The paper "H& M Corporate Level Strategies" is a great example of a management case study. Corporate level strategies involve strategic decisions that cut across the organization. Some of these strategies include allocation of resources, human resource management, mergers and acquisitions and financial performance. To gain competitive advantage, a firm specifies some actions to select and manage different products that compete in diverse product markets. H& M has developed corporate strategies to help it earn above-average returns. Moreover, its strategic value will be based on the degree at which the business portfolio as managed by the company and not any other ownership.
The corporate strategies also involve the mode of entry of new businesses that capture synergies and define the scope of industries and markets under the competition of the firm. This report analyzes the corporate-level strategies of H& M Company using some of the strategic tools. In addition, it evaluates the strategies with regard to their suitability using tools such as PEST analysis, value chain, cultural web mapping, core competence analysis, Porters five forces framework and market segmentation analysis. 1.1 Strategy and culture analysis Every organization and its sub-units have a culture in the form of basic assumptions developed to cope with internal integration and external adaptation.
H& M, a Swedish multinational, is one of the leading fashion brands globally that offer quality and fashion to its customers at best prices. With a defined organizational culture, H& M, when faced with internal resource constraints, will respond in a different way (H& M, 2015). H& M has a core value on believing in people. This strong culture ensures that employees while undertaking their roles internalize the values. More importantly, it recruits the best people and develops their learning and development needs (H& M, 2014).
For example, internal promotion and job rotation are prominent human resource policies under H& M. Indeed, employees are regarded highly for their loyalty, continuity and experience. A cultural web (see figure 1 below) is used to examine the current organizational culture, expected culture and the differences between the current and the expected.
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