1. Demonstrate the usage of quality concept by explaining the impact of quality on the business performance of this organisation. Your discussion shall address the following aspects:
(a) Describe the business operation and service provided by the organisation.
H&M was founded in 1947 by Erling Persson, now it is a global fashion brand. Today the H&M offers fashion for everyone under the banner of H&M groups. They currently have over 3200 stores in over 54 markets around the globe and employed over 116,000 workers worldwide. Besides retail stores, customers can also purchase products through their interactive online shop which is applicable in smartphones.
Their business concept is fairly simple which is to provide customers with fashionable, high quality clothing at the best price possible. They offer a wide range of collections that are in variety of categories including women, men, teenagers and children apparel.
Quality is an important factor in H&M, quality is a process they take seriously even from initial idea to final product. This is to ensure they always exceed customer’s expectation on product quality. The product should not only look good but also safe and free from harmful chemicals.
(b) Identify the key customers, suppliers and competitors for these services.
Customers do not only include people who purchase the company’s products but also include employees of the company. Both internal and external customer plays a fairly important role in the company.
For this instance, the internal customer of H&M includes any member of the organisation who rely assistance from another member, which include employees, distributors, vendors and department. For an example, if the retail staffs are being mistreated by their top management, retail staff may respond to the ill treatment by providing bad customer service. This type of customer plays an important role for the success of the company. Therefore it is important for H&M to constantly improve their internal customer satisfaction.
External customers are vital for the company’s growth and survival, as they provide the revenue through the purchases made. If satisfied, customers often make repeat purchases and spread words of mouth to potential customers.
H&M retail products attract every age group in the market due to its versatile clothing products that caters to all age group. Being said that, H&M key customers that largely contribute to their revenues are fashionable females who are particularly concerned about their individual image and style. This target audience is usually between the age of 16 and 27 years old. This target audience wants products that can last throughout seasons beyond the purchase date and at the same time demands fast fashion in order to keep up with the current trends. Moreover, these women are looking to purchase a product that is at the same time affordable. This target audience values high-quality product, wide range of apparels and affordable price. Therefore H&M is the best retail chain to meet their needs
Basically H&M does not own factories, but instead they purchase ready made products from various independent suppliers and second tier suppliers. These suppliers are in close long term relationship with H&M. They work in close cooperation with their suppliers to ensure that suppliers comply with the H&M rules and regulation.
H&M took another step ahead by being the first to disclose its entire supplier factory list. Their step is to showcase suppliers for taking ownership over their sustainability and recognises the progress made over time. Moreover, this step will further enhance transparency and sustainability that H&M is trying to achieve.
In total H&M works with 900 independent suppliers around the globe. H&M categorises their suppliers into two categories; Manufacturing factories and Processing Factories.
Manufacturing Factories – These factories are either owned...
References: 1. Foster S.T, (2013), Managing Quality Integrating the Supply Chain, 5th Edition, Pearson Education Inc.
2. SIM University, (2014), Total Quality Management Study Guide, Educational Technology & Production Team Curriculum Administration Team.
3. H&M, (2014), Quality, Retrieved from; http://about.hm.com/en/About/facts-about-hm/about-hm/hm-group/quality.html
5. H&M, (2014), Facts About H&M, Retrieved from;
6. Ruben D.V, (2012), H&M IMC Project Part 1, Retrieved from;
7. Answers, (2014), How effective customer service benefits the customer the organisation and employee?, Retrieved from; http://wiki.answers.com/Q/How_effective_customer_service_benefits_the_customer_the_organisation_and_the_employee?#slide=8
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