Chp.4 The Marketing Enviornment

H&M has a big target group towards the younger people and students. It's important for H&M to continue to discover interesting and new products to continue to bring in the younger customers. While working at H&M I have noticed that mainly there is a variety of different consumers.When I shop at H&M, I'm always excited to see what they have that's new. I feel they have everything I need in that store, which means they get more money out of me. LOL . H&M has to make sure that as their target environment is changing, they are also changing as well. You have to adhere to what the consumers want and need. I love H&M because they know what they need to do and how to do it, to continue to bring in more revenue. H&Ms prices are wonderful and cater to those that may not have a lot of money to spend on clothing.I have learned that some stores are set up differently to cater to the environment in which they're located. The styling of the manicans, to the set up of the windows. H&M wants to make sure they appeal to a specific group of buyers all the time.

Chp4. The Marketing Environment

Chp.3 Ethics&Social Responsibility

In chapter 3 it discussed how many organizations have a "code of ethics". H&M has a Code of Conduct which is the core of their programme to improve working conditions. H&M regularly monitors their suppliers to make sure that they comply with the requirements that are set in their Code. H&M believes that checking their compliance isn't enough and they have to take other steps to monitor and keep control of other complex issues.

H&M makes sure that their employers can live off of the wages their suppliers pay, by making sure the suppliers at least pay the minimum wage as defined by law or relevant agreements.

H&M cares about their employees and to show this, they have a framework agreement with UNI and collaborate with EWC. This is all to safeguard their employees right to workplace representation. H&M's Code of Conduct includes freedom of association, and they encourage worker management dialogue in supplier factories.

Lastly, H&M is big on sustainability and believes that it's the true definition of what it means to be a successful business. When H&M thinks of sustainability they like to focus on three important areas: PEOPLE, PLANET, AND PROFIT.  H&M wants to make sure that sustainability is natural and it's apart of everything they do. H&M has a sustainability vision and sustainability policy which can only be maintained by having long-term goals as apart of their sustainability strategy.

Chp. 3 Ethics&Social Responsibility

Chp. 2 Strategic Planning for Competitive Advantage

Three main strategic goals for H&M for the next five years would be linked with profitability, competition and technological leadership. H&M has reported a rise in sales and profits and sales for the three months to 31st of August. Net profit for the third quarter of 2009 rose 4.1% to 3.46bn Swedish crowns from 3.33bn crowns last year. Sales, excluding sales tax, increased by 13% to 23.6bn crowns. So first LTO is to maintain financial stability H&M has achieved. H&M plans to increase sales revenues by 20% and earnings per share by 30% till 2015.
Secondly as main strategy of H&M is expansion, LTO in competition is to increase number of stores by 10% to 15% every year. Today H&M has as 1840 stores up from 1618 at the same time last year. New stores will be open in the cities H&M already has stores and also in completely new markets.

H&M is following all the latest innovations in the clothing manufacturing. It is important to increase efficiency, cut costs and keep prices low while raising quality. Third LTO in the technological leadership for H&M is to lower maintenance costs by 15% and decrease waste by 10% till the year 2015.
Porter’s four generic strategies are cost leadership, differentiation, low cost to narrow market strategy and niche strategy. H&M has cost leadership strategy. H&M offers fashionable clothing for cheap prices selling to broad markets. This strategy is also very suitable for the current economical situation. H&M with this strategy also set high entry barriers for the competitors.
H&M has achieved ability to be efficient. As there is low profit margin being cost leader, H&M is very focused on expansion and increase of market share. It is important for H&M to sell more volumes of the product to earn profits. Fixed costs are high and by every product made variable costs are lowering. It has secured suppliers because H&M doesn’t own factories itself but have long term production contracts with factories in Bangladesh, Morocco and Turkey. It is very important buyer to textile sellers as H&M buys large quantities several times per year. H&M has good long term contracts with its producers and suppliers.

Chp.2 Strategic Planning

Chp. 1 Mission Statement

H&M's purpose is to offer their customers fashion and quality at the best price. H&M states numerous of times that quality is more than making sure that products meet or exceed their customers expectations. H&M is constantly working to better their products by manufacturing under good working conditions, and with limited impact on the environment. H&M takes responsibility for how their operations affect people and the environment which is key for their profit and growth.

H&M is committed to integrating social and enviornmental concerns into all their business operations and investing in the communities. This company has a lot of great things going on such as charitable organizations both globally and locally. Some of the global organizations include: UNICEF, WaterAid, Hand in Hand and Fashion Against Aids. In the US, they work with Making Strides for the American Cancer Society in multiple cities to help raise funds for breast cancer research and with the Boys and Girls Club of America.

CHP.1 Mission Statement

Chp. 1 Hennes&Mauritz(Brief History)

HM signifies "Hennes"- the swedish word for "hers". And Mauritz signifies a hunting store in Stockholm. H&M was founded by Erling Persson who started out as a salesman in Vasteras, Sweden. In 1947 he visited the US and it was here that he took interest in a new kind of clothing store. HM had a high turnover of garments and kept its prices low. The first store to open was in Vasteras on September 13, 1947. During the 1950s and 1960s Hennes then expanded steadily. When the company decided to expand to Stockholm in 1968, Erling Persson bought Mauritz Widforss. Mauritz Widforss wasn't only a hunting store it also featured a stock of mens clothing. Persson later brung the two names together and created H&M. H&M has been known to deliver fashion and quality at the best price for over sixty years. This company sets itself apart from others because of the low prices they continue to offer it's consumers. This is a major reason why the company has lasted and is successful today!

CHP.1 History