Q1. What do you think is the most critical strategic issue confronting H&M? Explain your answer by drawing on relevant topics in Strategic Management (maximum of 900 words). H&M have gone from being a single store established in 1947 in Sweden‚ to being a fast fashion multinational company with over 2206 stores in 43 different countries as well as 94‚000 employees worldwide. However their success has and dominance within the market has been an area in which they as a company have been affected
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The Internal-External (IE) Matrix The Internal-External (IE) Matrix positions an organization’s various divisions in a nine cell display illustrated in Figure 6-9. The IE Matrix is similar to the BCG Matrix in that both tools involve plotting organization divisions in a schematic diagram; this is why _ r FIGURE 6-9 The Internal-External (IE) Matrix THE IFE TOTAL WEIGHTED SCORES
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coming together of companies into one and invariably when two or more companies work together on a common goal is a joint venture. Below we discuss the different types of mergers and joint ventures. The types of mergers are as follows: horizontal‚ vertical‚ conglomerate‚ and lastly a joint venture. Horizontal Horizontal mergers occur when there is more than one firm within the same market operating their firm out of the same location (Collander 2013). This may also include firms in the market that
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difficult or is simply exhausted all its resources to remain open‚ a merger may be the only way its employees can retain their position. The alternative would be to close its doors and give up. Below we will discuss the differences between horizontal‚ vertical‚ and conglomerate mergers and how these differ from a joint venture. Horizontal mergers occur between businesses within the same industry. Often between organizations that share the same space or sell similar competing goods or services. A horizontal
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ADVANTAGES OF VERTICAL INTEGRATION It leads to reduction of transportation costs as the common ownership results in closer geographic proximity. The transaction costs can be controlled if a firm acquires the other firms in the vertical chain‚ then one division of the same company will transfer goods to other divisions. So‚ transaction costs in form of transport‚ cost of negotiation‚ cost of control etc. will be eliminated. The overall average cost of the firm will decrease because if the divisions
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An insight into Zara as a Born Global Executive Summary Zara was first established just outside of Spain in1988‚ in 1994 Zara expanded into France and Mexico (Bhardwaj et al‚ 2010). Zara is owned by the INIDEX group in which it contributes to 64.8 per cent of total company sales (Inidex annual report‚ 2011) which was a 10 per cent growth on the previous fiscal year. Zara now has over 1830 stores worldwide across 82 markets in 64 countries‚ with plans to move into Korea‚ Egypt‚ Ukraine and Montenegro
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rendah tapi mempunyai pangsa pasar yang relatif tinggi. Dengan posisi ini stars‚ PT. Unilever Indonesia‚ Tbk. dapat memilih untuk melakukan strategi seperti market penetration‚ market development‚ product development‚ backward integration‚ forward integration‚ horizontal integration‚ di posisi Cash Cows‚ dapat mencoba melakukan strategi product development atau concentric diversification. http://harningsih-ningsihblog.blogspot.com/2010/05/boston-consulting-grup-matrix-pada-pt.html An Example?
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Current Situation: In the last fifteen years‚ Shell International has undergone many changes in their organizational structure. Three major events‚ the Brent Spar incident‚ human rights problems in Nigeria‚ and shareholder activism moved Shell to do a thorough examination of their company. After many attacks by activists‚ Shell first‚ changed from a complicated matrix form of organization to five worldwide business units. These units were exploration‚ production‚ oil products‚ chemicals‚ gas
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(buyers are rather paying for brands)‚ cost of switching is almost zero and there is not threat of backward integration (apart from large retailers). Power of suppliers Power of suppliers on this market is moderate/high because there is limited amount of suppliers‚ switching costs are high‚ suppliers’ brands are not usually powerful‚ there exists the possibility of forward integration and supplier’s customers are not fragmented. Competitive rivalry Rivalry is
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regarding each of these positions. (5 marks each) a. Jessica Menchella and Nathan Lunn were discussing the recent acquisition of Shoppers Drug Mart by Loblaw Corporation. According to Jessica‚ this was a horizontal merger; according to Nathan it was a vertical merger. b. James Chewka and Sheema Amin were discussing payments made by franchisees to franchisors. James thought it better to pay high up-front fees‚ and lower royalties; Sheema believed the opposite to be true; i.e.‚ it would be better to pay
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