Hennes & Mauritz
Human resource management and organizational behaviour within a multinational leader Hennes & Mauritz is a multinational retail-clothing company operating in 38 countries and employing a total of 87,000 people. It has been founded in 1947 in Sweden and experienced a rapid growth due to international expansion since the 1960’s. H&M’s mission is at the same time one of the reason for its big and fast success; offering fashion and quality at the best price. Customer expactations are supposed to be exceeded at all times as well as customers being satisfied with the company itself. In order to achieve that H&M needs to sustain its very positive brand image and staff that is organized in the best possible way to handle those goals set. In its annual report it is stated that the company’s focus should be on commercial mindset, simplicity, constant improvement, cost consciousness and entrepreneurship. With those aspects in mind, the long term goal being „making fashion available to everyone, giving the customer a fashion experience that strengthens H&M brand“ should be reached allowing the business to further expand and to enter new markets on the basis of a 10-15% growth per year, funded internally.
Over the years, the company has set a strategy which has the three main aspects of price, design and merger &acquisitions. First of all, since H&M always tries to offer their customers the lowest price possible, they need to achieve a competitive advantage to achieve low costs, and sustaining profitability at very low prices. This is achieved through keeping the number of middlemen to a minimum, benefiting of economies of scale, taking advantage of their great experience and selecting suppliers carefully and keeping distribution costs as low as possible.
Designing is completly processed inh-house while all of the production is outsorced but its outcome is tested carefully on a regular basis to ensure high quality at all times.
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