Analysis of H&M

By Fiza Fatima, Warda shahid and Esha Irfan
Final Project HRM

Table of Content
Introduction
Foundation of Control
Corporate sector and social
responsibility
Organizational Structure
Leadership
Decision Making

H & M
Corporation
Hennes & Mauritz

H&M
Hennes and Muaritz
● Stefan Persson is the owner
of H&M.
● It is founded on October 4,
1947 by Eriling Persson.
● CEO: Helena Helmersson

01. Introduction
• In New York, the idea of selling women’s
fashion in a new way is born.
• The following year, it was known as
Hennes.

 H&M is a Swedish multinational clothing-retail
company.
H&M operates in 74 countries with over 5000
stores.
It’s headquarters found in Stockholm, Sweden.
 Unlike Zara, H&M does not manufacture its
products in house.
H&M works to maintain regular dialogue with their
stakeholder groups such as suppliers and their
employees and the communities around them.

● HRM is the strategic approach to the effective management of people in a
company or organization such that they help their business gain a competitive
advantage.
● We are going to discuss how the corporations apply HRM functions and
strategies in order to achieve their organizational goal.
How our subject (HRM) is related to our topic?

● to become 100 percent circular
● Ensuring all its workers throughout its supply chain are
treated and paid fairly.
● causing as little harm to the planet
H&M have 3 major goals

 challenge the comfortable and look outside
the box for new solutions.
 fashion industry to become planet positive.
 fashion industry to become role of a
commercial company

● daily commitment
● long-term involvement of employees
● employees will receive payouts from HIP
H&M Incentive Programs

Corporate and social
responsibilities

 extensive use of organically grown fibers
 reduction in the use of hazardous chemicals in its
supply chain.
 reduction in the use of hazardous chemicals in its
supply chain
 efforts to improve water conservation.
 Recycle garments
Corporate sector and social responsibilities

"A company of our size and scale has
a responsibility as well as a great
opportunity to lead the change
towards a more sustainable fashion
and design industry"
-Anna Gedda, Head of
Sustainability at H&M

▴An organizational structure defines
how activities are directed toward the
achievement of organizational aims.
What is an Organisational
Structure?

 H&M has a multi-brand
matrix organisation.
 Executive management team
responsible for each department.
 H&M is the core company, as it
distributes its functions to other
companies.
Organization Structure

H&M group comprises of nine independent
brands: H&M, COS, Weekday, Monki, H&M Home,
& Other Stories, ARKET and Afound.

• The chief executive officer, who is
appointed by the board of
directors, is responsible for day-
to-day management of the H&M
group.
• The executive management team
is made up of six women and nine
men, and comprises the CEO,
CFO, the two people with
responsibility for the H&M brand.
• There are two people with
responsibility for the H&M brand,
the person with responsibility for
Portfolio Brands and the person
with responsibility for Business
Ventures.

Decision making refers
to making choices among
alternative courses of action.

Our values are at the very core
of “the H&M way”. These
values guide our actions in
our daily work along with our
policies and guidelines. Our
values are called “the H&M
spirit”.
-the H&M
management

They work Together:
● The H&M says that
“everyone working in a
company is the
ambassador of the
company”
Discussion with other
Stakeholders:  H&M works to
maintain regular
dialogue with our
stakeholder
groups.
 They done this is
on the daily basis
through regular
meeting.

. They actively seek
collaboration with their
stakeholders in order
to improve H&M’s
performance as a
business and
corporate citizen.

• Encouraging
People across
our value
chain to make more
sustainable choices
• An important part
of
their approach is openly
engaging with decision
makers on policy
issues.
Openly sharing
their progress and
challenges
to create
accountability and
encourage others
in our industry.
Stimulating
transformation by
identifying, testing
and scaling new
solutions and
business models.
innovation Transparency Inspiring sustainable
action
H&M focus on three key areas that maximize their
impact:

 H&M tries to cater to
the wants and
needs of their
consumers.
 They try to make it
easier for customers
to find what they are
looking for.
 H&M seems to
provide cheap and
fashionable clothing
as compare to other
brands.
 Most of the H&M’s
clothing is divided
into the different
sections.
 If they need to find
something an
employee can always
point them in the right
Costumer’s
need Prices
Ease of
costumers
Strategies.

SWOT Analysis
●Stores all around the world
●Strong brand image
●Fashionable clothes to low
price
●Good relationship with
customers.
●Limited product quality
●Lack of control over product
production
●Small invertory
●Their clothes are not that
exclusive
● High demand for products
●Online shopping
●Emerging international
market
●Collaborations with luxury
designers
Weaknesses
Opportunities
Threats
●Highly competitive market
●Constantly changing
fashion trends
●Rising labor costs in Asia
●No typical consumer
Strengths
SWO
T
S
O
T W

H&M follow a transactional
leadership approach whereby
employees follow the guidelines
and expectations as set out by
the organization’s leadership
and the benefit of this is that it
creates synergy within the H&M
brand.

Their leadership and management style
is all about creating an open, dynamic
and down-to-earth organizational culture
. Their management style is all about
being value-driven, consumer-focused,
responsible and creative. It also
encourages a very inclusive workplace
that incorporates teamwork and growth
for their employees which forms part of
their organizational culture

Elements of transformational leadership

● https://about.hm.com/content/dam/hmgroup/groupsite/documents/en/hm-
way/HM%20Way_en.pdf
● https://internetretailing.net/strategy-and-innovation/strategy-and-innovation/hm-says-previous-
investment-in-digital-helped-it-turn-a-profit-during-the-covid-19-pandemic-22632
● https://hmgroup.com/sustainability/leading-the-change/
● https://www.just-style.com/comment/hm-must-focus-on-digital-in-its-mature-markets-to-
safeguard-sales_id140603.aspx
● https://www.retail-week.com/fashion/handm-boss-helena-helmersson-our-post-pandemic-
recovery-plan/7036698.article
● https://ukdiss.com/examples/marketing-analysis-h-and-m.php
● https://about.hm.com/content/dam/hmgroup/groupsite/documents/en/hm-
way/HM%20Way_en.pdf
● https://hmgroup.com/about-us/history/
● https://www.ifai.com/2013/04/23/hm-recognized-for-corporate-social-responsibility-
initiatives/#:~:text=The%20company's%20CSR%20initiatives%20include,efforts%20to%20impr
ove%20water%20conservation.
References

Analysis of H&M

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