according to information from the year 2018.
- It has achieved a strong online presence on social media platforms and improved its followers throughout the world on those platforms.
- Through working with renowned fashion designers, the company’s brand image has helped it achieve exceptional success.
- Making connections with famous people has helped the business build a stronger brand. H&M was placed 30th for having a profitable and successful multinational company, as per Interbrand.
Notes: H&M has achieved a lot of success throughout its journey in the fashion world. Becoming one of the largest retailers in the world of fashion is a major accomplishment that H&M has attained. In 1947, there was only one storefront for H&M. Currently, H&M operates about 4801 locations. More than forty-seven markets are covered by the company’s online presence, according to information from the year 2018.
Through working with renowned fashion designers, the company’s brand image has helped it achieve exceptional success. Making connections with famous people has helped the business build a stronger brand. H&M was placed 30th for having a profitable and successful multinational company, as per Interbrand.
Business Improvement Efficiencies of H&M
- H&M is a low-cost brand which is planning to reduce its workforce by approximately 1500 positions.
- Sustainable business practices are induced by H&M (Nguyen et al., 2021).
- Efficiency is induced with the use of technology and digital tools in the operations of H&M.
Notes: H&M is a low-cost brand which is planning to reduce its workforce by approximately 1500 positions. This is in order to foster efficiency as well as induced cost-effectiveness. Reduction in the staff is expected to save about two billion annually. Sustainable business practices are induced by H&M.
This is in order to make the optimum utilisation of resources efficient. H&M makes use of a differentiation strategy. This is in order to lower the costs incurred in production affecting profitability. Efficiency is induced with the use of technology and digital tools in the operations of H&M.
Challenges faced by the Business
- H&M faced several challenges throughout its journey. The primary challenge it has faced from the high market uncertainty.
- Customer preference towards products is rapidly changing from which H&M primarily faced challenges (Stein, 2019).
- Besides that, the intense rivalry also generated several difficulties for H&M in maintaining its competitiveness. For example, the business expansion of Zara became a severe challenge for H&M. For example, the business expansion of Zara became a severe challenge for H&M.
- On the other hand, the huge trend of digitalisation and fast-paced technological innovation also created challenges for H&M in its initial phase.
- Additionally, H&M also faced challenges from the retailer who offered similar products to customers at a lower price as well. Such challenges were faced by H&M throughout its journey.
Notes: H&M faced a number of challenges throughout its journey. The primary challenge it has faced from the high market uncertainty. Customer preference towards products is rapidly changing from which H&M primarily faced challenges. Besides that, the intense rivalry also generated several difficulties for H&M in maintaining its competitiveness. For example, the business expansion of Zara became a severe challenge for H&M.
On the other hand, the huge trend of digitalisation and fast-paced technological innovation also created challenges for H&M in its initial phase. Additionally, H&M also faced challenges from the retailer who offered similar products to customers at a lower price as well. Such challenges were faced by H&M throughout its journey.
Conclusion
- The entire study covered the case study of H&M which reflected its entire journey.
- The study covered the success achieved by H & M in making itself one of the leading fashion retailers of the globe.
- It has also covered its improvement through using various resources. It improved its business and increased its number of branches from 1 to 4801.
- Besides that, the study also covered the challenges faced by the business from intense rivalry, fast-paced shifts in consumer preference and market trends, and so on.
- The study also reflected the opportunities missed by H&M and the changes it made for improving its business as well.
Notes: The entire study covered the case study of H&M which reflected its entire journey. The study covered the success achieved by H & M in making itself one of the leading fashion retailers of the globe. It has also covered its improvement through using various resources. It improved its business and increased its number of branches from 1 to 4801.
Besides that, the study also covered the challenges faced by the business from intense rivalry, fast-paced shifts in consumer preference and market trends, and so on. The study also reflected the opportunities missed by H&M and the changes it made for improving its business as well.
Reference List
Fashionabc., (2022). H&M, fashionabc. Available at: https://www.fashionabc.org/wiki/hm/ (Accessed: March 22, 2023).
Ficks, M. and Karmestål, M., (2019). REPLACE OR REPAIR?-A study of if fast fashion repair concepts like H&M Take Care can affect the intentions to repair clothing. Available at: https://gupea.ub.gu.se/bitstream/handle/2077/60540/gupea_2077_60540_1.pdf?sequence=1&isAllowed=y
H&M Group., (2023). Market overview, H&M Group. Available at: https://hmgroup.com/about-us/markets-and-expansion/market-overview/#:~:text=In%201947%2C%20the%20womenswear%20store,and%20stores%20in%2078%20markets. (Accessed: March 22, 2023).
H&M., (2022). H&M offers fashion and quality at the best price. Available at: https://www.hm.com/entrance.ahtml?orguri=%252F (Accessed: March 22, 2023).
Mickelsson, J., van Haren, J.J. and Lemmink, J.G., (2023). Wrinkles in a CSR story: mismatched agendas in fast fashion service brands’ CSR reputation. Journal of Service Management, 34(2), pp.256-273. Available at: https://www.emerald.com/insight/content/doi/10.1108/JOSM-07-2021-0243/full/html
Nguyen, H.T., Le, D.M.D., Ho, T.T.M. and Nguyen, P.M., (2021). Enhancing sustainability in the contemporary model of CSR: a case of fast fashion industry in developing countries. Social Responsibility Journal, 17(4), pp.578-591. Available at: https://d1wqtxts1xzle7.cloudfront.net/67500990/Bai_viet_so_3_Q2_thuoc_ISI_-libre.pdf?1622713002=&response-content-disposition=inline%3B+filename%3DEnhancing_Sustainability_in_the_Contempo.pdf&Expires=1679470456&Signature=WxUkqLrA8LUETE7uR-I9jAYNVq-PXLI1BTFuV~s2TrSK-ydWhutS0XyVUE71iZnICYVRim~P2jPVrAsw8N9beH9eMciJCs4AaMI0LJHbXmSdiFonW5YL4z5pQgN9WKadrqhdpu66Fj0MWiuHvbMalq-NR~X0k~bX4w54Rx7Lc2SIPVfwkiaH7pi5d7c7iUWhQg~gx07pFyJ~uAIn8PRwasFsBPuJ3i1nnid15AEtiu4d2BEJkpkUrof~mbuInFlGGjU7EuDSK9Ci8gBxHlgpHHLsZIYy3IrEMtLifHPoZz6F-fXcJMDwsocmTovHwXnnfLDwvBlzoBsv2ZVxinF9rQ__&Key-Pair-Id=APKAJLOHF5GGSLRBV4ZA
Sandberg, E. and Abrahamsson, M., (2022). Exploring organizational learning and experimental logistics development at the global fashion retailer H&M. Global Business and Organizational Excellence, 41(2), pp.6-20. Available at: https://onlinelibrary.wiley.com/doi/pdf/10.1002/joe.22143
Stein, S., (2019). How could changing consumer trends affect fast-fashion leaders H&M and Zara?, Forbes. Forbes Magazine. Available at: https://www.forbes.com/sites/sanfordstein/2019/02/10/how-could-changing-consumer-trends-affect-fast-fashion-leaders-hm-and-zara/ (Accessed: March 22, 2023).
Wren, B., (2022). Sustainable supply chain management in the fast fashion Industry: A comparative study of current efforts and best practices to address the climate crisis. Cleaner Logistics and Supply Chain, 4, p.100032. Available at: https://www.sciencedirect.com/science/article/pii/S2772390922000051
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