H&M Swot and Pestel

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Henns&Mauritz

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Table of Contents

Executive Summary3

Description of the Organisation4

PESTEL-Analysis6

SWOT-Analysis7
* Strengths7
* Weaknesses9
* Opportunities9
* Threats10

Ethical behaviour and corporate social responsibility 11
Conclusion12
Bibliography13

Executive Summary

H&M is a great company in many aspects. It may be Sweden’s most recognised company after IKEA. It all started with a small women clothing store outside of Stockholm and later grew to be the biggest clothing retail firm that one have yet seen. During this report I will begin with a brief description of the company’s interesting history and end with an overview over its ethical behaviour and corporate responsibility. In the middle of the report I will also conduct a PESTEL- and SWOT analysis to show the company’s external and internal factors.

Description of the Organisation

Hennes & Maurtiz has today 2,206 stores distributed on 38 markets. They had approximately 17,000 employees in 1998. Year 2010, 12 years later, H&M have accomplished to increase their workforce to 87,000 which is more than five times the figures it obtained in 1998. In 2010 their sales landed on roughly 12 billion GBP. This states that sales per employee landed around 138,000 GBP. Erling Persson founded Hennes in 1947. Hennes was a women clothing store in Vasteras, just outside of Stockholm. He got the idea to start a women clothing store during a trip to The United States of America where he embraced a retail concept which was yet unknown in Sweden. Erling expanded his women clothing store concept so it finally in 1960 covered the country of Sweden. Year 1968, nearly 20 years after the first Hennes store was opened, he purchased the men clothing and hunting store Maurtiz Widforss because of this purchase he could now reach out to the other gender and at the same time he also introduced a children’s clothing line. So now he had enough audiences to take the expansion to the next level. He quickly changed the name to Hennes & Maurtiz and in the beginning of 1970s he also introduced two additional segments (teenagers and babies). Until 1982 Erling main objective was to expand the company outside of Scandinavia. He penetrated retail markets in The United Kingdom, Switzerland and Germany. When his son Stefan Persson took over the CEO post he continued the international expansion. In 1997 when Stefan stepped down as a CEO to take the role as Chairman of the board he had accomplished to double the international markets which H&M where operating in, 12 international markets was now a fact. For the first time the company now decided to continue its business without a family member as a CEO. A man named Fabian Mansson was now chosen to lead the expansion-aggressive retail firm to battle. During his 12 years as CEO he managed to fight his way into additional 23 markets. H&M was now operating in 35 markets worldwide. From USA to Ireland and Denmark to South Korea it was now a present retail chain in nearly every Industrial country that one visited. 2009 was the year when it was time for Stefan’s son Carl-Johan Persson to take over the CEO seat for the multi-national company it had become. Carl-Johan brought the company to where it is today, in 38 markets.

PESTEL-Analysis

Political| Economic|
* Tries to impose Governments to increase minimum wages where their suppliers are located. * Establishment issues in Israel| * Increase workforce annually * Exchange rates are important because of its many markets it operates within * Contributes positive to the global economic wealth by their aggressive expansion| Social| Technological|

* Inventive programme * A strong sustainability and production policy * | * Provide new technology as air condition to its suppliers of cotton....
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