stratgic manegment

STRATEGIC MANAGEMENT Name: Course: Professor Name: (October 15, 2011) Strategic Management Introduction The Global fashion retail business has been undergoing great changes as designers and business persons in the sector try to outdo each other. Various company managers have been using different strategies in management to ensure that their company sells out best; most being under pressure from consumers who no longer have mere loyalty to fashion companies like used to be in the past but who need to work with result oriented companies that mind their communities wellbeing. The changing customer trends, globalization, advancement in technology, rise in number of fashion companies and unpredictable economic times have all contributed to shift and improvement in the fashion industry; companies that previously concentrated their businesses in Western countries have no choice but to spread their arms to developing countries in search for better profits and titles especially in corporate social responsibility (CSR). H&M is no exception and it has been expanding over the years; the second largest world fashion company opened its first store in Sweden in 1947 and now has over 2,300 stores and 87,000 employees locally and abroad and is largely known for its broad range of clothing and other wears such as footwear. This paper will highlight H&M`s profile in terms of products, services and market coverage. It will also give an overview of the company`s strategic objectives, mission and vision as well as engagement in CSR. Further the paper will provide an insight of the company`s performance in terms of financial trends and competitive strategies; whether or not the company is on the right strategic direction and some of the challenges that it may be facing in its progress. Strategic Management As stated before H&M concentrates on clothing and footwear, but it also deals with other accessories and cosmetics. As of 2008, the company had over 1700 stores in more than 33 countries in Europe, America, Asia and Africa (H&M Sustainability Report, 2008); the number of stores has greatly increased since the company opens over 150 stores each year. The company`s success is based the principle strategy of engaging corporate social responsibility as a means of shifting focus from the "cotton to the customers". In CSR, the company works closely with partners such as the United Nations in key activities such as fighting HIV&AIDS, clean environment, human rights, use of organic cotton, use of energy effective method and reduction of chemical use in industries (H&M company profile). H&M also capitalizes on the fact that it is a well established international company. The company`s mission is to offer its customers good quality fashion at the best market prices and its vision is to ensure that the Company is sustainable socially, economically and environmentally-for better profits. Given the business strategies in place, H&M performance in terms of finances has been good and since 2007, the company has had increasing financial trends (The Wall Street Journal, 2011). According to Bloomberg Businessweek (2011), the ability of H&M to reduce the cost of goods sold...