H&M Case Study
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- Date Submitted: 04/08/2015 07:45 AM
- Pages: 24
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Case study : H&M in fast fashion : continued success?
Question 1
Discuss the underlying forces in the macro-environment which usually drive the competitive forces within the clothing industry?
In an organisation the environment is known as the aspect that gives them their means of survival. The environment creates opportunities as well as presents threats. These environments are analysed using frameworks. These frameworks are categorised into layers.
The highest level of this environment is known as the macro-environment. The macro environment consists of environmental factors that impact in some way on almost all organisations. It is in this environment that the PESTEL framework is used to forecast how issues in the political, economic, social, technological, environmental and legal environments might affect organisations. The PESTEL analysis provides the data needed to identify the key drivers of change. These key drivers in turn can assist organisations with constructing scenarios of alternate possible futures.
The PESTEL framework categorises environmental influences into 6 main types namely: political, economic, social, technological, environmental and legal. PESTEL in this way provides a comprehensive list of all influences on the possible success or failure of particular strategies. Politics highlights the role of governments; Economics refers to macro-economic factors such as exchange rates, business cycles and differential economic growth rates around the world; Social influences includes any cultural or demographic change; Technological influences refer to innovations example the internet; Environmental refers specifically to green issues an example being pollution and Legal encompasses all legislative constraints.
The macro-environment factors in relation to the clothing industry will be discussed below according to the PESTEL framework.
Political:
The terrorist attacks between 2001 and 2003 has resulted in the decline in revenue in the...
Question 1
Discuss the underlying forces in the macro-environment which usually drive the competitive forces within the clothing industry?
In an organisation the environment is known as the aspect that gives them their means of survival. The environment creates opportunities as well as presents threats. These environments are analysed using frameworks. These frameworks are categorised into layers.
The highest level of this environment is known as the macro-environment. The macro environment consists of environmental factors that impact in some way on almost all organisations. It is in this environment that the PESTEL framework is used to forecast how issues in the political, economic, social, technological, environmental and legal environments might affect organisations. The PESTEL analysis provides the data needed to identify the key drivers of change. These key drivers in turn can assist organisations with constructing scenarios of alternate possible futures.
The PESTEL framework categorises environmental influences into 6 main types namely: political, economic, social, technological, environmental and legal. PESTEL in this way provides a comprehensive list of all influences on the possible success or failure of particular strategies. Politics highlights the role of governments; Economics refers to macro-economic factors such as exchange rates, business cycles and differential economic growth rates around the world; Social influences includes any cultural or demographic change; Technological influences refer to innovations example the internet; Environmental refers specifically to green issues an example being pollution and Legal encompasses all legislative constraints.
The macro-environment factors in relation to the clothing industry will be discussed below according to the PESTEL framework.
Political:
The terrorist attacks between 2001 and 2003 has resulted in the decline in revenue in the...